Report on Decisions taken by nestle 2022

STUDENT DETAILS
DECISIONS TAKEN BY NESTLE
ANALYZING THE IMPACT OF THE DECISIONS ON
ORGANISATION

NESTLE 1
Table of Contents
Introduction................................................................................................................................2
Company Overview...................................................................................................................2
Negative Behaviours or Decisions by Nestle.............................................................................3
Impact of the negative behaviour by Nestle...............................................................................4
Industry Analysis.......................................................................................................................5
Recommendations......................................................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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Introduction
The organisations are required to focus on the industry requirements and accordingly
developing policies and strategies through which they can focus on retaining their position
within the industry and be able to serve their customers ethically. Any failure to achieve the
ethical and sustainable goal within the industry results in declining of the market share as
well as having a negative impact on the brand image of the organisation. Therefore, it is
required that the organisation focuses on the analysis of the factors and accordingly
developing policies through which the goals and objectives can be achieved (Lange, et al.,
2012).
The analysis is focused on identifying the decisions taken by the management at Nestle,
which resulted in creating a negative impact over the organisational image within the industry
and impacted the sustainability of the organisation affecting the profitability, customer base
as well as brand image. The report also focuses on the recommendations through which the
organisation will be able to improve its performance, also achieve it established its set
strategic goals and objectives. The analysis involves the use of ethical theory to identify
alternatives for the organisation.
Company Overview
Nestle is among the world’s largest suppliers in the food and beverages industry. The
company is operating its business within the nation for over more than 150 years. The
organisation focuses on promoting the quality of life and a healthier future by providing
health-related products and diet nutrition food. Nestle has a diversified portfolio including
different food products and brands. The organisation operates its business in over 84 nations
and employs more than 290,000 employees worldwide. Since its establishment in 1866
Nestle ha made several collaborations and acquisitions within the industry in order to ensure
the success of the global enterprise and to achieve a leading position within the industry
(Nestle, 2020).
The organisation's mission is to influence the social environment positively by acting as a
socially and a corporately responsible organisation, through meeting the social and
environmental standards which focus on the quality of life. The vision is to be a leader and a
competitive organisation in the industry where the organisations deal in the nutrition, health
and wellness of the customers. Also, it focuses on being an organisation that provides its

NESTLE 3
stakeholders with improved value and wealth contribution within the industry. The company
has focuses on several innovative and creative approach to serve its customers within the
industry and to retain its position (Nestle, 2020).
Negative Behaviours or Decisions by Nestle
Nestle is a leading organisation within the industry that has focused on achieving a
competitive factor from the establishment, has made certain decisions which has made a
negative impact on the brand image of the organisation and has resulted in the impacting the
performance of the organisation. The decisions were due to inefficiency of the managers and
leaders and the failed practice to stick towards the organisation’s vision and mission. The
organisation had made several practices that can be termed or classified as unethical in
business practice.
The unethical or misleading business decision was made by Nestle in 1970, which is stated as
an Infant Formula Scandal. In order to make a profit within the industry and to achieve the
profitability goals, the management introduced an infant formula within the market, claiming
that it has the necessary nutrition and elements equal to the breastfeeding and is good for the
health and development of infants at their early stage. The operations activity can be termed
as unethical on several bases, as such proteins and nutrition-based food supplements cannot
replace the quality of mother’s milk (Boyd, 2011).
Also, the product was launched in areas where most of the people were illiterate, and speaks
and understand their native language, however, the product was labelled in English, therefore
they were not able to read the serving instructions printed over the package and were not able
to use it properly, but as it was provided to them by the medical practitioners at the hospitals
they believe it to be good for their infant growth and spent heavily on such products by
Nestle. The practice by the management reflects the management inefficiency to identify the
ethical issues within the campaign (Krasny, 2012).
Nestle has been an organisation that has been an organisation having a vision of being
focused on ethical practice, but still, it gets involved in unethical and unfair business
practices. The organisation has also practised the unethical practice of relabelling its
products. In 2002, Nestle has relabelled its milk powder that was produced between August
2001 and February 2002, to the dates between September 2002 and October 2002. Such
practices are not only unethical but are dangerous from the point of health and safety of