Corporate Partnerships for Entrepreneurship of Nestle - Research Proposal Example

Corporate Partnerships for Entrepreneurship of Nestle Executive Summary Nestle is one of the largest multinational business organization spread over major portion of the Globe. Henri Nestlé in Switzerland founded the Company in 1866. Company employs around 280000 people and has factories or operations in almost every country in the world with major facilities in 81 countries. Nestlé sales for 2010 were almost CHF 110 bn (roughly 109 billion US Dollars). It manufactures and sells about 7500 brands in different nutrition and wellness categories. This report provides an analysis and evaluation of the range of alternative aspects related to international entrepreneurship employed by Nestle to influence business activity, by clearly identifying conclusions drawn from the analysis. The paper will give recommendations and suggest areas of further study. The report finds the international business prospects of the company in its current position are positive. The areas of weakness require further investigation and remedial action by management. Introduction Entrepreneurship is a process through which individuals or organizations identify opportunities, allocate resources, and create value.  This creation of value is often through the identification of unmet needs or through the identification of opportunities for change. Entrepreneurs see “problems” as “opportunities,” then take action to identify the solutions to those problems and the customers who will pay to have those problems solved. Entrepreneurial success is simply a function of the ability of an entrepreneur to see these opportunities in the marketplace, initiate change (or take advantage of change) and create value through solutions. (Greg). International or Global Business is defined as the exchange of goods and services among individuals and businesses in multiple countries. It is specific entity, such as a multinational corporation or international business company that engages in business among multiple countries. To initiate and expand international business, International marketing is required. International marketing is the process of conceptualizing and then conveying a final product or service worldwide with the hopes of reaching the international marketing community. Proper global marketing has the ability to catapult a company to the next level, if they do it correctly. Different strategies are implemented based on the region the company is marketing to. Global /International marketing is especially important to companies that provide products or services that have a universal demand such as automobiles and food.( jetzt). In this backdrop, Nestle is a true International entrepreneur / business. Henri Nestlé in Vevey, Switzerland, founded the company in 1866 with headquarters still located there. Company employs around 280000 people and has factories or operations in almost every country in the world. Nestlé sales for 2010 were almost CHF 110 bn (roughly 109 billion US Dollars). It manufactures and sells about 7500 brands in different nutrition and wellness categories. (Nestle) .Nestlé deals in variety of food, health and nutrition products. Main categories of products include but not limited to Baby Foods, Sports Nutrition, Chocolates, Waters, Coffee, Beverages, Frozen Meals, Ice Cream and Frozen Treats, Imported Foods, Healthcare Nutrition, Pet Foods and Food services worldwide. Creating a global business strategy involves first carrying out an environmental analysis of political, economic, social, and technological trends that are relevant to operating on a global scale. An organization’s mission statement should then reflect this global focus. A mission statement is a relatively short statement outlining the purpose of an organization. It creates a direction for the organization. Having a clear set of objectives enables strategic planners within an organization to develop the plans - strategies that enable the organization to focus on global markets. A key element of this global strategy will be a global marketing plan identifying an appropriate marketing mix, coupled with production and distribution plans. A key element of the global strategy is to decide on which countries and areas to concentrate activities. The company will then build a strong global brand image so that it is instantly recognized and valued. Marketing activities will involve building up loyal customer support in targeted markets, and out-competing the competition through superior customer service, reliability and other customer benefits. It has been identified that Nestle has undergone all these steps and became a market leader and one of the top multinational companies through vigorous planning, hard work and continuous pursuit for quality. Mission. Mission of Nestle is “Good Food Good Life”. The company claims that these words represent the promise they commit to everyday and everywhere- to enhance lives, throughout life with good food and beverages. International Entrepreneurship at Nestle Management Managers around the globe are recognizing the increasing necessity for their companies and organizations to develop the skills, aptitudes and knowledge to compete effectively in international markets. The emergence of a more open world economy, the globalization of consumer tastes and the unabated expansion of