A Case Study Of The Food Company Nestle Marketing Essay

A Case Study Of The Food Company Nestle Marketing Essay With reference to the Nestle case study, provide one example which clearly illustrates a link between topics or concepts drawn from at least two pre-requisite modules. Nestle is one of the oldest of all multinational business. Nowadays, Nestle is one of the biggest food and nutrition companies in 86 countries in the world. (Hill, 2009 pp). Nestle was involved with a range of acquisitions in the last years in order to extend its line of products and try to expand on a geographical scale. Since its sales are reducing in developed markets, Nestle has the opportunity to expand business in up and coming countries, which is going to generate more profit for the company. Up and coming countries is one sector that Nestle is going to invest money in because it has the potential to be a strong and attractive market. Nestle feels confident in doing so because in such countries population economy and technology has experienced a rapid growth. (Datamonitor, 2006). Nestles long-term strategy is to identify the quickly expanding countries first and get into the market as soon as possible in order to take advantage of other competitors. However, it first has to hold the leading position in the developed markets where it is currently placed. Also Nestle has to hire local managers and staff in the developing markets that understand the local market dynamic and culture. As explained above there is a link between Nestlà ©s strategy and the Strategic management, because companies employ managers from respective countries in the local companies due to the fact that they understand the local market dynamics. By hiring local manager they can take advantage of the local knowledge and own culture of the country. FIGURE 1 Figure 1 Source: Own diagram It is a huge advantage that Nestle works with local managers in fast rising emerging countries. As a result, Nestle will have quick results which lead to quick profits. As we can see in FIGURE 1 above, Nestle is closely related to the Strategic management module because companies will have a range of research(reports) on fast growing countries. Therefore, they will have the ability to balance the services they are able to provide (food, cereals, coffee, chocolate, drinks, ice cream, etc) (Nestle 2011), with the price that customers are willing to pay. For example, if people cannot afford the Nestle products then they will not expand in such countries but focus their attention and invest in countries where people are able to buy their products. Also, Nestle is connected with methods of enquiry with Emerging markets. Companies will have less space to roam around and make decision considering that much of their movements are controlled by the market reaction. This means that emerging markets are countries with social or business activities in the process of rapid growth and industrialization. The Nestle case study as clearly explained above illustrates a good link with the Strategic Management/Methods of Enquiry and the Market dynamic/Emerging markets respectively. Does it make sense for Nestle to focus its growth efforts on emerging markets? Why? The recent financial crisis that reverberated throughout the globe was a clear indicator of the interdependence and the codependence that globalization has created while simultaneously making it clear to everyone that the emerging economies, especially those that make up BRIC (Brazil, Russia, India and China) are more resilient than western economies, thus making them engines of growth that have helped the recovery effort in the last few years. Therefore from that point of view alone it can be stated that yes, Nestlà ©s strategy to focus its growth efforts in developing or emerging markets is indeed a sound one. However this does not mean that the ability of these markets to recover faster than the western economies should bebe sole reason for such a decision. Rather there are many more and varying reasons that need to be taken into consideration. The onset of globalization for one thing has helped uplift the living standards of many in China and India and millions of families have climbed out of poverty and are able to aspire to better life styles and a better standard of living, thus creating new markets companies like Nestle (Latshaw and Choi, 2002, pp. 27). Next as has been stated in the case study, the number of individuals who can be considered as middle class in these two economies alone will exceed 700 million in the coming decade, which is more than the entire population of 500 million in the European region or the 300 million in the United States, thus making this a very lucrative market for Nestle and one that needs to be exploited with immediate effect (Crook, Bratton, Street Ketchen, 2006, pp. 409 412). Besides the above Nestle as a multi national company has a decentralised structure and has often emphasised the need for attracting, recruiting and selecting host country nationals to be employed in its manufacturing plants across the world and this again is a very strategic and wise decision (Cesnovar, 2006, pp. 227 229). By decreasing unemployment rates, being socially responsible corporate citizen and