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Nestle Case Study

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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 …show more content…

There have been many challenges with the new standardization process. At first they installed SAP's R/3 in an attempt to coordinate Information System and the business processes. All of Nestle's worldwide business units were to use the same processes for making sales, commitments, establishing factory production schedules, billing customers, compiling management reports, and reporting financial units. This coordination leads to many issues because of the gathering of 14 countries that ran the software. They did not work in harmony, it was being ran differently in the different locations : the cost of the maintenance increased. Upon discovering this issue they rolled out the GLOBE initiative. Personal challenges were becoming apparent, many managers viewed this system as a nuisance and a work creator. Johnson realized that he had some major challenges ahead, but he put his excellent leadership skills to the test an ended up coming out ahead in the end. He also tried to build his team from a diverse group of business managers who had experience in a variety of business sectors including manufacturing, finance, marketing, and human resources. Once managers saw that the system was helping in operations they started to come around and embrace the system, which has lead to increased efficiency in the operations department.

Question 4: What strategies did Nestlé management use to deal with these challenges? How successful were these strategies? Explain your answer?

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