unit 2 business expansion lead in reading: nestlé s. a. session 1

Unit 2 Business ExpansionUnit 2 Business Expansion

Lead in

Reading: Nestlé S. A.

Session1

Lead-in

Task 1

Task 2

Task 3

Section I

Task 4

1) Apple Inc. is an

American multinational

corporation that designs

and manufactures

consumer electronics

and computer software

products.

2) BMW is a German automobile, motorcycle and engine manufacturing company. Founded in 1916, it is known for its high performance and luxury vehicles.

Task 1Work in pairs. Find out which countries the headquarters of the following multinational corporations are located in and discuss with your partner what they mainly deal with.

3) Toyota Motor Corporation is a multinational corporation headquartered in Japan, and the world’s largest automaker.

4) Huawei Technologies Co. Ltd. is the largest

networking and telecommunications

equipment supplier in the People’s Republic of

China.

Task 1

5) Royal Philips Electronics Inc. of the Netherlands is one of the largest electronics companies in the world.

6) The LG Group is South Korea’s third largest conglomerate 集团企业 that produces electronics, chemicals, and telecommunications products.

Task 1

Task 2

Key

Work in pairs and list at least 5 multinational corporations.

Haier GroupLenovo Group LimitedWal-Mart Stores, Inc.The Boeing CompanyChevron 雪弗龙 CorporationAmerican Express Company IBMDellThe Coca-Cola Company The Walt Disney Company

Haier GroupLenovo Group LimitedWal-Mart Stores, Inc.The Boeing CompanyChevron 雪弗龙 CorporationAmerican Express Company IBMDellThe Coca-Cola Company The Walt Disney Company

Key for task 2Key for task 2

Task 3Work in pairs. Discuss the business scope of the following multinational corporations.

2

1 3

Google, Inc.: an American public corporation, earning revenue from advertising related to its Internet search, e-mail, online mapping, social networking, and video sharing services

Samsung Group: a diversified 多元化企业集团group, with operations in various sectors 领域 such as electronics, financial services, chemicals and infrastructure. 基础设施：

Metro. Inc. 麦德龙 : one of the largest retailers operating various formats of retail stores, club stores, cash-n-carry 付现自运 stores and other formats.

Task 4

1. What role do multinational corporations play in the modern

world?

2. What negative effects do multinational corporations have?

Work in pairs. Discuss the following questions.

Q1: Multinational corporations can have a powerful influence in local economies as well as the world economy and play an important role in international relations and globalization. Multinational Corporations account for 40% of the worlds manufacturing output and almost a quarter of the world trade. About 85% of the world’s automobiles, 70% of computer, 35% of toothpaste and 65% of soft drinks are produced and marketed by MNCs.

Q1: Multinational corporations can have a powerful influence in local economies as well as the world economy and play an important role in international relations and globalization. Multinational Corporations account for 40% of the worlds manufacturing output and almost a quarter of the world trade. About 85% of the world’s automobiles, 70% of computer, 35% of toothpaste and 65% of soft drinks are produced and marketed by MNCs.

Q2: (1) Multinational corporations often have monopoly power 垄断力量 which enables them to make excess profit 超额利润 ; (2) Their market dominance 统治， makes it difficult for local small firms to thrive 繁荣 ; (3) In the pursuit of profit, MNCs often contribute to pollution and use of non- renewable 不能再生的 resources which is putting the environment under threat; (4) MNCs have been criticised for using “slave labour 苦役” workers who are paid a pittance 少量 by Western standards.

Q2: (1) Multinational corporations often have monopoly power 垄断力量 which enables them to make excess profit 超额利润 ; (2) Their market dominance 统治， makes it difficult for local small firms to thrive 繁荣 ; (3) In the pursuit of profit, MNCs often contribute to pollution and use of non- renewable 不能再生的 resources which is putting the environment under threat; (4) MNCs have been criticised for using “slave labour 苦役” workers who are paid a pittance 少量 by Western standards.

Reading

Introductory Remarks

Warm up Discussion

Intensive Reading

Section Ⅱ

Practice

A multinational corporation (MNC) is a large company with plants or other direct investment in one or more foreign countries. It is also called an international corporation or a transnational corporation. Typically, a multinational corporation develops new products in its native country and manufactures them abroad, often in Third-World countries, thus gaining trade advantages and economies of labor and materials.


Most MNCs are based in the United States, Western Europe, and Japan. Such corporations have had worldwide influence over other business entities and even over governments, many of which have imposed controls on them. The Nestlé case illustrates many of the features of the typical growth, expansion, and governance of large multinational corporations.


