Nestle Company: Case Study: Issues In Global Business

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BACHELORS IN BUSINESS ADMINISTRATION

SUBJECT: Issues in Global Business

ASSIGNMENT NO: 2

SUBMITTED TO: Sir

SUB MISSION DATE: April 14, 2014

Executive summary:
This case study is prepared on Nestle Company which is the world largest and leading food and Beverages Company. Nestle was started in 1886 by Henri Nestle (pharmacist), he prepared infant milk formula for the children who could not feed through mother’s breast. This case study has major focus on the issues aroused why people started boycotted their products and then what strategies Nestle introduces to handle their name from such controversies.

Introduction:
When a firm own and facilitates its product and services in more than one country it becomes Multinational Corporation and this report is based on the issues in a global business faced by a Multi National Corporation. Nestle is a multinational corporation. Nestle achieved it through globalization and trade liberalization which tend to encourage firms to globalize followed the norms of other countries. Some internal factors which led Nestle to globalize are that
 They have positioned themselves as nutrition and health promoters for their consumers.
 They introduce wider range of products within a company and
 They continue to maintain their commitments and loyalty throughout their journey.
“For the food Industry, where cultural sensitivities and local tastes are very important, it’s absolutely imperative that we delegate substantial authority to local management.” (Michael Mucher). Nestle engage rural women of Brazil to function as distributors. They travel and started direct selling from door to door signifying ben...

... middle of paper ...

...nt formula.
3. Infant formula should be available on the prescription of doctors.
4. Distributors should get notice of improper advertisement of infant formula.
5. Improved labeling and direction of use should be done on the packages.
6. Develop easy and understandable broachers for the uneducated consumers.
7. Advertisement strategy should be limited because mothers consume it unconsciously without consulting doctors either promote it on very high scale so that every single person get jammed to it before buying.
8. Limit direct selling of infant formula around the world which will show obvious result in breast feeding support.
9. Ethically mothers can donate their milk to the infants who’s mothers are either infected or cannot produce it.

http://www.nestle.com/csv/human-rights-compliance/baby-milk

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