Maggi Noodle Crisis

1. Nestlé: Maggi noodles
By: Jorida Rustemlliu

2. Paul Bulcke
In 1979 (aged 25), he started working for the Nestlé group and worked in
different countries, including Switzerland, Spain, Belgium, Peru, Ecuador,
Chile, Portugal, Czech Republic and Germany.
Chief Executive Officer at Nestlé S.A. since April 2008 and serves as its
Member of Executive Board.
‘’ We are privileged to live in fascinating times with, yes indeed,
many challenges but at the same time an amazing amount of
great opportunities. The biggest risk for business would be not to
see them!’’

3. Maggi noodle crisis
May 21, 2015
India state orders recall of Maggi noodles:
claiming that tests have found Maggi instant
noodles "unsafe and hazardous" and accused
Nestlé of failing to comply with food safety
law.

4. Events
March
2014
A batch of
Maggi noodles
was tested as
part of routine
by FDA of
Barabanki, a
district in Uttar
Pradesh.
May
2015
Story gets
leaked to
the media.
June
2015
Nestlé has a press
release stating: despite
maggi noodles being
safe, they will be
removed off the shelf
because of all the
confusion.
30 min.
before
press
release
The FDA bans the
product saying it is
unsafe and
hazardous for human
health.
37,000
tons
What to do with
the product ?
Nestle destroyed
all 37,000 tons.
November
2015
Returned on shelves.
Nestlé says: the
product is exactly the
same.

5. The Public Reacts

6. Media

7. Internal analysis:
● Monthly, Quarterly Reporting for Sales Force
and Sales Manager Dashboards
● Providing detailed insights and outcomes to
all relevant stakeholders
● responsible for ensuring recipe and label
compliance and managing any required
changes to working practices as well as
representing Industry in discussions with
Government on developing food legislation
● finalising the co-manufacturing agreement
for the product itself, dealing with data
protection issues on the market research
and reviewing customer agreements before
the roll-out of the advertising campaign.
Sales Operations Specialist
Regulatory Team
Legal Counsel

8. Impact

9. Corner office
● Many CEOs agree on the point, that there
is a need for relentless communication.
● Without it employees have a way of filling
in the blanks themselves and making
incorrect assumptions.

10. Leading change
Creating a sense of urgency
Making employees aware of the need and urgency for change, support will
be created. This requires an open, honest and convincing dialogue. This
convinces employees of the importance of taking action. This could be
accomplished by talking with them about potential threats or by discussing
possible solutions.

11. The Economic Times
Q. You are known as a turnaround specialist. But this is a crisis of a different
kind. What's the strength you have that gives you the confidence of pulling
Nestle back from the brink?
“Yes, we face a challenging situation, but I am confident that we will
resolve this issue through engagement with all stakeholders. I am a
people's person and business is all about relationships - with the
people who buy and sell our products, with our business partners, our
employees and of course the authorities”.

12. Recommendations
Be more proactive...actions speak
louder than words
Get more engaged in the problem.Nonprofit Organization:
Akshaya Patra

13. Thank You