Group Assignment 3: Group Assignment 3: Nestle Tries for an All-for-One Global Strategy Cubhasini Anne Maisarah Juwita

Question 1: Analyze Nestle using the competitive forces and value chain models. What challenges did Nestle face? Competitive force model provides view of the firm’s competitive and environment Value chain model distinguishes specific activities in the businessMain challenges was having over 600,000 supplierEach country having a different way of operatingDifferent supplier will result in higher cost and lower profit Different operations will slow down any changes that are needed to remain competitive

Question 2: What type of global business and systems strategy did Nestle adopt? Was this strategy appropriate for Nestle Business model? Nestle adopted decentralized strategy that allows local organization to manage its own business strategy according to the region. This strategy cost extra funds and issues between its branches all over the world This strategy was not appropriate for Nestle’s business model because of the inefficient coordinator Nestle decided to centralize the company’s operation By used the new system called GLOBE This system shows it efficiency working well with the firm budgeting and data streams Nestle to make saving in buying raw materials, to have information available quicker and make better decisions

Question 3: What management, organization, and technology challenges did Nestle have to deal with to standardize its business processes and systems? Decentralize d strategy of 80 different information technology units running multiple midrange computers created inefficiencies Extra costs that prevented the company to compete effectively in electronic commerce Challenges was to launch a $2.4 billion initiative to compel market heads Nestle launched GLOBE that would harmonize processes, standardize data, and standardize systems Challenges of GLOBE was more personal in implementing a policy that would be accepted by highest ranking executives Managers resisted the idea of giving up control of their business processes to participate in a centralized solution

Question 4: What strategies did Nestle management use to deal with these challenges? How successful were these strategies? Explain your answer. GLOBEAdvantage competitors In improving operational efficiency while continuing to grow with new markets and new products Reduce its number of suppliersNew innovation

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