Our group survey and research on Nestle Company in this Management Principles assignment has definitely benefit us of the advantages and knowledge. Nestle is the largest company which is in the world’s leading food manufacturer and the market leader in both coffee and mineral water, produces a wide range of products including prepared dishes and cooking aids, milk-based products, cereals, instant coffee and baby foods. Besides, Nestle is a organic model of organizational design. It is flexible and highly adaptive to the competitive external environment and also decentralized decision authority.
Although Nestle company has achieved their mission and objectives, Besides, after we know the theories of Microeconomic and Macroeconomic, we know that some of the theories can apply in our real life such as law of demand. According to the law of demand, when the price of the product falls, the quantity demand of the product will increase, vice versa. In real life, customers will prefer to purchase the product which is the lowest price rather than highest price. However, most of people are poor economic capacity, so they cannot purchase the product.
Therefore, the sellers decrease the price of product, same as other company product such as VICO and other else. With this condition, it gives more choice to the consumer to choose their goods. There are some theories of Microeconomic and Macroeconomic are suitable to apply in our real life. According to the law of supply, other things equal, the quantity supplied will vary directly with the price of the good. In Kampar, there are many supplies and the average price is RM18. 80 and in Teluk Intan, there are few supplies and the average price is RM17. 5. It is because the factors are supplier input prices and prices of related products. On the other hands, there are some theories of Microeconomic and Macroeconomic that should differentiate on the market structure. Like Nestle Company, it is a monopolistic competition in the market structure. By the ways, the characteristics of this market structure are product differentiation, many sellers and buyers, easy market entry and exit, price makers and spend money in advertisements to convince consumers.
Besides that, we can also use the four principle of marketing such as price, product, place and promotion (4Ps) which is very helpful for company tin developing products. This is because different place charge different prices, as the competitors like VICO and other product will find the ways to breaking the price of MILO. The majority of consumers will consume or buy the product cheaper than another one, but got some minority of consumers will continue consume it because of their specialty flavor or others.
In our opinion, we can learn how to differentiate the price of the product in our assignment. It is very useful for us to know the price of MILO, therefore we can compare the price from different shops and make the right decision before purchases. By using this way, we can become more economists and follow up the current market price. Thus, we can understand the theories and our real life is actually the same so that economic theories can be applied 100% in our daily life.