Corporate and organisational culture
Link to case study
Overview: a case study of Nestlé’s strategy of sustainable development and the way this has been communicated.
➢ to identify the stakeholders of Nestlé
➢ to identify the values and culture of Nestlé
➢ to appreciate the importance of culture in determining a firm’s success.
Introduction (3 minutes)
Introduce the lesson: you will look at Nestlé and examine the stakeholders of Nestlé and the company’s relationship with these. Then look at how Nestlé’s structure and how it is adopting sustainable production techniques. Lastly you will look at its values and culture.
It produces over 100 brands- can students think of any? (Nescafe, KitKat, Nesquick, Golden Grahams, Buitioni, Friskies and Perrier. It 2002 it made a profit of over £3.2 billion).
Stakeholders (10 minutes)
Explain the meaning of a stakeholder (= individuals or groups who are affected by an organisation’s activities). Student task: Working in pairs who might the stakeholders of Nestlé be and what might be their objectives? Now compare their ideas with the list in section 1.
How do different stakeholder groups shape the culture of an organisation?
The structure of Nestlé ( 5 minutes)
Student task: read section 2 paragraph “Ownership” and explain the ownership and structure of Nestlé.
Values and culture (15 minutes)
The behaviour of an organisation depends on its values.
What part do values and principles play in shaping the culture with reference to Nestlé?
What is meant by the culture of an organisation?
What evidence would you cite to show that Nestlé has developed a caring culture in its relationship with employees?
Why does a culture of an organisation need to shift over time. Explain by making reference to sustainable development.
What is culture change? Who should be responsible for culture change in an organisation like Nestlé?
Sustainable development (16 minutes)
Nestlé believes in sustainable development, which it defines as “the process of increasing the world’s access to higher quality food while contributing to long term social and economic development and preserving the environment for future generations”. What does this mean? Answer: e.g. improving the natural environment, improving local communities.
How does the value of creating long term commitment fit with the concept of sustainable development?
One key element of sustainability is ensuring factors of production are used properly.
Using section 5 and 6:
➢ identify the basic factors of production (e.g. land, labour, capital) ➢ explain the difference between needs and wants; how does Nestlé meet these needs. (e.g. needs are essential to survival; wants are preferences- need water but prefer bottled) ➢ explain the meaning of opportunity cost in the context of water ( what has to be given up e.g. to purify water).
Producers (10 minutes)
Nestlé has worked with producers to ensure these are used productively. Read section 6 and make notes on how it has been doing this and on Nestlé’s own efforts to minimise water use.
Review ( 1 minutes)
Nestlé has many stakeholders and its relationship with these is very important. You have examined the structure and values of Nestlé and considered how it communicates with its stakeholder groups. You have also examined the concept of sustainable development- a concept that is becoming increasingly important as resources become scarce.
1. Complete the worksheet on this case study.
2. To what extent are the core values of a business such as Nestlé important? (e.g. influence strategy, influence behaviour of staff but e.g. depends how it is executed, what competitor are doing).
Corporate and organisational culture
Questions and Answers
How do different stakeholder groups shape the culture of an...