Nestle has been the pioneers in its industry segment since the year 1867 when the firm was incorporated (Bell & Shelman, 2008, p. 773). The growth history of the firm could be tracked down and divided among the following stages which have been associated with specific periods in history. Nestle was born in the year 1867 in Vevey in Switzerland by the famous pharmacist Henri Nestle. The first product of the firm was an innovation as it was the first substitute that would be used as an alternative for milk to be fed to newborn babies.
The first product of the firm was branded as ‘ Farine Lactee Nestle’ . The first product of the firm also bore the present infamous logo of the company with a bird feeding its babies in its nest. Mergers and acquisitions have been in the firm’ s culture since its inception as the firm acquired the firm Anglo-Swiss Condensed Milk Company in the year 1905. In the subsequent years, the firm undertook a massive expansion drive into the other potentially good markets which include the attractive markets of Europe, America and the rest of Asia.
The firm also opened a production unit in Brazil to augment its presence in the South American market. The firm also established the first ‘ milk district model in Switzerland in 1870 which was used as a model and was replicated in many nations across the world. This period of time also saw the development of Nestlé ’ s famous coffee and tea brands named as Nescafe and Nestea (Bell & Shelman, 2008, p. 773). This period in the firm was characterized by the appointment of Helmut Maucher as the top executive of the firm.
This was also considered to be a period of financial turmoil for the company as its profit margins had dipped during this period. The CEO took several decisions to retain the profitability and sustainability of the firm as he closed down many non-performing brands and started to refocus on its age-old strategy of being a market leader in the packaged foods segment.
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