1 Before you read, work in pairs and discuss the following questions.

(1) What do you know about Nestlé’s development?(2) What kind of products does Nestlé have?

Warm up Discussion

Nestlé S.A. is a multinational packaged food company founded and headquartered in Vevey, Switzerland, and listed on the SWX Swiss Exchange ⑴. As is usually the case, the company began with a single product invented by its founder and then grew into a multiproduct company with operations first in its domestic market, then expanding internationally and later moving to a global scale ⑵.

Nestlé grew primarily by acquisition*, consolidating* its leading position in each national market with a focus on a single industry, in Nestlé case, food ⑶.

Nestlé S.A.

Nestlé began in Switzerland in the mid-1860s when two separate Swiss enterprises were founded that would later form the core of Nestlé. In August of that year, Charles A. and George Page, brothers from the United States, established the Anglo-Swiss Condensed Milk Company in Cham. In September, in Vevey, Henri Nestlé developed a milk-based baby food and soon began marketing it. In the succeeding decades both enterprises aggressively expanded their businesses throughout Europe and the United States ⑷. In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the following year the Nestlé company added condensed milk, so that the firms became direct and fierce rivals ⑸.

In 1905, however, the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk Company, retaining that name until 1947, when the name Nestlé Alimentana S.A. was taken as a result of the acquisition of Fabrique de Produits Maggi S.A. and its holding company, Alimentana S.A. ⑹. The company’s current name was adopted in 1977. The newly formed Nestlé and Anglo-Swiss Milk Company had factories in the United States, Britain, Spain and Germany ⑺. Soon the company was full-scale manufacturing in Australia with warehouses in cities such as Singapore, Hong Kong and Bombay. Most production still took place in Europe.

The 1920s saw Nestlé’s first expansion into new products, with chocolate the company’s second most important product. Adding to the product line once again, Nestlé developed Nescafé followed by Nestea.

With the onset* of the Second World War, Nestlé’s profits dropped from $20 million in 1938 to $6 million in 1939, many of executive officers were transferred to offices in the United States. Nestlé had to open factories in developing countries, particularly in Latin America due to the distribution problems in Europe and Asia. Production increased dramatically after America entered the war. Nescafé became a main beverage for the American servicemen in Europe and Asia. Total sales increased by $125 million from 1938 to 1945.

The end of World War II marked the beginning of the most dynamic phase of Nestlé’s history ⑻. Growth accelerated and companies were acquired. In 1947, Nestlé merged with Alimentana S.A., the manufacturer of Maggi seasonings and soups, becoming Nestlé Alimentana Company ⑼. In the coming years, Nestlé acquired Crosse & Blackwell, Findus frozen foods, Libby’s fruit juices, and Stouffer’s frozen foods.

In 1968 the company published its financial report for the first time. That year sales totaled Sfr. 8.4 billion, having doubled in a decade ⑽. Finally, Nestlé management reached the decision to diversify* for the first time outside the food industry. In 1974, the Company became a major shareholder in L’Oréal, one of the world's leading makers of cosmetics. In 1977, Nestlé made its second venture outside the food industry by acquiring Alcon Laboratories Inc.

By the 1980s Nestlé had a new Chief Executive Officer. The company focused on improving its financial situation and continuing to expand. In 1984, Nestlé’s improved bottom line allowed the company to launch a new round of acquisitions, notably American food giant Carnation ⑾.

The first half of the 1990s proved to be a favorable time for Nestlé: trade barriers crumbled* and world markets developed into more or less integrated trading areas ⑿. Since 1996, there have been acquisitions including San Pellegrino (1997), Spillers Petfoods (1998), and Ralston Purina (2002).

In December 2005 Nestlé bought the Greek company Delta Ice Cream. In January 2006 it took full ownership of Dreyer’s, thus becoming the world’s biggest ice cream maker with a 17.5% market share.

In December 2007 Nestle entered in a strategic partnership with a Belgian chocolate maker Pierre Marcolini ⒀.

Now Nestlé’s product lines can be subdivided into the following categories: coffee (Nescafé), bottled water, other beverages, chocolate, ice cream, infant foods, performance and healthcare nutrition, seasonings, frozen and refrigerated foods, confectionery * and pet food ⒁.

Main Products of Nestlé’

Nestlé has over 400 production centers in 50 countries throughout the world, more than 200,000 employees, and 100,000 Swiss and foreign shareholders ⒂. In 140 years, Nestlé S. A. became one of the world’s leading companies by becoming one of the world’s leading and most successful multinational corporations.

