Nestle Strategy Essay

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------------------------------------------------- Nestle's global strategy ------------------------------------------------- EADA Business School [Автор] Description Analysis of Nestle's global strategy based on responsiveness to cost pressures and local responsiveness. Potential challenges for existing strategy, including reccommedations. EXECUTIVE SUMMARY This report is aimed to analyse Nestle’s strategy in a global context, based on a responsiveness to cost pressure and cost pressures. It would look at the potential challenges for the existing strategy and come up with strategic reccommendations. Nestle is a largest food company is the world with over hundred years history of success. It follows multi-domestic strategy, which implies high local responsiveness and low responsiveness to cost pressures. Nestle proved to be the most successful food company in the world, due to its’ ability to understand and adapt to local needs and preferences. More than that, Nestle localizes the whole cycle of activities from production to marketing. However, challenges still exist in terms of growing commodity prices, such as cocoa, coffee, sugar, grain and others and Nestle’s inability to take full advantage of experience curve and economies of scale. However, the company has a proven track of successful resolvings of the issues of growing commodity prices and has various alternatives to deal with them. Also, financial indicators have been analyzed and they proved to be healthy, sustainable and attractive to potential and existing investors. Multibillion brand ensures successful entry to new markets and gives comparative advantage over its’ competitors. From everything mentioned above, it can be concluded that Nestle is following the only correct strategy and in future should stick to it, resolving potential problems within its existing multi-domestic

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