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Nestle Case Study

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Nestle Case Study

Question 1: Analyze Nestlé using the competitive forces and value chain models. What challenges did Nestlé face?

Nestlé, shortly
Nestlé is the largest food and beverage company in the world. His turnover is around $70billions and nearly 250,000 employees all over the world.

Forces and Value Chain Model
His mains forces are principally that Nestlé try and do, to be the more adapted to his market, anywhere they implant a branch, they sell products, adapted to the local consumption!
Secondly, as a main force, is that they adapted themselves, however, they did a different approach for the adaptation, even they design new product for new market, they adapted already existent products in order to avoid some expenditures of development.
Thirdly, they begin, early, from 1994, to develop common software: SAP, and, in 1995, 14 countries shared the same software!
After faced to the issue to set up GLOBE project: They reduced supplier from 600,000 to 170,000!

Challenge did it faced
In the beginning of 2000, Brabeck had had enough of the internal complexity of the different ERP, software, and data chain, that he took Johnson, in charge of Taiwan Market, to set up new common software, named GLOBE (Global Business Excellence).
The objectives are:
Launched and set up with, as deadline, end of 2003, GLOBE, into, at leat, 70% of the countries they are settled. To make it, Johnson nominated in each country, a GLOBE manager.
Of course, they were some issue, as:
- The USA market that got his own software and did not want to let it
- As Brabeck said, the customer doesn’t have to feel what happened in the middle office rearrangement.

Question 2: What type of global business and systems strategy did Nestlé adopt? Was this strategy appropriate for Nestlé’s business model?

Traditionally, Nestlé adopted decentralized strategy that allows local

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