...Joey Van Hoose Excelsior ID# 30796152 M5A1- Nestlé Nestlé Case Study Nestlé has been considered the world’s largest food and beverage company for many years and they achieved this by operating under a localization strategy. Under a localization strategy, a company focuses on local responsiveness, and requires little coordination between the subunits. Working under a localization strategy, firms do not have a high need to integrate mechanisms to knit together different national operations. With that each operation has the ability to control operations by relying primarily on output and bureaucratic controls and a policy of management by exception. Considering the need for integration and coordination is low, under a localization strategy, the need for common processes and organization culture is also low (Hill, 2011). With that, each operating unit basically acts as its own entity, creating their own independent set of core values and policies. Nestlé traces its origins back to the first European condensed milk factory, based in Cham, Switzerland, that opened in 1865 by the Anglo-Swiss Condensed Milk Company. One year after this, Henri Nestlé, a trained pharmacist, launched one of the world’s first prepared infant formula companies in Vevey, Switzerland. The two companies, that at the time were fierce competitors, decided to merge in 1905 to become the Nestlé we know today, and their headquarters are still in Vevey, Switzerland (Nestlé, 2012). Nestlé begin with the...
Words: 1543 - Pages: 7
...Nestlé Boycott Final Exam Case Study Business Ethics The arguments for continuing the Nestle boycott from the viewpoint of consumers is that in the last 30 years, there has been significant amounts of change that have resulted from the boycott. Nestle not only agreed to abide by the WHO code but Nestle also stepped up their efforts to develop new ways of managing this baby milk issue. As stated in the article, the company introduced an ‘ombudsman system’ to encourage employees to confidentially report violations without fear of retribution — this shows their efforts to change. Another example is that they are being open and transparent with their marketing by allowing Bureau Veritas, the global auditing firm to complete an internal and independent assessment. We can see that the efforts of the boycott are not being ignored in that Nestle went to great lengths to release dedicated reports on its economic and social impacts in Africa and Latin America for the first time. On the other hand, there are also arguments against continuing the boycott. Infant formula products account for less than 1% of Nestlé’s profits, yet this 30-year boycott and issue is still present today and if anything the media coverage of this issue for the last 30 years has caused anything but harm to Nestle. If anything, they are receiving more publicity than ever. Seeing as Nestle has wilfully accepted each demand by the boycott and has abided by every code of conduct presented by the WHO and other...
Words: 747 - Pages: 3
...http://www.brighthub.com/office/entrepreneurs/articles/115557.aspx The World Health Organization found children in developing countries who fed on Nestle’s infant-formula had mortality rates five to ten times greater than that of breast-fed children. The problem was Nestle’s sinister campaign of appointing uniformed nurses to distribute the baby formula to poor mothers for free, long enough for lactating mother’s milk to dry up. The mother and child now became entirely dependent on Nestle’s infant formula, and since most of them could not afford the formula, they gave their children an insufficient quantity of the formula. The formula also required clean water, which most mothers could not access. Nestle again made the news when they sued the country of Ethiopia, one of the world’s poorest countries, for six million dollars during the time when it was in the midst of the worst drought in 20 years. Nestle wanted compensation for its stake in the Ethiopian Livestock Development Company (Eldico), which it obtained through an investment in Schweisfurth, a German company. Ethiopia had nationalized Eldico and sold it for a profit. Nestle finally reached a settlement of $1.5 million with Ethiopia, the maximum the government could afford. Recently, Nestle has made headlines again for getting caught spying on Attac, a non-government organization. Nestle has been ordered to pay compensation to the organization. (http://www.frontlinedefenders.org/node/21523). Numerous other shady dealings...
Words: 582 - Pages: 3
...Nestle is a Swiss, world leading multinational company producing a wide range of tasty beverages and nutritious food at international standards. Nestle holds on to a good brand name, innovative products, low cost, rising share market and a financial position which can be classified as Cash Cow using the Boston Consulting Group Matrix. Nestle has an employee strength of over 328,000 people around the world. Nestle produces a wide range of baby food, dairy products, beverages, pet food, confectioneries and also pharmaceutical products. My selected country Australia, had become the second largest export market for Nestle by 1906. This potential translated to setting up the business in Australia in 1908. Nestle Australia Ltd is ranked at number 83 against 2000 Australian companies This public company is foreign owned and it’s profits are focused from Beverage, food and Tobacco manufacturing. Strengths The strengths of this company is it produces quality products. It’s more than 140 years in the industry has earned Nestle the world’s biggest brand. Committed research and development through product innovation resulted in the invention of Milo in 1934 which is seen as a breakthrough in Nestle technology in Australia. Nestle is seen as the world’s biggest brand and was featured as a top brand in the Fortune 500 list Nestle also hold a strong marketing and advertising power due to the global brand. Nestle’s constant upgrade in technology has resulted in the quality and...