Internet access globally all increase the interdependency and interconnections of nation economies across the globe. The need for managers to develop the skills to respond to these pressures affects companies of all sizes. Nestlé has a Board of Directors, led by Chairman Peter Brabeck-Letmathe, who was the former Nestlé CEO. There are 15 members of the Board of Directors. The day-to-day management of the Nestlé business is taken care of by Executive Board members. The 13 designated Board Members manage diverse parts of the global business. The Nestlé Group is managed by geographies (Zones Europe, Americas and Asia/Oceania/Africa) for most of the food and beverage business, with the exceptions of Nestlé Waters, Nestlé Nutrition, Nestlé Purina Petcare, Nespresso, Nestlé Professional and Nestlé Health Science, which are managed on a global basis – these are called the Globally Managed Businesses. Nestle also have joint ventures such as Cereal Partners Worldwide and Beverage Partners Worldwide. Reporting performance Nestlé continues to develop a comprehensive series of strategic Key Performance Indicators (KPIs), as part of its commitment to more evidence-based reporting. Where applicable, these KPIs provide a direct comparison against its previous year’s performance, giving a focus for measuring and reporting Creating Shared Value, sustainability and compliance. Business Principles. Nestlé has identified and committed to the following Business Principles in all countries, taking into account local legislation, cultural and religious practices (Nestle): 1. Nutrition, Health and Wellness. Core aim of company is to enhance the quality of consumers lives every day, everywhere by offering tastier and healthier food and beverage choices and encouraging a healthy lifestyle Nestlé expresses this via its corporate proposition Good Food, Good Life. 2. Quality Assurance and product safety. Everywhere in the world, the Nestlé name represents a promise to the consumer that the product is safe and of high standard. 3. Consumer Communication. Nestle is committed to responsible, reliable consumer communication that empowers consumers to exercise their right to informed choice and promotes healthier diets. It respects consumer privacy. 4. Human Rights in Business Activities. Nestle fully supports the United Nations Global Compact’s (UNGC) guiding principles on human rights and labor and aim to provide an example of good human rights’ and labor practices throughout its business activities. 5. Leadership and Personal Responsibility. Company’s success is based on its people. Nestle people treat each other with respect and dignity and expect everyone to promote a sense of personal responsibility. Company recruit competent and motivated people, who respect its values, provide equal opportunities for their development and advancement protect their privacy and do not tolerate any form of harassment or discrimination. 6. Safety and health at work. Nestle is committed to preventing accidents, injuries and illness related to work, and to protect employees, contractors and others involved along the value chain. 7. Supplier and Customer relations . Nestle requires its suppliers, agents, subcontractors and their employees to demonstrate honesty, integrity and fairness, and to adhere to its non-negotiable standards. In the same way, it is committed towards its own customers. 8. Agriculture and rural development . Nestle contributes to improvements in agricultural production, the social and economic status of farmers, rural communities and in production systems to make them more environmentally sustainable. 9. Environmental Sustainability. Nestle commits itself to environmentally sustainable business practices. At all stages of the product life cycle Nestle strives to use natural resources efficiently, favor the use of sustain ably-managed renewable resources, and target zero waste.  10. Water. Nestle is committed to the sustainable use of water and continuous improvement in water management. It recognizes that the world faces a growing water challenge and that responsible management of the world’s resources by all water users is an absolute necessity. Sustainability Indices. Nestlé's activities and business principles as well as its impact on the environment and society are reviewed and rated by various sustainability indices. A summary of the results is as under:- 1. FTSE Group confirmed that Nestlé has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by the global index company FTSE Group, FTSE4Good is an equity index series that is designed to facilitate investment in companies that meet globally recognized corporate responsibility standards. Companies in this Index Series have met stringent social and environmental criteria, and are positioned to capitalize on the benefits of responsible business practice.  2. SAM Dow Jones Sustainability Index. In 2010 Nestlé once again received Gold Class ranking and featured in the SAM Sustainability Yearbook 2011. Each year, the 2,500 largest companies in the world are invited to participate in SAM's Corporate Sustainability Assessment.  3. 