Nestle - Case Study Example

Download file to see previous pages The board of directors of the company does not show good tactics in solving the issues affecting the company. This is the main problem that has afflicted General Mills Company for many years. Lack of good strategies in running the company is very evident. The company is seen to be shifting from one type of business into another with the aim of expanding their business or maximizing profits, but in return, it gets losses. This is a show poor market research and consideration of the market statistics over the years. According to Wojahn, General Mills Company underwent a series of losses after it decided to start business dealing in non-food substances. This was immediately after the Second World War when it ventured into home appliances, electronic goods, animal feeds, and commercial flour. Wojahn (Wojahn, 2003: p25) says that this was as a result of the rush they had into the market after noticing opportunities to invest in. They needed to conduct a market research to determine the market trends, their preferred produce and customer patterns before they could venture into it (Wojahn, 2003: p25). Their lack of good strategies also makes the board decide on moving out of a market without proper consideration of future outcomes. The company easily pulls out from a market it has tried out but has not been successful. This is shown immediately after the Second World War when it pulled out from electronic goods, home appliances, and animal feeds. In this case, the company had to set the right strategies that could see it, make profits in the same business venture rather than losses. They needed to conduct market research and improve on their products so as to gain a good market share that could make them gain good profits (Wojahn, 2003: p25). After the fail in home appliances, electrical goods, and animal feeds the company still ventured into worldwide sale of snack foods. This could have been a success to the company, but they pulled out so soon. General mills Company bought a number of companies dealing in snacks in the following years and even had plans to acquire an international company to deal in manufacturing of shaped snacks (Wojahn, 2003: p25). This vision went blank when FTC restricted them from buying any more companies due to antitrust reasons. The company then started to sell the bought companies one by one, until it remained with only one company. In this case, they needed to expand the already acquired companies to gain market share and profits, which they could use to open other companies. Pulling out of the business after some time shows a lack of good strategies in running the company (Wojahn, 2003: p25). Considering their lack of tactics in dealing with issues at hand, the company’s board of directors, is seen to lack active participants in discussion of matters affecting the company. This is evident when the CEO of the company urges the directors to ask for questions that can help to point out a problem in decisions made by the board. The board is seen to remain silent (Wojahn, 2003: p25). This is a big show of the lack of tactics in dealing with issues affecting the company. The CEO of the company is also seen to lack tactics in handling situations when it is evident that, he takes an average of the views put forward by the board to make a decision. A director need to listen to his directors views but come up with his own critically analyzed decision. Following any of the views put forward is the main problem facing the company. From the above analysis, one of the ...Download file to see next pagesRead More