Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Controlling Nestle - Essay Example

Comments (0) Cite this document
According to Matlack, Nestle is greatly underperformed compared to its competitors Unilever and Kraft Foods (56). The CEO Brabeck has delivered more than $1.5 billion in cost savings by "streamlining and integrating the far-flung Nestle operations". As the result the operations profits have much increased…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.9% of users find it useful
Controlling Nestle
Read TextPreview

Extract of sample "Controlling Nestle"

Download file to see previous pages Most of the attention is paid to the raw material prices easing in order to ensure that the major product categories will meet the financial targets this year. CEO Mr. Brabeck has noted that Nestle has a plan on how to deal with the higher input costs and this plan is working better than some other big food companies have. CEO predicted the increase of costs associated with the raw materials and had started raising the prices earlier and advanced the price increase in the beginning of the year. Such move has made it possible for Nestle to meet the financial targets.
The increased prices have never been assumed as a competitive advantages, however, when the raw materials costs increase is predictable and inevitable, then the timely reaction can help to avoid the loss of customers and assure the sales level. Nestle did not only predict the potential cost increase, but has also timely reacted and gained the desired sales volume. One of the concerns CEO focused on was high division of financial operations - every country had its own financial system with managers making decision with freedom and choice of the most appropriate methods. Brabeck has centralized the financial activities and the whole structure became more controllable.
The special attention is currently being paid to the creation of additional value for nutrition and wellness products. CEO has a clear vision of what products are desired by customers. The issue of extra weight is no longer the American problem and many people in Europe are struggling to become healthier and lose the weight. For this reason the wellness products are getting more and more popular. Nestle has managed to save enormous amount of money through acquisitions of the well-known brands. In addition, less money is invested into research and development of new products because the company has bought not only the brand name but the all operations with all specialists working for that particular acquired company. As it will be discussed further, acquisitions are the best cost saving investment opportunity that helps to control the spending and reduce the costs on research.
What are some of the operating standards the CEO is implementing at Nestle Why are these standards effective or why not
One of the key challenges of Nestle was to gain control over the decentralized structure - the country managers has freedom in everything starting with the purchasing and up to capital investments. From one side, it was very helpful from the marketing standpoint because local managers were more knowledgeable about the customer's preferences. From the other side, such system was highly inefficient - headquarters could not track the costs. First of all, the five global centers were established to control coffee and cocoa purchasing (Matlack 56). The information technology system was introduced to give managers data about the performance of other units. These standards are more effective because can be easier controlled and tracked.
Matlack (56) provides the number Nestle recipe for Richer Margins: Streamlining operations (intensive costs savings through improvements in info tech and centralizing of activities), Strengthening key ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Controlling Nestle Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Controlling Nestle Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from
(Controlling Nestle Essay Example | Topics and Well Written Essays - 1000 Words)
Controlling Nestle Essay Example | Topics and Well Written Essays - 1000 Words.
“Controlling Nestle Essay Example | Topics and Well Written Essays - 1000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document



...?Nestle Nestle (http was founded in 1866 by Henri Nestle in Vevey, Switzerland, where its headquarters are located. Nestle’s beginnings began with the legendary Henri feeding his formula to a premature baby boy whose ailing mother was unable to feed the child. The boy survived, sending sales soaring at a time of high infant mortality. Now Nestle employs around 280,000 people with branches and factories operating in almost every country in the world. Nestle is synonymous with milk and milk products and is the world’s largest food conglomerate with sales of CHF 108 bn for 2009. Nestle’s Nescafe, the leading coffee brand, is drank in almost every country and the company owns scores of other household names, including...
1 Pages(250 words)Essay


... a success as it had brought about significant benefits for Nestle such as :- 1. An improved prospect of long-term supply of quality raw materials at competitive costs. 2. A better quality control and risk management. 3. Enhanced communication with growers, politicians, customers and others. 4. Further development and enhancement of the company’s reputation and image. Data Management Nestle has put a big data project in place (Time Magazine). Dubbed GLOBE, an acronym for global business excellence, it involves as many as 2,000 people worldwide working to define and standardize everything the company does. Switzerland, Singapore and Peru were the first to switch to the new data system, and they found they were able to eliminate a mass...
23 Pages(5750 words)Essay


