HARVARD UNIVERSITY I INTERNATIONAL BUSINESS I GROUP 6 I DEEPIKA CHOUDHARY I JUDY CHUA I SAMUEL...

HARVARD UNIVERSITY I INTERNATIONAL BUSINESS I GROUP 6 I DEEPIKA CHOUDHARY I JUDY CHUA I SAMUEL TURNWALD

Good Food, Good Life, Good Organization

HARVARD UNIVERSITY I INTERNATIONAL BUSINESS I GROUP 6 I DEEPIKA CHOUDHARY I JUDY CHUA I SAMUEL TURNWALD

• INTRODUCTION• NESTLE BEFORE• WHY CHANGE• NESTLE AFTER• QUESTIONS

OUTLINE

HARVARD UNIVERSITY I INTERNATIONAL BUSINESS I GROUP 6 I DEEPIKA CHOUDHARY I JUDY CHUA I SAMUEL TURNWALD

INTRODUCTION

HARVARD UNIVERSITY I INTERNATIONAL BUSINESS I GROUP 6 I DEEPIKA CHOUDHARY I JUDY CHUA I SAMUEL TURNWALD

INTRODUCTION

HARVARD UNIVERSITY I INTERNATIONAL BUSINESS I GROUP 6 I DEEPIKA CHOUDHARY I JUDY CHUA I SAMUEL TURNWALD

INTRODUCTION

WORLD LARGEST FOOD AND BEVERAGE COMPANY

REVENUE: US$ 100 Billion

MARKET CAP.: US$ 140 Billion

EMPLOYEES: 283.000

HEADQUARTERS: SWITZERLAND

HARVARD UNIVERSITY I INTERNATIONAL BUSINESS I GROUP 6 I DEEPIKA CHOUDHARY I JUDY CHUA I SAMUEL TURNWALD

• INTRODUCTION• NESTLE BEFORE• WHY CHANGE• NESTLE AFTER• QUESTIONS

OUTLINE

HARVARD UNIVERSITY I INTERNATIONAL BUSINESS I GROUP 6 I DEEPIKA CHOUDHARY I JUDY CHUA I SAMUEL TURNWALD

NESTLE BEFORE

STRUCTURE: HIGHLY DECENTRALIZED

DOMESTICSALES & MARKETINGR&DPURCHASINGPRODUCTIONACCOUNTING

HARVARD UNIVERSITY I INTERNATIONAL BUSINESS I GROUP 6 I DEEPIKA CHOUDHARY I JUDY CHUA I SAMUEL TURNWALD

• INTRODUCTION• NESTLE BEFORE• WHY CHANGE• NESTLE AFTER• QUESTIONS

OUTLINE

HARVARD UNIVERSITY I INTERNATIONAL BUSINESS I GROUP 6 I DEEPIKA CHOUDHARY I JUDY CHUA I SAMUEL TURNWALD

WHY CHANGE

• GLOBALIZATION- Reduction of trade barriers - Liberalization of FDI

• COMPETITION FROM UNILEVER AND PROCTER & GAMBLE

• COST OF RAW MATERIALS AND OIL PRICES

• EXPLOIT ECONOMIES OF SCALE

• DRIVE DOWN B. OPERATION COSTS

HARVARD UNIVERSITY I INTERNATIONAL BUSINESS I GROUP 6 I DEEPIKA CHOUDHARY I JUDY CHUA I SAMUEL TURNWALD

WHY CHANGE

CONSISTED OF

• Common business process architecture

• Standardizing master data

• Standardizing information systems

WHY

• Rapidly changing environment

• Uniting inside to be more globally competitive on the outside

• Harnessing the power of e-world with a focus on customers/ channels and consumers

HARVARD UNIVERSITY I INTERNATIONAL BUSINESS I GROUP 6 I DEEPIKA CHOUDHARY I JUDY CHUA I SAMUEL TURNWALD

• INTRODUCTION• NESTLE BEFORE• WHY CHANGE• NESTLE AFTER• QUESTIONS

OUTLINE

HARVARD UNIVERSITY I INTERNATIONAL BUSINESS I GROUP 6 I DEEPIKA CHOUDHARY I JUDY CHUA I SAMUEL TURNWALD

NESTLE AFTER

TRANSNATIONAL STRATEGY Network of local companies Creation of Global Business Units: -Purchasing, Production and R & D

Centralized Organization:-Nestle’s water business (i.e. Perrier & San Pellegrino), Infant formula-Water business production in France and Italy

Decentralized to national subsidiaries:-Marketing and Sales 

HARVARD UNIVERSITY I INTERNATIONAL BUSINESS I GROUP 6 I DEEPIKA CHOUDHARY I JUDY CHUA I SAMUEL TURNWALD

NESTLE AFTER

HARVARD UNIVERSITY I INTERNATIONAL BUSINESS I GROUP 6 I DEEPIKA CHOUDHARY I JUDY CHUA I SAMUEL TURNWALD

NESTLE AFTER

NESTLE PRINCIPLE

“CENTRALIZE WHAT YOU MUST, BUT DECENTRALIZE WHAT YOU CAN”

HARVARD UNIVERSITY I INTERNATIONAL BUSINESS I GROUP 6 I DEEPIKA CHOUDHARY I JUDY CHUA I SAMUEL TURNWALD

NESTLE AFTER

STRUCTURE: HIGHLY DECENTRALIZED

DOMESTICSALES & MARKETINGR&DPURCHASINGPRODUCTIONACCOUNTING

HARVARD UNIVERSITY I INTERNATIONAL BUSINESS I GROUP 6 I DEEPIKA CHOUDHARY I JUDY CHUA I SAMUEL TURNWALD

NESTLE AFTER

STRUCTURE: MOSTLY CENTRALIZED

DOMESTICSALES & MARKETING

HARVARD UNIVERSITY I INTERNATIONAL BUSINESS I GROUP 6 I DEEPIKA CHOUDHARY I JUDY CHUA I SAMUEL TURNWALD

QUESTIONS

THANK YOU FOR YOUR ATTENTION

REFERENCES: ALLBUSINESS.COM I NESTLE MANAGEMENT REPORT 2008 I NESTLE.COM INVESTING.BUSINESWEEK.COM I TIME.COM I THE WORLD OF NESTLE PRODUCTS REPORT