1. Group 6: Grygiel, Dike, Markarian, Steger Company Background Multinational Corporation 143 years old  850 brands  210,000 employees 500 factories in 76 countries International brand  Nescafé, Kit Kat, Gerber, Purina In 2008 their sales were 109,908 million S₣ Nestlé is committed to taking into account local legislation, cultural and religious practices Multinational Corporation 143 years old  850 brands  210,000 employees 500 factories in 76 countries International brand  Nescafé, Kit Kat, Gerber, Purina In 2008 their sales were 109,908 million S₣ Nestlé is committed to taking into account local legislation, cultural and religious practices

2. Corporate Strategy Seek Emerging Markets with high population growth  India expected growth 700million Improve products via improved R&D Source local raw materials Acquire companies that give first mover advantage Compete on price Create products with high growth potential: new product that fit the lifestyle of the growing middle class Customize where necessary to tailor to the location Locally adapt: In Nigeria, satellite locations opened in different part of the country do to bad road and poor security Establish good distribution channels and local infrastructure Seek Emerging Markets with high population growth  India expected growth 700million Improve products via improved R&D Source local raw materials Acquire companies that give first mover advantage Compete on price Create products with high growth potential: new product that fit the lifestyle of the growing middle class Customize where necessary to tailor to the location Locally adapt: In Nigeria, satellite locations opened in different part of the country do to bad road and poor security Establish good distribution channels and local infrastructure

3. Organizational Shift Past Nestlé operated as a decentralized organization They did not believe in global food and beverage consumers They felt that there was a need to tailor products to local tastes Past Nestlé operated as a decentralized organization They did not believe in global food and beverage consumers They felt that there was a need to tailor products to local tastes Present Creation of global business units Creation of major product lines Centralized purchasing, production and R&D Marketing and sales will remain decentralized Falling trade barriers Rise of global markets and competitors

4. Conclusion Nestlé’s middle ground between decentralization and centralization has benefited them  Elimination of duplication, which has allowed for cost savings  By developing more major products that are distributed globally, their international brand has grown and is more identifiable  They can now compete with global competitors like Procter & Gamble  They can still respond to geographic regions through national subsidiaries and develop local strategies Nestlé’s middle ground between decentralization and centralization has benefited them  Elimination of duplication, which has allowed for cost savings  By developing more major products that are distributed globally, their international brand has grown and is more identifiable  They can now compete with global competitors like Procter & Gamble  They can still respond to geographic regions through national subsidiaries and develop local strategies