Quality Management - Nestle

Running head: QUALITY MANAGEMENT
Nestle
Quality Management
1/30/2019

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Quality Management
The business environment has experienced great changes and improvement in quality and has
been the key strategies that can be executed in any business to attain organizational
competitive advantage. In addition, due to the regular increase in the worldwide labor market,
businesses should enhance their services and products quality to survive in the market (Al-
Qahtani, Alshehri and Aziz, 2015). In order to improve the performance of the business and
increase customer satisfaction, numerous practices of total quality management are
implemented. Total quality management strategies are based on the concept of teamwork
under which all the employees of an organization work together to produce high quality
services and products to meet the demand of the customer (Kiran, 2016). The aim of this
paper is to highlight the cause and impact of quality issues that could influence the operations
and performance of any business. The paper will be comprised of discussion related to
different quality issues and causes behind them. Besides this, the paper will also suggest
different quality management strategies that could be adopted by the business to improve its
performance. The company that has been selected for the discussion is Nestle, which is
dealing with quality issues in the Australian market.
Overview of Nestle
Nestle Australia Ltd is the Public Company, which is ranked at number 201out of 2000
Australian companies. The company earns the majority of its revenue from its Food
manufacturing industry in Australia. In 2017, Nestle earned around $2,220,849,000 of
revenue (IBIS World, 2017). As of 2017, the company has around 4432 employees in
Australia comprising all subsidiaries under the supervision of the company. Ms. Sandra
Martinez is the Chief Executive of Nestle Australia with the official title CEO that is Chief

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Executive Officer. Besides this, Ms. Elizabeth Proust is the Chairperson of \Nestle Australia
Ltd with the official title Non-Executive Chairman. The company produces and market a
broad variety of products in the food and beverages segment comprising coffees, infant
foods, milk, chocolate, nutritional snacks, instant drinks, culinary products, pet accessories
and foods, and confectionery.
Quality Issues and Causes of Issues
Good Start 2 Concentrated Liquid Infant Formula
The brand of Nestle Australia that Good Start 2 a concentrated formula 359ml was recalled
due to the quality issues. There was a report regarding illnesses, which was not confirmed,
however, the company has to deal with numerous legal issues due to this (Whitworth, 2016).
Cause – The key cause of the poor quality in Good Start 2 Concentrated Liquid Infant
Formula was the level of few of the minerals was at lower levels than what was listed on the
product label (Whitworth, 2016).
Nestlé’s Baby Formula
The baby formula of Nestle was aggressively pushed in the market as a breastfeeding formula
in the less economically developed nations, particularly targeting the poor. They promoted it
as if the infant formula is good as the milk of mother, which is unethical for numerous
reasons (The Guardian, 2019).
Cause – The cause of illness was the illiteracy or lack of knowledge regarding the procedure
of using the product. The company was targeting most of the poor people of Africa where
there is a need for water sanitation did not have access to clean water. In order to get the
benefits of the infant formula, it was compulsory to boil the water, however, because of the
low rate of literacy, numerous families were not aware of this. Nestle knowingly ignored this

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and encouraged mothers to use to formula even when they knew the risks (The Guardian,
2019).
Another cause of the poor quality was the incapability of Nestle in identifying its correct
target market. According to the analysis, it is known that a company must offer its products to
the correct target market that can use the product properly and get the benefits. Considering
the income criteria company selected the correct target market but it ignored the fact that
poor people of Africa have no access to clean water or boiled water, which is very important
to prepare the infant formula (Laurance, 2019).
Furthermore, the infant formula was lacking in antibodies and nutrients that are present in
breast milk. Breast milk is comprised of a required essential amount of nutrients good for the
development of neuronal (nerve and brain), and at some level, guards the baby against
different infections and diseases. As per the International Baby Food Action Network
(IBFAN), Nestle has involved in the unethical approaches to market its infant formula to the
poor people in the developing nations (Krasny, 2012).
Chinese Milk Scandal
In the Chinese Milk Scandal, 6 infants were killed and 860 were hospitalized with the kidney
issues. According to Taiwan Health Ministry, six kinds of milk powders manufactured by
Nestle contained, low-level traced of melamine (Telegraph, 2008).
Cause – The cause of the illnesses was that the product was contaminated with melamine, a
material occasionally unlawfully included in the food products in order to increase their
deceptive protein content (Telegraph, 2008).
Maggi Ban