Organizational Structure Of Nestle

INDIAN INSTITUTE OF MANAGEMENT, AHMEDABAD

ORGANIZATIONAL EXCELLENCE

(NESTLE)

Submitted in partial fulfilment of the requirements of the course Understanding People & Organizations

Instructor: Prof. Vishal Gupta

Academic Associate: Rachna Arora

Submitted on July 5, 2015 by

Anant Yadav

Ashish Gupta

Anandini Arora

Section C

Study Group C-1 (A)

ORGANIZATIONAL BEHAVIOUR OF “NESTLE”

Nestle is the largest global food and beverage company in the world in terms of revenues, with a 148-year history. It operates in virtually every country in the world with successful product expansion and business strategies

The following diagram gives the organization design diamond

The major strategy decisions are taken at the headquarter level but daily operations are taken care of by subordinate branches to derive and perform.

Hierarchy of Authority-

The management of Nestle is divided into 3 levels.

 Top Level of Management: It contains of Board of Directors, chief executive officer or managing director. The top management is the final authority and it manages policies and aims for an initiative. It basically focuses on coordinating and planning functions. Led by Chairman Peter Brabeck-Letmathe, the Board has 14 members to handle different parts of the business round-the-globe, supported by Chairman’s and Corporate Governance Committee, Nomination and Compensation Committee, Audit Committee, and Finance Committee.

 Middle Level of Management: The branch managers and departmental managers constitute the middle level. They are answerable to the top management for the operations of their department. They are devoted to the directional and organizational

The company 's moto and tag line "Good Food, Good Life", summarizes its corporate ambitions. Nestle strategically relies on the following goals and objectives-

1. Nutrition, health and wellness

2. Sustainable financial performance

3. Trust by all stakeholders

Hence, the objective of Nestle is to become a leading company in the health and nutrition sector in the world, while promoting a common agenda of nutrition and environment protection in which their businesses operates. Nestle believes that size and attitude contribute to leadership in the industry, and thus demands a continuous development of the organization and its functioning. In order to support these goals, Nestle is committed to encourage their people to deliver a high level of performance to achieve its goal and motive.

The eventual aim is to produce the products of such quality so that they can create value for shareholders and consumers, business partners and employees, and the local communities in which Nestle operates. So what basically sets this multinational company apart from its competitors is that its primary agenda is not to focus on short term profits, but to develop business for long term with customer and quality being the top