Nestlé Manage it Company

INTRODUCTION

COMPANY’S HISTORY

o In 1905, Anglo-Swiss Condense Milk Company merged with Nestle

o From 1918 until now: improved products, launched new product lines, merged with other food and beverage companies.

o In the 1860s, Henry Nestle, a German pharmacist, invented a food for babies cannot be fed by breast-milk and developed infant food.

OVERVIEW

o Nestle is one of the largest food and beverage companies in the world

o Nestle commits to provide quality food and nutrition in wide range of categories

o Operations in 86 countries with over 2000 brands worldwide

PRODUCTS & SERVICES

o Baby foods – ex: nestle gấu, cereal

o Bottled water – ex: la vie

o Cerealso Chocolate and

confectionery – ex: Kitkat

o Coffee – ex: nestcafeo Culinary, chilled and

frozen foodo Dairyo Drinks

o Food services (condiments and flavor)

o Healthcare nutrition (vitamins and supplementary nutrition)

o Ice creamo Pet careo Weight management

13 main areas:

NESTLE IN VIETNAM

o Nestlé started the business in VN by first opening an office in HCM city since 1912.

o In 1992, Nestlé associated with the Vietnamese company to establish mineral water company, La-vie.

o In 1995, the first factory was built in Dong Nai.

o 10 product lines with 26 brands.

COMPETITORS

ORGANIZATION

Before looking at the Organizational Structure…

What Management is substantially used in Nestle?

Children and Family

Helping children grow into healthy adults

With Milo!

Examples

As it has…

o Calcium: for strong teeth and bones.

o Iron: to carry oxygen to the body’s cells.

o Vitamin A: for healthy eye sight .

o Vitamins B1 and B2: to help release energy from foods.

oVitamin C: to keep skin and gums in good shape.

We developed soluble coffee to help thousands of farmers avoid hardship and crop waste through a collaborative approach with the Brazilian government

Nescafé respects nature

o Responsible farming.

o Responsible production.

o Responsible consumption.

Nestle’s Core Management (Customer Value Management)

Society

Creating Value for Society as they are

shareholders

Future Generation

Protecting Future generation by

sustaining environment

Customers

Serving customers by achieving the highest levels of quality for our

products

Organizational Structure of Nestle

Chairman of the Board Peter Brabeck-Letmathe

Corporate Governance Compliance &

Corporate Services

Corporate Communications

Human Resources

Operations Chief Financial Officer

Strategic Business Units, Marketing

and Sales

Innovation Technology and

R&D

Nestle Waters

Zone EMENA: Europe, Middle

East, North Africa

Nestle Professional

ZONE AMS: Americas

Zone AOA: Asia, Oceania and

Africa

Nestle Business Excellence

Nestle Nutrition

Chief Executive Officer

Features of Nestlé’s organizational structure

o Decentralization

o Flat organizational structure

o Minimum levels of Management

o Broad spans of Control

o Sharing vision and common goals

Why has Nestle chosen the structure?

Quick Response

to changes

Strong Focus on Goals to achieve

In-company People

Development

Leveraging people’s

strength and organization

alignment

Clearing levels of responsibility

How does Nestle make decision?

More Empowerment to Employees More frequent

communication between higher-

level managers and staffers

Responsible individuals for

making decisions

Quick Response to problems/Higher

Effective Performance

MOTIVATION

Motivation

financial motivation

salary increases

profit-sharing

incentive travel

paid time-off

non-financial motivation

goal-setting communication

autonomy responsibility

flexibility

FINANCIAL MOTIVATION

salary increases profit-sharing

Example for financial motivationShort-term Incentive:

o Reward for accomplishments during a specific performance period.

o Quarterly.

o For most Staff and Division level positions.

Nestlé offers APEX, Award for Performance Excellence program.

Long-term Incentive:

o Be designed to motivate and reward over a long period.

o Often three years or more.

o For those in eligible leadership positions.

LTIP target opportunities are set to be competitive with marketplace practice and are calculated as percentage of pay.

FINANCIAL MOTIVATION

incentive travel paid time-off

Example for financial motivation

NON-FINANCIAL MOTIVATION

goal-setting communication

NON-FINANCIAL MOTIVATION

responsibility

flexibility

CONTROL PROCESS

Internal control

Tangible resources

Intangible resources

Financial resources

Organizational resources

Technological resources

Physical resources

Human resources

Innovation resources

Reputation resources

INTERNAL CONTROL

General environment analysis

External control

Industry environment analysis

Demographic

Global

Political or legal

Economic

Technological

Threat of a new entrant

Bargaining power of new supplier

Bargaining power of new buyer

Threat of substitute of products

Intensity of rivalry among competitors

EXTERNAL CONTROL

As regards its departments, these are:o Corporate Governance. Compliance & Corporate Serviceso Corporate communicationso Human Resourceso Operationso Finance and controlo Strategic Business Units, Marketing and Saleso Innovation, technology and R&D.

Furthermore, its operating segments are:o Nestlé Waters o Nestlé Nutritiono Nestlé Professional Zone Europeo Zone Asia/Oceania/Africao Zone Americas

ORGANIZATIONAL CONTROL

MANAGERIAL PRACTICES

TECHNOLOGY

Fermentation probiotic: interaction of probiotics and intestinal cell

Healthier fat: use vegetable oils in bouillon.

Foam booster technology: less fat, denser, longer-lasting foam.

Malt extraction: less sucrose & more complex carbon-hydrates.

ETHICS

o Marketing infant formula in third world countries

o In Italy, infant formula was contaminated harmful chemical (ITX)

o Violation of labor rights in many countries

EMPLOYEE EMPOWERMENT

o Involve employees in decision making process.

o Provide continual training & support.

oIncrease delegate authority & impact opportunity.

o Share leadership vision, goals & direction.

Result : Nestlé India

o Laminate waste was reduced 35%.

o Power waste was reduced 87%.

o Operation stoppage was reduced 25%.

o Line performance was increased 8%.

DIVERSITY

o Around 330,000 employees, 130 countries

o Differences are appreciated

o Nestle Black Employee Association, Nestle Hispanic Employee Association, Nestle Women network,…

o Environment of support & mentorship

THANK YOU!

References.

o The 14 Worst Corporate Evildoers, http://www.laborrights.org (2005).

o Nestlé Website, http://www.nestle.com (2014).

o Nestlé Academy, http://www.nestlecareers.co.uk(2014).