nestle mcs
DESCRIPTION
orgnisation structureTRANSCRIPT
Presentation on
Organisation structure of Nestle
By Namrata .M.Kamble Roll no.21 Gahlot Institute of
Management
Organizational StructuresAn organizational structure is a network of
formal authority, responsibility & reporting relationships.
It is an instrument for implementation of organization’s strategy.
A good organization structure provides the foundation for an effective control system. It can not remain static
The structure of any organization depends upon the nature of business, its size & complexity, inter functional relations & extent of control needed.
Company profileLargest Food & Beverage company in the world.One of the oldest of all the multinational
companies.Estimated 8500 brands manufactured around the
world. 10,000 different products in 500 factories in 83
countriesMarket its products around 130 countries around
the world with annual revenue of £71 billion (2007).
Invest around £750 million in R&D every year.
Profile From Food Technologists who bring product ideas
to life to Sales Representatives who bring our products to our customers, everyone at Nestlé shares our core values and plays a key role in moving the company forward.
As a worldwide leader in health science nutrition, Nestlé is committed to meeting our consumers’ nutritional needs.
Nestle operate the world’s largest private nutrition R&D organization composed of approximately 5,000 employees and more than 20 research centres.
Top Competitors •ConAgra Foods, Inc.•Kraft Foods
Functional OrganizationThe departments are organized according to the
functions performed in the organization. Each manager is responsible for a function such
as Marketing, I.T, Operations, H.R. Finance, R & D etc. as shown in the diagram.
These functions or departments are staffed by specialists who are expected to be experts in their respective fields.
They are headed by responsible people who possess specialized knowledge, qualifications, expertise, skills essential to run such departments.
Chairman P.Brabeck
CEOP.Bulcke
OperationsJ.Lopez
FinanceW.L.Martell
o
Marketing
P.Bula
Innovation
R&DW.Beur
HRJ.M.Duvoisi
n
Nestle watersNestle
nutritionNestle
professional
Zone EuropeL.Freixe
Asia pacificN.Nandkisho
re
AmericaC.Johnson
Nestle leaders Peter Brabeck- Nestlé Chairman and Paul Bulcke, Nestlé Chief Executive Officer (CEO). Nestlé has a Board of Directors, led by our
Chairman Peter Brabeck-who was the former Nestlé CEO.
There are 14 members of the Board of Directors. The day-to-day management of the Nestlé business
is taken care of by our Executive Board. The 13 designated Board Members manage diverse
parts of the global business
Structure The Nestlé Group is managed by geographies
(Zones Europe, Americas and Asia/Oceania/Africa) for most of the food and beverage business, with the exceptions of our globally managed businesses, which include
Nestlé Waters Nestlé NutritionNestlé Professional and Nestlé Health
Science.
Advantages Functional organization leads to division of labor
& specialization . Each specialized function has potential to
operate with great efficiency & advantage. Efficiency can increase further as the size of
activities grows . Economics of scale allow utilization of
increasingly specialized inputs & quality of service.
Advantages
Ability to react quickly according to the market conditions.
In 1999 in India, quickly reformulated the Noodles recipe according to local environment. Tailoring of products according to Regional market
All Nestle products are certified in Middle East and other Muslim countries.
Standardisation of practices and products.All Nestle managers are expected to follow ‘The
basic Nestle management and leadership principle’ document issued by Head office.
AdvantagesGood coordination between various divisions
bringing in more efficient use of resourcesNestle (UK) able to launch curry products in
UK by using expertise of Nestle (India)
Limitations Primarily this structure is suitable for single
industry firm. When product lines are limited & size of the organization is medium or small, it is quite effective.
Performance evaluation of separate functional managers also poses problem because all functional managers are collectively involved in achieving the goals of the organization.
High Administrative CostLack of effective Communication