Nestle Swot Analysis
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CASE 1-2
Nestle: The Infant Formula Controversy
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Nestle Alimentana ofVevey, Switzerland, one of the world's largest food-processing companies with worldwide sales of over $8 billion, has been the subject of an international boycott. For over 20 years, beginning with a Pan American Health Organization allegation, Nestle has been directly or indirectly charged with involvement in the death of Third World infants. The charges revolve around the sale of infant feeding formula, which allegedly is the cause for mass deaths of babies in the Third World. In 1974 a British journalist published a report that suggested that powdered-formula manufacturers contributed to the death of Third World infants by hard-selling their products to people incapable of using them properly. The 28-page report accused the industry of encouraging mothers to give up breast feeding and use powdered milk formulas. The report was later published by the Third World Working Group, a lobby in support of less-developed countries. The pamphlet was entitled "Nestle Kills Babies," and accused Nestle of unethical and immoral behavior. Although there are several companies that market infant baby formula internationally, Nestle received most of the attention. This incident raises several issues important to all multinational companies. Before addressing these issues, let's look more closely at the charges by the Infant Formula Action Coalition and others and the defense by Nestle.
on the intensive advertising and promotion of infant formula. Clever radio jingles extol the wonders of the "white man's powder that will make baby grow and glow.""Milk nurses" visit nursing mothers in hospitals and their homes and provide samples of formula. These activities encourage mothers to give up breast feeding and resort to bottle feeding because it is "the fashionable thing to do or because people are putting it to them that this is the thing to do."
THE DEFENSE
The following points are
CASE 1-2
Nestle: The Infant Formula Controversy
H
L
Nestle Alimentana ofVevey, Switzerland, one of the world's largest food-processing companies with worldwide sales of over $8 billion, has been the subject of an international boycott. For over 20 years, beginning with a Pan American Health Organization allegation, Nestle has been directly or indirectly charged with involvement in the death of Third World infants. The charges revolve around the sale of infant feeding formula, which allegedly is the cause for mass deaths of babies in the Third World. In 1974 a British journalist published a report that suggested that powdered-formula manufacturers contributed to the death of Third World infants by hard-selling their products to people incapable of using them properly. The 28-page report accused the industry of encouraging mothers to give up breast feeding and use powdered milk formulas. The report was later published by the Third World Working Group, a lobby in support of less-developed countries. The pamphlet was entitled "Nestle Kills Babies," and accused Nestle of unethical and immoral behavior. Although there are several companies that market infant baby formula internationally, Nestle received most of the attention. This incident raises several issues important to all multinational companies. Before addressing these issues, let's look more closely at the charges by the Infant Formula Action Coalition and others and the defense by Nestle.
on the intensive advertising and promotion of infant formula. Clever radio jingles extol the wonders of the "white man's powder that will make baby grow and glow.""Milk nurses" visit nursing mothers in hospitals and their homes and provide samples of formula. These activities encourage mothers to give up breast feeding and resort to bottle feeding because it is "the fashionable thing to do or because people are putting it to them that this is the thing to do."
THE DEFENSE
The following points are