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Vision, Mission and Goals Case Study
Case Title:
Nestle’s Strategic transformation: Will it be successful?
Publication Year : 2007
Authors: Jagdish Khoraba, Amy Sonpal
Industry: Food, Diary and Agriculture Products
Region:Switzerland
Case Code: VMG0012A
Teaching Note: Available
Structured Assignment: Available
OR
Abstract:
Nestlé S.A., was one of the world's top five, most respected, food and beverages company. Besides being the world's no.1 food company in terms of sales, Nestle was also the world leader in coffee (Nescafe), food and nutrition. The company’s international Research & Development network supported products made in more than 500 factories in over 84 countries.
Most food companies worldwide were focusing on catering to health conscious consumers and increase their reach into health care segments. On the same premises, Nestlé acquired the medical nutrition business of Swiss pharmaceutical major, Novartis International AG in 2007, striving to reposition itself as nutrition, health and wellness company. With this acquisition, Nestle moved from being a minor player in healthcare nutrition segment to world number two player in the nutrition, health and wellness industry. Nestle aimed at becoming the leader of the industry with the combined strengths of the two companies.
The case focuses on the strategic transformation initiatives undertaken at Nestle. It analysis the acquisition and its impact and ends on the debate whether strategic transformation process will help Nestle achieve its long term objectives of being a leader in nutrition, health and wellness?
Pedagogical Objectives:
- To understand the changing trends in health and wellnessindustry
- To discuss the takeover of medical nutrition business of Novartis International AG by Nestlé and its implications
- To discuss the strategic transformation of Nestlé from a food company to nutrition, health and wellness company
- To discuss the future growth strategies of Nestlé to achieve the goal of becoming the leader of the industry.
Keywords : Nestlé; Strategic transformation; Nestle Nutrition; Healthcare Nutrition Market; Vision, Mission & Goals Case Study; Food and Beverage; Health and Nutrition Foods; Novartis Medical Nutrition; Synergy; Strategic fit; Nutrition; Health and Wellness industry
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