Report By : Mariam Adel

T-13 43-2045
Supervised By: Dr.Mennatallah Darrag
Dr.Hagar Adib
30.May 2020
Nestlé is a Swiss multinational food and beverage processing conglomerate
company which began its history in 1866 with the founding of the Anglo-Swiss
Condensed Milk Company. Henri Nestlé produced a groundbreaking baby food in
1867 and formed the company with Anglo-Swiss in 1905 to establish what is now
known as the Nestlé Group. It is the world's largest food company, calculated by
sales and other metrics, since 2014.It ranked No. 64 on Fortune Global 500 in 2017
and No. 33 on Forbes Global 2000 's 2016 edition list of the largest public
companies.Twenty-nine of Nestlé 's brands have annual sales in excess of CHF1
billion (about US$ 1.1 billion). I answered questions 1,4,5 7and 8.

Nestlé S.A., chief executive, Mark Schneider. From 1989 to 2001, Mark joined the
Haniel Group as Chief Financial Officer in Gehe UK plc and then as Vice President
Business Development North America. He also held various senior roles in Halfen
GmbH. Lastly, he worked as Assistant to the Executive Board of Haniel Group.From
2001 - 2003 he worked in Fresenius Medical Care in Bad Homburg (Germany) as a
Chief Financial Officer.from 2003 - 2016 he worked as Chief Executive Officer in
Fresenius Group,Bad Homburg, Germany.And lastly he has worked since 2017 as
the 2017 Chief Executive Officerof Nestlé S.A.the managerial role he had played the
most is a leader , Based on an article“ I wanted to assure you the entire executive
board and leadership team is very deeply committed to making this happen.This
combination of going for increased organic growth and an improved margin at the
same time is what i sometime call in jest going for a run and going on a diet at the
same time.This is hard work but we are committed to it.There’s a recognition at all
levels of leadership that this is what we need to do.”. He is also a resource allocator
as he makes and improves significant organisational decisions as Since Schneider
took up the role, with the acquisition of vitamin manufacturer Atrium Innovations, he
has sold Nestle's confectionery business in the US, closed high-cost factories in
Europe, and concentrated on growing into consumer health and high growth
businesses. In my point of view his leading style is Autocratic as in nestle’s
management-leadership-principles booklet
States “A team must always have a leader who assumes full responsibility”.

Nestlé is committed to having a positive impact on individuals and families, societies

and the world as a globally socially responsible organization. In line with this pledge,
it focuses on three pillars for mutual value creation-nutrition, water and rural
growth.With the Nestlé Safe Kids (NHK) program and the Information Sharing
(KNHK) program, Nestlé promotes nutrition education and physical activity among
school children in rural areas. We have also constructed filtered drinking water tanks
and sanitation facilities for girls in village schools to promote children's continuing
education. The company is employing the dark green approach,Nestle continued to
increase the amount of environmental information accessible to customers via its
corporate website in 2019, and created a series of guides and stories to share tips
about how to minimize home food waste.The effect of these policies on the company
does not result in the loss of socially conscious customers, CSR affects the ability of
the organization to recruit top talent, and affects the work satisfaction levels and
retention rates of employees. Now joining the workforce the next generation of
employees are seeking employers with a transparent and successful CSR plan.In
2016, quality talent wants to be employed by a straightforward organization with the
goal of doing good, while still making a profit. Businesses that do not prioritize a
strategy for corporate social responsibility risk losing the top talent to companies that
do so.Additionally , businesses that practice CSR have workers happier and more
happy. This is because workers know they are working for a socially responsible
boss, which gives them a sense of intent. They also prefer to spend more in their
workers and work harder to build a workplace that employees enjoy coming to every
day.

Nestlé has 447 factories, operates in 189 countries , and employs around 339,000
people. In my point of view the company has a Polycentric Global Attitude as it
views that managers in the host country know the best approaches. The company
went global using the Strategic Alliance method as the first major acquisition during
this period was in 2001 when Nestlé acquired and merged with the Ralston Purina
Company. A new company in comparison, Purina created products like Friskies,
which was a wildly popular brand of pet food in the United States. Nestlé picked up
the pace in 2002 when they took on two more of North America’s most successful
companies.The essence of the company's strategy regarding emerging markets is
“Customisation, not Globalization ”. They devote time to research and development
Products suitable for a specific market and therefore accessible to the target
Both practical and emotional marketplace.

With this motto of diversity Nestle operates through multi-cultural teams, and
inclusion is above all a mindset. They mentioned on the website that a combination
of respect, openness and curiosity will go a long way in nurturing a diverse and
inclusive environment.
The Value Chain is the whole series of organizational work activities that add value
to every step beginning with the production of raw materials and ending with the
finished product in the hands of end usersObstacles to good management of the
value chain Organizational obstacles such as (reluctance to share information),
cultural attitudes such as (lack of confidence and too much confidence), people such
as (lack of unwavering commitment to do whatever it takes, failure to be versatile in
meeting the demands of a changing situation and not motivated to perform at high
level).Finally, Required capabilities like(Lacking the necessary value chain
management skills to build put businesses at risk of failure). The obstacles Nestle
faces are cultural attitudes, as they work in almost all countries around the world.

In conclusion , I agree with the culture and nature of Nestle products. As far as
company performance is concerned, it has had organic growth of 3.5%, with real
internal growth (RIG) of 2.9% and prices of 0.6%. In 2019, strong momentum in the
United States bolstered growth. In my view, the growth strategy of researching the
local market to grow and give this customer what they need is a fantastic opportunity
and strategy that the business is pursuing. I really appreciate what they are doing to
raise awareness of the environmental problems that we are facing and how they are
returning to society.
Resources:
https://www.just-food.com/analysis/nestle-2017-investor-day-5-things-to-learn-from-
ceo-mark-schneiders-vision-for-food-giant_id137844.aspx
https://www.reuters.com/article/us-nestle-chairman/nestle-chairman-calls-ceo-man-
of-action-praises-his-first-year-idUSKCN1GR3A5
https://en.wikipedia.org/wiki/Ulf_Mark_Schneider
https://www.nestle.com/sites/default/files/asset-library/documents/library/
documents/people/management-leadership-principles-en.pdf
https://www.nestle.com/csv/impact/environment/information-dialogue
https://www.mondo.com/corporate-social-responsibility-2016/
https://www.nestle.com/stories/cultural-diversity-integral-part-nestle-culture