Words: 2290 - Pages: 10
...Conundrum: The Assignment Tonisha Pearson Strayer University – MKT 505: International Marketing July 29, 2012 Dr. David Holness, Instructor 1. Analyze the key issue that prompted the EU to take the Helms-Burton dispute to the WTO. The key issue that prompted the EU to take the Helms-Burton dispute to the WTO is the theory that law argues against the governments’ authority and the principle of International Law. The EU believed that there are measures in the Act that are divergent to the obligations of the United States of America in the WTO Agreements, particularly the GATS, Article 14 applying to trade and services, and GATT , Article 21 applying to trade in goods (Toledo, 2011). According to John H. Jackson, Andreas F. Lowenfeld, both Professors of Law, it is argued that the GAT and GATT contracts would provide a defense for the United States to many if not all of the United States Helms-Burton measures, even if some of these measures would otherwise be considered to be inconsistent with United States treaty obligations. These exceptions, however if given a broad interpretation could undermine the whole WTO treaty and impair the security and stability of the world trading system for which the WTO has been created. On the other hand, it is extremely important to all nations that national security to a requirement, and for an international organization to disregard the importance of national concerns and policies...
Words: 1324 - Pages: 6
...Assignment 2: Case 5-1 “America's Cuban Conundrum” International Marketing 505 1.) Analyze the key issue that prompted the EU to take the Helms-Burton dispute to the WTO. The EU took the Helms-Burton dispute to the WTO because they felt that it violated international rules dealing with trade. The EU had a dispute with the U.S. regarding testing agriculture, trade and investments and biotechnology issues which were brought to the attention of the WTO found the following: The EU, concerned about the effect of the North American Free Trade Agreement (NAFTA), proposed a Transatlantic Free Trade Agreement (TAFTA) in 1994, and the U.S.-somewhat reluctantly-went along. There was to be no TAFTA to complement NAFTA, however: only a renewed political gesture in the form of the 1995 New Transatlantic Agenda (NTA) ("EU/US Summit,”). Its main lasting effect was the Transatlantic Business Dialogue (TABD), the first transatlantic lobby, which brought about agreements on testing and certification as a step toward defining a new trade agenda. It also envisioned the creation of a New Transatlantic Marketplace (NTM) within which trade barriers between the U.S. and EU would be largely dismantled.(Padgett,2009) Continuously diluted, in 1998 the NTM became today's Transatlantic Economic Partnership (TEP), a limited agreement slighting key issues, particularly agriculture, audiovisual services, and culture. This failure to develop substantive transatlantic regulations means reliance...
Words: 1282 - Pages: 6
...Western Governors University Marketing C212 Ruby Wilburn 3/31/2015 A1. New Products and Services The organization that I have chosen to propose two new products or services will be John Deere and the country I will focus my responses on is Cuba. In 1960, a trade embargo was imposed on Cuba by the United States, but on December 2014, the current United States President stated that he plans on lifting the trade embargo. Though an exact date has not been given “the initial surge of excitement among U.S. businesses after December 17 was palpable: Finally, an opportunity to enter a largely unexploited market, forbidden for half a century” ("Let's Make a Deal: Doing Business in Cuba," n.d.) This opportunity will allow John Deere to offer products such as their heavy farming equipment. The two products I have chosen that will be new to their market is heavy duty compact tractors and seeding/planting tractors. “John Deere tractors would enable local farmers to raise more crops many farmers work their fields with teams of oxen, and Cuba imports two-thirds of its food” (Cuban market could be boon to U.S. businesses. (n.d.)) A1.a Method The target market for the products are the farmers of the urban and organic farms in Cuba. The three different methods that will help me determine that there is both a need as well as an existing market include, focus groups, the internet search engines such as Google, and government sources. Since the web/the...
