...Rina Thomas Nestle Case Study September 16, 2013 Introduction Nestle is one of the biggest food companies in the world with sales of $47 billion annually. Nestle has undergone through a huge number of transformation throughout the years. (Palmer, Dunford & Akin, 2009). Nestle manufacture product such as different cosmetics and chocolates that has been long known as a worldwide leader in its business. To increase its growth in operations, Nestle had picked up other markets for diversification other than the food industry which Nestlé’s first pick item was the cosmetic brand. But after some time, the company had acquired other products like ophthalmic and pharmaceutical. At last, for the expansion the company was required to concentrate on enhancing productivity, business expansion and financial improvement. Body 1. Did Nestle undergo either first-order and/or second-order change according to the case? Answer listing examples of types of change from the above story. In the case study, Nestle went through major first order change. One of the first-order changes that occurred was in the 1900’s when Nestle changed its approach to global expansion by acquiring subsidies in other countries. Prior to that, Nestle only operated with sales agents to buy their products out of Switzerland, so they changed their international strategy maintaining the company’s goals and the organizational mission. During the First World War, this had increased the demand...
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...Nestle Case Study Question 1: Analyze Nestlé using the competitive forces and value chain models. What challenges did Nestlé face? Nestlé, shortly Nestlé is the largest food and beverage company in the world. His turnover is around $70billions and nearly 250,000 employees all over the world. Forces and Value Chain Model His mains forces are principally that Nestlé try and do, to be the more adapted to his market, anywhere they implant a branch, they sell products, adapted to the local consumption! Secondly, as a main force, is that they adapted themselves, however, they did a different approach for the adaptation, even they design new product for new market, they adapted already existent products in order to avoid some expenditures of development. Thirdly, they begin, early, from 1994, to develop common software: SAP, and, in 1995, 14 countries shared the same software! After faced to the issue to set up GLOBE project: They reduced supplier from 600,000 to 170,000! Challenge did it faced In the beginning of 2000, Brabeck had had enough of the internal complexity of the different ERP, software, and data chain, that he took Johnson, in charge of Taiwan Market, to set up new common software, named GLOBE (Global Business Excellence). The objectives are: Launched and set up with, as deadline, end of 2003, GLOBE, into, at leat, 70% of the countries they are settled. To make it, Johnson nominated in each country, a GLOBE manager. Of course, they were some issue...
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...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 localization strategy...
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...heckert@sanquin.nl | WP | Word Count 1004 | Assignment Pages 1 - 3, incl. headings | Q&A | Word count 747 | Questions 1 – 5 , pages 4-5 | ------------------------------------------------- Genetically Modified Organisms – Consumer Health and Freedom of Choice As one of the world’s largest food companies, our mission is to provide consumers with the most nutritious choices in a wide range of food. We acknowledge consumers’ and stakeholders’ right to know which biotechnologies are being administered in the food industry, resulting in the products they purchase. It is equally important for producers and stakeholders to understand what present-day biotechnology is capable of and to establish the opportunities these capabilities present. Nestlé acknowledges the growing debate amongst stakeholders and consumers about potential issues associated with Genetically Modified Organisms (GMO). With this connection established, and taking lessons from past issues, such as labelling and traceability of GM foods in several Asian countries in 2002 and 2003, we recognize the importance for consumers worldwide to purchase food products based on labelling information. As a consumer goods company, we openly engage with consumers’ concerns and opt to provide transparency. As a result, we fully support an assertive attitude towards content disclosure of the presence of GMO derived ingredients. By recognizing stakeholders' rights to know the contents of our food products in the worldwide market,...
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...Development Nestle's Growth Strategy and Business Development 1.) Does it make sense for Nestle to focus its growth on emerging markets? As it can be derived from the text, Nestle generates operates worldwide with a focus on European markets, which make up 70 percent of its sales. These markets are in the mature state of life cycle of that industry and additionally demographic changes such as the stagnation of population growth rates make it very hard companies like Nestle to generate higher profits through higher sales. As a matter of fact the western economies are actually facing a downturn in output and growth, thus influencing the consumption patterns of customers, especially in the retail business. Consumer are becoming more price aware and tend to spend less while demanding at the same time for customisation, product differentiation and specialization. Another trend is the shift away from branded food and beverages towards cheap non-branded foods and beverages. Nevertheless, the introduction of non-brand own labelled products such as Food Lion offers only makes sense in a large scale in order to achieve economies of scale. As a result of increasing non-brand cheap products offered by rivals, Nestle find itself in an even more embattled market and needs to develop a new strategy either away from branding or towards a higher degree of international market penetration. Since Nestle stands for high quality and has distinctive competencies in producing higher quality food...
