Nestle - Company Overview, SWOT, Control Mechanisms, Organisational Structure, Leadership structure and Motivational strategies

1. A PRODUCT FOR EVERY MOMENT OF EVERY DAY,
FROM MORNING TO NIGHT AND FROM BIRTH TO OLD

2.  Swiss multinational food and beverage company
 Nestlé was formed in 1905 by the merger of the Anglo-Swiss Milk Company,(1866 by
brothers George Page and Charles Page), and Farine Lactée Henri Nestlé,(1866 by Henri
Nestlé)
 Largest food company in the world measured by revenues (Approx. US$ 100 Bn) With a
market capitalization of US$239.6 Bn
 Owns 447 factories. The companies have 333,000 employees in 194 countries in the world
 Nestlé has 64 brands, with a wide range of products across a number of markets, including
coffee, bottled water, milkshakes and other beverages, breakfast cereals, infant foods,
performance and healthcare nutrition, seasonings, soups and sauces, frozen and
refrigerated foods, and pet food

5. STRENGTH
Current strategic position of Nestlé supported by
three key areas of business ‘quality leadership,
customer satisfaction and sustainability’
Global recognition driven by the number of strong
and diversified brands
Efficient Distribution Channels and Geographic
Presence
WEAKNESS
Nestlé’s products have faced criticism as a result of
their nutritional value
International standards demand for standardization
yet this has to be balanced with firm’s strategic need
for adaptation to different cultural environments
Implementation of CSR
By Evaluating and measuring their current performance, a Company takes a decision on what strategies
to formulate and implement
SWOT ANALYSIS

6. OPPORTUNITY
Ability to reach new consumer markets and in
particular new international markets, especially in
emerging markets
Backwards integration to gain more control over the
supply chain of the firm
Advantage of having a large amount of money and
brand recognition at their disposal, which gives them
the opportunity of acquiring start-up's
THREAT
Higher levels of buyer power within the industry
fuelled by greater choice and lower loyalty
Technological change driving both innovation and
associated challenges
Variability in raw material prices influencing the firm’s
ability to sustain prices in light of a commitment to
wider responsibilities aside from profit

7. FEEDBACK
CONTROL
CONCURRENT
CONTROL
FEED FORWARD
CONTROL
CONTROL MECHANISMS
Control is a regulatory process of establishing standards to achieve organizational goals, comparing
actual performance against the standards and taking corrective action when necessary

8. ORANISATIONAL STRUCTURE

9. HEADQUARTERS

10. LEADERSHIP STYLE
A DECENTRALIZED AND ALIGNED ORGANISATION
In addition to how our managers carry out their work as leaders, Nestlé pragmatically implements the following
organizational principles
 Being as decentralized as possible to optimally respond to the needs of consumers, within the framework defined
by our fundamental policies, strategic directions and operational efficiencies.
 Ensuring collaboration of all Nestlé businesses and compliance with Nestlé principles, policies and standards
(Nestlé in the Market approach).
 Building and maintaining a structure which assures operational speed, with a strong focus on results and removing
unnecessary obstacles.
 Establishing flat and flexible organizations with minimal levels of management and broad spans of control, which
also enable people development.
 Setting a shared vision and common goals to leverage the strength of people and organizational alignment.
 Defining clear levels of responsibility. Teamwork does not affect the manager’s duty towards his/her people and
business results. A team must always have a leader who assumes full responsibility.

11. A happy, stable workforce not only delivers better customer service, it
is also more effective at building sales and attracting repeat business.
MOTIVATION

13. Employee skill
Development.
Compelling projects allowing
to showcase and grow your skills.
Cultural Events and Values.
Work-life balance.
Transparent work environment.
Great leadership & mentor ship.
Respect and appreciation for work well done
Compensation, Bonus and Benefits.
Employee's state of mind or Job Satisfaction level.
BEST PLACE TO WORK

14. 1. http://www.nestle.com/aboutus/quality-and-safety
2. http://www.nestle.com/randd/ourvision
3. http://education-portal.com/academy/lesson/organizational-controls-feedforward-concurrent-feedback.html#lesson
4. Annual Report 2013. (2014, February 12). Nestle.com. Retrieved August 30, 2014, fromhttp://www.nestle.com/asset-
library/documents/library/documents/annual_reports/2013-annual-report-en.pdf
5. Eccleston, P. (2008, May 31). Need for cheap palm oil drives deforestation. The Telegraph. Retrieved August 29, 2014, from
http://www.telegraph.co.uk/earth/earthnews/3313623/Need-for-cheap-palm-oil-drives-deforestation.html
6. Environmental sustainability. (n.d.). http://www.nestle.com. Retrieved August 30, 2014,
from http://www.nestle.com/randd/environmental-sustainability
7. Nadar, S. (2013, July 19). 01 nestle sales and distribution. 01 nestle sales and distribution. Retrieved August 29, 2014, from
http://www.slideshare.net/selvakani/01-nestle-final
8. Nestle announces NGO partnership to verify palm oil. (2010, May 18). CSR News -. Retrieved August 30, 2014,
from http://www.businessrespect.net/page.php?Story_ID=2609
9. Nutritional profile of our products. (n.d.). http://www.nestle.com. Retrieved August 30, 2014,
from http://www.nestle.com/randd/nutrition
10. Rossman, P. (2012, May 8). New downgrade for Nestlé CSR rating .www.iuf.org. Retrieved August 30, 2014, from
http://www.iuf.org/sites/cms.iuf.org/files/Continuousexcellence.pdf