Words: 2748 - Pages: 11
... Cuba was bartering with its communist allies in return for goods. The sale of sugar was grossing over $5 billion. After the Soviet Union collapsed, the gross income from sugar dropped to $20 million. The Cuban government searched for methods to raise income and cut costs. They began by closing inefficient sugar mills and eventually shut down half of the island’s mills. Cuba could not begin exporting to the United States due to the embargo. They turned to Canada, Mexico, and Europe for the sale of sugar. Cuba began to search for a new export and found they held a large reserve of nickel. International mining companies saw the nickel reserve as a source of income and tried to establish relations with Cuba. Cuba saw that they had something other companies wanted and decided to exploit their desire to conduct business with them. Many restrictions and laws were established to milk international companies for extra money. The established laws that required non-Cuban investors to use the government to hire, fire, and pay its workers. This allowed to the government to choose exploitable workers for positions in the mills and mines. The government controlled the worker’s wages in order to keep a cut for themselves. One company was found to be paying the government $9,500 per year per worker and the workers would only receive $120 to $144 per year. This left the government with a large chuck of employee wages. It would be unethical for an international company to...
Words: 1293 - Pages: 6
...STRAYER UNEVERSITY DR. JEAN GORDON APRIL 5, 2011 American and European companies look at Cuba as a fresh market that would become a great venture for short and long term investments. However, the United States and Cuban affairs never condensed the high tension that was started in 1959. The economical siege started with the trade restriction dilemma between the U.S. and Cuba in 1959 when Fidel Castro took over the government in Cuba. Fidel Castro first action, as a young leader for the newest communist nation, was taking over all private sector businesses and properties including those were owned by American inverters. Castro disregarded all negotiation attempts and refused to reimburse the original owners; simply he seized all private sector properties and businesses using military forces costing many U.S. inverters to lose millions of dollars in 1959. Those properties were estimated to be around 1.8 billion dollars or about 6 billion dollars in present’s day (Keegan & Green, 2011). In response to the United States political and economic pressure on the Cuban regime, during the cold war, Cuba joined the other side of the battle by becoming an ally of the Soviet Union to take advantage of the Soviet Union economic and military aids. As a fee for such aids, Fidel Castro had to allow the Soviet Union to place nuclear armed short and mid-range missiles in Cuba which grabbed the U.S attention. The Soviet Union nuclear missiles system did not have the long range...
Words: 650 - Pages: 3
...Assignment 2:Case 5-1 Dwayne Smith Dr. Harris Strayer University Marketing 5008 July 29, 2012 Introduction The Helms-Burton Act has become one of the most controversial and widely discussed international legislation in decades. The resistance from the Cuban government about the features of the Helms-Burton legislation is a clear affirmation of the legitimacy of property claims irrespective of the passage of time. This report will address the issues with the America’s Cuban Conundrum. It will analyze the key issue that prompted the EU to take the Helms-Burton Dispute to the WTO, determine who benefits and who suffers from an embargo of this type of economic barriers. This report would also constitute a resolution to the trade condition between U.S and Cuba, and determine what type of economic barriers would have to be overcome by a U.S. Firm to conduct business successfully in Cuba. The Cuban Democracy Act of 1992 stipulates that U.S. sanctions on Cuba will remain in place until specific moves toward democracy bring about a calibrated adjustment. The Cuban Liberty and Democratic Solidarity (Libertad) Act—or Helms-Burton bill—which Senators Helms, Dole et al. have introduced in the Senate, goes further in strengthening international sanctions, establishes a civil right of judicial action for U.S. citizens having ownership of or interest in expropriated properties—with reference either to fair market value or amounts certified by the...
Words: 786 - Pages: 4
...Abstract In this assignment, reasons why the Chinese government hired a Western public relations firm to work on the 2008 Beijing Olympics will be discussed, along with reasons why protesters and activists target events such as the Olympics, and weather the opportunity to reach a global audience by advertising during the Olympics can offset the potential for bad publicity, and finally I will assess how well of a job the companies identified in this case did in anticipating and responding to the protests. Reasons why the Chinese government hires a western public relations firm. Recently the body of knowledge of public relations has grown significantly and public relations continue to evolve as a strong discipline. China had experienced bad publicity ahead of the Olympics where; Beijing's image was seriously battered by widely publicized protests especially in London, Paris and San Francisco, disrupting the Beijing Olympic torch relay. Also, Chinese embassies and consulates in several cities were also damaged because of protests by pro-Tibet groups and others capitalizing on the publicity of summer Games. Therefore, China decided that it would be a better idea to hire foreign Public Relation firms to handle the publicity issues of the games. “Several British and US agencies were invited to interviews with Chinese officials to discuss a contract, which includes pre-games PR strategies, media training and market research on western perceptions of China” (AFP, 2008). Finally...