2009 and before. In 2009, Nestlé received Gold Class ranking in the SAM Sustainability Yearbook 2009. Nestlé was one of two food companies to attain this level. Only the top-scoring 15% of companies in each sector assessed are eligible for inclusion in the Sustainability Yearbook. Identification and Development of key aspects of Entrepreneurship and Global Strategy by Nestle. Today humans live in a global economy in which the time taken for people to move between continents has been significantly reduced and in which Internet and other connections make instant connections possible (TheTimes100). The business response of large business organizations has to recognize that they now operate in a global market place and to develop appropriate strategies. A global strategy is an organizational plan that takes into account these new global realities. In food manufacture area, Nestle has developed global distribution and marketing networks, based on power brands i.e. market-leading brands that are recognizable in nearly every country in the world. Key aspects of global strategy identified include: 1. Treating the global market as the domestic market. 2. Creating a global marketing mix, which at the same time recognizes regional and national differences, such as differences in language and tastes. 3. Creating global production and distribution systems, e.g. super factories covering major areas of the world. 4. Concentrating on power brands - the most successful brands and products. Because the global market is so large, there are substantial benefits to be gained from economies of large-scale production, marketing and distribution. Rather than producing thousands of different products, it makes sense to narrow down the range to a much smaller number in order to support these brands across the globe. Sustainable Agriculture Initiative Nestle (SAIN) The concept of sustainability that Nestle has implemented for its international operations is “sustainable agriculture” wherein the company defines as “productive, competitive and efficient while at the same time protecting and improving the natural environment and conditions of the local communities” (Nestle Case study). One thing that led to Sustainable Agriculture Initiative Nestle (SAIN) is the company’s conscious need to manage long-term relations with their suppliers of raw materials in order to make sure of an unwavering source of agricultural commodities which are of high quality. As, executive vice president of Nestle, have stated, “For decades, we have invested in technical assistance for the dairy farmers that supply our factories. More generally, we recognize that we must help the farmers to have a good business model that is sustainable economically and otherwise. If not, we will not see the variations first in the raw material quality and eventually in raw material quantity as well.” It could be assessed that SAIN had worked and had been a success as it had brought about significant benefits for Nestle such as :- 1. An improved prospect of long-term supply of quality raw materials at competitive costs. 2. A better quality control and risk management. 3. Enhanced communication with growers, politicians, customers and others. 4. Further development and enhancement of the company’s reputation and image. Data Management Nestle has put a big data project in place (Time Magazine). Dubbed GLOBE, an acronym for global business excellence, it involves as many as 2,000 people worldwide working to define and standardize everything the company does. Switzerland, Singapore and Peru were the first to switch to the new data system, and they found they were able to eliminate a mass of duplications and redundancies in their systems--for example, tens of thousands of customers who were listed several times in databases, alongside vendors who had gone out of business. Among other things, the exercise has shown that Nestle does not leverage its size well and often neglects to get volume discounts when different divisions buy paper clips or shipping pallets from the same suppliers. A lot is riding on the GLOBE project. Complaints Against Nestle Nestlé’s Unethical International Business Practices The most resounding and far-reaching unethical international business practices that Nestlé has been involved in is the marketing and sale of infant milk formula in developing countries in the 1970s (Hub Pages). This practice resulted in several premature infant deaths because uneducated and poor mothers ceased to breastfeed and instead fed their babies Nestlé’s formula. Unable to understand the instructions for preparing the formula and having insufficient money to afford adequate doses of it, led several of them to unknowingly starve their children to death. When news of this reached the global public in the late 1970s, it caused a boycott of Nestlé products in the United States and several European countries, which has, to this day, not yet completely ceased. Nestlé has since stopped marketing the formula in third world countries and in their marketing policy, they now maintain that breast milk is the most appropriate form of nutrition for infants, but that women who can’t or choose not to breastfeed can find a good substitute in using the formula. UN Complains Against Nestle The UN Global Compact is a voluntary initiative promoting 10 principles to corporations. On 11 June 2009 the UK civil society organization Baby Milk Action submitted a complaint alleging that the reports posted on the UN Global Compact Office site and launched at the joint event were misleading and that Nestlé was, in truth, responsible for violations of the Global Compact Principles (Baby milk action ). Baby Milk Action cited the Integrity Measures that accompany the Principles and called for Nestlé to be excluded for the violations and for bringing the initiative into disrepute by using it in its public relations campaign to divert criticism so that violations may continue. The complaint submitted by Baby Milk Action was presented in the publication Nestlé's UN Global Compact cover up: How Nestlé’s Shared Value reports cover up malpractice and bring the UN voluntary initiative for corporate responsibility into disrepute which included information from various civil society organizations alleging violations in the areas of:  1. Aggressive marketing of baby milks and foods and undermining of breastfeeding,  in breach of international standards. 