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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
