Nestle Case Study Analysis

This assignment requires a comprehensive analysis of Nestlé, a multinational food and beverage company. Students need to examine Nestlé's various business practices, including their supply chain, marketing strategies, and employee relations policies. A key focus is on ethical considerations, such as child labor in cocoa production and water access issues. The analysis should also evaluate Nestlé's sustainability initiatives and the challenges they face in maintaining a responsible business model.

Nestle
Leadership and Change Management

LEADERSHIP AND CHANGE MANAGEMENT 1
Executive Summary
The report is about Leadership and Change Management and Nestle Company has been chosen
to proceed further with the report. The review will be conducted on the leadership and change
management existing best practices and evaluation of the performance of the Nestle Company
will be done on existing leadership and change management plan in contradiction of the best
practices. In the end, recommendations will be provided for the revised change and leadership
management plan and benefits that it can offer to the company.

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Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Current best practices in leadership and change management....................................................4
Develop strong executive engagement:...................................................................................5
Explain tailored leadership competencies:..............................................................................5
Align with Business strategy:..................................................................................................5
Aim at all levels of Leadership:...............................................................................................6
Best practices of Change Management........................................................................................6
Plan Carefully:.........................................................................................................................6
Define Your Governance:........................................................................................................6
Assign Roles of Leadership:....................................................................................................6
Keep Stakeholders in the Loop:...............................................................................................7
Performance Evaluation of the Nestlé’s current leadership and Change Management Plan.......7
Compensation..........................................................................................................................7
Rewards and Incentives...........................................................................................................7
Benefits....................................................................................................................................8
Employee Relations.................................................................................................................8
Change Management...............................................................................................................9
Recommendations of the revised Leadership and Change Management Plan............................9
Advantages............................................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

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Introduction
Nestle is an Anglo-Swiss condensed milk company which was incorporated in 1866. It's
headquarter is located in Vevey, Vaud Switzerland. It is biggest food company in the world
analyzed by revenue and profit (Shriwastava, 2016). The firm employs around 339,000
employees across the world. Various food products such as breakfast cereals, baby food, bottled
water, dairy products, medical food, frozen food, snacks, ice cream and pet foods are produced
by Nestle (Success Story, 2018). The company operates and manages 447 factories in 194
countries across the world (Nestle, 2018). The firm is improving and enhancing life quality and
contributing to a better future. The company is delivering enormous benefits to people through
the food, and beverages products. Furthermore, the organization uses innovative strategies to
gain competitive advantages in the global market.
The main objective of the firm is to become a global player in wellness, health and nutrition
industry (Mohajan, 2015). The vision of the company is to create safe products with the highest
quality to maximize profitability and returns in the competitive market (Nestle, 2018). In
addition, Nestle maintains a team of designers, engineers, nutritionists, scientists, representatives
of consumer care and controlling specialists to gain the trust of the consumers in the market. The
organization is dedicated towards creating trustworthy services, systems and products that
contribute to improve and enhance the quality of consumer's lives (Reuters, 2018).
There are several problems faced by Nestle while conducting business operations globally. The
problems and issues include unethical promotion, child labor, pollution, price, mislabeling and
manipulating uneducated mothers. All these issues are associated with the company that may

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affect the growth and success of the firm adversely. As a result, the organization has a bad
reputation and goodwill in the global market.
Apart from this, water sanitation is also the biggest problem in the organization thus, the firm
does not have access to clean water so it is essential for them to boil the water (Nestle Waters,
2018). In addition, management of change is one of the largest issues which may influence the
productivity and outcomes of the firm. Moreover, the firm uses child labor in cocoa production
due to lack of schools and poverty. Also, it has a negative impact on the performance and results
of the firm (Seth, 2012). Employees do not like the changes and they ignore the work and tasks.
Along with this, ethical and boycott issue is the major concern in the organization. Additionally,
top management is unable to develop managerial effectiveness and leading team as it also affects
long-term mission and vision of the organization. Furthermore, managers have not been able to
assist and motivate the workers effectively. They are also unable to check whether they are
satisfied with their job or not. The company needs to focus on these challenges and issues to
overcome the competitors and to encourage the workers to do work smoothly and efficiently.
Also, it will help to make a good image in the minds of customers. Nestle should focus on
leadership strategies to attain more and more outputs in the international market. In addition, the
company needs to build and develop leadership plan to improve and enhance the efficiency and
productivity of the workers.
Current best practices in leadership and change management
Leadership plays a significant role in each and every organization. It is also important to manage
people effectively because leadership is directly connected with the tools, styles, methods, and
techniques for getting things done through other people in the organization (Mind Tool, 2018).

