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Apart from the Asian countries, Nestle also penetrated into Russia and China, seeing a huge potential for investment in these markets. This is largely due to Russia and China’s past political system which was initially closed to foreign investments. Nestle has seven different worldwide strategic business units whose responsibility is to engage in overall business developments, including acquisitions and market entry strategies. Nestle success in global penetration is due to its ability to adapt to local conditions. The company’s organisational structure is also highly
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Nestle has adhered to the local environmental requirements. Their R&D (Research & Development) has included the environmental requirements in their products, processes and packaging. Nestle worldwide management has been encouraged to help resolve environmental problems within their sphere of influence. To ensure the environment, Nestle has taken the following steps into account in the following functions:
* Research and development
Nestle R&D have two main tasks. To develop new products and to enhance existing products.
The R&D plays a key role in ensuring product safety and quality and at the same time in conserving resources and protecting the environment. Environmental concerns are an integral part of their development process to ensure that operations meet the desired criteria. They also conduct studies for new products and manufacturing processes. These studies cover all aspects, from raw materials, processing and to the end packaging.
* Handling of raw materials
Nestle though not directly involved in production of raw materials and food ingredients, have quality criteria to ensure they meet environmental requirements. This clause is included in their purchasing specifications. Preferences are given to goods whereby environmental aspects have been taken into …show more content…
Factors identified as significant related to the selection of marketing strategies in the host country scenarios include product type, consumer behavior, marketing infrastructure and political and legal environment. The general political and economic climate in Russia experienced considerable improvements recently. Russia’s re-entry into the world economic as well as its political stability and legal environment allow Nestle to penetrate into Russia’s market and tap into its rapidly evolving market. Nestle was attracted by the strength of the consumer buying power. Nestle has invested $500 million in Russia for its food and beverages. As soon as people step out of poverty, they become potential Nestles’ customers, says Bernard Meunier, country manager for Nestle. Nestles’ most recent foray is a $120 million instant coffee factory in Krasnodar in southern Russia. With an average of 250 cups per person per year, Russia has one of the highest coffee consumption. Available from:
Nestle has adhered to the local environmental requirements. Their R&D (Research & Development) has included the environmental requirements in their products, processes and packaging. Nestle worldwide management has been encouraged to help resolve environmental problems within their sphere of influence. To ensure the environment, Nestle has taken the following steps into account in the following functions:
* Research and development
Nestle R&D have two main tasks. To develop new products and to enhance existing products.
The R&D plays a key role in ensuring product safety and quality and at the same time in conserving resources and protecting the environment. Environmental concerns are an integral part of their development process to ensure that operations meet the desired criteria. They also conduct studies for new products and manufacturing processes. These studies cover all aspects, from raw materials, processing and to the end packaging.
* Handling of raw materials
Nestle though not directly involved in production of raw materials and food ingredients, have quality criteria to ensure they meet environmental requirements. This clause is included in their purchasing specifications. Preferences are given to goods whereby environmental aspects have been taken into …show more content…
Factors identified as significant related to the selection of marketing strategies in the host country scenarios include product type, consumer behavior, marketing infrastructure and political and legal environment. The general political and economic climate in Russia experienced considerable improvements recently. Russia’s re-entry into the world economic as well as its political stability and legal environment allow Nestle to penetrate into Russia’s market and tap into its rapidly evolving market. Nestle was attracted by the strength of the consumer buying power. Nestle has invested $500 million in Russia for its food and beverages. As soon as people step out of poverty, they become potential Nestles’ customers, says Bernard Meunier, country manager for Nestle. Nestles’ most recent foray is a $120 million instant coffee factory in Krasnodar in southern Russia. With an average of 250 cups per person per year, Russia has one of the highest coffee consumption. Available from: