International Business Project case study

Nestle is a food and beverage company with its headquarters being located in Switzerland. It has revolutionized the food and beverage industry through its chocolate brands with brands such as Kit-Kat being globally synonymous. Nestle came into existence through the merging of two companies in 1905, which was owned by brothers George Page and Charles Page with Farine Lactee Henri Nestl which was formed by Henri Nestle, with both companies having been formed in 1866.


In 1988 Nestle acquires Rowntree which was the producer of Kit Kat chocolates and this ensures that it increased its productivity while at the same time continuing with its policy of treating the Rowntree employees with care. Nestle has ensured that its stays in touch with the market and society and by paying attention to the market needs and wants it has been able to satisfy the market needs while at the same time retaining its traditional taste and outlook which has ensured a continuity and brevity that most companies do not enjoy.


Peter Brabeck is probably the longest serving employee of nestle having joined in 1968 and he is currently the highest paid director and also the chairman of the board of directors although he was the CEO before he relinquished the seat in 2008 to Paul Bulcke. Magdi Batato also makes it to this list by virtue of being the head of one of the most important departments in the company. He is in charge of the operations department and he joined the company in 1991 and has worked his way up to management.


Patrice Bula is among the at Nestle as he is in charge of the Nestle Marketing and sales department. He has mead a career for himself at Nestle starting as an intern in 1980 and rising through the ranks. Francois-Xavier Roger is the other highest paid individual at Nestle as he is the Chief Financial Officer. He has made his career as a financial officer in various sectors and industries ranging from pharmaceuticals to accounting and audit firms and companies. He joined the company in July 2015.


Stefan Catsicas is the head of the research and development department and he is the third highest paid individual. He has worked as a lecturer in numerous universities while at the same time co-founding Tilocor Life Science. He joined the company in September 2013.


  2009 2010 2011 2012 2013
Total Revenue 79.7B 87.91B 83.64B 89.72B 92.16B
Domestic         28.4B
International         63.76B
Int’l as % of Total         69.18%
Total Net Income   43.13B 39.52B 42.22B 44.O5B
Int’l as % of Total (If reported)          





multiple and strong brand presence

strong research capabilities

diversification of its markets

strong relationship with retailers


dependent on few brands for its sales

some of its brands are old fashioned

high cost of marketing

the markets are controlled by third parties and retailers


online retailing

increased disposable income to customers

increased derived demand

Increased health awareness from nutritional causes.



pressure from market players

peoples preference for readymade food than homemade cook

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