Strategic Business Value/Supply Chain Analysis: Nestle
Table of Contents
Section 1 – Executive Summary3
Section 2 – Introduction 4
Section 3 – Nestlé Background 5 3.1 Brief History 5 Section 4 – Literature Review – The Value Chain 6 4.1 The Value Chain 4.2 Nestle and Porter’s Value Chain6 Section 5 – Nestlé Strategies 7
5.1 Creating Shared Value7
5.3 International Competitive Advantage8 Section 6 – Nestlé Collaborations 10 6.1 Buy/Sell Agreements 10 6.1.1 Coco Plan Collaboration10 6.1.2 Sub-Collaborations 11 …show more content…
Today, Nestlé is one of the world’s largest suppliers of food and nutrition products, operating in 86 countries with factories in nearly every country worldwide, and employing approximately 280,000 people.
Originally focusing on condensed milk and infant formula as an economical, healthy alternative to breastfeeding, the company has extended its product offerings to include 6000 brands of varying products from coffee to health care nutrition and pet food.
Figure 1 History of Nestlé
Section 4 – Literature Review – The Value Chain 4.1 Value Chain
The value chain analysis defines the value-adding activities an organisation performs and the relationship to the organisations competitive position and strength (Recklies, D. 2001, p.1). Each activity is arranged into systems and evaluated in terms of contribution to the organisations products or service.
Nestlé’s value chain is based on value proposition, creating shared value and the supply chain, which create enterprise value for the organisation (figure 2). Nestlé attributes its value creation to self-assessment, measuring and monitoring all aspects that optimise and enhance the value delivered the final consumer (appendix 1). The company evaluates these activities that add ‘value’, eliminating other less beneficial activities and thereby allowing resources to be utilised and