helping to uplift the standard of living in these regions of the world, the company is earning the respect of the populatio n, which can soon be converted to public relations win, thus it can be stated that this strategy makes immense sense at the present time (Mclean, 2006, pp. 36). Last but not least it should also be stated that by gaining first mover advantage of providing basic food stuffs through which brand loyalty is created the company stands to gain much as most consumers will not switch to other brands but rather decide to stick with the trusted brand even when they are ready to move to the more upscale and upmarket products that are provided by the company (Gratton, Hailey, Stiles Truss, 1999). Therefore it can be stated that from every point of view, whether it is as a consumer products manufacturer or an employer, Nestle stands to gain much through this growth strategy of focusing on emerging markets. What is the companys strategy with regard to business development in emerging markets- Does this strategy make sense- From an organizational perspective, what is required for this strategy to work effectively? As is clear from the information that has been provided in the case study, Nestle uses a variety of different strategies to develop its business activities and markets in the emerging markets. While many maybe of the opinion that only one or two strategies should be used in order to ensure that synergies of scale are gained and that there is consistency across the operations, such a customization of strategy to meet the specific needs of an economy is highly commendable (Marshall, Smith Buxton, 2009, pp. 14 18). For instance in countries like India and China, Nestle has entered the market by providing low cost brand name basic food stuff like condensed milk and infant formula, in doing so the company has also located its manufacturing plants within the countries and the regions, employed host country nationals and helped uplift their living standards. Thus not only has the company provided them with a livelihood by employing them and purchasing local produce from local farmers and businessman, but in doing so has also created loyalty to its brand, which is something priceless (Karake-Shalhoub, 1999). As the living standards and the income levels of these individuals and entrepreneurs increase, they will no doubt continue to be loyal to the Nestle brand and purchase the more upscale and products that are sold by the company, when they are ready to move from basic food stuffs to more branded and upscale foods stuffs like cookies and chocolate. Likewise another strategy that is being used by the company is to enter markets like Nigeria and China and invest in basic infrastructure to ensure smooth distribution channels, while many may see this as a waste, in the long run, the company has gained a strong foothold in the marketplace, created job opportunities and further increased the visibility of its brand and thus increased entry barriers for the competition (Sims, 2003), thus it can be stated that this is indeed a very good business development strategy that is being followed by the company at the present time. From an organisational perspective for an a strategy to work effectively it is necessary to ensure that the strategy is developed in such a manner that it would fit the market needs and help the company to gain a comparative advantage (Oladunjoye Onyeaso, 2007, pp. 592 598). Based on everything that has been stated above and the manner in which Nestlà ©s is currently operating in China, India, Africa, the Middle East and Eastern Europe, it is clear that the company has adopted many different successful strategies that are helping it to gain a competitive edge in these markets while continuing to benefit from the first mover advantage that it has created for itself. Through research on NESTLE, identify appropriate performance indicators. Once you have gathered relevant data on these, undertake a performance analysis of the company over the last five years. What does the analysis tell you about the success or otherwise of the strategy adopted by the company? An analysis of Nestlà ©s performance indicates that the Company has been able to improve its performance over the years. The sales of the Company reached a record of US $73 billion, and growth in profits was 20.7% in 2005. In 2005, Europe amounted to 30% of sales, Americas 34%, and Asia, Oceania and Africa 17% of the sales. Nestle is aware that it need to adjust its offering if it is to reach its target of 5-6% growth per year. (Country Monitor, 2006). Public Image In a world that is becoming increasingly complex, consumer needs and wants continue to become more sophisticated on a daily basis. Unlike in the past when companies could simply mass produce and sell products to the end user, today, consumers are demanding more not only in terms of pricing and quality but also in terms of corporate social responsibility. Therefore it is necessary for Nestle to continuously monitor and manage its public image and it is also very important from a strategic perspective that the company is seen as a socially responsible corporate citizen (Niederhut-Bollmann Theuvsen, 2008, 63 68). Compared to many other multi national companies, Nestlà ©s has not earned the public ire for being irresponsible socially, however as the global slave trade for chocolate manufacturers comes to light it is essential that Nestlà ©s looks at ways and means to ensure that it is not ensnared in such a public relations nightmare. Sales Growth This is a very important performance indicators and should give the company a sense of its successes and failures in terms of strategy. Currently the company has been doing very well on this front and should carefully monitor the external and the internal environments for any factors that may pose a threat to its continued success in this area (Roberts, 2001, pp, 25 28). Following a growth strategy in emerging markets is actually a very good strategy that has paid off and continues to pay off, however this does not mean that the company can afford to be laid back on this score. Market Share By gaining first mover advantage the company has been able to gain and retain its market share through the years, however it is also necessary that the company continues to learn from its past mistakes in Japan and other countries, where it did not take the competition seriously and therefore has lost much in terms of market share that it could otherwise have gained (Odagiri, 1992). Blue Ocean Strategies As markets continue to mature and other markets continue to develop it is imperative that the company focuses its attention on research and development and creates blue oceans in order to find new markets (Gubman, 2004, pp. 13). This is something that Nestle is currently lagging at and needs to pay particular attention to with immediate effect. Based on everything that has been stated above it is therefore clear that while the company does excel in areas such as managing its public image and sales growth, there is much more improvement needed to be made in the search for innovative market strategies that will help force it to success in the future. How would you describe Nestlà ©s strategic posture at the corporate level; is it pursuing a global strategy, a multidomestic strategy an international strategy or a transnational strategy? Figure 2 Which Structure to Choose? Source: http://www.wiziq.com/tutorial/380-International-Strategy Illustrated above is a depiction of the different corporate level strategies that can be adopted by multi national companies the world over. Such strategy is often chosen on the degree of need for global integration and local market responsiveness (Kaplan and Norton, 2001, pp. 87). Based on the information that has been provided in the case study it is clear that Nestle is a company that need to gain a high level of local market responsiveness due to the variety of different business development related strategies that is pursuing in different parts of the world. For instance while in the Middle East it has entered the markets by building five different lines of products that it hopes will be distributed across the region as trade barriers fall, in countries like China and India, it is pursuing a different strategy of meeting the basic food needs of the population with items such as infant formula and condensed milk. It is the intention of the company in these markets that once stand ards of living increase, they can leave these Niche markets and provide consumers with more upscale and upmarket products like chocolates and cookies. Further it can also be stated that as a company with only 1% of its revenue being earned in the home country and 8000 different brands, global integration is a must (Lowson, 2002). Therefore it is the opinion of the writer that Nestle need to choose between the multi domestic strategy and a transnational strategy and not swing from one to another, because doing so would only result in the company loosing focus of its final aim, which is to be a global consumer food products leader (George, 2007, pp. 66 71). Based on the information that has been provided in the case study it is the opinion of the writer that Nestlà ©s should choose a transnational strategy because it balances both the global integration needs of the company and the local market responsiveness that is necessary to ensure that the companys products will be competitive and continue to meet the needs of the local population in the emerging markets that it is operating in (Marks, 2005, pp. 1). While many maybe of the op inion that the company should continue to pursue its multi domestic strategy as it has worked well for it in the past, the changing needs of the global environment and the development taking place in the emerging markets make it necessary to gain synergies of scale and global integration for the many brands that it has under its belt and therefore a transnational strategy is the best option for Nestlà ©s in the future (Barney and Hesterly, 2008). Does this overall strategic posture make sense given the markets and countries that Nestle participates in? Why? The overall strategic posture of Nestlà © makes a lot of sense given the fact that it is operating in virtually every country in the world, with a huge presence in the emerging markets. According to Hill (2006), that multidomestic strategy is appropriate in a market where the pressures for local responsiveness is very high and as