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Business | Case Study Nestle

Nestle Primary SectorHarvesting of Natural resources (wheat, coco, water)
Secondary SectorProducing and the Packaging of food items
(Putting milo powder in the tin cans, packaging the maggi packets, packaging the water)
Tertiary SectorNestle does not have any stores themselves. They sell it to other wholesalers to reduce
inventory risk.
Business OwnershipPublic Limited Company listed on the Swiss stock exchange.
Advantages of PLC:
Appropriate for nestle as they can easily raise capital If needed be.
Shares can be easily transferred to other parties
Disadvantages of PLC:
Hostile takeover can be initiated.
Legal issues might arise.
Size of the business:
Nestle Market Share: 48% Regional Sales Share
Nestle Market Cap; 308.27 Billion Swiss Francs
Nestle Total Employees; 275,000
Nestle Revenue; CHF 94.4 Billion
How does Nestle Grow:
Nestle innovated new products, however majority of their growth came from strategic
acquisitions such as buying Swiss firm Alimentana after WW2 which produced maggi. They
also merged with their rivals.
As nestle makes a lot of artificial and ready to eat meals, they were in the right place and
the right time. They won contractst to supply both to the US army and the German army in
WW1 and 2.
Types of mergers Nestle have done:
Starbucks (Distribution Deal)
Horizontal Merger (Acquiring Sweet Earth)
Conglomerate Merger (Jenny Craig)
Jv or deals, such as the starbucks distribution deal have helped nestle monopolize Starbucks
customers to get Nestle proprietary coffee machines exclusively. This will help nestle gain
more market share in the instant coffee business.