Nestle Case Study Case Study Samples

CEO Maucher used the expansion strategy. As CEO, Maucher realized that improving the level of profitability of Nestle would require increasing the number of products that the company offered. As a result of this, he decided to increase the products to include mineral water. To extend the company’s client base, he also led in the acquisition of Carnation in 1985. This is a portfolio organization perspective since the main focus was evaluation of the exiting business units.
The perspective taken by Brabeck during his reign as CEO was enhancement. By the time he became CEO, he found that the company was already recognized worldwide and it had a wide range of products on offer. However, he realized that during the expansion period, some of the products and markets had been weakened. As such, he strengthened the research and development (R&D) program in order to increase the company’s ability to satisfy its consumers. To enhance the performance of each product, he divided the product s into product groups where each group could be strengthened on an individual basis. He also changed the manner in which information sharing was done within the company. He introduced the GLOBE (Global Business Excellence) approach that provided a comprehensive way of communication. The system also created knowledge which was then shared in real-time among the managers. This approach was more of an organizational integrated perspective since Brabeck worked to enhance the already existing systems within Nestle.
CEO Paul Bulcke utilized the extension perspective approach once he took over from Brabeck. He declared in the first days that his aim would be to improve margins through swift execution. Bulcke realized that so far, the organization was already making billions of dollars and warned that the biggest danger would be becoming complacent. As such, his aim was to keep the organization’s systems moving in such a way that all the people were keen on their work. His approach was more of an integrated organization approach where he focused on the company’s weaknesses and how to improve them.