2. Trade union busting and failing to act on related court decisions. 3. Failure to act on child labor and slavery in its cocoa supply chain. 4. Exploitation of farmers, particularly in the dairy and coffee sectors. 5. Environmental degradation, particularly of water resources. Complaint Against Nestle for use of Palm Oil. Green peace has initiated a report according to which Nestlé is using palm oil from destroyed Indonesian rainforests and peat lands, in products like Kit Kat, pushing already endangered orang-utans to the brink of extinction and accelerating climate change (Green peace). This report exposes how Nestlé is sourcing palm oil from suppliers, including Sinar Mas, Indonesia's largest producer of palm oil, which continue to expand into the rainforest and carbon-rich peat lands, as well as into critical orang-utan habitat. How international entrepreneurship can influence business activity There are many factors within the international environment that substantially increase the challenge of international business and marketing (Fishermans). Nestle has been taking into account all these factors and turned itself into a Global business .These are summarized as follows: 1. Culture: often diverse and multicultural markets. 2. Markets: widespread and sometimes fragmented. 3. Data: difficult to obtain and often expensive. 4. Politics: regimes vary in stability – political risk becomes an important variable. 5. Governments: can be a strong influence in regulating importers and foreign business ventures. 6. Economies: varying levels of development and varying and sometimes unstable currencies. 7. Finance: many differing finance systems and regulatory bodies. 8. Stakeholders: commercial, home country and host country. 9. Business: diverse rules culturally influenced. 10. Control: difficult to control and coordinate across markets. There are four important inputs and environmental conditions that are critical to enterprise creation and success:- 1. Proper mindset. 2. Accessible skills development. 3. Available funding and financing strategies. 4. Appropriate taxes and incentives. There are five areas where corporate engagement can be particularly beneficial. Nestle has identified and implemented business strategies in these areas. Details are as following - 1. Creating a culture of entrepreneurship. An environment that is tolerant of entrepreneurial failure, where entrepreneurs are valued and looked to as role models and where entrepreneurship is a common theme of educational curricula are important foundational characteristics of entrepreneurial cultures. Corporations can work to create cultures of entrepreneurship by raising awareness and providing legitimacy for an entrepreneurial mindset by hosting business plan competitions. 2. Building skills and capacity for entrepreneurship. A welcome operating environment will be meaningless without individuals who possess the right skills to start and run a business. Corporations also facilitate skills building generally by partnering with schools, or developing and deploying entrepreneurially focused, locally relevant curricula. 3. Mobilizing financial resources for entrepreneurs. Access to capital is a basic need for nearly all entrepreneurs. 4. Establishing market linkages for entrepreneurs. For large firms, linkages with other small or medium enterprises can help improve local procurement, sourcing or distribution of products. 5. Strengthening the ecosystem of entrepreneurship. The entrepreneurship ecosystem relies on a broad array of inputs and conditions to fully flourish. This includes expanding the number of individuals for whom enterprise creation is of interest, nourishing a mindset that supports risk taking, providing access to relevant technologies and systems for venture creation, building the skills of individuals in business acumen, supporting business linkages with entrepreneurs who have launched ventures, and supporting public policy. Nestle SWOT Analysis. Nestle grows its product line through innovation as well as renovation and maintains a balance on its geo-environmental activities and product lines. They opt for long-term performance rather than short term goals (SWOT analysis). The Company prioritizes in bringing the most relevant products to the consumers according to their needs that will prove valuable throughout their life. Strengths: 1. Globally recognized as one of the largest and powerful food producers, covering almost every country (factories and plants). 2. Employs approximately 280,000 people globally. 