However this requires improving the quality of raw material used which is rather challenging given the scope of operations that Nestle has. Technological: The food industry in general has adapted more advance technologies in an attempt to deliver healthier, fresher and variety. Nestle is aware of this and can be seen in a few of their products one example is Maggi soups in Germany, China and Indonesia have different flavours and textures to meet local taste (Nestle 2012). Currently there is a growing interest from the public for addictive free products that are made from natural ingredients. Socio-Cultural: Culture, religion and average age of population tends to dictate or are at the very least have an influence on food consumption patterns. Majority of these new factories are located in developing countries because it is estimated that come 2010 around 90% of the world's population will reside in these countries. One of Nestle's example is opening up factories in different places that caters to the local market from its packaging, to pricing, to taste. Nestle has adjusted to these variations in preference and sensitivity to price in different places that it operated. Although food eating patterns might change and vary from place to place. In economic terms this means that the basic demand for food will always be high. Nestle for example has had to face multiple tiers of regulations when have inevitably affected their products (Nestle 2008).Įconomic: Food is a basic human need and is therefore a necessity for survival. The global food and beverage industry is one of the most highly regulated industries in the world. Another factor to consider is the impact regulations has had on Nestle. According to Jose Lopez, Nestle's Vice President of operations explained the impact of globalization on Nestle to has been very different from first expected initially we thought it meant developing countries opening up their markets but on hindsight it turned out that rather than being globalized we had to understand how to react to global markets (Bell 2009, 10). Political: Nestle is a global company and in the food and beverage industry one of the most important factors to consider is globalization.
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