1. Good Food, Good Life, Good Organization

2. OUTLINE
INTRODUCTION
NESTLE BEFORE
WHY CHANGE
NESTLE AFTER
QUESTIONS

3. INTRODUCTION

4. INTRODUCTION

5. INTRODUCTION WORLD LARGEST FOOD AND BEVERAGE COMPANY
REVENUE: US$ 100 Billion
MARKET CAP.: US$ 140 Billion
EMPLOYEES:
HEADQUARTERS: SWITZERLAND

6. OUTLINE
INTRODUCTION
NESTLE BEFORE
WHY CHANGE
NESTLE AFTER
QUESTIONS

7. STRUCTURE: HIGHLY DECENTRALIZED
NESTLE BEFORE
DOMESTIC SALES & MARKETING R&D PURCHASING PRODUCTION
ACCOUNTING
STRUCTURE: HIGHLY DECENTRALIZED

8. OUTLINE
INTRODUCTION
NESTLE BEFORE
WHY CHANGE
NESTLE AFTER
QUESTIONS

9. 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

10. 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

11. OUTLINE
INTRODUCTION
NESTLE BEFORE
WHY CHANGE
NESTLE AFTER
QUESTIONS

12. NESTLE AFTER TRANSNATIONAL STRATEGY Network of local companies
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

13. NESTLE AFTER

14. NESTLE AFTER NESTLE PRINCIPLE
“CENTRALIZE WHAT YOU MUST, BUT DECENTRALIZE WHAT YOU CAN”

15. STRUCTURE: HIGHLY DECENTRALIZED
NESTLE AFTER
DOMESTIC SALES & MARKETING R&D PURCHASING PRODUCTION
ACCOUNTING
STRUCTURE: HIGHLY DECENTRALIZED

16. STRUCTURE: MOSTLY CENTRALIZED
NESTLE AFTER
DOMESTIC SALES & MARKETING
STRUCTURE: MOSTLY CENTRALIZED

17. THANK YOU FOR YOUR ATTENTION
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