3. Powerful brand positioning in the consumers mind. 4. It has a vastly diversified product portfolio containing approximately 7500 brands (beverages, ice creams, frozen food items, chocolates and biscuits, pet care nutrition items, etc.) 5. It has established joint ventures with giants like Coca Cola, General Mills and L’Oreal that are helpful in providing knowledge on different technological aspects. 6. Consistently ranked as largest bottled water corporation that operates in an environmental friendly manner. 7. Top 50 list of Fortune’s ‘America’s Most Admired Food Companies’, and ranked on top on Consumer Food Products. 8. Strong internal growth and emphasis on innovation internally. 9. Strong cultural environment, that acts as a loyalty carrier for the employees. 10. Nestle has taken a visionary step as being one of the many companies that represent and encourage globalization that has also become an identity for its logo. 11. Quality is a vital element regarding nestle products. 12. Largest consumer products organization that operates globally. 13. It also sells professional brands to different customers such as colleges, hotels, restaurants etc. 14. Powerful marketer, and never seizes any opportunity to embed the brand image in the mind of the consumer. The quality of the Nestle products embeds an element of trust in the mind of the consumer that makes Nestle one of the powerful brands to be followed. 15. Produces low cost products that give them an edge to their competitors. It also has low operating costs. 16. Globally, biggest ice-cream producer, having a market share of approximately 17.5% 17. The name Nestle also visualizes the high standard and quality of the product. 18. Customer base loyalty for Nestle is very vast and powerful. 19. The decentralized culture in the organization encourages employees. 20. It has a dynamic and innovative approach when it comes to new trends regarding the technology. Weaknesses: 1. The food industry grew 8.9% last year but Nestle lacked the potential to raise their sales in the organic food division that lay flat. 2. Regulators like FDA and AMA (American Medical Association) are pressing on the firm for removing tags that hold no ground such as ‘low cholesterol’ or ‘heart healthy’. Parents have also reported diabetic epidemic due to the consumption of such goods, in children especially. Promoting infant milk products comparing to breastfeeding. Poorly paid labor in African countries that are working under it. It holds up a negative effect regarding the whole brand. 3. Retailers do not get to set high margins to indulge more in sales. 4. Logistics cost is quite high. 5. Many products are not understandable in different countries. It did not make much of an impact in France with their LC-1 (food commodity). 6. Coordination between country specific plants with the Center, due to which some plants are running exceptionally smooth while operations in other countries lack effectiveness. 7. Transportation as well as storage (proper warehousing) problems. 8. Supply Chain having a complex stature. 9. The immense diversification portfolio of the firm makes it impossible to run every division smoothly. 10. Russia being an unstable market for Nestle which cuts a big chunk from Nestle’s bite. 11. It is also perceived that Nestle puts profit first. Opportunities: 1. Due to the high intensity of the health conscious awareness in the society, more health based products are required especially with incompromisable quality. 2. Can go into the anti-allergy products that are very common, such as peanut free or gluten free products. 3. They can also invest in snacks that would further diversify its product portfolio. 4. Provide incentives to the retailers to increase sales volume. 5. Open cafes that would exclusively provide Nestle products. 6. LC-1 having the opportunity of having a greater impact in Germany (2 years had them go for 60% of the market share), and being the established market leader, they can establish more brands in the market. 7. Middle class share in most of the economies are growing much larger. 8. Nestle India may hold the position of being the export hub due to the low cost of labor comparatively to developed countries. 9. In Asian countries like India, Pakistan, Bangladesh, consumers are mostly price conscious rather than health conscious. Nestle has an opportunity to have extensive strategies implemented to gain the market in such countries. 10. Developed countries have a higher rate of GDP than those of developing countries, Nestle should enter in such markets as well. 11. Recession has created such an impact that the market is struggling and has almost got out of that recession that will surely increase the cycle of cash flow which will be profitable for Nestle to cash in on such a time. Threats: 1. Contamination of products should be regarded strictly (Cookie Dough, March 2009). 2. The company has a not so pretty history with the FDA. Pet Food contamination 2007 (imported from China, the vegetables contained rat poison). 3. Inflation rise is giving birth to high prices. Raw chocolate prices are jumping, along with the Dairy costs; which leaves heavy cuts in the margin in order to make the customers brand loyal. They have also shrink the packaging which is not really noticeable, so the customers are paying the same amount for a lesser product. 4. Competitors like Cadbury Schweppes, Hershey’s, Quaker, Heinz, Del Monte, Kellogg’s, and Kraft Foods are also well established. It’s a tough market with a tougher competition for gaining market share. 