a results the pressures for the cost reduction is low. Especially, pressures for local responsiveness can be very high in some productions, such as food, chocolates, dairy nutrition and etc. From the time when consumers have many national differences in tastes and preferences, distribution channels, competitive conditions, business practices, culture and government policies in the markets in which Nestlà © operates, therefore following a multidomestic strategy is beneficial for the Company. The difference in cultures and purchasing power (Prahalad et al, 1998) in the middle class population in emerging markets imply that in order for a first mover to gain advantage, it must be willing to adapt its product and offer in accordance with the needs of the local market. Figure 3 Source: http://www.docstoc.com/docs/5632428/Ethnocentric-Polycentric-Geocentric-Diagrams As stated in the previous section the overall strategy that is currently being followed by Nestles is one that focuses on local market responsiveness over global integration, which in effect results in a multi domestic strategy (Shackman, 2007, pp. 479 488). It is no doubt however that such a strategy has indeed helped the company to gain the level of success that it currently enjoys in emerging markets, and therefore can be considered as good. However we should always remember that strategies should promise equal or more success in the future as they do for the company today (Cabrera and Cabrera, 2003, pp. 41) and therefore reviewing the strategy from such an angle would work to the benefit of the company in the long run. The company currently follows a regiocentric attitude as is clear from the illustrations above, while it can be reiterated that this type of structure and strategy works to the advantage of the company, in the long run as the emerging markets being to mature and t he company continues on its mergers and acquisitions strategies to enter new markets in Eastern Europe, it will become essential that the company gains some level of global synergy and integration (Mcwilliams, Van Fleet, Wright, 2001, pp. 1). Therefore it is the recommendation of the writer that the company begins to embark on a transnational strategy with a Geocentric attitude, which will eventually help it to have a more global view with flexibility to make necessary changes at local level whenever and as frequently as needed (Donaldson OToole, 2002). Therefore in conclusion it can be stated that even though the current strategic posture makes sense, it needs to be reviewed and modified if the company is to continue to penetrate, gain and retain market share in the emerging economies as well as the developed economies the world over (Mockler, 1999). Is Nestles management structure and philosophy aligned with its overall strategic posture? The overall structure and the strategy of the company as stated previously and has been made clear to the reader throughout the case study, is that the company pursues a multi domestic strategy, due to the need to have a high responsiveness to the local market needs (Drejer, 2002). While this is impressive, the company goes further to also ensure that it is staffed by local nationals in the host countries and that power and authority is decentralised as much as possible, again indicating that the management structure is indeed very much aligned to its philosophy of local autonomy and its multi domestic strategy (Silverman, 2002). However instead of relying on the local managers alone, the company also has a pool of at least 700 expatriate managers who travel from one country to another ensuring that the local and regional strategies of the company are upheld and global integration is a possibility (Mintzberg Rose, 2003, pp. 270 277), while this may sound like a sound and often a wi se move on the part of the company, the fact that none of the regional international managers get involved in local level stratey design and the fact that none of the local level managers are involved in the global strategy design and development leaves a disconnect that can cost the company dearly in the long run and therefore it is necessary to take a close look at the integration of both and make changes wherever necessary (Betz, 2001). Based on everything that has been stated above, it is therefore the opinion of the writer that greater global integration is necessary as the company moves forward and hopes to retain its place as a market leader by gaining large shares of the market in emerging economies, which it has strived hard to build over the last few decades. In effect it is therefore necessary to ensure that there is high levels of global integration and simultaneously ensure that there is high levels of local market responsiveness as well (Lefkowith, 2001, pp. 20). As stated previously this is only possible if the company follows a transnational strategy and this strategy and philosophy should be made a possibility by changing the current management structure within the company to one that allows for regional managers to gain an understanding of local issues and challenges and vice versa. This will help the company to align its goals and objectives both on an international local level and thus be more integ rated in both spheres.