...? Management, Research Paper Topic: Nestle Discuss the organization change that Nestle has undergone.  Every organization in the world needs to bring about changes in its system in order to remain competitive in the long run. Being the biggest food company in the world it is extremely important for Nestle to introduce changes to maintain its commitment of long term outcomes. During its initial years, Nestle only sold in international markets through agents, with its headquarters being in Switzerland. In the twentieth century, however, Nestle decided to change its strategy into global expansion by buying local subsidiaries in foreign markets along with opening itself in the United States in order to cater to the increasing demands due...
3 Pages(750 words)Research Paper


Each of the fingers can be separately snapped from the bar. Bars have 2 or 4 fingers typically. Introduction Of Nestle in UAE Nestle’s first official presence in Middle East was in 1934 in Lebanon. It has grown then in the entire region and operating companies has been opened in every country of Middle East except Iraq and Yemen. In these two countries, selling and distribution of products is done through agents. The regional head office of Nestle was established in Middle East in Dubai in the year 1997. Currently, the activities are focussed on 13 countries of Middle East. Business Nestle is into food industry. They products in every food sector from infant food for children to chocolates, beverages, frozen food, seasoning, wate...
8 Pages(2000 words)Research Paper


...? Nestle Table of Contents Table of Contents 2 0 Executive Summary 3 2.0 Introduction 3 2 International Expansion 4 2.2 Location 4 3.0 Culture and Lifestyle of UAE and Switzerland 5 3.1 Corporate culture in Switzerland & UAE 6 4.0 Entry Mode Strategy 10 5.0 Conclusion 11 References 13 1.0 Executive Summary The study will focus on the formation, product and service offerings of Nestle; it will also lay emphasis on the international expansion strategies to be followed by Nestle in UAE. The main objective of this study is to highlight the culture and lifestyle of UAE and Switzerland and the difference in the culture and lifestyle of these countries. In order to expand in UAE, Nestle needs to study the culture, habits and lifestyle...
11 Pages(2750 words)Term Paper


...? Mills Board Case MILLS BOARD CASE General Mills Company was formed in 1982 after Washburn Crosby Company merged with a number oflarge mills in the United States. Over the years, the management and progress of the company has been very unstable. The main strategic problem is that the company has lacked a good strategy to follow in defining their market, what they deal in, and the way of expanding their company. The other main problem of the company is the tactical nature they use to do their activities. 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... Mills Board...
3 Pages(750 words)Case Study

Controlling SLP

...? Controlling SLP The paper focused on examining the effectiveness of business strategies and control efforts made by a company to mitigate the rising organizational problems, taking the example of McDonald’s Corporation management strategies into concern. The findings of the paper revealed that McDonald’s had applied certain managerial strategies as well as technologies in its course of resolving the organizational problems, preserving sustainability and profitability in the global market. On the contrary, the findings of this paper also revealed certain setbacks of the managerial strategies applied by McDonald’s, which proved ineffective to mitigate chances of possible issues. Based on the obtained facts, technologies and strategies...
3 Pages(750 words)Coursework


... be described as a combination of a multi-domestic and a transnational strategy. In earlier years, Nestle’s marketing strategy was different in different countries, because the determination of marketing strategy was left to the subsidiaries. As a result, there was a low level of control by the corporate headquarters over strategy. According to Peter Brasbeck, when he took over as CEO in 2005, he was frustrated by the peripheral role that used to be accorded to marketing and the lack of accountability arising in a matrix like, decentralized structure of the Company. The reason was because it often resulted in an overlap between managerial responsibilities and local market management.(Benady, 2005). Nestle’s earlier strategy may therefore...
14 Pages(3500 words)Essay


