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Раздел IV

Вариант 4

Nestle Expands Globally

The Switzerland-based Nestle corporation, once a Swiss chocolate maker, now is the world's biggest food company and the largest producer of coffee, powdered milk, and frozen dinners. The company also became number 1 in candy after passing Mars. And with the purchase of Perrier for $2.7 billion, Nestle became the world's largest producer of mineral water with a 20 per cent share of the world market. Nestle achieved its success through intensive global expansion. Nestle does only 2 per cent of its business in Switzerland: the remaining 98 per cent is in other countries.

One of the first multinational corporation, Nestle now has production facilities in more than 60 countries. Its products can be found almost everywhere around the globe. In Europe, where Nestle's success is greatest, sales of instant coffee, mineral water, yogurt, frozen foods, cold cuts, candy, and cereal bars total roughly

$ 10.2 billion.

One secret to Nestle's success is that many of its products — especially instant coffee, chocolates, and frozen foods — appeal to consumers all over the world. For example, coffee is closing in on tea as the favourite drink in Japan. Frozen dinners, long a hit in the United States, are catching on in Europe. And of course chocolate tastes the same in any language. Although these products have to be adapted slightly to local tastes, they generally

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Контрольные задания

can be sold worldwide. Because of high research and development costs as well as high costs of marketing, Nestle benefits greatly by offering products with global appeal. After making large investments in its products, the company has been to move brands from one country to another with relative ease.

Now Nestle is looking to what Maucher thinks is the market of the future, the Third World. Currently, 20 per cent of the world's population consumes 80 per cent of Nestle' s products. They would be satisfied if the company's products were seen in more parts of the world. The company also will look to what Maucher considers the food of the future-pasta. As he puts it, "We can't feed the world on beefsteak. So noodios will conquer the world".

Most industry experts agree that Nestle is in the best position of any food company to expand internationally. Most of its competitors, which have been concentrating on their domestic markets, would be happy if they were involved in the profitable international trade.

Ответьте на вопросы:

  1. Would you classify Nestle as a global corporation? Why or why not?

  2. What is one secret to Nestle's success?

  3. Which environmental considerations are most important as Nestle expands into Third World nations?

  4. What does the company produce?

  5. Why does the company move brands from one country to another with relative ease?

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