Nestle: Sustainable Agriculture Initiative

Forest L. Reinhardt

Case | HBS Case Collection | December 2004 (Revised May 2005)

Nestle: Sustainable Agriculture Initiative

Abstract

Swiss food giant Nestle attempts to improve the performance of its suppliers of agricultural commodities to raise quality, lower costs, and contribute to sustainable development. Its initiatives focus first on coffee, cocoa, and milk. Nestle managers assert that the initiatives deliver both private benefits (better quality and reduced costs to the firm) and social benefits (higher incomes for farmers, better environmental quality in farming regions). Questions include the ways in which these programs create value for shareholders, the manner in which they should be marketed, and their efficacy in addressing social issues.

Keywords: Corporate Social Responsibility and Impact; Environmental Sustainability; Social Issues; Business and Community Relations; Corporate Strategy; Agribusiness; Supply Chain Management; Marketing Strategy; Value Creation; Food and Beverage Industry; Agriculture and Agribusiness Industry;

Language: English

Format: Print

24 pages

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Citation:

Reinhardt, Forest L. "Nestle: Sustainable Agriculture Initiative." Harvard Business School Case 705-018, December 2004. (Revised May 2005.)

Case | HBS Case Collection | August 2019

New Hope Liuhe: Building an Integrated Agri-Food Business

Forest L. Reinhardt, Shu Lin, Natalie Kindred and Nancy Hua Dai

In October 2018, LIU Chang (Angela), chairman of Beijing-based New Hope Liuhe (NHL), was considering the strategy of the firm. With $9 billion in sales and a presence in nearly 20 countries, NHL was China’s largest animal feed producer and a major pork and poultry producer and processor. The firm also marketed a range of food products to consumers. This case describes NHL’s entrepreneurial beginnings, growth, and recent efforts to transform from a feed producer into an integrated agri-food company with an active presence throughout the chicken, duck, and pig value chains. Considerable context is provided on the structure and evolution of these livestock industries in China, the food processing industry, and important issues such as food safety. This background is helpful in enabling students to assess NHL’s evolution in scale and scope and consider what (if any) changes should be made to the firm’s strategy in the context of this critically important market.

Keywords: Strategy; Corporate Strategy; Food; Agribusiness; Expansion; Diversification; Growth Management; Consumer Behavior; Change Management; Entrepreneurship; Organizational Structure; Organizational Change and Adaptation; Government and Politics; Animal-Based Agribusiness; Transformation; Volatility; Business Cycles; Goods and Commodities; Supply Chain; Product; Agriculture and Agribusiness Industry; Food and Beverage Industry; China; Asia;

Citation:

Reinhardt, Forest L., Shu Lin, Natalie Kindred, and Nancy Hua Dai. "New Hope Liuhe: Building an Integrated Agri-Food Business." Harvard Business School Case 720-009, August 2019. View Details

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Nestle: Sustainable Agriculture Initiative

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