PROBLEM OF NESTLE CO.

A STUDY OF NESTLE COMPANYMANAGEMENT OF CHANGE

1866 - Founder , Henri Nestle created one of the first baby formulae.

1905 - The first merger .The Nestl Company merged with the Anglo-Swiss Condensed Milk Company, large production and manage to penetrate the European Market.

1914- 1918 onset of the World War I bring a new revolution to the company.

INTRODUCTION

1945 1975 End of the World War II and the beginning of new phase.

1980s 2003 More acquisitions.Cereal Partners worlwidewithGeneral Mills Beverage Partners WorldwidewithThe Coca-Cola CompanyLactalis Nestl Produits FraiswithLactalisNestl Colgate-Palmolive withColgate-PalmoliveNestl Indofood Citarasa IndonesiawithIndofood Dairy Partners Americas(DPA) withFonterraNestl SnowwithSnow Brand Milk productsNestl ModelowithGrupo Modelo

By now, Nestle company had become the worlds largest food company.

More than 500 factories operating in 80 countries employing more than 224, 000 people with annual income of USD 4.7 billion under Peter Brabeck-Letmathe as a Chairman of Board Director.

A worldwide leader known for manufacturing products as diverse as chocolates and diaries, Nestle has clearly been through many changes over the years.

PROBLEM OF NESTLE CO.

CHILD LABOUR ISSUE

PROBLEMThe use of child labor in cocoa productionBecause of the poverty and a lack of schoolsViolation of child labour lawEnslaved children and child trafficking

SOLUTIONIntroduces the nestle supplier codeMonitoring all participants in its supply chain and set clearer labor standards. Give special training on how to address child labor problem

RECOMMANDATIONMonitoring all of process for recruitment of child laborWorking with government

IMAGE OF CHANGE (CARETAKER) The manager control is severely impeded by a variety of internal and external forces beyond their.The manager had create Nestle Supplier Code to guide and maintain the relationship between supplier and company.

RAW MATERIALS

PROBLEMUnexpected demand by customersBad weather and natural disasterInaccuracy of orders receives in inventory or stocks in hands

SOLUTIONManager build multiple relationship with other raw materials suppliersThe surplus products will be sell with promotion to clear the stockBuild the Dealer Management Systems (DMS)- Dms is a software for solutions that provide tools for managing sales, services, parts and inventory management, business management, integration, and core architecture- Dms was build to maintain the relationship between dealer and consumers

RECOMMANDATIONImport inventories from other regionNot all region has similar demographic factor such as race.

IMAGE OF CHANGE (CARETAKER) The manager control is severely impeded by a variety of internal and external forces beyond their.The manager had build Dms software to guide and maintain the relationship between dealer and consumers.This can prevent the poor the relationship from happens among the Nestle dealers and consumers

ETHICAL AND BOYCOTT ISSUE

PROBLEMIn late 1970s, there is a boycott of Nestle products in the United States and several European countries.Nestle unethical marketing of infant formula.Coordinated by the International Nestl Boycott Committee.

SOLUTIONSupporting WHO campaign in introducing complementary foodsAdvertisement Free samplingMessage to consumer

RECOMMENDATIONIncrease product qualityImprove the marketing strategies Compliance with international code

IMAGE OF CHANGE CEO of Nestle, Brabeck Letmathe using the NURTURER image.Only necessary change at the company.Small changes make a large impact

RESTRUCTURING THE ORGANIZATION

PROBLEMto what extent the traditional, hierarchical, pyramidal organizational structure facilitates or hinders these types of employee contributions.top-down approach may serve an organization well but not suitable for uneducated and uninformed employees who need supervisors to manage them carefully.Nestl identified significant problems with the pyramidal model and developed the Nestl on the Move program .

SOLUTIONNestl had to change the way managers seek out contributions from their staff.Change the way managers led their people.Develop The Nestl Leadership Program and the Develop People initiative.

THE DEVELOPING PEOPLE BASED ONEncourage employees to work with people from many different countries and cultures in the course of their career.Promote opportunities to develop skills that will enable people to move to different areas of the business.Promote a common set of values that engender a Nestl culture and spirit.Focus on on the job training given by Nestl people.

IMAGE OF MANAGERIn this case, Nestle had use image of manager as coach. Coaching works best for developmental purposes, especially in a team of competent professionals already performing at a reasonably high level.

Every company have its own problem whether small or big company. This also including Nestle company either internal or external problems.

You can have slow and steady change, and that is nothing to be ashamed of,

- CEO Brebeck Lemathe

CONCLUSION

QUESTION AND ANSWER