NESTLÉ’SA’NESCAFE’STRATEGIC’ PLAN2020

[Pages:23]NESTL? SA NESCAFE STRATEGIC PLAN 2020

Ripe Change, The Nestl? Way

HEC CSV Group, Nestle SA Christopher Sharp | Kim Bergeron | Gert Kongehl | Deniz Eras

Agenda

Introduc)on

Analysis

1. ExecuBve Summary

2. Context & Problem Statement 3. Business Environment Scan

4. Key Success Factors 5. OpBons and AlternaBves 6. The SoluBon

7. ImplementaBon Plan 8. Financials 9. Key Takeaways

Alterna)ve Implementa)on

Financials

Conclusion

Execu:ve Summary

Introduc)on

Analysis

Alterna)ve

Implementa)on

Financials

Conclusion

Hybrid Strategic Plan

? 2 Pronged Approach

1. Nestle Owned and Operated Farms ? Long--term leases, backward integraBon, 4C method ? Constant and reliable source of green coffee beans

2. Fairtrade? CerBfied Local Partners ? Close work with local farmers ? Achieve higher margins with minimum equitable floor price

Context & Problem Statement

Introduc)on

Analysis

Alterna)ve Implementa)on

Financials

Conclusion

Context: Nestle SA is currently evaluaBng opBons to saBsfy, and potenBally exceed,

a three fold mandate with respect to our NESCAFE 2020 plan in China.

Problem Statement: How can Nestle create common shared value (CSV) for all stakeholders involved in our Chinese coffee farming, produc)on and end--user consump)on acBviBes?

Business Environment Scan

Introduc)on

Analysis

Alterna)ve Implementa)on

Buyers

? SensiBve to price ? Commodity ? VolaBle

SubsBtuBon

? Tea ? Coffee market growing

Weaknesses

? UnaeracBve work

Opportunity

? Premium margins on Fairtrade cerBfied product ? RelaBonship building with locals (increase presence)

Financials

Conclusion

Business Environment Scan

Introduc)on

Analysis

Alterna)ve Implementa)on

Financials

Conclusion

Buyer Supplier RelaBonship Diagram

Buyer Investment

CapBve Buyer

TransacBon

Cap)ve Partnership

CapBve Supplier

Supplier Investment

Stakeholders analysis

Introduc)on

Analysis

Alterna)ve

Implementa)on

Financials

Conclusion

Stakeholders Farmers Government Consumers Management

How the solu)on addresses the stakeholders

? Increased personal incomes ? Safe and healthy work environment ? ConBnuous improvement of skill levels

? Enable rural development ? Social and economic progress in communiBes ? Increasing farm producBvity

? Coffee product grown and produced in socially and environmentally sustainable condiBons

? High quality processes from tree to cup

? Reliable supply of high quality coffee beans

? Increase in producBvity and cost reducBons ? CompeBBve advantage in modest farm lease payment with Chinese government

Key Success Factors

Introduc)on

Analysis

Alterna)ve

Implementa)on

Financials

Conclusion

Alignment, collaboraBon and advocacy

Successful Farmers

Prosperous communiBes

ProducBve Workers

Alignment with key success factors

High Medium Low

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