A New CEO was recently appointed to run the legendary Nestle company. The new CEO is the” first outsider appointed to run the company and he used to run a healthcare firm before joining Nestle and has no experience with the food industry. Meanwhile, the new appointment came at a time when the company is trying to cope with the slowdown in their growth as a result of consumer’s greater health awareness and switching to healthier products. The new CEO is basically hired to “shake things up”.
Tasks:
Before answering the questions, please read carefully the assigned article and use the relevant material (chapters or notes) from your bridging lectures. (you may mix sources in addressing the discussion question, but please cite any source yourefer to.)
In 200-300 words each, please respond to the following discussion questions providing some reasoning.
Discussion 1:Besides the recent significant changes in consumers’ tastes in various international markets, what other possible factor(s) you believe may have contributed to the drop in the DEMAND for Nestle frozen food? Please provide reasoning.
Discussion 2: From the chart in your case (as compared to the other two giant competitors), can you identify a problem facing Nestle? Can you suggest some strategies to address this identified issue? (please be precise and use the chart to make comparisons).
Discussion 3:What is the drawback of Nestle’s previous CEO’s focus on long-term growth? What is the trade-off implicitly suggested here? Please explain.
Discussion 4:If you were appointed as the new CEO’s Chief Economic Advisor, suggest ONE strategy you would argue for to turn around Nestle’s problematic performance. In explaining why you picked this strategy you are required to state clearly your arguments and to LINK them to your understanding from the bridging classes or material provided.
