How Nestle Manages Its Global Environment

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MBA 640- Organizational Management and Change
Lecturer: Dr. Masroor,PhD

How Nestle Manages Its Global Environment

Prepared by: Luminita Maria Birza
Student ID: 1465


Read the case study “How Nestle Manages Its Global Environment” page 89 in your textbook and answer the following questions: 1. List various ways in which Nestle has attempted to manage its environment over time. 2. Why did Nestle change the methods it used to manage its environment?

Nestlé, the world’s largest food and Nutrition Company, it enjoyed record profit on sales of over $ 100 billion in 2007 (1) Today the company operates in 86 countries around the world, and employs over 280,000 people. Nestle was founded and headquartered in Vevey, Switzerland, grew significantly during the First World War and again following the Second World War, eventually expanding its offerings beyond its early condensed milk and infant formula products.

Nestlé’s case is a good illustration of the many ways that the environment can be managed. The various ways in which Nestle has attempted to manage its environment over time was through expansion of the product offering, expansion of the customer base, and by developing lower-cost ways to make and sell products.

The company is operated in a relatively decentralize manner, according to geographic zones and markets. The structure reflects the nature of Nestles’ value chain; which is most cases involves agricultural sourcing, manufacturing and consumption occurring in the same region or country.(2)

The CEO, Peter Brabeck-Lathmate, who has been in charge since 1997, is the person responsible for Nestlé’s improving global performance. He worked to increase the revenue and profits by expanding into new markets, in both developing and emerging nations. In the 1990’s, Nestle managed its environment by acquiring other companies for example in U.S , Nestle brought the food companies Carnation...
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