Management Of Change : A study of problem and Challenges in Nestle
A STUDY OF NESTLE COMPANY
1866 - Founder , Henri Nestle created one of the first baby formulae. 1905 - The first merger . The Nestlé 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.
1945 – 1975 – End of the World War II and the beginning of new phase. 1980’s – 2003 – More acquisitions. Cereal Partners worlwide with General Mills Beverage Partners Worldwide with The Coca-Cola Company Lactalis Nestlé Produits Frais with Lactalis Nestlé Colgate-Palmolive with Colgate-Palmolive Nestlé Indofood Citarasa Indonesia with Indofood Dairy Partners Americas (DPA) with Fonterra Nestlé Snow with Snow Brand Milk products Nestlé Modelo with Grupo Modelo
By now, Nestle company had become the world’s 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.
CHILD LABOUR ISSUEPROBLEM• The use of child labor in cocoa production• Because of the poverty and a lack of schools• Violation of child labour law• Enslaved children and child traffickingSOLUTION• Introduces the nestle supplier code• Monitoring all participants in its supply chain and set clearer labor standards.• Give special training on how to address child labor problem
RECOMMANDATION Monitoring all of process for recruitment of child labor Working with governmentIMAGE 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 MATERIALSPROBLEM1. Unexpected demand by customers2. Bad weather and natural disaster3. Inaccuracy of orders receives in inventory or stocks in handsSOLUTION1. Manager build multiple relationship with other raw materials suppliers2. The surplus products will be sell with promotion to clear the stock3. Build 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
RECOMMANDATION Import inventories from other region Not 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 ISSUEPROBLEM In 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 Nestlé Boycott Committee.SOLUTION Supporting WHO campaign in introducing complementary foods Advertisement Free sampling Message to consumer
RECOMMENDATION Increase product quality Improve the marketing strategies Compliance with international codeIMAGE 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 ORGANIZATIONPROBLEM to 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. Nestlé identified significant problems with the pyramidal model and developed the “Nestlé on the Move” program .SOLUTION Nestlé had to change the way managers seek out contributions from their staff. Change the way managers led their people. Develop The Nestlé Leadership Program and the Develop People initiative.
THE DEVELOPING PEOPLE BASED ON Encourage 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 Nestlé culture and spirit. Focus on “on the job” training given by Nestlé people.IMAGE OF MANAGER In 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 orbig company. This also including Nestle companyeither internal or external problems.You can have slow and steady change, and that isnothing to be ashamed of”, - CEO Brebeck Lemathe