Strategies for Managing Global Expansion - Nestle

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Strategies for Managing Global Expansion Nestlé: A Benchmark for Global Expansion Management Strategies [pic] May 31, 2012 Global Expansion Management Strategies Nestlé: A Global Expansion Strategy Success Introduction Globalization has become a powerful aspect of the world economy and of the strategies and decisions that business managers must make as international expansion becomes increasingly more important to their success. Unlike domestic business strategies, those for managing global expansion must take into consideration all of the differences found in other nations that will have an impact on the cost of business, including economic, political, environmental, social, cultural, and ethical considerations. Nestlé has managed a successful global strategy almost from its inception in 1866, when its primary product was infant formula. Prior to 1900, export barriers forced it to set up factories throughout Europe. Its home country, Switzerland was so small the company had to look internationally for growth. By 1920, it was producing in Brazil and Australia, operated several factories in the U.S. and exported to Hong Kong and India. In 2001, the United Nations ranked the global exposure of the world's 100 biggest companies, comparing their overseas sales, assets and employment levels. Nestle was at the top of the list, with only a small percentage of its sales being generated in Switzerland. (Steinmetz) In 2011, Nestlé had 461 factories in 83 countries around the world, employing 328,000 people. (Nestle.com) With a long history of global expansion, Nestlé lives the vision of globalization and can serve as a benchmark for global expansion management strategies. Global World Economy Globalization can be described as the movement of the world’s economy towards being more integrated

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