Adigrat University

Management Department
MBA Program 2007 E.C
Case study conducted on Nestle S.A Company
An assignment for course of Organizational Behaviour (OB)
Submitted to: Dr. Kumar (Ass. Professor)

Presented by :Group-2
 
Dec. 2014, Adigrat
  
INTRODUCTION/OVERVIEW

• Recently, multinational companies located in different

geographical areas, producing diversified branded
products having multicultural human resource are
emerged.
• One of these types of companies is Nestlé of
Switzerland.
• Nestlé is the leading nutrition, health and wellness
company. It enhance the quality of life by offering
tastier and healthier food and beverage choices, as
well as information and services, for all stages of life
and any time of the day, helping consumers care for
themselves and their families.
 BACKGROUND HISTORY

• Nestlé’s origins date back to 1866, when two

separate Swiss enterprises were founded that
would later form the core of Nestlé.
• In the succeeding decades, the two competing
enterprises aggressively expanded their
businesses throughout Europe and the United
States.
• In September 1866, in Vevey, Henri Nestlé
developed a milk-based baby food, and soon
began marketing it.
 Con…

• Henri Nestlé retired in 1875 but the company,

under new ownership, retained his name as
Société Farine Lactée Henri Nestlé until 1947.
• The First World War created demand for dairy
products in the form of government contracts,
and, by the end of the war, Nestlé’s production
had more than doubled.
• 2nd World War Profits dropped from
US$20 million in 1938, to US$6 million in 1939.
• The end of World War II growth accelerated and
numerous companies were acquired until 2013
3. CORPORATE STRUCTURAL ENVIRONMENTAL TECHNOLOGICAL SOCIAL, ECONOMICAL AND POLITICAL CHANGES OVER THE YEARS

• STRUCTURAL: Nestlé used a matrix type of

organizational structure that merges multinational
companies located in different geographical areas
through its CEOs.
• ENVIRONMENTAL:ISO 14001 certification in
environmental sustainability.
• TECHNOLOGICAL: Nestlé has certified by
various international institutions on human resource
production, service, marketing and sales. This has
been partly due to implementing advance technology.
 Con…

• SOCIAL:
 World Cocoa Foundation
 Sustainable Agriculture Initiative
 Expanding Business in Health Care Nutrition
 Member of Fair Labour Association
• ECONOMICAL:
 From two companies in 1866 to 196 companies today
 From some few employees in 1860’s to 333 214 employees today
 Some few sales in 1860’s to soling over 1 billion products every day
 Nestlé today produces more than 12 categories of products, more
than 10,000 products worldwide.
• POLITICAL:
 The Nestlé Policy on Transparent Interaction with Government
Authorities and Organisations .
 4. 3C REPORT AND ITS ANALYISIE

• Company:
 Nestlé has 333 214 employees globally
 Nestlé is working 196 Total numbers of countries with sales
(operations) in 2013
 Nestlé sold over 1 billion products every day
 Nestlé has 92 158 CHF million Group sales of 92 158 CHF
million in 2013
 Nestlé scored 4.6% organic growth in 2013
• Customer:
 Nestlé give due attention on handling consumer complains Ex.
Packaging
• Competitor
 Nestlé's largest international competitors are PepsiCo, Kraft
Foods, Unilever and Mars incorporated
 CHANGES IN STRATEGIES IN FUNCTIONAL AREAS OVER THE
YEARS
• Organizational strategies were changed over
money years starting from two companies with
single hierarchical organizational structure to
matrix type of complex multinational
companies through emerging with other
international companies.
• Nestlé developed a mechanism to deal with
multicultural requirement, government
regulations over the countries across its
production and marketing interventions and
socio-economic challenges.
 REPORT ON ITS CHALLENGES AND OPPORTUNITIES
 Achieving zero waste to land fill
 Responsible packaging
 Biodiversity
 The opportunities of Nestlé are high creditability, improving trends,
industrial leadership, increasing the partnership, potential to expand to
similar areas, product diversity, social contribution and giving more
attention for R&D.
• CONCLUSION
 Nestlé is one man’s initiative to produce infant formula (for infants who
are intolerant to their mothers’ milk) and grew into a multi- national
cooperation worldwide.
• RECOMMANDATIONS: required ingredients to solve overweight/obesity,
different campaigns to solve financial scarcity, continuous training and
awareness creation for women cooperatives, products for cross-cultural
and different countries requirement, promote in recycling, support
biodiversity through green economic system