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...STRATEGIC MANAGEMENT Business Strategy Case Analysis “NESTLE” Group Members : Suhendra Suwardi (10313010) Fadly Hassan (10313011) Kanigya Kadiso (10313019) Steven Edbert (10313026 Johan Susetyo (10313029) BUSINESS MANAGEMENT INTERNATIONAL CIPUTRA UNIVERSITY SURABAYA 2016 NESTLE 1. Company Profile of Nestle : Nestlé S.A. is a Swiss multinational nutritional and health-related consumer goods company headquartered in Vevey, Switzerland. It is the largest food company in the world measured by revenues. Nestlé’s products include baby food, bottled water, breakfast cereals, coffee, confectionary, dairy products, ice cream, pet foods and snacks. Nestlé employ around 330,000 people in over 150 countries and have 461 factories or operations in 86 countries. Nestlé history begins back in 1866, when the first European condensed milk factory was opened in Cham, Switzerland, by th founder, Henri Nestlé. The company grew significantly during the First World War and again following the Second World War, expanding its offerings beyond its early condensed milk and infant formula products. In 2011, Nestlé was listed No.1 in the Fortune Global 500 as the world’s most profitable corporation. The Nestlé Corporate Business Principles are at the basis of the company’s culture, developed over 140 years, which reflects the ideas of fairness, honesty and long-term thinking. 2. Case analysis from following article : Nestle's commitment to sustainable business practices...
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...Nestlé is today the world’s leading food company, with a 135-year history and operations in virtually every country in the world. Nestlé’s principal assets are not office buildings, factories, or even brands. Rather, it is the fact that they are a global organization comprised of many nationalities, religions, and ethnic backgrounds all working together in one single unifying corporate culture. Culture at Nestlé and Human Resources Policy Nestlé culture unifies people on all continents. The most important parts of Nestlé’s business strategy and culture are the development of human capacity in each country where they operate. Learning is an integral part of Nestlé’s culture. This is firmly stated in The Nestlé Human Resources Policy, a totally new policy that encompasses the guidelines that constitute a sound basis for efficient and effective human resource management. People development is the driving force of the policy, which includes clear principles on non-discrimination, the right of collective bargaining as well as the strict prohibition of any form of harassment. The policy deals with recruitment, remuneration and training and development and emphasizes individual responsibility, strong leadership and a commitment to life-long learning as required characteristics for Nestlé managers. Training Programs at Nestlé The willingness to learn is therefore an essential condition to be employed by Nestlé. First and foremost, training is done on-the-job. Guiding and coaching...
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...http://managementhelp.org/blogs/leadership/2010/04/21/leadership-theories/ Leadership Theories By Steve Wolinski on April 21, 2010 191 63 118 There is a wide and ever growing variety of theories to explain the concept and practice of leadership. I will provide a brief overview of the more dominant or better known theories. I hope that others will share their thoughts on whether this list neglects any theories of note. In the future we can discuss some of the emerging leadership theories/approaches such as adaptive, authentic, and appreciative. It is important to note that this submission attempts to provide an overview of leadership theories versus models. I view models as attempts to functionalize the more theoretical aspects of leadership and make them easier to put into play by organizations and consultants. This is, in and of itself, an important activity. Most theories view leadership as grounded in one or more of the following three perspectives: leadership as a process or relationship, leadership as a combination of traits or personality characteristics, or leadership as certain behaviors or, as they are more commonly referred to, leadership skills. In virtually all of the more dominant theories there exist the notions that, at least to some degree, leadership is a process that involves influence with a group of people toward the realization of goals. I will say on the front end that, in my opinion, leadership is a dynamic and complex process, and that much...