Micro-Economic Impacts on Tesco Plc

In this essay we are going to evaluate the micro economic factors on the activities and performance of Tesco. Tesco Plc (2011) states, that the retail industry is a highly competitive environment. Tesco competes with a wide variety of retailers of varying sizes and faces increased competition from UK retailers as well as international operators in the UK and overseas. Failure to compete with competitors on areas including price, product range, quality and service could have an adverse effect on the organisations financial results.Tesco aims to have a broad appeal on price, range and store format in a way that allows them to compete in different markets. There is a risk that Tesco may not deliver their stated strategy in full, particularly since, like all retailers; the business is susceptible to economic downturn that could affect consumer spending. 2. 0 The Extent of Competition in the Market Tesco is a multi-national grocery and general merchandising retailer. By revenue, Tesco is the fourth largest retailer in the world after Wal-Mart, Carrefour and Metro.With 4,811 across 14 countries in regards to profit, Tesco is the second largest retailer in the world. In the UK, Tesco operates in an oligopolistic market competing against three major retailers; Asda, Morrisons and Sainsbury’s. Oligopolistic markets are those which are dominated by a small group of larger firms with several smaller firms also competing in the market with minority market share. The concentration ratio of the retail market is 4:76. 2. Figure 2. 0. 1: Comparing the Grocery Market (Preston, 2008) Preston (2008) states, Tesco are the market leader with 31. % with Asda, Sainsbury’s and Morrison’s having a market share of 16. 9%, 16. 4%, 11. 5%.This means theoretically Tesco have monopoly power within the market but due to the intense competition which is apparent, they are not able to exploit their market power and discriminate against other firms as well as customers. How ever, there are still allegations that the major players within the market collude with one another to cause higher levels of barriers of entry and keep prices at a level which benefits all of the major firms. This protects their position within the market and allows them to set rices at any desirable level.With this happening these major players make it extremely difficult for start-up businesses to enter the market. 3. 0 Market Dominance In 1998 the market share for the grocery market showed that Tesco had 21. 8% of the market share. Asda had a market share of 12. 1% with Sainsbury’s share at 19. 9%. Morrisons and Safeway controlled 13. 3%. This gave a concentration ratio of 4:66. 1. However in figure 2. 0. 1, it shows that Tesco started to dominate the market and saw a rise in their market share from 21. 8% to 31. 4%.Presumably, within these 10 years Tesco’s used its economies of scale to gain this extra market share. With Tesco having a great majority of the market share they operate in, it allows them to possibly price discriminate. The way in which Tesco could do this is by having such a high market share they are capable of forcing competitors out of business and therefore, leaving only them to provide the products or services within that area. In addition to this, Tesco can under-price its products and services as with a greater market share they can reach economies of scale.Economies of scale arise when cost per unit falls as output increases. With having economies of scale Tesco’s can then be more productive than its competitors and supply more to its customers at better prices. For example if Tesco reach economies of scale they can get more from their suppliers with bulk buying allowing them to supply at lowers prices. By doing this poses a threat to smaller businesses that can be undercut by the competition. With a 30. 1% of the market share Tesco definitely do have some market dominance within the market via the instruments st ated above such as the potential to undercut competitors.However, they are not a monopoly and therefore, cannot fully price discriminate and set prices. As with doing this its custom see going to other companies within this market as the products and services they supply are similar. 4. 