Since it began over 130 years ago, Nestlé’s success with product innovations and
ID: 419987 • Letter: S
Question
Since it began over 130 years ago, Nestlé’s success with product innovations and business acquisitions has turned it into the largest Food Company in the world. The Company's strategy is guided by several fundamental principles. Nestlé's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines.
Nestlé is based on the principle of decentralization, which means each country is responsible for the efficient running of its business - including the recruitment of its staff. Nestlé giving a perfect illustration of a global understanding while putting people from different countries at the head of its headquarters in Switzerland. Indeed, its “Group Management” is then composed of two Austrian people, one Spanish, one Swiss, one Mexican, two Americans, one British and also one Swedish.
Nestlé adopt a flexible way of thinking, and tolerance in intercultural communication: it is not all about respecting each people’s beliefs, but also to be tolerant of different practices and methods of application across countries.
Nestlé, established International Training and Conference Centre to encourage interaction and give employees the possibility to express themselves about the way to apply process and also to interact between each other to better share knowledge of way of doings things.
Question: Analyze the possible strategies “course of actions” that Nestlé’s may follow to counter the crises which faced in the case above.
Explanation / Answer
Nestle has been renowned as a Global organisation which performs its business keeping in mind the sentiments and emotions of the country where they are operating in. They perform activities seperately for each country which helps them focus more on each nation's preferences and they can customise their products according to the need of the people of that country. In the above mentioned, it depicts the same thing where nestle encourages its employees from different countries to engage with each other and learn each other's interests and cultures. This seems to be positive, but there might be challenges that nestle might face if they see people reluctant to engage with other cultures.
Another reason might be political disengagement between two countries which might affect individuals to refrrain themselves from engaging with another individual of a different country. Also, some might not be eager to speak to someone or learn things from someone because they have a perception about the individual or the country from which the individual belongs.
In order to overcome these challenges, Nestle can derive the below strategies which might not affect their plan of bringing together different cultures at work:
a. Form a group which has similar cultures and perceptions to ensure the team work is proper.
b. Encourage people to learn about other cultures by generating curiosity.
c. Allow individuals to take their own decisions rather than forcing them to a decision. This will help Nestle's cause because individuals will voluntarily be able to contribute better.