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Good Food, Good Life, Good Organization

Good Food, Good Life, Good Organization. OUTLINE. INTRODUCTION NESTLE BEFORE WHY CHANGE NESTLE AFTER QUESTIONS. INTRODUCTION. INTRODUCTION. INTRODUCTION. WORLD LARGEST FOOD AND BEVERAGE COMPANY REVENUE: US$ 100 Billion MARKET CAP.: US$ 140 Billion EMPLOYEES: 283.000

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Good Food, Good Life, Good Organization

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  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: 283.000 HEADQUARTERS: SWITZERLAND

  6. OUTLINE • INTRODUCTION • NESTLE BEFORE • WHY CHANGE • NESTLE AFTER • QUESTIONS

  7. NESTLE BEFORE DOMESTICSALES & MARKETINGR&DPURCHASINGPRODUCTION 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 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. NESTLE AFTER DOMESTICSALES & MARKETINGR&DPURCHASINGPRODUCTION ACCOUNTING STRUCTURE: HIGHLY DECENTRALIZED

  16. NESTLE AFTER DOMESTICSALES & MARKETING STRUCTURE: MOSTLY CENTRALIZED

  17. 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

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