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Leadership can be different for different persons in different perspectives as well as the
environment (Adair, 2013). It may be religious, community, political and organizational. In
today's modern world, everyone knows about Nestle products and uses the food products
produced by Nestle in daily life. Having effective and dynamic workforce demands from the
organization that it should have some suitable and attractive leadership values and framework to
assist its managers in terms of the decision-making process and to handle with the issues and
consequences related to the diverse culture within the organization (Management Study Guide,
2018).
It is the duty of the managers and leaders at Nestle to motivate the workers and add value to the
society as well as an organization at large. Such type of motivation and encouragement results in
increasing and improving the value for the firm in the competitive world. There are several best
practices in leadership carried by Nestle have been discussed below.
Develop strong executive engagement: The significant practice of leadership is to obtain the
engagement of managers and top leaders. Their commitment and loyalty are highly connected
and aligned with unique corporate strategy and monitored on the suitable and right business
issues. It is one of the important practices in leadership at Nestle that help to increase revenue
and output in the market. It will also help to address various deficiency related to management
and leadership (Bersin, 2008).
Explain tailored leadership competencies: The fruitful development programs of leadership
are grounded in recognized capabilities. By dividing and approving upon competencies of
leadership which are very significant for the company, Nestle Company have the leadership
development foundation, as well as sequence arrangement, career development and other

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processes related to talent. All high-impact programs are constructed on well-established
leadership capability models.
Align with Business strategy: Development of Leadership is not just the training of
management. As leaders move forward in the company, their capabilities and competencies also
transfer from persons and project management to planned business and operations management.
Companies like Nestle emphases deeply on particular business strategies of the business in their
program of leadership. Such programs cannot be completely encompassed of standard content.
Additionally, programs of leadership development need to be involved in the planning and
conversation of business.
Aim at all levels of Leadership: Operational leadership development is not just about
individual’s training. Its main objective is the growth of a leadership team proficient in moving a
company forward and attaining key objectives of the strategies. To attain this each layer of the
management should be equally prepared.
Best practices of Change Management
Plan Carefully: For executing positive changes in the business, the management has to assume
the best probable result will be. The Nestle Company take this vision further and makes the list
of every necessary task in order to achieve it, and after this, they prepare outline which involves
the names of the persons who will perform and complete those tasks.
Define Your Governance: Every project of effective change management has definite
governance, which is mainly the outline for decision making and the set of determined
procedures for executing those decisions. Roles, responsibilities, and structures are recognized

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during the course of company’s each level in order to provision change and keep stakeholders
involved.
Assign Roles of Leadership: It is very significant that company create a devoted organization,
both at the highest and during the course of the organization, to retain the process of change
management steady. The selected leaders must be dedicated, dependable and able to affect others
to get on the panel through their example.
Keep Stakeholders in the Loop: In order to confirm contribution, provision, and promise, it’s
essential to retain all stakeholders in the eye and updated throughout the process of change
management. Communication lines must be kept exposed so employees aren’t given material
just to assist them in understanding what is happening so that they are also capable to ask queries
and voice their worries along the procedure (Lewis, 2018).
Performance Evaluation of the Nestlé’s current leadership and Change Management Plan
Nestle offers the freedom to its subordinates to ask questions and negotiates for a biased
evaluation. Clear indicators of the performance have been recorded by the department of HR
(People performance culture, 2013). The vital performance indicator is the accomplishment of
goals by following the management and leadership principles of Nestle (Nestle, 2011). Structure
of remuneration and criteria of promotion be governed by the performance of the individual.
Compensation
Nestle deed is to provide impartial compensation. Level of remuneration is above the industry’s
average. The unpredictable element of the salary is quite vast to reward the performance of the
individual. In case of level of higher management, the unpredictable part is connected with the
achievement of the team’s target and individual.

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Rewards and Incentives
‘Nestle Idea Award’- Nestle Idea Award is organized by the company every quarter in order to
differentiate and credit employees who have provided the important and revolutionary ideas
which have the potential of being executed at Nestle (Nestle, 2018).
‘Passion to Win’ awards- These awards which are provided quarterly have been established to
reward those employees who perform their job beyond their targets. Long-service Awards are
those awards offered to those employees who are working in the company for more than 30 years
(Nestle, 2018).
Benefits
The benefits that are offered to every employee of Nestle are as follows:
 Children Education Assistance Scheme
 Retirement Gratuity Scheme
 Residential Accommodation
 Provident fund (Nestle, 2018)
 Free consultation for family and health, month health check-ups, etc.
 Leave-Personal and Medical
 Conveyance Reimbursements
 Accidental Insurance and Group Insurance Scheme (Nestle, 2018)
Employee Relations
Nestle Company offers a very healthy environment of working and this is the reason for the high
organizational commitment of Nestlé’s employees. The turnover of the employee is less than
5%, and it can be seen that for a multinational corporation it is very low. Nestle is comprised of