Text analysis

1) Nestlé S.A. is a multinational packaged food company founded and headquartered in Vevey, Switzerland, and listed on the SWX Swiss Exchange. 雀巢公司是一家生产包装食品的跨国公司，创建并设总部于瑞士的韦维，并在瑞士股市交易所上市。

“founded, headquartered, listed” are past participles used as attributives, modifying company.

TranslationTranslationTranslationTranslation

AnalysisAnalysisAnalysisAnalysis

swx　　 SWX 瑞士证券交易所　　 SWX　　证券交易所是世界上技术最先进的证券交易所之一。凭借瑞士金融市场强大实力的支持，瑞士证券交易所采取的战略是面向国际的。通过与伙伴组织进行交易合作， SWX 证券交易所提供一流的证券交易服务。不仅其广泛的产品系列令人叹服，其完全整合和自动化的交易、清算和结算系统也十分独特。只要轻击鼠标，订单即可执行、清算、支付和确认。　　 SWX　　证券交易所为参与者、股票发行者和投资者之间的沟通提供了高效和透明的证券市场。它也是国际著名公司选择的主要证券交易所和决定性的市场。　　 SWX　　证券交易所为国际性的创新公司提供进入瑞士资本市场的机会。只要在其中一个交易市场发行证券即可在国际范围内令投资者，尤其是对某些特定行业有兴趣的投资者了解这些公司。在瑞士首次发行股票为公司（特别是生命科学、 IT 、微系统技术和纳米技术行业的公司）筹集股本提供了诱人的机会


Text analysis

2) As is usually the case, the company began with a single product invented by its founder and then grew into a multiproduct company with operations first in its domestic market, then expanding internationally and later moving to a global scale.

就像其他公司一样，该公司依靠其创建者发明的单一产品起家，逐渐发展成为多种产品的生产商，其交易也始由国内市场拓展至国际市场并走向全球。

1.As is often the case 情况常常如此；这是常有的事；通常就是这样1.As is often the case with him, he was fined for speeding. 他因超速而被罚款，这对他而言是常有的事。

2.As is often the case with Americans, he does not care for raw fish. 他不喜欢生鱼，这在美国人来说是常有的事

Text analysis

“Invented” is a past participle used as an attributive, modifying “product”. “Expanding internationally” and “moving to a global scale” are two present participle phrases used as adverbials of result.


Text analysis

3) Nestlé grew primarily by acquisition, consolidating its leading position in each national market with a focus on a single industry, in Nestlé case, food.

雀巢最初通过收购，全力发展单一产业，就雀巢而言即食品，巩固了其在各国内市场的领先地位。

acquisition: the act of acquiring or gaining possession; something or someone acquired or gained e.g.: The company announced two new acquisitions.


Word studyWord studyWord studyWord study


Text analysis4) In the succeeding decades both enterprises aggressively expanded their businesses throughout Europe and the United States.

在随后的数十载中，两家企业迅速将业务拓展至欧洲和美国。

succeeding: coming after or following; successe.g.: Many more confirmations will be made in succeeding days. I'll use this method in the succeeding examples. 我将在后面的示例中使用这个方法 I make no doubt of your succeeding.


Text analysis

5) In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the following year the Nestlé company added condensed milk, so that the firms became direct and fierce rivals.

在 1877年，英国分公司新增了以奶制品为主的婴幼儿食品，随后数年，雀巢公司亦开发了炼乳产品，从而使两家公司成为了直接的激烈竞争对手。 fierce: having a violent and unrestrained nature; savage残酷的 e.g.: Because there is so much unemployment, the competition for jobs is fierce.




Text analysis6) In 1905, however, the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk Company, retaining that name until 1947, when the name Nestlé Alimentana S.A. was taken as a result of the acquisition of Fabrique de Produits Maggi SA and its holding company, Alimentana S.A..

1905年，两家企业合并成为雀巢英瑞炼乳公司，并将该名保留至 1947 年，该名因为雀巢公司收购马吉及其控股公司而更名为雀巢食品公司。

retain: to be able to hold or containe.g.: The hotel retains these rooms for the holidays.


Text analysis

7) The newly formed Nestlé and Anglo-Swiss Milk Company had factories in the United States, Britain, Spain and Germany.

新组建的雀巢英瑞奶制品公司的工厂遍及美国、英国、西班牙和德国。

“Formed” is a past participle used as an attribute to modify Nestlé and Anglo-Swiss Milk Company.




Text analysis8) The end of World War II marked the beginning of the most dynamic phase of Nestlé’s history.

