Nestlé’s Organisation Chart

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Nestlé’s organisation chart (Source: Adopted from: www.Nestle.com) Following the above figure 7.1, it can be seen that Nestlé operates within a global matrix structure. As it has been already stated above, Nestlé’s structure centralizes in some operating decisions and at the same time decentralizes in cases of national operations. The company integrates its functional competencies and capabilities into local teams such as to successfully respond within the global marketplace (Bulcke&Signh, 2011). Thus using a global matrix structure the company is able to fulfil customer requirements from different geographical places (Ireland et.al, 2008). According to Hill (2009), a global matrix structure is highly recommended for an organisation which adopts transnational strategy in order to be effective implement. Since 2000, Nestlé has developed its Global Business Excellence (GLOBE) approach with a prospect of simplifying its organisational process structure through an integrated knowledge system. The programme provides Nestlé’s companies with similar plans, structures and best performance to integrate actions thru the entire organization and to support organizational strategy for business objectives (Johnson, 2005). Recently, the company reorganised its structure through the development of an additional programme known as NCE (Nestlé Continuous Excellence). Through that method Nestlé is able to reduce production waste by saving million tonnes of product material through know-how production such as recycling (Nestle, 2010c). Bulcke & Signh (2011) noted that the combination of those two programmes, GLOBE and NCE, enable the company to drive cost-effective growth and outperform the market. Concluding, the idea behind those programmes was to reorganise the organisation’s structure as to be linked with the overall
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