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open culture and upward communication especially in the matter of complaint, justice is
encouraged. Life and work constancy is given substance, and it is included in the Human
Resource Policy document of Nestle (Li, 2015). The annual event of ‘Nestle Family' is planned
by the company’s HR department and the invitation is given to employees as well as to their
families. Maximum importance is given to the employee’s safety (Nestle, 2010).
Change Management
Nestle has strongly faced external environment factors from last many years in fact from its
commencement year 1866 without losing its basic values and beliefs. It has successfully
managed change and pressures supportable beneficial growth by ensuring the procedure of
making slow changes as a substitute of making fundamental and risky changes.
For Example, The Company has faced a problem of child labor issue. They used child labor in
the production of cocoa due to the absence of schools and poverty. By doing this the company
violated the law of child labor (Nestle, 2018). In order to solve this problem, Nestle has adopted
some of the changes in the functioning of the business. The managers of Nestle Company had
created code for Nestlé’s suppliers in order to monitor and retain the relationship between
company and supplier and they started observing all the supply chain members and set stronger
labor standards.
Recommendations of the revised Leadership and Change Management Plan
Change management and Leadership development are likely to be the main concern for
numerous organizations. Besides this, most of the companies incline to fall for short of their
goals for both. The main cause companies struggle is because they take both change
management and leadership development as distinct rather than unified challenges. Changes in

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Culture cannot occur deprived of leadership, and hard work to change culture is the container in
which leadership is established (Hao & Yazdanifard, 2015). For positive outcomes, Nestle
Company should organize their change management and leadership development efforts, and
consider the same. True leadership includes different from the expectations of the culture in
ways that stimulate others to select to follow. Leadership is not the responsibility of one person.
Every levels manager in the company must try to overcome the resistance if the open cultural
change is to happen. Therefore, change initiatives- which need a deviation from a leading set of
rules and behaviors- are the finest environments of learning for brilliant managers to improve
skills of leadership, as well as an essential factor of an effective culture- change initiative (Quinn
& Quinn, 2016).
The top-down and Bottom-up approach is the recommended approaches that Nestle Company
should adopt in order to incorporate its change management and leadership development
initiatives. The bottom-up part of the incorporated development and the process of change need
possible leaders during the course of the company to involve in a learning process which will
help them in identifying that how to ratify a wanted change in the culture of the company in the
daily experiences throughout the life of the organization.
A bottom-up process is not likely to work if it is also entrenched in a process of top-down
learning. A top-down process makes framework and inspiration for employees to uphold
involvement in the process of change/leadership development. If completed well, it also delivers
emotional and social provision possible leaders, because differing from the expectations of the
culture can be an isolated effort.

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An effective top-down process initiates with managers illuminating anticipated outcomes for
programs of change management/leadership. For instance, managers may need to change the
procedures of accounting or stimulate vision in order to turn into more effective. Or they might
need to decrease obstacles among departments or make financial stewardship in the company.
The goal is based on the company and its condition, but what is significant is that it is precise
(preferably, with a quantifiable result) and acknowledged by all the associates of the decision-
making team. As soon as the goal is understood and acknowledged, managers can recognize
possible leaders in the company in order to involve in the process of leadership
development/change management. These may be decision-making team associates, people in
main positions, people who have presented a desire for this precise change, people who are
believed to have “high potential,” or some mixture of these features. Numerous variables about
the kind of change program can determine the decision about which possible leaders to take in,
such as tactical, the sum needed for a serious mass, the necessity to point the change process, the
quantity of support that can be delivered, physical scattering, and the variety of demographics or
skill involved, and so on.
Programs of change management and leadership development have a miserable record in many
organizations. In big part that’s because they arrive with a general challenge—differing from a
leading culture (the right leadership trial) is hard. Tasking managers with determining bottom-up
cultural change will offer training of leadership in itself. They will need top-down backing to
flourish.
Advantages
 Change initiatives help managers who perform excellently in their job in developing
skills of leadership along with the required element of a positive culture-change initiative.

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 Change initiatives help managers and trained person to help other employees who resist
accepting the changes in the company. Along with this, it will help employees to think
broader and come up with new and innovative ideas in the company.
 The employee can learn from the new initiative and can reflect their experience and use it
on their own.
 The potential leaders get the benefit of bottom-up approach as it helps them in
recognizing the process of how to bring desired changes in the culture of the company.
 The top-down learning process is very effective as it helps in making a framework and
encourages employees in order to keep their involvement in the process of change and
leadership development.
 The top-down approach helps decision-making managers to recognize potential leaders in
the company to involve in the process of leadership development and change
management.
Conclusion
In the conclusion, it can be said that Nestle Company is a leading company in the food and
beverages sector. The above report has recommended two approaches that they can adopt in
order to initiate change and leadership management and the approaches are Bottom-up approach
and Top-Down approach. Both the approaches cannot deliver positive results if not applied
together in the functioning of the company. The above report has highlighted the Current best
practices in the leadership development such as develop strong executive engagement, explain
personalized leadership skills, align with Business strategy, and aim at all levels of Leadership
and current best practises of change management such as plan carefully, define Your

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Governance, assign roles of leadership, and keep stakeholders in the loop . Along with this it has
explained the Performance Evaluation of the Nestlé’s existing leadership and Change
Management Plan. In the end, the report has provided some recommendations of the revised
leadership and change management plan and its advantages.

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