The Nestle company - an example of organic growth in Europe

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The Nestle company - an example of organic growth in Europe

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Abstract

Introduction

Each company has two ways to ensure its development through external growth. One way is acquiring the competition (or a complementary increase in its business volume) and another is organic growth which is achieved by adding additional means of production that is created by the company itself. It is this second type of growth that we are interested in this paper

To illustrate this, we have relied on the strategy of the Nestlé Group in 2009. The group announced organic growth of 4.1% and 0. 3% in Europe. These figures are above the industry average and are very encouraging given the particularly difficult environment.

Nestle is back at the heart of the food industry with a winning strategy.

The group:

History:
Nestle SA. is a Swiss multinational company and is the largest food company in the world. The company was founded in 1867, when Henri Nestlé created malted milk to try and combat a very high infant mortality rate that was linked to problems of food shortage. The creation of the Nestlé group coincided with the formation of the Anglo-Swiss Condensed Milk Co., which was the first European manufacturer of condensed milk. This company merged in 1905 with the company, Henri Nestlé SA.

In the course of the twentieth century, the group saw many mergers and acquisitions:

- 1929: Nestlé began to diversify its products, merging with the group of chocolatier, Peter, Cailler, Kohler.
-1937: Merger with Maggi

Tags: Nestle's successful growth, Nestle as an example of organic growth, recent strategy changes in Nestle

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[...] • Bottled Water: Contrex, Vittel, Perrier, San Pellegrino etc Nestlé in the world Nestlé is the oldest food company in the world. Nestlé saw a turnover of 75 billion euros in 2008. At the moment, the group has 230,000 employees. Its main business is based on food in and is biggest in America after Europe Nestlé is an international company, both in terms of distribution and production. Nestlé has about 500 manufacturing facilities on five continents with 300 in Europe alone. [...]

[...] The main obstacles that arise from this strategy are the slow growth and the possible lack of responsiveness to competition. But even in an environment with increased competition, which is a more difficult economic environment, the group seems to have acquired a certain size and a sufficient reputation to continue to develop its own business. [...]

[...] So, on what elements has the group based its organic growth strategy, particularly in Europe? The growth strategy of Nestlé SA One of the opportunities presented by Europe is its diversity of countries, cultures and populations. Thus, while Western Europe is characterized by developed countries, Eastern Europe is still home to emerging countries that have low standards of living, excess population and consumption. In terms of the products: An international strategy in mature in mature countries In an international strategy, the company creates value by transferring skilled workers and products to international markets. [...]

[...] It is this second type of growth that we are interested in this paper To illustrate this, we have relied on the strategy of the Nestlé Group in 2009. The group announced organic growth of and in Europe. These figures are above the industry average and are very encouraging given the particularly difficult environment. Nestle is back at the heart of the food industry with a winning strategy. The group: History Nestle SA. is a Swiss multinational company and is the largest food company in the world. [...]

[...] For these countries, Nestlé has undertaken a strategy to adapt to the local culture. This factor is very important because cultures strongly influence the people's dietary habits. For this, Nestlé relies on strong innovation with a range of suitable products called "People positioning products." The group has intensified the development of these products since the beginning of the economic crisis. They were intended for Eastern Europe at first, but their business model has been duplicated to implement in mature markets as well. [...]

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