Nestle Global Management Essay

2545 words - 11 pages

When it comes to managing in a global environment, Nestlé is extremely successful. Henry Nestlé showed an early understanding of the importance of global operations and the company has been making business decisions with a global perspective since they first developed in 1866. Preceding the First World War, Nestlé started to expand its horizons into Europe and the United States and ever since World War II they have been expanding until today where they now have over 10,000 different products and are located in 130 countries (Nestle). Switzerland-based Nestlé is a multidomestic corporation with operations in almost every country in the world. Because tastes are different amongst different ...view middle of the document...

Nestlé makes efforts to increase the diversity embedded in the organization in order to create a strong competitive advantage over other large corporations. Because of this, they do not tolerate discrimination based on origin, nationality, religion, race, gender, age, or sexual orientation. Nestlé knows that negative conflicts, such as stereotyping and incivility, can arise from working in a diverse workforce so they are proactive in preventing such encounters. Through their Human Resources Policy, Nestlé defines the attitudes required such as mutual respect, trust, and transparency in relating to one another (“The Nestlé Human Resource”). The company also provides equal opportunities for employee development and advancement. This can specifically be seen through gender equalization efforts made by the company. Nestlé launched a gender balance initiative in 2008, and since then has improved the percentage of women in market leadership teams by over 35% in the last four years. The company feels that maintaining the averages between males and females is essential to ensure future success. In the Nestlé Corporation, 40% of all managers under the age of 30 are female and only 18% of managers over the age of 50 are female (Nestle). This strong presence of young female management shows the improvements that Nestlé are making to equalize gender and destroy the invisible glass ceiling faced by women. Nestlé’s commitment to diversity extends beyond gender. They regularly attend recruiting events sponsored by organizations like the Society of Hispanic Professional Engineers, National Society of Black Engineers, Society of Women Engineers, National Society of Hispanic MBAs, National Black MBA Association and Consortium for Graduate Study in Management (Nestle). Nestlé acknowledges the importance of the unique attitudes and ideas fostered through diversity and continually strives to create an even more diverse workforce.
For a company to be successful in the long term and create value for its shareholders, it must also create value for society. In 2006, Nestlé became the first organization to adopt this socioeconomic view approach (“Creating Shared Value”). They feel strongly that businesses should create economic and social value simultaneously by focusing on the social issues that they are uniquely capable of addressing, or displaying social responsiveness. Nestlé has most narrowly focused their efforts in three areas; nutrition, water and rural development. As translated through Nestlé’s slogan “Good food, Good life”, good nutritional practices are a major focus for the company. Nestlé was the first company within the food industry to have complete policies in place to reduce all public health sensitive nutrients in their products. This policy cut down on the amount of trans-fatty acids, salt, sugar, and saturated fats used in their products. Because they are a global company, they also pursue recipe reformulations continuously, conveying against...

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