0 Economies of Scale Economies of scale are when higher output leads to lower average costs; such the average cost of production is reduced due to the increase in total output. Tesco has a very large scale business, opening new stores daily. There are currently more than 4,811 stores of Tesco worldwide.Since they are opening new stores regularly, they have to produce more. So as the volume of production increases, their average cost per unit has decreased. This has given Tesco a huge advantage over the other supermarkets especially those that are smaller in size. The large size of the firm means that it can benefit from further economies of scale in areas such as bulk buying, transportation, distribu tion, marketing and technology. A feature of their sales strategy is that they encourage customers to buy in bulk.They have special offers for that, such as buy one get one half price etc. These offers compel customers to buy more quantity, which in turn gives Tesco the advantage of selling more and consequently buying more, which in turn gives them a lower average cost. In an oligopolistic market, although it is difficult to prove, the likelihood is that the firms with majority market share collude with one another for the benefit of themselves. They will do so to maximise their profits as well as create higher levels of barriers of entry for new firms trying to enter the market.This has now become illegal in the UK by the 1965 Restrictive Trade Practices Act. 5. 0 Barriers to Entry Barriers to entry are the means by which Tesco’s potential competitors are blocked out. Due to Tesco’s monopolistic characteristics, Tesco will be able to enjoy higher profits in the long run as rivals have not diluted market share. Three barriers of entry are: Patents are legal property rights to prevent the entry of rivals. They are generally valid for an average of 20 years and give Tesco the right to prevent competitors from using patented products.Tesco can sell licences to competitors for a stated fee. Using Advertising and Marketing Tesco have developed customer loyalty; their club card has played a pivotal role in their customer loyalty. Thus making demand less sensitive to price; due to advertising leading to an outward shift in demand. Tesco engage in brand proliferation, as it is a firm which sells a vast range of products, this may portray Tesco differently to consumers. This is common barriers to entry in these types of markets as it is non-price competitions for household good. 6. 0 Porter’s Five ForcesIn order to evaluate the competitive environment surrounding Tesco, I shall utilise Porter’s five forces model illustrated in figure 2. Fig ure 6. 0. 1: Porter’s Five Forces Model (Zanthus, 2011) 6. 1 Bargaining Power of Buyers 0 The bargaining power of buyers is fairly high. 1 Products that have a slight differentiation; more standardised, the switching cost is considerably low, allowing the buyers to switch from one brand to another easily. 2 Prices are forced down by buyer’s power. For example, if bread is too expensive in Tesco, buyers will use their power and move to Asda.Supermarkets have a disciplined approach to price setting, stopping them from destroying each other in a profit/price war. 6. 2 Bargaining Power of Suppliers 3 The bargaining power of suppliers is fairly low. 4 Suppliers fear losing contracts with major supermarkets, hence putting retailers like Tesco in a dominating position. Negotiations are therefore positive in order to get the lowest price achievable from the suppliers. 6. 3 Competitive Rivalry 5 The amount of competitive rivalry in the food and grocery retail industry is extrem ely high. 6 Tesco faces extreme competition from its key competitors; Asda, Sainsbury’s and Morrisons.Organisations are competing with each other over price, products and promotions sporadically. 7 Discount superstores such as Aldi and Lidl have taken over the market in current economic times, due to the recession. Keynote (2010) states, that during 2008, they recorded sales of over 25%. 6. 4 Threat of New Entrants 8 The threat of new entrants into the food retail industry is low. 9 Tesco and other supermarket chains put up considerable barriers to entry. Starting a new supermarket chain has barriers imposed on it, implicitly or explicitly, by the existing organisations.0 According to Mintel (2010) Tesco, Asda, Sainsbury’s and Morrisons account for 80% of all shopping carried out in the UK. 11 In order for new entrants to establish themselves they will have to produce something at an exceptionally low price and/or high quality. 6. 5 Threat of Substitute Products and Se rvices 12 The threat of substitutes in the grocery retail market is considerably low for food items whereas it’s medium to high for non-food items. 13 The substitutes for these major supermarkets are smaller firms such as convenience stores; but these are not seen as a threat to Tesco who offer high quality items at low prices.Tesco is however overcoming this threat by opening ‘Express’ stores in small towns and city centres, in effort of becoming an obstacle for substitutes hoping to enter the market. 14 In current economic times, customers will be drawn towards discounted prices, thus Tesco is a threat towards specialist shops. Due to the rivalry between these supermarket chains, a highly competitive environment can be maintained, and one that facilitates consumers a greater deal than a proliferation of small independent shopkeepers. 7. 