MANAGEMENT OF CHANGE

A STUDY OF NESTLE COM

PANY

INTRODUCTION
1866 - Founder , Henri Nestle created one of

the first baby formulae.

1905 - The first merger .

The Nestl Company merged with the AngloSwiss 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.

1945 1975 End of the World War II and the

beginning of new phase.

1980s 2003 More acquisitions.
Cereal Partners worlwidewithGeneral Mills
Beverage Partners WorldwidewithThe Coca-Cola
Company
Lactalis Nestl Produits FraiswithLactalis
Nestl Colgate-Palmolive withColgate-Palmolive
Nestl Indofood Citarasa IndonesiawithIndofood
Dairy Partners Americas(DPA) withFonterra
Nestl SnowwithSnow Brand Milk products
Nestl ModelowithGrupo Modelo

By now, Nestle company had become the worlds

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 BrabeckLetmathe 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.

PROBLEM OF NESTLE CO.

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

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.

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
4.

Manager build multiple relationship with other raw materials suppliers

5.

The surplus products will be sell with promotion to clear the stock

6.

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

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

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 Nestl Boycott Committee.

SOLUTION
Supporting WHO campaign in introducing complementary foods
Advertisement
Free sampling
Message to consumer

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

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.

Nestl identified significant problems with the pyramidal model and developed the

Nestl on the Move program .

SOLUTION
Nestl had to change the way managers seek out contributions from their staff.
Change the way managers led their people.
Develop The Nestl Leadership Program and the Develop People initiative.

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 Nestl culture and spirit.
Focus on on the job training given by Nestl 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.

CONCLUSION
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

QUESTION AND ANSWER