Nestle stakeholders and business environment

Authors Avatar by mittran93 (student)

Table of Contents


1. Overview of Nestlé

All over the planet, people know Nestlé. Nestlé is a Swiss   and -related  company headquartered in , Switzerland. It is the largest food company in the world measured by revenues among the world's 40 largest corporations. Nestlé was founded in 1867 by . Its international R&D network supports the products made in more than 500 factories in 86 countries. The Nestlé factories are operating in the region of:

  1. Africa
  2. America
  3. Asia
  4. Europe
  5. Oceania

Being a company dedicated to food from the beginning, Nestlé remains sensitive to culinary and eating habits, and responds to specific nutritional problems, whilst also setting and matching new trends such as growing out-of-home consumption and caring about the well being of its consumers

Nestlé’s Philosophy: Good Food, Good Life is the very essence of Nestlé and this philosophy can be traced back to their beginnings.

1.1. Vision

Vision statements are seen as documents that set out the strategic intentions of the organization. They are about “animating the dream”.

The Nestlé global visions are to be recognised as the world leader in Nutrition, Health and Wellness, trusted by all its stakeholders, and to be the reference for financial performance in its industry.

1.2. Mission

Mission describes the organization’s basic function in society, in terms of the products and services it produces for clients. Hill, Ch., Jones, G define the mission as a statement provides the framework or context within which the company's strategies are formulated (2008).

Nestlé’s mission, in the words of their founder Henri Nestlé, is:  “Nestlé is dedicated to providing the best foods to people throughout their day, throughout their lives, throughout the world. With our unique experience of anticipating consumers' needs and creating solutions, Nestlé contributes to your well-being and enhances your quality of life.”

1.3. Objectives

Objectives set out more specially the goals of the organization, the aims to be achieved and the desire end results. The organizational objectives of a  typically focus on its long  intentions for operating and its overall  that can  useful guidance for employees seeking to please their .

Nestlé overriding objective is to ensure that their investments are beneficial both for their shareholders and people in the countries where they do business.

Provide continuous learning and talent management to help their employees develop and adapt their capabilities and career prospects in a rapidly changing world

Meet the needs of consumers of every age group from infancy to old age, for nutrition and pleasure, through development of a large variety of food categories of the highest quality.

Deliver shareholder value through profitable long-term growth, while continuing to play a significant and responsible role in the social, economic and environmental sectors of the country.

Achieve our ambition of producing delicious food and beverages that also have better environmental performance, we strive to continuously improve our operational efficiency and environmental impact.

2. Nestlé stakeholders and fulfillment their stakeholders’ expectation

Stakeholders are a person, group, organizations or system who affects or can be affected by an organization’s actions

2.1. Nestlé stakeholders analysis

Nestlé has 3 types of stakeholder:

  • Internal stakeholders: employees.
  • Connected stakeholders: shareholders, customers & consumers, suppliers.
  • External stakeholders: government, community.

At 31 December 2011, the share register showed 142 059 registered shareholders. If unprocessed applications for registration, the indirect holders of shares under American Depositary Receipts and the beneficial owners of shareholders registered as nominees are also taken into account, the total number of shareholders probably exceeds 250 000.

The Nestlé team comprises around 328,000 employees, 29% are based in Europe, 33.6% in the Americas and 37.4% in Asia, Oceania and Africa.

Supplier is a one of the important stakeholder for the firm. Supplier provides the necessary raw materials that the firm’s need to produce its products. Supplier is a one of the important stakeholder for the firm. Supplier provides the necessary raw materials that the firm’s need to produce its products. Their supplier base includes: direct suppliers (approximately 165 000 companies), 680 000 individual farmers


                                   High                        Low





2.2. Responsibilities of Nestlé and the strategy to accomplish

2.2.1. Shareholders

Responsibilities towards shareholders

Any company is established to create profits for its shareholders or owner. This is also its responsibilities to maximize wealth for its shareholders. In case of Nestlé, it is also responsible to create profits for its shareholders. Nestlé is a publicly owned company, so its shareholders are very important to the existence of the company. Implement the expectation of its shareholders is thus vital.

Join now!

As shown by the table that Nestlé has been in a difficult year that the sale as well as the net profit had decreased dramatically. However, the dividend had increased, which means the profit for the shareholders still raised. It illustrates that Nestlé has satisfied the expectation of its shareholders despite decrease in sale.

2.2.2. Employees

Responsibilities towards employees

Ensuring a safe and healthy workplace with opportunities for development is the basis responsibility of a company to its employees. At Nestlé, according to the Corporate Business Principles, they commit to treat each other with respect and dignity and ...

This is a preview of the whole essay