NCCN: Nestle’s Change in Organizational Structure and Strategies

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literature review of nestle company

  • S. Prakash Sethi 4  

Part of the book series: Issues in Business Ethics ((IBET,volume 6))

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Nestle’s experience in dealing with its critics, the news media, and the public-at-large, until this time, had been less than successful. This was especially the case in the United States where its critics had been singularly effective in launching a boycott against its products and in isolating the company from the U.S.-based infant formula manufacturers. Even Nestle’s endorsement of the code — the first of any major infant formula company — was viewed with skepticism. As we pointed out earlier (in Chapter 10), of the book, Nestle lacked experience in social issues management as well as in integrated corporate management. Its highly decentralized corporate structure, localized profit centers, a deference to subsidiary managers in the areas of public and political affairs, and a strong corporate culture found the company ill prepared to handle sociopolitical issues in one country that would impact its worldwide operations.

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S. Prakash Sethi

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Sethi, S.P. (1994). NCCN: Nestle’s Change in Organizational Structure and Strategies. In: Multinational Corporations and the Impact of Public Advocacy on Corporate Strategy. Issues in Business Ethics, vol 6. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-1394-6_15

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Nestle Analysis

Nestle Analysis Nestle Analysis Investment Analysis of Nestle The literature review revealed that Nestle is one of the organizations that keep its customers a centered position for its business. The company launches its products according to the tastes and preferences of the consumer. In more than 100 countries, nestle is marketing its products and generating lots of products. Nestle company markets its products and depicts the world as a food, nutrition, health, and wellness company (Bailey, 2004). Nestle market its products by advertising, word of mouth and many other promotional campaigns and packages. This paper aims to analyze the economic and financial aspects of Nestle to explore the investment opportunities in the company. Change in any business has become an essential element to survive in the market and to make the customers satisfied. There are hundreds and thousands of ways and techniques that could assist the businesses to improve their productivity, quality and customer satisfaction. If companies do not respond to the changes, they will become victims of their own success. Therefore, companies should constantly look into ways to change their process in order to survive in the rapidly changing world. Changes in Nestle can be conceptualized in terms of both process and content. Process of the change refers to how the change has occurred. Content explains that what changes has taken place in the organization. Theories of organizational culture tell that why the change was needed and what are the possible consequences of the change. Changes primarily occur due to changes in environment, technology or changes in customer requirements (Grable, 2010). Organizational change is a transformation in an organization to fulfill any requirement which caused any change in the organization. The Organizational analysts in Nestle have observed that such changes often take unexpected turns and lead to transformation other than those required. Researchers have also concluded that when any action or decision is taken in the organization, it often bring the change as a by-product which are known as unintentional changes. The changes in Nestle organizational life range from routine operational improvements to substantial, radical, transformational changes. Examples of the latter include business mergers and acquisitions, business (territorial) expansions, cultural changes, management information system (MIS) implementation, enterprise resources planning (ERP) implementation, process improvement or reengineering, and restructuring of organizational units, such as downsizing, technology changes, Total Quality Management (TQM) driven changes, and development of new business strategies (Robinson, 2008). Whereas downsizing is concerned, the downsizing effect is low at Nestle. Different businesses groups of Nestle have announced several reductions in the workforce. Executive Officer of Nestlé Waters France unveiled a restructuring plan of its sites Contrexéville Vittel in the Vosges, revealed the removal of 250 of the 1,600 existing jobs by end 2009. Staff aged 55 and over will be primarily targeted by this measure which does "no layoffs" and based "on a voluntary basis," the group said in a statement. Thus, persons reaching age 55 by 2009 will be eligible for a "measure of age" and will be offered 80% of their salary without ...

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literature review of nestle company

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    Nestle's experience in dealing with its critics, the news media, and the public-at-large, until this time, had been less than successful. This was especially the case in the United States where its critics had been singularly effective in launching a boycott against its products and in isolating the company from the U.S.-based infant formula manufacturers.

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    Keywords Food Company, competitor, multinational companies ABSTRACT Nestle is a multinational company. Today the world's leading Food Company, with a 140 years history and ... per, journals, websites and published data of nestle. REVIEW OF LITERATURE Krishnakumari points out in her study "employed mothers spend more on commercial body food ...

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