International Trade – Term Paper – Vanya de Silva
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International Trade
Vanya de Silva
1.0 Introduction
1.1 Current Industry Background
Founded in 1866 by Henri Nestlé, the group has established themselves as the largest food company in the world based on their revenues. According to the fortune 500 ranking Nestle company ranked 48th where their food brands are ranked 58th. Nestlé’s mission is to be the leading nutritional food provider in the industry enhancing the well being of its customers.

The company operates globally in 70 countries offering diversified products such as
Dairy products
Coffee products
Nutritional Products
Mineral Water
Ice Cream
In fact annually 79% of Nestlé’s Swiss made products are exported globally increasing their profits by 3.7%. On the other hand by being a global company, Nestle builds up its brand image by focusing on sustainable development by creating shared value through its supply chain.

Figure 1.0
Source: Author’s work based on (Nestle: Creating shared value 2010)
Thus by engaging themselves in such measurements Nestle has established its profitability and growth in the long run.
2.0 Parameters of Supply Chain in Nestle
The supply chain process of Nestle includes from sourcing of raw materials from direct and indirect suppliers, manufacturing, distributing and transforming them into products for worldwide consumers.

Figure 2.0 – Supply Chain of Nestle
In order to be the world’s leading Food Company Nestle focuses on innovation and renovation. Therefore, Nestle ensures that they have an efficient supply chain from quality raw materials to fresh and quality products in the market shelves.

2.1 Procurement
As the world’s leading agricultural raw material buyer, Nestle sources its raw materials such as cocoa, milk, coffee, vegetables, sugar, spices, herbs and fruits through direct and indirect channels. In fact Nestle spends nearly CHF 58 – 60 billion a year on core procurements where CHF 20-22.5 billion is spent on ingredients and CHF 8-9 billion is spent on packaging (Annual Report, 2012).

Figure 3.0 – Sourcing of raw materials
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(2016, 07). International Trade. Retrieved 07, 2016, from
“International Trade” 07 2016. 2016. 07 2016 < "International Trade.", 07 2016. Web. 07 2016. < "International Trade." 07, 2016. Accessed 07, 2016. Essay Preview 1 rating(s) By: Vanya de Silva Submitted: July 16, 2016 Essay Length: 511 Words / 3 Pages Paper type: Term Paper Views: 427 Report this essay Tweet Related Essays International Trade International Trade In today's world there are many issues in need of reformation, one of which is international trade, otherwise known as globalization. Although there 841 Words  |  4 Pages International Trade International trade is the purchase, sale, or exchange of goods and services across national borders. International trade provides a country’s citizens a greater choice 795 Words  |  4 Pages The International Trade Liberalization of India Final Paper March 14, 2005 The International Trade Liberalization of India According to many global economic studies the key to peace is through the promotion 1,529 Words  |  7 Pages International Trade International trade is good countries because it allows then the freedom to choose the products that desire and increases wealth in the economy. Trade is 369 Words  |  2 Pages Transportation Costs and International Trade over Time Transportation Costs and International Trade Over Time David Hummels David Hummels is Associate Professor of Economics, Purdue University, West Lafayette, Indiana. His e-mail address is 9,218 Words  |  37 Pages Similar Topics Body Shop International Swot Model International Trade Get Access to 89,000+ Essays and Term Papers Join 209,000+ Other Students High Quality Essays and Documents Sign up © 2008–2020 EssaysForStudent.comFree Essays, Book Reports, Term Papers and Research Papers Essays Sign up Sign in Contact us Site Map Privacy Policy Terms of Service Facebook Twitter

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International Trade And Nestle Company. (April 5, 2021). Retrieved from