VI. 8 of 52 A. Organizational Structure Current Organizational Structure MARK SCHNEIDER Accounting MAGDI BATOTO LAURENT FREIXE CHRIS JOHNSON BERNARD MEUNEIR Strategic Business FRANCOIS ZAVIER ROGER Chief Financial Officer STEFAN PAIZER Chief Technology BEATRICE GUILLAUME Human Resources LEANNE GEALE GREG BEHAR SANJAY BAHADUR Nestle's 2020 Executive Team DAVID RONNIE Deputy Executive Vice Nestlé's current organizational structure is a decentralized or flat type of organizational structure, with power distributed more evenly throughout the workforce, all reporting to the CEO at the top. This framework will allow for more broader supervision and encourage direct communication and teamwork inside the business. Decision-making processes are accelerated with fewer layers of management, allowing for rapid adaptation to changing circumstances. The structure is distinguished by low hierarchical barriers, fostering an environment in which power and authority are distributed. This design helps streamline decision-making within the company. Propose Organizational Structure EXECUTIVE SUMMARY Nestlé, with roots tracing back to 1866 in Cham, Switzerland, has evolved from its humble beginnings as the Anglo-Swiss Condensed Milk Company into a global leader in the food and beverage industry. Henri Nestlé's creation of a life-saving infant formula, a blend of cow's milk, wheat flour, and sugar, laid the foundation for the company's enduring commitment to nutrition. Nestlé has gradually expanded its portfolio to include a wide range of food and beverage items, with a focus on affordability and nutritional value to improve consumers' quality of life throughout the world. Nestlé combines this devotion with a commitment to ethical and sustainable business practices. Currently, Nestlé faces significant challenges, including evolving consumer preferences towards healthier options, rising costs of raw materials, intensifying competition, and internal pressures related to declining revenues in certain product lines and sustainability concerns. Addressing these challenges requires a strategic approach to maintain market relevance and consumer trust. This paper provides critical areas to explore, such as a SWOT analysis, recommendations for organizational reorganization, and increased R&D initiatives. Key recommendations include developing healthier product offers, reformulating existing goods to reduce sugar, salt, and fat content, and adopting a comprehensive five-year Developmental Action Plan. This DAP aims for a 25% growth in sales in one year, gradually increasing to a 50% proportion of plant-based products by 2028, and a 30% reduction in environmental impact through waste management activities by 2028. Nestlé's strategic objectives aim to strengthen its position as a trusted food provider while adapting to changing consumer tastes and market circumstances. I. Vision and Mission Existing Vision: We strive to produce the healthiest and tastiest food with the aim to improve life for everyone on earth, now and for future generations. Existing Mission: Our philosophy at Nestlé is to hire the most talented scientists and most devoted employees as we strive to provide the most nutritious foods, drinks, and pet foods to our customers. Quality, healthy, affordable foods should be available to everyone around the world. We are committed to controlling costs and conducting business in an ethical way that has a neutral impact on the environment.

VI. 8 of 52 A. Organizational Structure Current Organizational Structure MARK SCHNEIDER Accounting MAGDI BATOTO LAURENT FREIXE CHRIS JOHNSON BERNARD MEUNEIR Strategic Business FRANCOIS ZAVIER ROGER Chief Financial Officer STEFAN PAIZER Chief Technology BEATRICE GUILLAUME Human Resources LEANNE GEALE GREG BEHAR SANJAY BAHADUR Nestle's 2020 Executive Team DAVID RONNIE Deputy Executive Vice Nestlé's current organizational structure is a decentralized or flat type of organizational structure, with power distributed more evenly throughout the workforce, all reporting to the CEO at the top. This framework will allow for more broader supervision and encourage direct communication and teamwork inside the business. Decision-making processes are accelerated with fewer layers of management, allowing for rapid adaptation to changing circumstances. The structure is distinguished by low hierarchical barriers, fostering an environment in which power and authority are distributed. This design helps streamline decision-making within the company. Propose Organizational Structure EXECUTIVE SUMMARY Nestlé, with roots tracing back to 1866 in Cham, Switzerland, has evolved from its humble beginnings as the Anglo-Swiss Condensed Milk Company into a global leader in the food and beverage industry. Henri Nestlé's creation of a life-saving infant formula, a blend of cow's milk, wheat flour, and sugar, laid the foundation for the company's enduring commitment to nutrition. Nestlé has gradually expanded its portfolio to include a wide range of food and beverage items, with a focus on affordability and nutritional value to improve consumers' quality of life throughout the world. Nestlé combines this devotion with a commitment to ethical and sustainable business practices. Currently, Nestlé faces significant challenges, including evolving consumer preferences towards healthier options, rising costs of raw materials, intensifying competition, and internal pressures related to declining revenues in certain product lines and sustainability concerns. Addressing these challenges requires a strategic approach to maintain market relevance and consumer trust. This paper provides critical areas to explore, such as a SWOT analysis, recommendations for organizational reorganization, and increased R&D initiatives. Key recommendations include developing healthier product offers, reformulating existing goods to reduce sugar, salt, and fat content, and adopting a comprehensive five-year Developmental Action Plan. This DAP aims for a 25% growth in sales in one year, gradually increasing to a 50% proportion of plant-based products by 2028, and a 30% reduction in environmental impact through waste management activities by 2028. Nestlé's strategic objectives aim to strengthen its position as a trusted food provider while adapting to changing consumer tastes and market circumstances. I. Vision and Mission Existing Vision: We strive to produce the healthiest and tastiest food with the aim to improve life for everyone on earth, now and for future generations. Existing Mission: Our philosophy at Nestlé is to hire the most talented scientists and most devoted employees as we strive to provide the most nutritious foods, drinks, and pet foods to our customers. Quality, healthy, affordable foods should be available to everyone around the world. We are committed to controlling costs and conducting business in an ethical way that has a neutral impact on the environment.

Foundations of Business (MindTap Course List)

6th Edition

ISBN:9781337386920

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Chapter16: Mastering Financial Management

Section: Chapter Questions

Problem 1DQ

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