Nestle Internal Communication

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Organisation & Communication
Nestlé and Internal Communication

Nestlé announced in a press release on the 18th of April 2011 that it is setting up a new partnership with well-established, family-owned Chinese food company Yinlu (Nestlé to enter, 2011). The company will take on a 60% share of its Asian partner.

1. Nestlé’s decision to enter partnership with Chinese food company Yinlu Foods Group (Yinlu) is an example of a combination between merging and reorganisation. The companies signed a partnership agreement that allows Nestlé to take a 60% stake in Yinlu. However, Yinlu’s Chairman, Mr. Chen Qingyuan, will continue to lead the company in the new partnership ( That means that both companies have a say, but the original owner of Yinlu stays in charge, which leads to a change in both companies’ organisation cultures.

This change might allow creating some new job vacancies and probably will also breed new working methods due to the cultural differences between the Chinese and Western working style. According to M. Herlé, “In the process of achieving similar work practices, internal communication is an essential tool. “ (Herlé, 2005)

2. This change will involve several internal groups. They are: permanent employees who will get more working opportunities, placement students/interns who might want to work for Nestlé in China, also permanent external consultants who might be in need because of the different managing styles between the two cultures, and at last, members of the Board of Advisors and of the Board of Directors, because these are the people who make the most important decisions about the company’s future (Herlé, 2005).

3. It is very important to constantly exchange information between the management and the internal public groups in order to avoid loss of motivation, misunderstandings or any other internal failures caused by the lack of information (Herlé, 2005). For this reason, the best internal...
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