5. Market is quite mature and the competitors specialize in a certain product that can hit hard on Nestle. (Yogurt Market US: General Mills). 6. In the Asian market, fresh food is preferred than ready-to-eat meals. 7. In still developing countries as well as underdeveloped countries, Nestle will face a large competition in market both domestic and unorganized sectors. 8. Poverty sector in developing countries is also a lacking that must be watched over for. 9. Malnutrition and obesity are yet another burden faced by the developing countries.   Knowledge Management in International Business. The increasing globalization of business, particularly because it is being driven by information technology, has led many firms to re-examine what contributes to their global competitive advantage. They have recognized the fact that it is the pool of personal knowledge, skills and competencies of the firm’s staff that provides its development potential and they have redefined themselves as ‘knowledge based’ organizations. Moreover, these firms have acknowledged that they must retain, nurture and apply the knowledge and skills across their business if they wish to be effective in global markets. The growth potential of international markets can only be exploited if the firm becomes a learning organization in which the good practice learned by individual members of staff in one market can be leveraged and built upon throughout its global activity. However, firms are increasingly vulnerable to losing these valuable personal assets, because of the greater mobility of staff, prevalence of industrial espionage and the security risks and abuse associated with the Internet. Moreover, with the increase in communications it is becoming more difficult to store, access and apply the valuable knowledge that exists amongst the huge volume of relatively worthless data that the company deals with. Consequently, effective knowledge management is now critical for success. This means having Web-enabled database systems that facilitate effective data collection, storage in data warehouses and data mining (the identification of opportunities from patterns that emerge from detailed analysis of the data held). Successful global operators use the knowledge gained to assess their strengths and weaknesses in light of their organizational learning and ensure they have the company capability and resources to respond to their learning in order to sustain their competitive advantage. This is particularly important in international markets as, for example, customer and brand loyalty may be much stronger in certain markets than others, and products that may be at the end of their life in the domestic market may be ideal for less sophisticated markets. In the dynamic international markets, therefore, if a firm is to succeed it must develop the ability to think, analyze and develop strategic and innovative responses on an international, if not global scale. Analysis 1. Due to saturation and increased competition in the European and North American markets, it makes sense for Nestlé to focus its growth on emerging markets. These markets have a huge potential, as they were closed to foreign companies because of their political system (China, Russia). Thus, there are only a few consumer industries in these markets and Nestlé can benefit from first-mover advantages. 2. Nestlé can earn greater return from its distinctive competencies, i.e. unique strengths that allow a company to achieve superior efficiency, quality, innovation and customer responsiveness. By applying those competencies, and the products they produce, to foreign markets where indigenous competitors lack similar competencies and products, Nestlé can realize enormous returns. 3. Nestlé can take advantage of location economies. Location economies arise from performing a value creation activity in the optimal location for that activity, anywhere in the world. The optimal location for a value creating activity lowers the costs of value creation therefore helping the company achieve a low-cost production. 4. Nestle has established a corporate culture that must by necessity change when a company begins international operations. These have responsibility for high-level strategic decisions and engage in overall strategic business development, including acquisitions and market entry strategy. Nestle claims that it can reduce risks and concentrate its marketing resources by narrowing its initial market focus to just a few strategic brands. 5. Clearly, the entrance of a company into the global marketplace creates numerous challenges. Nestle goal is to build a superior market position in each of these niches. Knowing that innovation and quality were key determinants, Nestle transferred these distinctive competencies to foreign markets. That is why, the company needs to be flexible and able to adapt rapidly to local demand and cultural differences. 