Case Solution for Nestle (Philippines)

Complete Case details are given below :

Case Name :      Nestle (Philippines)
Authors :           Donald J. Lecraw
Source :             Ivey Publishing
Case ID :            97G012
Discipline :        Business & Government Relations
Case Length :    09 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
In early 1996, Mr. Mascenon, vice president of the instant drinks department of Nestle (Philippines), had to decide how to respond to a major change in Nestle’s environment. Until January 1996, imports of coffee in any form–green beans, roasted, or ground and processed–were prohibited. As of January 1996, however, coffee within a specified quota could be imported over a 30% tariff. Nestle was the only foreign-owned producer of coffee in the Philippines and had over 60% of the market, up from 52% seven years before. Over the same period, total coffee consumption in the Philippines doubled. Nestle produced its coffee from Philippine-grown robusta beans, since Philippine arabica beans were of inferior quality. Outside the Philippines, however, a mixture of robusta and arabica beans was usually used. There were rumors that both Procter & Gamble (Folgers) and Kraft General Foods (Maxwell House) were planning to enter the Philippine market, initially via imports, but possibly in the future with production facilities.
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