... confectionary. Both Nestle and Mars have production facilities in UAE and it continued to support the products with aggressive promotional campaign. Challenges There is increasing price control activity by the authorities of United Arab Emirates. It is a real challenge and threatens to a certain extent, the competitiveness of Dubai in future, both from the point of view of investment and from retail perspective. If a company is not free to price its products, decision makers will ask themselves whether they are on the right place of investment. It can be a drawback and should be managed more carefully by UAE. Future In the existing competition within chocolate confectionary, there is an expectation that innovation will be vital...
8 Pages(2000 words)Research Paper


...Presented by Nestle There have been several cases of disease outbreaks and food poisoning as the food processing companies produce food with microbes that contaminate food. Nestle has been on the forefront to urge the government to ensure food industries acknowledges the safety of consumers. According to Nestle, the government does a perfect job in controlling harmful bacteria in meat and poultry because they form the basic source of proteins for human beings. Before only meat was suspected to contain bacterial infections but, with the large production of poultry meat, the government realized poultry suffered for influenza outbreak. A law was passed that ensures every piece of meat or poultry bared the inspected for wholesomeness by U.S...
2 Pages(500 words)Coursework

To What Extent Does the Concept of Emotional Intelligence Point Towards a New Means of Controlling Workers

Weber believed that ‘the specialized experts organized into smoothly functioning units by the bureaucratic managers would provide these elite managers with a decision-making ability foreign to the parliaments and the courts’ (Glassman et al., 1984, 5). However, in order for the role of managers within bureaucratic environments to be understood, it is necessary to proceed to a thorough examination to the structure and the characteristics of such an environment under normal social and political conditions.

Moreover, the acceptance of Weber’s views on bureaucracy has led to the assumption that bureaucracy (Fry, 1989, 41) ‘is not necessarily rational, it may not be efficient, that other forms of orga...
11 Pages(2750 words)Assignment

Event Stategy: Nestle UK

...Nestle - Case Study Company History  Nestle is a company which has a basic aim of building a worldwide business of nutrition and health. The company basically works in the area of sound human values and principles. The company was founded by Henri Nestle. Henri Nestle was a pharmacist by profession. Nestle as a business entity, started its operation in the year 1866 under the flagship of Henri Nestle. By the starting of 20th century, Nestle had been operating from United States, Britain, Germany and Spain. World War 1 created a great impact on Nestlé’s journey because World War I created a vast demand for dairy products and because of this reason the production of Nestle had been doubled. The year 1920 was very remarkable for Nestle...
8 Pages(2000 words)Case Study

Nestle in the International Environment

... ventures, acquisitions or by setting up wholly owned subsidiaries. This would depend on the level of control and capital commitments required. Firms also like to take into account the political and economical risks involved in the process. Acquisition requires high investment and hence high returns, high risks but fetches high degree of control to the investing firm (Agarwal & Ramaswami, 1992). There are several theories that assist in making the right choice on the mode of entry. Nestle already has a global presence and in marketing its nutrition and health products, it had the distinctive advantage of extending its brand name. The acquisition of Novartis was a strategic business decision with a view to expand its market in the US where...
12 Pages(3000 words)Term Paper

Strategic Marketing at Nestle Milo, Singapore

... of its consumer profile comprises sports enthusiasts and that the brand has a firm association with them “through great partnerships with the Singapore Sports Council, Singapore Sports School and the Co-Curricular Activities Branch of Ministry of Education29”.  2.2.2. SBU Competition Les Pugh – Analyst, Solomon Brothers – while commenting on the marketing acumen of Nestlé had said that “Nestle is the best- positioned food company in the world30”. It has been observed that Nestlé prefers to customize its brands according to local tastes. In order to do so the company hires regional employees. However, Nestlé makes use of technology that is globally standardized. The Swiss behemoth excels at rapid market capture, following...
8 Pages(2000 words)Case Study

