2. What type of global business and systems strategy did Nestle adopt? Was this strategy appropriate for Nestle's business model?
Nestle has adopted a global standardization with all of its business and operational processes. Nestles original approach lead to decentralization which caused issues between it’s branch’s. This decentralization caused Nestle to adopt the global standardization that is now in process. AT first this process was not favored because it didn’t align with the company’s already existing business model. After much consideration and discussion this plan proved it would work well with the budget and data streaming that occurs. This new way has greatly improved Nestlé’s efficiency in its operations area.
3. What management, organization, and technology challenges did Nestle have to deal with to standardize its business processes and systems?
There have been many challenges with the new standardization process. At first they installed SAP's R/3 in an attempt to coordinate IS and the business processes. This caused issues because the 14 countries that ran the software were not in unison, it was being ran differently at many of the locations causing an increase in maintenance coasts. Upon discovering this issue they rolled out the GLOBE initiative. They were hoping that this would help all of the units run in sync. Unfortunately this didn’t help as much as they would have liked it too. Personal challenges were becoming apparent many managers viewed this system as a nuisance and a work creator. Johnson realized that he had some major challenges ahead, but he put his excellent leadership skills to the test an ended up coming out ahead in the end. Once managers saw that the system was helping in operations they started to come around and embrace the system, which has lead to increased efficiency in the operations department.
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