Nestle Case Essay

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Nestle Case Nestle is considered to be the world’s largest food and beverage company in the world, with approximately 230,000 employees producing more than 8000 products in 81 countries. Total revenue for the year 2000 was expected to be in the region of 80 billion Swiss francs, and profit around 5 to 6 billion of Swiss francs. Despite the fact that one analyst showed that Nestlé’s margins are lower than its competitors, the company considered to be number one at its market. In April 2000 Chris Johnson, a 39-year-old American manager running Nestle in Taiwan, received a phone call from the Mike Garrett, his boss, telling him that he had been chosen to head up a major Nestle initiative called a GLOBE Program. The GLOBE Program would be based on the following three principals: good practice, standardization of data and information systems with common technologies. A problem of the case is to analyze the project and see how things could be improved to convince market heads to support the project. In making project selection decisions, it is vital to consider the interactions among various projects and to manage the projects as a set in order to achieve the organization’s strategic objections. Understanding that, Nestle holds constant meetings of the “group management”, the team of nine senior managers at the top of the company, where Chris presents his work about GLOBE project and where all the major decisions are taken. So that, the “group management” would have a control over a set of research projects pursuit by the company, because it is exactly what determines the organization’s long-run success. Output GLOBE development project could be categorized as the following dimension: the degree of process change. At present stage a GLOBE project could be determined as R&D project. This project entails working with basic technology to develop new knowledge. Later

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