Modern Approach Towards Controlling the Response of Structures Towards Winds and Earthquakes

...Contents Page No. Introduction 3 Content 4 ification of the modern structural control mechanism 5 Conclusion 9 References 11 Modern approach towards controlling the response of structures towards winds and earthquakes: Introduction: Achieving control over the response of a structure to the stresses induced in it by the large natural forces of earthquakes and wind storms and designing various vibration control techniques are some of the most fundamental areas which are studied in the Structural Dynamics. One of the biggest concerns while designing a multi storey building, a bridge or a skyscraper is to estimate the deformations the structure is likely undergo as a result of taking natural and unpredictable loads brought by high speed...
8 Pages(2000 words)Coursework

Controlling Crime in the USA

...Controlling Crime security is one of the main agenda of the US government. The population in prisons is rising. This is an indication that not only are the taxpayers bearing a heavier burden but also, their lives and property are facing increasing risks of criminal activities. The four main types of crimes that need to be controlled are, violent crimes committed against the citizens or foreigners, non-violent crimes committed against citizens and personal property, and white collar crimes. A combination of enforcement and non-enforcement strategies need to be used for effective control of crime. There are four legal departments with different roles yet with one goal of controlling crime. Departments substantial in controlling crime...
11 Pages(2750 words)Essay

Controlling Our Food Habits

...Controlling Our Food Habits Table of Contents Introduction 1 Thesis Statement 2 Discussion 2 Advantages of Controlling Food Habits 2 Disadvantages of Not Controlling the Food Habits 6 Recommendations 8 Conclusion 9 Works Cited 11 Bibliography 13 Introduction Controlling foods habits is not an easy task. It is a long term process and in order to control food habits, one should know the requirements of their body. Food controlling does not only mean to eat less, but also means to eat healthy food in small proportions. An individual should take enough time to have food which also includes chewing the food properly. In order to make a good food habit, one should also have sufficient amount of water. It has been observed that drinking water...
10 Pages(2500 words)Research Paper

The Potential of the Accounting Profession in Controlling the Economy and Ethical Business Practise

...Proposal on Finance and Accounting Introduction The issue of introduction of environmental regulation in the business community has spawned a lot of controversy and debate. Various parties, who are either for the introduction of regulation or, for the government to free the market, have sprung up to give an assortment of reasons why their stance is better suited for the Australian situation. A free market situation translates to mean that the government has given reign of the market to the business community. In this situation, the market tends to operate without any government oversight. However, in the pro-regulation scenario, a set of policies are enacted by the government that seek to influence, or rather control, the behaviour...
11 Pages(2750 words)Research Proposal

Use of the Media to Spread Fear as a Means for Controlling the Public in V for Vendetta

... Use of the Media to Spread Fear as a Means for Controlling the Public Introduction For the longest period, numerous interest groups around the world have used fear, especially in media discourse. The technique of fear control operates by generating uncertainty and spreading it among the members of the public with the aim of creating for themselves a suitable environment for the easy achievement of their goals. While fear naturally manifest in people, some interest groups create fear among the people to intimidate them into not questioning their actions, according to Hanna (37). Such groups are in most cases involved in politics and use the media to spread fear among the people, as was seen in the movie V for Vendetta, which this paper...
6 Pages(1500 words)Movie Review

Evaluation of Nestle S.A based on Servant Leadership

Servant Leadership
Greenleaf (2002) states, “The servant-leader is first a servant.” The philosophical concept of servant leadership entails a leadership style that focuses on satisfying the needs of the employee and the consumer. The leader focuses on helping others and desires to serve them and not to be served by his subjects. Greenleaf Further explains that a servant leader is empathetic, perceptive, persuasive, foresighted, aware, listening and understanding (Day, 2014). A servant leader is identifiable in the workplace because he constantly interacts with the employees. He tends to the employees with love, care, and concern. He can be identified out of the workplace because he is able to values such as empa...
8 Pages(2000 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Controlling Nestle for FREE!

Contact Us