Change Management at Nestle

4950 Words Apr 5th, 2012 20 Pages

Nestlé S.A., based in Vevey, Switzerland is the world’s largest food company with sales of $65.5 billion in the last fiscal year. Nestlé S.A. provides quality brands and products that bring flavour to life every day. From nutritious meals with to baking traditions to advancing life for pets, Nestlé S.A. makes delicious, convenient, and nutritious food and beverage products that enrich the very experience of life itself. That’s what “Nestlé, Good Food, Good Life” is all about. Hence, it is rightfully named one of “America's Most Admired Food Companies” in Fortune magazine for the seventh consecutive year.

The Company was founded in 1866 by Henri Nestlé in Vevey, Switzerland. Nestlé came from the surname of Henry Nestlé
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New products appeared steadily: malted milk, a powdered beverage called Milo, powdered buttermilk for infants. The Brazilian Coffee Institute first approached Louis Dapples in 1930, seeking new products to reduce Brazil's large coffee surplus. Eight years of research produced a soluble powder that revolutionized coffee-drinking habits worldwide. Nescafé became an instant success and was followed in the early 1940s by Nestea.


The effects of the onset of World War II were felt immediately by Nestlé. Profits dropped from $20 million in 1938 to $6 million in 1939.

World War II helped speed the introduction of the Company's newest product, Nescafé. After the United States entered the war, Nescafé became a staple beverage of American servicemen serving in Europe and Asia. Nestlé's total sales jumped from $100 million in 1938 to $225 million in 1945.


In 1947, Nestlé merged with Alimentana S.A., the manufacturer of Maggi seasonings and soups, becoming Nestlé Alimentana Company. The acquisition of Crosse & Blackwell, the British manufacturer of preserves and canned foods, followed in 1950, as did the purchase of Findus frozen foods (1963), Libby's fruit juices (1971) and Stouffer's frozen foods (1973).

In 1974, the Company became a major shareholder in L’Oreal, one of the world's leading makers of cosmetics.


The Company's economic situation
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