Global Business Strategy | Nestle - MGT 448

Running head: GLOBAL BUSINESS STRATEGY
Global Business Strategy
Name of the Student
Name of the University
Author’s Note

1
GLOBAL BUSINESS STRATEGY
Question 1:
As per the initial organizational approach of Nestle, decentralization of local taste along
with providing minor importance on technology was the primary concern. As per marketing
strategy and policy of Nestle Nescafe is reared as per the local needs and demands of the
customers1. For an example, Russian taste and flavor of Nescafe is very different from the taste
of Eastern Europe. As a result, organizations are successful enough in fulfilling the current trends
of demands of local customers. On the other hand, the current case study ensures that Nestle
never intends to implement information technology within the entire operation process.
Question 2:
In this specific question, several eminent scholars have opined various points of views.
As emphasized by Kim et al., Nestle at the initial stage intended to follow homogeneous
business strategy rather than multi-dimensional approach. It is however undeniable that with the
advancement of technology the needs and demands of the customers are changing gradually. In
this kind of situation, Nestle with the upgrading progress of globalization has rendered their
business strategy towards less homogeneous. Business leaders by applying marketing mix
strategy have identified the current market demand.
In order to maintain cost efficiency Nestle has streamlined its back office activities. The
number of factories has been reduced on behalf of the business executives2. Marketing managers
have invested sufficient number of budget for advertising and promotional activities with the
help of which the number of target market has been circulated all over the World. The use of
1 Berthon, Pierre R., et al. "Marketing meets Web 2.0, social media, and creative consumers: Implications for
international marketing strategy."Business horizons 55.3 (2012): 261-271.
2 Baker, Michael J. Marketing strategy and management. Palgrave Macmillan, 2014.