Nestle SA (A): Should Nestle Nutrition Be a Separate Business?

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Case

Reference no. IMD-3-1716

Subject category: Strategy and General Management

Authors: Bettina Buechel (International Institute for Management Development (IMD)); Peter Killing (International Institute for Management Development (IMD))

Published by: International Institute for Management Development (IMD)

Originally published in: 2008

Version: 31.10.2008

Length: 10 pages

Data source: Field research

Topics: Translation of vision; Business model; Organisation design; Implementation; Managing change

Share a link: https://casecent.re/p/85079

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Abstract

This is the first of a two-case series (IMD-3-1716 and IMD-3-1717). In October 2003 Luis Cantarell, head of Nestle''s Nutrition Strategic Business Division (NSBD), prepared for an important executive management meeting. The NSBD was not only a key driver in helping Nestle realise its vision of becoming a Nutrition, Health and Wellness company but was also associated with an expectation of above average contributions to group growth and profit through its core business of Nutrition. The key decision facing executives at the meeting was which business model would best be able to deliver the CEO''s vision. Should the Nutrition division become a separate, standalone business with P&L accountability or continue to operate as is?

Location:

Worldwide

Industry:

Food, nutrition

Size:

2004 revenues USD76,660 million

Other setting(s):

2001-2004