0 Game Theory and Interdependence Game theory and interdependence are both linked together.Interdependence is when decisions o f two (or more) businesses have an effect on the other firm’s profits. Then when looking into interdependence the investigation into what happens is game theory. As Tesco has the highest share of the oligopoly it in theory has the most power of the market. However a competitor such as Sainsbury’s could easily affect the percentage share of the market Tesco has. This could be by Sainsbury’s lowering the prices of certain products and then with the decision that Tesco has to make, Tesco could end up losing either their percentage of share in the market or their profits.For example if Tesco decides to keep the price the same of an item which is on sale at Sainsbury’s then customers will decide to get the product from Sainsbury’s, thus Tesco lose money. However Tesco may also decide to lower the price of the item for sale at Sainsbury’s, however Tesco may not advertise the sale item as well as Sainsbury’s so again they may incur a loss as not many people know that the item is for sale. Many other examples could be used for interdependence for Tesco’s.If a competitor of Tesco such as Sainsbury’s decided to save costs because of the recession then Tesco could unexpectedly make more profits as a result. This is because Sainsbury’s could decide to save costs by cutting down the number of jobs and stop selling less profitable items. The effect this would have on Tesco’s would be positive. This would be due to the downturn in popularity of Sainsbury’s as a result of job losses around the country to save money. As big money companies cutting jobs is always very unpopular, as a resultSainsbury’s customers may well go to its competitors such as Tesco and thus Tesco gaining more money from more customers. With Sainsbury’s losing customers in this example, the demand curve for Tesco would shift to the right and as a result of more money being made the price level would be increa sed because of the increase in demand. 8. 0 Conclusion and Recommendations From the above analysis, it can be said that Tesco maintains to embrace its leading position in the highly competitive retail industry; in which organisations must follow both differentiated strategies and cost leadership.The core competencies of Tesco are aligned with the competitive operating environment, therefore highlighting a positive future outlook for the organisation. The company must constantly adapt to the fast changing circumstances. Strategy formulation should therefore be regarded as a process of continuous learning, which includes learning about the goals, the effect of possible actions towards these goals and how to implement and execute these actions.

Life After Sample College Term Paper Pdf

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Clinical Consequences Of Obesity And Obesity - 1867 Words

Clinical Consequences of Obesity Name Date Clinical Consequences of Obesity Obesity is a growing issue in western and developing countries. It is a medical condition in which a person accumulates excess triacylglycerols in fatty tissue to the extent that it has negative consequences on the health of the person. Extreme cases of obesity are likely to have a genetic basis of which is majority polygenic. The body mass index of a healthy person should be between 20 and 25 but if it exceeds 26 the person is termed as overweight. If more fat is accumulated to the extent that the body mass index is more than 30, then the person is said to be obese. In addition, the pathophysiological mechanisms that cause obesity are mainly a mixture†¦show more content†¦As a result, one out of every three children is likely to be obese or overweight, and thus their performance in school is adversely affected. This worrying trend is mainly attributed to the lifestyles that majority of the people are adopting such as consuming junk foods that have high-calorie contents, and more specifically among young people that consume excessive amounts of sweetened drinks. The sweetened drinks tremendously increase the carbohydrate or sugar levels to the extent that it becomes harmful to their bodies. The situation is worsened by the increasing lack of adequate physical exercise partly due to the technological advancement that has led to the availability of many gadgets such as washing machines, computers, and dishwashers among others that encourage people to live sedentary lives. Other factors such as lack of enough sleep, obesity genes, smoking and some types of medications have also contributed to worsening of the condition. Environmental changes which have continued to take place in almost all parts of the world have contributed to the increasing prevalence of the condition. The result is the creation of global pandemic that has diverse implications on the general human mortality in the coming years and it thus seems that all people will have a polygenetic risk of developing obesity. Obesity has both short term and long term effects which range from health effects to well-being effects that are usually detrimental on the