Words: 794 - Pages: 4
...cancer was responsible of 159,260 deaths (Deadliest Cancer Coalition, 2014). Lung cancer has become the leading killer cancer and finding better ways to treat it has become a priority for many researchers. American Cancer Society. Cancer Facts & Figures 2014. Depending on the type of lung cancer and how far it has spread, doctors have been using several ways to treat this disease. The cures that have been performed in the U.S. so far include surgery, chemotherapy, targeted therapy, radiation therapy, or a combination of these treatments. Nevertheless, after America has now decided to stabilize its relations with Cuba it can soon be introduced to a new type of lung cancer treatment called CimaVax. Cimavax Cimavax is a Cuban therapeutic anticancer vaccine developed to treat patients with tumors that grow faster due to a protein that encourages cell growth. In a healthy body epidermal growth factor (EGF) sends signals to cells that allow them to grow and divide by attaching to the receptors on the cell’s surface. However, in some cases, such as non-small cell lung cancer (NSCLC), cells divide uncontrollably due to the excessive EGF production. Therefore, CimaVax works by stimulating the immune response to make antibodies that are specifically targeted for EGF and are able to bind and stop it from attaching to the receptors on cancer cells. This means there...
Words: 1414 - Pages: 6
...start in an Atlanta pharmacy, where it sold for five cents a glass. The name Coca-Cola, registered as a trademark on January 31, 1893, was based on two of the drink’s ingredients: extracts from coca leaves and the cola nut. In its early days, when the drink contained a form of cocaine, a drug made from coca leave extracts, the Coca-Cola was marketed as an “Esteemed Brain Tonic and Intellectual Beverage.” The company’s first president, Asa Candler, was a savvy businessman who implemented numerous marketing strategies to increase consumption. At Candler’s behest, the company printed coupons offering complimentary first tastes of Coca-Cola, and outfitted distributing pharmacists with clocks, calendars, and scales bearing the Coca-Cola brand. The drink soon became a national phenomenon; by 1895, the company had established syrup plants in Chicago, Dallas, and Los Angeles. Coca-Cola expanded beyond the American borders in the early 1900s into numerous countries including Cuba, Puerto Rico, and France. In the 1920s, Coca-Cola pursued aggressive global branding, finding creative placements for its logo such as on dogsleds in Canada and on the walls of bullfighting arenas in Spain. During World War II, the U.S. Army shipped bottles of the beverage and bottling plants abroad to supply American soldiers in Europe and Asia. Its popularity throughout the world was fueled by colorful and persuasive advertising that cemented its image as the “All-American” beverage. When the...
Words: 759 - Pages: 4
...with gambling, nudity and violence, because they are the most profitable ones. Kent may also choose some kind of “ethical way”. It means that he would refuse to sell games with gambling, nudity and violence. Such games may be harmful for gamer’s psychical health, especially the health of children and teenagers. 3. Acceptability and commercial use of sex, violence, and gambling in the United States depends on the area of their use. In video games, the presence of violence and gambling is acceptable, but with restrictions. The presence of nudity is permissible, but such games can be sold only in internet-shops, not in the local malls. Games with sex, violence, and gambling can be sold only as an adult product in internet-shops. 4. Marketing sex, violence, and gambling are acceptable in some countries if they fit their culture, and in other countries, including the USA, the use of them is restricted. This issue regards also video games industry. For example, in Mexico, the restrictions are not so wide as in the USA, but the use of violence is limited, too. In Taiwan, the use of violence, nudity and gambling is almost unlimited. Response to the Questions on Pages 175-176 1. All the decisions of...
Words: 967 - Pages: 4
...Cross - border delivery of trade – Shipment of laboratory samples, diagnosis and clinical consultation 3. Setting up of health-care services overseas – Setting up hospitals, clinics and diagnostics center 4. Movement of health-care professional from one country to other – Movement of physicians, specialists overseas The proportion of the elderly population is showing a progressive growth especially in the developed countries and with this trend the demand for healthcare facilities is likely to grow but the number of doctors in developed world is not keeping pace with the growing demand. This shows a significant growth market for the international medical services. The global medical travel market is estimated at US $30-40 billion which is likely to grow at 20 per cent. Major countries that are viewed favourably for international destinations for medical tourisms are India, Thailand, Jordan, Malaysia,...
Words: 2469 - Pages: 10
