Nestle Malaysia Essay

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Diane Van Etten September 12, 2013 INTB 6212 Fall 1 Week 3 Assignment 2 Culture is sometimes described as ‘the way we do things around here.’ It’s the set of behavior patterns that people tend to bring to any task. Magdi’s proposal regarding bringing self-autonomous working teams to the Nestlé Malaysia factories in order to bring KPI’s higher with factories that are doing as well as or better than their Asian counterparts is an aggressive one, but one that has merit and should be analyzed closely. The Malaysian environment, which is at the top of the Organizational Alignment Model, is diverse due to the different peoples that have settled here and are working in the factories. In fact, the culture is even different between the urban and the rural factories1. The workers in the urban factories are more willing to accept changes than those in the rural ones. Typically, Malaysia is a hierarchical society where everyone has a place and challenges to leadership are not well received2. They do, however, have a very relaxed attitude where practice counts more than principal, where no more rules than are necessary are implemented and where schedules are very flexible. The organization, Nestlé, is a Swiss company, where inequalities among people are minimized, the society is very individualistic and they tend to avoid uncertainty at all costs3. This culture is very different from the culture in Malaysia, but Nestlé’s top management, through their solid attempts at a transnational strategy, has allowed their subsidiaries to be simultaneously globally integrated and locally responsive4. This alignment allows the Nestlé global operations to function within their global boundaries, but with local cultures, systems and idiosyncrasies in mind. What Magdi is proposing, would push Nestlé Malaysia towards a networked organization allowing them to be a collection

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