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...This past week, I read three social media case studies on Lady Gaga, the Ford Fiesta Movement, and the Greenpeace protests against Nestle` in the palm oil controversy. After reading “Lady Gaga: Born this way?” I was impressed by her utilization of social media to successfully interact with her fans. Her passion for her time-consuming work and building a following on social media took over many aspects of her personal life, prohibiting her from being able to own a home or even have a boyfriend. Growing up, Lady Gaga took full advantage of her privileged upbringing by receiving the best education and seizing opportunities that supported her musical talents. Once she was discovered, she actively built her image as an artist through the Internet and social media. Her success was attributable to connecting and interacting with her fans through websites such as You Tube, Facebook, and Twitter. She was able to build a bond with her fans that has not been matched by any other musician or artist. I was intrigued by her success outside of the music industry that seemed directly related to the social footprint that she built for herself. The case study talks about the “360 deal,” where music companies now share a portion of revenues from all aspects of an artist’s business. While I believe this to be a great business model for the music industry, and Lady Gaga has been tremendously successful in this model, I think it is premature to imply that her reinvigoration of outside brands...
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...EMBA Class 2012-2013 MGMT 907 - Managing Human Resources Course Notes II Mithat KOC 020120255 mithat.koc@gmail.com Integrating the Organization 1. Culture and the Informal/Voluntary Network 2. Formal Teams 3. Integrators 4. Matrix Design 5. Cells and Networks 2d -Assess Internal Fit : Systems Which systems optimize the employee performance -To keep the employee in the loop... Recruitment Performance appraisal Rewards Additional sys (inform. Mang.) 2d -Assess Internal Fit : Culture Culture : values Climate : Practice Key Themes Dominant culture vs sub cultures Espoused versus real cultures Case Nestle , espresso is a completely different organization . ALTO CHEMICAL EUROPE (ACE): ORGANIZATIONAL CHANGE CASE STUDY Stabilizer market situation Shrinking , Drop off in consumption 600.000 tons x 1.000$ prices vary to month 30% over capacity competition KEY STRATEGIC ELEMENT Profitability $40 to $80 (4% to 8%) Price Leadership (set by HQs) Non-price sensitive acc. - wire/cable (2% contribution to cost = 4% of 2% for these customer) - small / medium Raise volume Tin (we have it) Give customer expertise Sales Management Reponse - Ideas (Dramatic change in behaviour) More work , new customer aquisition , convert to tin Accept loss of price authority Service oriented selling Incentives (not based on volume any more) What should Graaf do to pursuade the Sales Management ? Change reward system Explain the why ( face to face meeting) costs of old strategy / behaviours versus...
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...Perspective 2010 14: 309 DOI: 10.1177/097226291001400407 The online version of this article can be found at: http://vis.sagepub.com/content/14/4/309 Published by: http://www.sagepublications.com On behalf of: Management Development Institute Additional services and information for Vision: The Journal of Business Perspective can be found at: Email Alerts: http://vis.sagepub.com/cgi/alerts Subscriptions: http://vis.sagepub.com/subscriptions Reprints: http://www.sagepub.com/journalsReprints.nav Permissions: http://www.sagepub.com/journalsPermissions.nav >> Version of Record - Oct 1, 2010 What is This? Downloaded from vis.sagepub.com by guest on October 31, 2013 MANAGEMENT CASE DISTRIBUTOR SALES FORCE PERFORMANCE MANAGEMENT Jaydeep Mukherjee & Anirban Basu Nestle India had initiated an aggressive market growth strategy which was difficult to implement because of the increasing turnover ofthe distributors' salesmen. The challenge was likely to get aggravated in future because ofincreasing employment optionsfor the salesmen as well as increasing competition for retail shelf space. The salesmen were in the payrolls of the channel partners, and the diversity of the management practices of channel partners made...
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...Case study: Nestle Refrigerated Foods Problem Statement: Nestle Refrigerated Food Company (NRFC) in the year 1990 while in the late 1980s the company has successfully captured the category by introducing refrigerated pasta and sauces in the markets which improved the shelf life of the earlier selling products in the U.S markets. NRFC is wondering whether or not they should launch a pizza product into the refrigerated foods market, and if it should have additional toppings sold separately or not. Objectives: Sustain the first-mover advantage Extend their product line Increase market share Alternatives: Maintain the status launch the Pizza Kit with toppings sold separately launch the Pizza Kit with no additional toppings sold separately Consequences of Alternatives: Recently, the company’s major competitor in the global markets ,Kraft is expected to launch refrigerated pizza in about six months .NRFC want to replicate the success of its earlier product to pizza market, NRFC has to launch its product well before Kraft to enjoy the first mover advantage over the competitor. The first option - Maintain the dominant status in pasta market, not entering the pizza market. The entry of pizza into the refrigerated food category was new as people never tried it. Because the Pizza market was dominated by restaurants where the people either ate it or carried for eating it at home. Therefore it will be more risky and costly for Nestle to enter the pizza market. Nestle could...
