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Good Food, Good Life, Good Organization PowerPoint Presentation
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Good Food, Good Life, Good Organization

Good Food, Good Life, Good Organization

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Good Food, Good Life, Good Organization

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  1. Good Food, Good Life, Good Organization

  2. OUTLINE • INTRODUCTION • NESTLE BEFORE • WHY CHANGE • NESTLE AFTER • QUESTIONS

  3. INTRODUCTION

  4. INTRODUCTION

  5. INTRODUCTION WORLD LARGEST FOOD AND BEVERAGE COMPANY REVENUE: US$ 100 Billion MARKET CAP.: US$ 140 Billion EMPLOYEES: 283.000 HEADQUARTERS: SWITZERLAND

  6. OUTLINE • INTRODUCTION • NESTLE BEFORE • WHY CHANGE • NESTLE AFTER • QUESTIONS

  7. NESTLE BEFORE DOMESTICSALES & MARKETINGR&DPURCHASINGPRODUCTION ACCOUNTING STRUCTURE: HIGHLY DECENTRALIZED

  8. OUTLINE • INTRODUCTION • NESTLE BEFORE • WHY CHANGE • NESTLE AFTER • QUESTIONS

  9. WHY CHANGE • GLOBALIZATION • - Reduction of trade barriers • - Liberalization of FDI • COMPETITION FROM UNILEVER AND PROCTER & GAMBLE • COST OF RAW MATERIALS AND OIL PRICES • EXPLOIT ECONOMIES OF SCALE • DRIVE DOWN B. OPERATION COSTS

  10. WHY CHANGE CONSISTED OF • Common business process architecture • Standardizing master data • Standardizing information systems WHY • Rapidly changing environment • Uniting inside to be more globally competitive on the outside • Harnessing the power of e-world with a focus on customers/ channels and consumers

  11. OUTLINE • INTRODUCTION • NESTLE BEFORE • WHY CHANGE • NESTLE AFTER • QUESTIONS

  12. NESTLE AFTER TRANSNATIONAL STRATEGY Network of local companies Creation of Global Business Units: -Purchasing, Production and R & D Centralized Organization: -Nestle’s water business (i.e. Perrier & San Pellegrino), Infant formula -Water business production in France and Italy Decentralized to national subsidiaries: -Marketing and Sales

  13. NESTLE AFTER

  14. NESTLE AFTER NESTLE PRINCIPLE “CENTRALIZE WHAT YOU MUST, BUT DECENTRALIZE WHAT YOU CAN”

  15. NESTLE AFTER DOMESTICSALES & MARKETINGR&DPURCHASINGPRODUCTION ACCOUNTING STRUCTURE: HIGHLY DECENTRALIZED

  16. NESTLE AFTER DOMESTICSALES & MARKETING STRUCTURE: MOSTLY CENTRALIZED

  17. QUESTIONS THANK YOU FOR YOUR ATTENTION REFERENCES: ALLBUSINESS.COM I NESTLE MANAGEMENT REPORT 2008 I NESTLE.COM INVESTING.BUSINESWEEK.COM I TIME.COM I THE WORLD OF NESTLE PRODUCTS REPORT