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Case Study : ' The Hobbit '

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live near him.”
― Gandalf, The Hobbit

do not ignore that with which you compete, or that which can devalue your company, especially if in the same market.

Nestlé began with the merger, in 1905, of two rival milk companies, the Anglo-Swiss Condensed Milk Company (established 1866) and Société Farine Lactée, (established 1867) by Henri Nestlé (Nestle, 2015). Headquartered in Vevey, Switzerland, the new company’s growth was precipitous; mergers, global expansion and new products energised its progress. Within a few years of the start of the 20th Century it had manufacturing plants or warehousing facilities in several countries, including the United States, the UK, Australia, Singapore, Hong Kong, Bombay and Brazil (Bell and Shelman, 2009).

Since then the company has continued to flourish; mergers and acquisitions, global investment and product innovation have seen Nestlé position itself as a “global leader in Nutrition, Health and Wellness” (Nestlé, 2015) and, according to Forbes (2016), it is the largest company within the food industry and the 33rd ranked company on the Global 2000 (Forbes, 2016). Whilst renowned for chocolate, it did not become a global leader on the strength of one product. Its portfolio includes, baby food, beverages, frozen food, prepared dishes and healthcare nutrition. Food and beverages in particular have been prevalent in the aggrandizement of the corporation.

Through successful innovation strategies and a number of mergers and

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