二战结束标志着雀巢公司进入其最具活力时期。

dynamic: of or concerned with energy or forces that produce motion, as opposed to static静态e.g.: We are looking for dynamic persons to be our employees.phase: any distinct time period in a sequence of events; stagee.g.: The company is going through a difficult phase.



Text analysis9) In 1947, Nestlé merged with Alimentana S.A., the manufacturer of Maggi seasonings and soups, becoming Nestlé Alimentana Company.

1947年，雀巢公司兼并了 Maggi品牌调味品和汤料生产商 Alimentana S.A.，共同组建成了雀巢食品公司。 merged with: to meet and join or cause to meet and joine.g.: The firm merged with its main competitor.The steel trusts 托拉斯 merged various small businesses.



Text analysis10) That year sales totaled Sfr. 8.4 billion, having doubled in a decade.

该年度的销售额达 84亿瑞士法郎，在十年中翻了一倍。

total: to amounte.g.: We have debts totaling 5000 dollars. The total product of society has been increasing in the recent years.


Text analysis

11) In 1984, Nestlé’s improved bottom line allowed the company to launch a new round of acquisitions, notably American food giant Carnation.

1984年，雀巢公司改善了财务状况，使其能够发起新一轮的收购行动，尤其是收购了美国康乃馨食品公司。

notably: particularly or especiallye.g.: Loans for financial concerns 金融企业 shrank notably. Many members were absent, notably the vice-chairman.




Text analysis

12) The first half of the 1990s proved to be a favorable time for Nestlé: trade barriers crumbled and world markets developed into more or less integrated trading areas.

二十世纪九十年代上半叶是雀巢公司发展的大好时机：贸易障碍冰消瓦解，世界市场发展为或多或少的综合贸易区。

integrated: formed or united into a wholee.g.: Our firm is an integrated oil company.



Text analysis

13) In December 2007 Nestle entered in a strategic partnership with a Belgian chocolate maker Pierre Marcolini.

2007年 12月，雀巢公司与比利时巧克力生产商家皮埃尔•马科里尼建立战略性合作关系。

strategic: relating to or concerned with strategye.g.: China is making strategic readjustment to its economic structure.We are aiming at keeping global strategic balance and stability.


Text analysis

14) Now Nestlé’s product lines can be subdivided into the following categories: coffee (Nescafé), bottled water, other beverages, chocolate, ice cream, infant foods, performance and healthcare nutrition, seasonings, frozen and refrigerated foods, confectionery and pet food.

现在，雀巢公司产品可以分为如下类别：雀巢咖啡、瓶装水、其他饮料、巧克力、冰淇淋、婴幼儿食品、保健功能食品、调味品、冷冻食品、糖果和宠物食品。



Text analysis

category: a collection of things sharing a common attribute. e.g.: The two objects fall into the same category. What category of industry do they belong to?


Text analysis15) Nestlé has over 400 production centers in 50 countries throughout the world, more than 200,000 employees, and 100,000 Swiss and foreign shareholders.

雀巢公司拥有 400多个生产中心，遍及全球 50多个国家，员工多达 20000人，并有着 100000来自瑞士和其他国家的股东。

shareholder: the owner of one or more shares in a companye.g.: Leading shareholder in the firm forces a change in management policy.


2 Read the text and finish the following comprehensive tasks.(1) Explain the company’s name Nestlé S.A..(2) What does the term “operation” mean in the text?(3) When was the company’s current name Nestlé S.A. adopted ?(4) What was the company’s second most important product? (5) Summarize the acquisitions history of Nestlé.

Practice

Keys Keys

(1) In 1905, the Anglo-Swiss Condensed Milk Company and the Nestlé Company merged to become the Nestlé and Anglo-Swiss Condensed Milk Company, retaining that name until 1947, when the name Nestlé Alimentana SA was taken as a result of the acquisition of Fabrique de Produits Maggi SA and its holding company, Alimentana SA. The company’s current name was adopted in 1977.

(2) It means “a commercial or financial transaction”.(3) The company’s current name Nestlé S.A.was adopted

in 1977.(4) Chocolate.

Keys for comprehensive tasksKeys for comprehensive tasks

• (1) The Anglo-Swiss Condensed Milk Company and the Nestlé were direct and fierce rivals.

• (2) Nestlé’s first expansion into new products was in the 1930s.

• (3) In 1947 Nestlé acquired Crosse & Blackwell. • (4) In 1968 Nestlé’s sales totaled $ 8.4 billion, having

doubled in a decade. • (5) In the 1970s Nestlé made two ventures outside the

food industry.

3 Read the text again and decide if the following statements are true (T) or false (F).

F

T

F

T

F

unit 2 business expansion lead in reading: nestlé s. a. session 1

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