Nestle Case Study Example | Topics and Well Written Essays - 750 words

Nestle - Case Study ExampleThe board of directors of the compevery does not show undecomposed tactics in solving the issues touching the company. This is the main problem that has afflicted General Mills Company for many years. Lack of expert strategies in running the company is very evident. The company is seen to be shifting from one type of business into another with the aim of expanding their business or maximize profits, besides in return, it gets losses. This is a show poor market research and consideration of the market statistics over the years. According to Wojahn, General Mills Company underwent a series of losses subsequently it decided to start business dealing in non-food substances. This was immediately after the Second World War when it ventured into home appliances, electronic goods, animal feeds, and commercial flour. Wojahn (Wojahn, 2003 p25) says that this was as a result of the rush they had into the market after noticing opportunities to invest in. They need ed to conduct a market research to come up the market trends, their preferred produce and customer patterns before they could venture into it (Wojahn, 2003 p25). Their lack of good strategies also makes the board decide on moving out of a market without proper consideration of future outcomes. The company easily pulls out from a market it has tried out but has not been successful. This is shown immediately after the Second World War when it pulled out from electronic goods, home appliances, and animal feeds. In this case, the company had to set the right strategies that could see it, make profits in the same business venture rather than losses. They needed to conduct market research and improve on their products so as to develop a good market share that could make them gain good profits (Wojahn, 2003 p25). After the fail in home appliances, electrical goods, and animal feeds the company still ventured into oecumenical sale of snack foods. This could have been a success to the com pany, but they pulled out so soon. General mills Company bought a number of companies dealing in snacks in the following years and even had plans to acquire an international company to deal in manufacturing of shaped snacks (Wojahn, 2003 p25). This vision went blank when FTC restricted them from buying any more companies due to antitrust reasons. The company then started to sell the bought companies one by one, until it breatheed with only one company. In this case, they needed to expand the already acquired companies to gain market share and profits, which they could use to open other companies. Pulling out of the business after some time shows a lack of good strategies in running the company (Wojahn, 2003 p25). Considering their lack of tactics in dealing with issues at hand, the companys board of directors, is seen to lack active participants in discussion of matters affecting the company. This is evident when the CEO of the company urges the directors to ask for questions that c an help to point out a problem in decisions made by the board. The board is seen to remain silent (Wojahn, 2003 p25). This is a big show of the lack of tactics in dealing with issues affecting the company. The CEO of the company is also seen to lack tactics in handling situations when it is evident that, he takes an average of the views put forward by the board to make a decision. A director need to listen to his directors views but come up with his own critically analyzed decision. Following any of the views put forward is the main problem facing the company. From the above analysis, one of the