SECTION B: CASE 2

This article was written in 2015

Nestl was founded in 1866 by Henri Nestl in Switzerland and is today the worlds biggest food and beverage company. Nestl employs around 250,000 people working in 130 countries, have more than 500 factories and produces more than 10,000 different products. It also has operations in almost every country in the world. The history of Nestl began in Switzerland in 1867 when Henri Nestl, the pharmacist, launched his product Farine Lacte Nestl, a nutritious gruel for children. As the years have passed, the Nestl family has grown to include chocolates, soups, coffee, cereals, frozen products, yoghurts, mineral water and other food products. Beginning in the 70s, Nestl has continued to expand its product portfolio to include pet foods, pharmaceutical products and cosmetics too. Nestl's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Nestl is based on the principle of decentralization, which means each country is responsible for the efficient running of its business - including the recruitment of its staff.

Nestl is giving a perfect illustration of a global understanding while putting people from different countries at the head of its headquarters in Switzerland Indeed, its "Group Management" is then composed of two Austrian people, one Spanish, one Swiss, one Mexican, two Americans, one British and also one Swedish. At Nestl, diversity has been the foundation of what they do for years. Strong, multi-cultural diversity has shaped their success and culture.

Nestle Corporation produced some of the finest instant formula in the world. It is an international company with excellent product superb marketing skill, and code of ethic. In selling infant formula worldwide Nestle is successful in a number of markets including Europe, North America and Asia. In particular, in Singapore it claim to have saved thousands of lives of infant whose mothers could not nurse their babies.

On the other hand, the situation is different in East Africa. Nestle began marketing infant formula in East Africa, using text book and tested general marketing principles that had been successful in the number of markets. The result has been deaths of hundreds of thousands of infants as a direct result of taken off breast milk. In this new environment Nestle failed to take into account a new context, a context in which most customer cannot read direction on the formula labels, where clean water to mix the formula is nonexistent, and where the poverty level is so high that mothers over diluted the formula, thus starving their children. Moreover, Nestle failed to realize that some culture frame their experiences differently than other. In a number of tribes in East Africa, medicine men are thought of as gods. Thus, what appeared to be reasonable and indeed a proper marketing approach failed because Nestle did not take into account traditions of African culture or the religions conceptual scheme through which an East African mother project her experiences, or the level of poverty and ecology in the countries.

Nestle was umversally highly criticized for this marketing scheme and its practices were condemned by WHO (World Health Organization). Hundreds of moral philosophers wrote papers on how Nestle had ignored moral rules and flaunted human rights in carrying out these activities.

The scenario in Malaysia is somewhat different. Nestl Malaysia has adopted Halal practices since the early 1970s when it first started its manufacturing sites in Malaysia. It was the first multinational to voluntarily request for Halal Certification of all its food products when it was first introduced in 1994. The certified Halal status for all Nestl Malaysia products provides assurance that Nestl products are manufactured, imported and distributed under the strictest hygienic and sanitary condition in accordance to the Islamic faith. Products and premises for manufacturing in Malaysia have been inspected and have earned Halal certification by JAKIM (the authority body which is responsible in issuing halal certificates) and imported products from manufacturing sites outside Malaysia are certified and supervised by Islamic authorities approved by JAKIM. Nestl Malaysia established the Department of Halal Affairs in 2012 and is currently the biggest Halal producer in the Nestl world, warranting its appointment as the Halal Centre of Excellence for Nestl worldwide.

Question 5

Assume Nestle has to identify employees (who are non-Malaysians) to be sent to work in Nestle Malaysia as managers, what at the factors for the employee selection criteria? Explain THREE factors.