Nestlé is a multinational food and beverage company that is among the pioneers in changing the role of business by creating social value. From its tagline “Good Food, Good Life”, Nestlé’s commitment to societal progress is crystal-clear, a goal that is advanced with simultaneous improvements in economic competitiveness.

Nestlé has reconceived its products and markets by tackling nutrient deficiencies in the diverse countries where it operates. The company investigates nutritional gaps in different locations to produce goods fortified with the vitamins and minerals that are lacking, introducing iron-strengthened milk in the Philippines, for example, where 35% of children are anemic. As a result, not only is the firm improving the health of local populations, but also increasing its profits through the sales of 150 billion fortified products in 2012.

Furthermore, through the Nestlé Cocoa Plan, Nestlé provides training to poor farmers in developing countries, redefining productivity in the value chain and fostering sustainable practices. Similarly, its improved environmental performance through optimized packaging, manufacturing and transportation processes is another way in which Nestlé is achieving social progress in a cost-effective manner.

Clearly, CSV is no longer a utopia, but a reality with the power to redefine business and transform the world.

Websites:

http://www.theguardian.com/sustainable-business/nestle-fairtrade-kit-kat-ivory-coast

http://www.nestle.com/media/newsandfeatures/nutritional-landscaping (Image)

http://www.nestle.com/media/newsandfeatures/la-penilla

Videos:

https://www.youtube.com/watch?v=buy0c9g9MNo

https://www.youtube.com/watch?v=4pcO-AxBrog

This blogs makes reference to Peony Au’s blog post: “The Blame Game: U.S. Government Shutdown”.

As Peony Au elucidates in her blog post, the US Government Shutdown has harmed the American economy, affecting multiple federal departments and the portion of the workforce placed on unpaid leave. Furthermore, as she predicts, this external political factor has also impacted private businesses, among them, Historic Tours in America, an entertainment company that I will now draw my attention to.

Although it usually provided a variety of touristic activities throughout the USA, Historic Tours in America is currently unable to offer its services as a result of the government’s political crisis. In the Washington area, for example, the closure of the Potomac River has halted the firm’s duck tours. Similarly, the shutdown of museums, memorials and national parks have also contributed to its decline in profits. To make things even worse, demand for their remaining operational services has decreased, probably due to the drop in consumer confidence that accompanies these kinds of events.

Consequently, it becomes evident that understanding the environment in which a business operates and minimizing vulnerability to external factors is key to succeed. As learned in class, the CPEST model is a great way to achieve this.

News Article and Photo: http://money.cnn.com/2013/10/14/news/economy/dc-shutdown-economy/index.html?iid=HP_River

Video – How the US Shutdown impacted another firm, Nomad Ventures, in California: https://www.youtube.com/watch?v=vJ6ViAO9SOw

This blog has references to Sara Marlowe’s internal blog, Armin Hopp’s external blog, and my previous post “From Humble Beginnings”.

Gelarti is a thriving Colombian Ice Cream business that is currently expanding to Peru, where 12 shops are due to open this year. The enterprise is wisely taking advantage of a growing demand for its product, an opportunity that Open English also grasped in the market for online education, as previously discussed.

With over 150 stores in 30 cities, Gelarti’s success is largely the result of its product uniqueness and quality of service. Its three brands – Gourmet, Healthy and Light –satisfy a variety of preferences and thus, allow the recruitment of a large consumer base. Similarly, its exclusive partnership with Disney and chocolate brands offer a competitive advantage and unique value proposition.

Yet, for me, Gelarti’s engagement in ‘glocalization’ is key to its achievements, a strategy that has delivered great prosperity to companies such as McDonalds and Coca Cola, as Sara Marlowe and Armin Hopp explain in their respective blogs. These companies’ ability to adapt their products to foreign markets is effective in addressing cultural diversity and catering to locals’ likings. That is to say, through the inclusion of Peruvian ingredients, Gelarti’s ice creams will surely increase the brand’s acceptance and positioning in this new market and its profitability.

News Article and Image: http://www.larepublica.pe/26-04-2013/helados-gelarti-ingresa-al-mercado-peruano

After being bought by Adidas AG eight years ago, Reebok has experienced many difficulties, ranging from the loss of sports contracts to the failure of its toning shoes. Nevertheless, Adidas is currently changing Reebok’s business strategy in the attempt to re-boost sales and narrow the gap with market leader Nike.

Reebok is re-positioning its company in the minds of consumers by focusing on a more specific point of difference; it will now promote itself as a fitness brand. To maximize the success of its plan, Reebok has started sponsoring groups engaging in CrossFit, a new strength and conditioning sport with growing popularity around the world. In addition, Reebok plans to launch a continuous stream of higher performance products at higher prices to increase its profitability.

Thus far, their strategy has proven to be successful, increasing sales by 11% during this year’s second quarter, and its gross margin by 4.1% in the first six months. Further improvement is expected.

As a result, with Adidas keeping its competitive advantage in soccer and basketball, and Reebok gaining a unique selling position as a fitness and fashion brand, the company’s market share is likely to increase and place competitors under pressure.

Websites:

http://gestion.pe/empresas/adidas-apunta-al-acondicionamiento-fisico-revivir-reebok-2077519

http://ca.reuters.com/article/businessNews/idCABRE99007F20131001

Some Reebok commercials that show its support for CrossFit:

https://www.youtube.com/watch?v=Q5tF0NWM3TA

https://www.youtube.com/watch?v=6tcV0cgq7yI

Retail is an attractive and dynamic industry that is currently undergoing many transformations. That is to say, although traditional retailing is not ceasing to exist, there has been a massive growth in online shopping, an opportunity that eBay is trying to capitalize on, but not without challenges.

In light of changing market demands and retail initiatives from its competitors, lately Amazon’s same-day-delivery and locker pickup services, eBay is constantly pressured towards “innovating, reimagining the store and what it means to shop” (Wenig, eBay President, 2013).

Precisely, eBay is “continuing to find new ways to connect buyers and sellers” (Wenig, 2013), as exemplified by the launch of its one hour delivery service, “eBay now”, last year in the United States. Most recently, the firm has joined forces with Argos for the novel “click-and-collect” initiative. The latter will increase consumers’ convenience by allowing them to make online orders from eBay and collect their purchases from 150 Argos stores across the United Kingdom.

As a result, as “the distinction between offline and online shopping continues to blur” (Wenig, 2013); in other words, as the industry becomes more dynamic and competitive, the continual adaptation of eBay has become prominent to ensure its profitability.

Website: http://www.theguardian.com/business/2013/sep/24/ebay-argos-click-and-collect-service

Video: https://www.youtube.com/watch?v=eC5AEAAYy9s