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...studied from the perspective of the marketing manager. The course focuses on the initiation, design, and interpretation of research as an aid to marketing decision making. Case studies and projects are used to provide students with some practical research experiences. Prerequisite(s): MGMA01H3/(MGTB04H3) or MGIA01H3/(MGTB07H3) Exclusion: (MGTD07H3), MGT453H, RSM452H Textbook/Required Course Materials: Marketing Research: Methodological Foundations, 10th Ed. by Dawn Iacobucci and Glibert A Churchill (This text can be purchased from the bookstore or Online through Course Smart at the following url: http://www.coursesmart.com/IR/2047297/9781439081013?__hdv=6.8) A required case packet is available from https://cb.hbsp.harvard.edu/cbmp/access/20658242 Recommended: Ethnography for Marketers: A Guide to Consumer Immersion by Hy Mariampolski Lecture Notes and Other Announcements A course such as this is based on the premise that sharing issues and discussing them enhances learning. The course is based on discussion of cases in class, and bulk of the time will be spent on it. There will be very little lecturing, if any. The role of the instructor will be to guide the discussion, and to ask challenging and provoking questions to bring about a lively debate of the different issues involved in the case. As such, attendance is a pre-requisite to learning in the class. I expect that students will not miss class, and will respect each other by...
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...beginning of the 21st century, its CEO/ Chairman, Yang-Ho Cho undertook various transformation initiatives - for instance, improving service quality and safety standards, technology integration, upgrading pilot training, better business focus; putting in place a professional management team, improving corporate image through sponsorship marketing, etc. He gave a new corporate direction in the form of '10,10,10' goal. However, Korean Air is held up by a slew of challenges. Among which are inefficiencies of - Chaebol system of management, possible clash of its cargo business with its own shipping company, limited focus on the domestic market and growing competition from LCCs. How would Korean Air manage growth as a family-owned conglomerate? The case offers enriching scope for analysing a family business’s turnaround strategies, with all the legacy costs involved. Pedagogical Objectives • To discuss the (operational) dynamics of Korean Chaebols - their influence/ effects on the country’s industrial sector and the economy as a whole • To analyse how family-owned businesses manage the transition phase - from a supplier-driven economy to a demanddriven economy • To identify all the possible reasons for Korean Air ’s turbulent times and assessing whether they are controllable or not • To critically evaluate Korean Air ’s transformation efforts - in terms of growth, productivity and cost cuts, especially the efficacy of '10,10,10' goal in a family-run business • To identify various challenges...
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...Industrial Marketing Management 43 (2014) 67–76 Contents lists available at ScienceDirect Industrial Marketing Management The establishment of industrial branding through dyadic logistics partnership success (LPS): The case of the Malaysian automotive and logistics industry Nor Aida Abdul Rahman a,⁎, T.C. Melewar b,1, Amir M. Sharif c a b c Universiti Kuala Lumpur, Malaysian Institute of Aviation Technology (UniKL MIAT), Lot 2891, Jalan Jenderam Hulu, 43800 Dengkil, Selangor, Malaysia The Business School, Middlesex University London, The Burroughs, Hendon, London NW4 4BT, United Kingdom Brunel Business school, Brunel University, Uxbridge, Middlesex, UB8 3PH, United Kingdom a r t i c l e i n f o a b s t r a c t Logistics partnerships across dyadic and triadic relationship networks have been the basis of extensive research in the extant literature. It is well understood that competitive advantage within logistics and distribution and within supply chains are driven by value-adding aspects of not only the core competencies of each tier in the network, but also via tangential supporting factors. It is also well understood that there is a strong relationship between logistics and distribution and marketing functions, particularly in product-based organisations. In addition to deepening our understanding of how successful partnerships throughout the source– make–deliver continuum can be optimised, this research also seeks to identify how a supporting element...
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