NCCN: Nestle’s Change in Organizational Structure and Strategies

Abstract

Nestle’s experience in dealing with its critics, the news media, and the public-at-large, until this time, had been less than successful. This was especially the case in the United States where its critics had been singularly effective in launching a boycott against its products and in isolating the company from the U.S.-based infant formula manufacturers. Even Nestle’s endorsement of the code — the first of any major infant formula company — was viewed with skepticism. As we pointed out earlier (in Chapter 10), of the book, Nestle lacked experience in social issues management as well as in integrated corporate management. Its highly decentralized corporate structure, localized profit centers, a deference to subsidiary managers in the areas of public and political affairs, and a strong corporate culture found the company ill prepared to handle sociopolitical issues in one country that would impact its worldwide operations.