This document summarizes the history of Nestle, beginning with its founding in 1866 by Henri Nestle. It discusses several acquisitions and mergers Nestle made between 1905 and 2003 that led to it becoming the world's largest food company. The document also summarizes some key issues Nestle has faced, such as child labor allegations in cocoa production and an ethical boycott in the 1970s. It describes solutions Nestle implemented like a supplier code and advertising campaigns. Finally, it discusses Nestle restructuring its traditional hierarchical structure in the "Nestle on the Move" program to develop employees and promote a common culture.

1. A STUDY OF NESTLE
COMPANY

2.  1866 - Founder , Henri Nestle created one of the first
baby formulae.
 1905 - The first merger .
The Nestlé Company merged with the Anglo-Swiss
Condensed Milk Company, large production and
manage to penetrate the European Market.
 1914- 1918 – onset of the World War I bring a new
revolution to the company.

3.  1945 – 1975 – End of the World War II and the
beginning of new phase.
 1980’s – 2003 – More acquisitions.
 Cereal Partners worlwide with General Mills
 Beverage Partners Worldwide with The Coca-Cola Company
 Lactalis Nestlé Produits Frais with Lactalis
 Nestlé Colgate-Palmolive with Colgate-Palmolive
 Nestlé Indofood Citarasa Indonesia with Indofood
 Dairy Partners Americas (DPA) with Fonterra
 Nestlé Snow with Snow Brand Milk products
 Nestlé Modelo with Grupo Modelo

4.  By now, Nestle company had become the world’s
largest food company.
 More than 500 factories operating in 80 countries
employing more than 224, 000 people with annual
income of USD 4.7 billion under Peter Brabeck-
Letmathe as a Chairman of Board Director.
 A worldwide leader known for manufacturing
products as diverse as chocolates and diaries, Nestle
has clearly been through many changes over the years.

6. CHILD LABOUR ISSUE
PROBLEM
• The use of child labor in cocoa production
• Because of the poverty and a lack of schools
• Violation of child labour law
• Enslaved children and child trafficking
SOLUTION
• Introduces the nestle supplier code
• Monitoring all participants in its supply chain and set clearer labor
standards.
• Give special training on how to address child
labor problem

7. RECOMMANDATION
 Monitoring all of process for recruitment of child labor
 Working with government
IMAGE OF CHANGE (CARETAKER)
 The manager control is severely impeded by a variety of internal and external
forces beyond their.
 The manager had create Nestle Supplier Code to guide and maintain the
relationship between supplier and company.

8. RAW MATERIALS
PROBLEM
1. Unexpected demand by customers
2. Bad weather and natural disaster
3. Inaccuracy of orders receives in inventory or stocks in hands
SOLUTION
1. Manager build multiple relationship with other raw materials suppliers
2. The surplus products will be sell with promotion to clear the stock
3. Build the Dealer Management Systems (DMS)
- Dms is a software for solutions that provide tools for managing sales,
services, parts and inventory management, business management,
integration, and core architecture
- Dms was build to maintain the relationship between dealer and
consumers

9. RECOMMANDATION
 Import inventories from other region
 Not all region has similar demographic factor such as race.
IMAGE OF CHANGE (CARETAKER)
 The manager control is severely impeded by a variety of internal and external
forces beyond their.
 The manager had build Dms software to guide and maintain the relationship
between dealer and consumers.
 This can prevent the poor the relationship from happens among the Nestle
dealers and consumers

10. ETHICAL AND BOYCOTT ISSUE
PROBLEM
 In late 1970s, there is a boycott of Nestle products in the United States and several
European countries.
 Nestle unethical marketing of infant formula.
 Coordinated by the International Nestlé Boycott Committee.
SOLUTION
 Supporting WHO campaign in introducing complementary foods
 Advertisement
 Free sampling
 Message to consumer

11. RECOMMENDATION
 Increase product quality
 Improve the marketing strategies
 Compliance with international code
IMAGE OF CHANGE
 CEO of Nestle, Brabeck Letmathe using the NURTURER image.
 Only necessary change at the company.
 Small changes make a large impact

12. RESTRUCTURING THE ORGANIZATION
PROBLEM
 to what extent the traditional, hierarchical, pyramidal organizational structure facilitates
or hinders these types of employee contributions.
 top-down approach may serve an organization well but not suitable for uneducated and
uninformed employees who need supervisors to manage them carefully.
 Nestlé identified significant problems with the pyramidal model and developed the
“Nestlé on the Move” program .
SOLUTION
 Nestlé had to change the way managers seek out contributions from their staff.
 Change the way managers led their people.
 Develop The Nestlé Leadership Program and the Develop People initiative.

13. THE DEVELOPING PEOPLE BASED ON
 Encourage employees to work with people from many different countries and cultures
in the course of their career.
 Promote opportunities to develop skills that will enable people to move to different
areas of the business.
 Promote a common set of values that engender a Nestlé culture and spirit.
 Focus on “on the job” training given by Nestlé people.
IMAGE OF MANAGER
 In this case, Nestle had use image of manager as coach. Coaching works best for
developmental purposes, especially in a team of competent professionals already
performing at a reasonably high level.

14. Every company have its own problem whether small or
big company. This also including Nestle company
either internal or external problems.
You can have slow and steady change, and that is
nothing to be ashamed of”,
- CEO Brebeck Lemathe