6. It can build up a powerful position by selling food items that appeal to the local population base. Doing business in different countries means different ethical standards, different business expectations, and different cultural norms. Nestle is a decentralized organization where responsibility for operating decisions is delegated to local units, which have a high degree of autonomy concerning pricing, distribution, marketing, etc. 7. Nestle uses local brands in a wide range of local markets and focuses on trying to optimize ingredients and processing technology to local conditions. The company had to make adjustments to respond to differences in culture. Nevertheless, emerging markets can present dangers and require a high degree of flexibility. In Nigeria, for example, Nestle had to rethink its traditional distribution methods (operating a central warehouse), because the road system was poorly developed and there was much violence. Recommendations. 1. Nestle must state in tangible terms that it accepts that the international code and the subsequent relevant World Health Assembly Resolutions are minimum requirements for every country. 2. Nestle must state in tangible terms that it will make required changes to bring its Baby Food Marketing policy and practice into line with International Code and Resolutions. 3. Nestle should keep the "good food, good life" for other sections of the company but change the slogan for confectionary. Something like "The Home of Chocolate" or anything else would be more beneficial to Nestles as Chocolate is an indulgence food, which most people really do not worry if good for them. 4. Keep the taste nice and acceptable worldwide according to local cultures. 5. Increase focused advertising & show competitive edge. 6. Increase loyalty of customer with brand through attractive packages. 7. Keep the prices low. 8. Increase distribution network best suited to particular region. 9. Give keen interest to CRM. 10. Increase incentives & promotional activities. 11. Training of ASM’s by Regional Head as a Coach / Team Leader. 12. More training courses/workshops for teams are required in developing countries. 13. Re-define roles & responsibilities of every Individual in order to bring ownership and sense of responsibility. Conclusion        To compete successfully in the 21st century, firms need to meet the challenges of a rapidly globalizing, highly competitive and technologically complex environment. These challenges become yet more daunting with the accelerating pace of change and increasingly volatile and turbulent nature of global markets. The complexity of the global market environment requires firms to look beyond marketing activities to examine more broadly the context in which these activities take place. Management must develop an understanding of how the broader environmental context affects the success of its operations as well as to how to respond to the challenges it presents. The focus of planning and executing marketing strategy must shift from a narrow focus on individual country markets to a broader perspective that looks at world markets as a whole and is responsive to the forces integrating regional and global markets. Underlying effective mastery of these forces and implementation of a global integrated strategy is the firm’s ability to transfer skills and capabilities from its operations in one part of the world to another. A crucial element of the firm’s global marketing strategy is its approach to international branding. The brand is the vehicle that enables the firm to leverage its position, achieve global visibility and realize synergies in global markets. At the same time, strong brands provide the firm with a weapon to combat the changes that are taking place in power relationships within distribution channels. With power increasingly residing with resellers, manufacturers need to develop strong brands, so they avoid loss of control and chart their own course through global markets. Alternatively, firms must find ways to effectively partner with resellers or establish mechanisms to reach end customers directly. Competition in the 21st century will be more intense and challenging than ever before. The dynamic changes that are reshaping the international environment present opportunities for those able to adapt, but spell disaster for those that continue to do business as usual. Firms that are only now beginning to deal with these issues will find themselves lagging behind those firms that have already embraced the new realities. It is concluded that Nestle is continuously adopting to changes required by International Business and the firm will remain successful in near future despite few shortcomings highlighted in the study. Works Cited Baby milk action Nestle, the UN Global Compact and OECD Guidelines21 May, 2010 – Webmaster. Web. 12 May 2011. http://info.babymilkaction.org/news/policyblog210510 Greg Watson. Web. 13 May 2011 http://www.gregwatson.com/entrepreneurship-definition/ Nestle.com Web. 12 May 2011. http://www.nestle.com/AboutUs/Pages/AboutUs.aspx Roger Jones Web. 12 May 2011.http://www.deeparticles.com/Article/International-marketing-strategy-plan----Nestle-Boycott---/177108 Times 100 Developing a global strategy. thetimes100.co.uk Web. 12 May 2011 http://www.thetimes100.co.uk/theory/theory--developing-global-strategy--324.php Nestle Case Study typepad.com. Web. 12 May 2011 http://ivythesis.typepad.com/term_paper_topics/2009/04/international-businessnestle-case-study.html Nestle Products. 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Web. 12 May 2011.http://www.greenpeace.org/international/en/publications/reports/caught-red-handed-how-nestle/ On this page Jetzt informieren und bewerben Global Marketing Business dictionary.com. Web. 12 May 2011.http://www.businessdictionary.com/definition/global-marketing.html Read More