Part 2 of the Nestle Paper
Question 1
Nestle operates in the USA, which is ranked high in power distance, United Arab Emirates is considered as masculinity and femininity. Also, in Kenya, Africa, which falls in the short term due to the tradition. For example, the USA manager needs to modify the attitude of the consumers on the new products through proper marketing.
Question 2
Yes, it operates in Kenya, where elections and political rallies affect the economy due to violence. Violence experienced in the country creates an unfavorable environment as there is no peace.
Question 3
Yes. It operates in United Kingdom countries which have common laws. They affect the relationship between the employee and the employer. Some decisions might not be made by the employer but determined through a court ruling. Hence, the mission and vision of Nestle Company might not be attained in particular countries
Question 4
The company has purchased insurance from overseas, especially in countries with political instability. The Overseas Private Investment Corporation has been the leading company to secure the company in countries like Bangladesh and Vietnam.
Question 5
Nestle has a lifetime patent rights expiration. However, some trademarks and copyrights are subject to the expiry date. The company sells some of its shares shortly before the expiry date.
Question 6
Kenya has a corruption index score of 28%, while the USA has it at 43%. The Federal government of the USA in 2018 was in the limelight on the defense procurement scandal that resulted in the loss of billions from the treasury. The same case replicated in the Agriculture department in 2019, where farmers lacked a market for their maize due to illegal importing of maize. Such cases put the Nestle Company at risk of market sales due to the limited flow of money. The company might be forced to hire local workers with a fixed salary for renewing the business permit by the respective government.
Question 7
Nestle uses the subsidiary strategy for the entry into a foreign market. SS such, as the direct importing of the structure of the organization, is used. The company is likely to face risk-return tradeoff since the approach used is stable due to strong funding and management skills applied.
Question 8
Nestle has an exit strategy of selling the company if it does not make the designated profits. It ensures the company gets back its capital in terms of assets like building structures and the trademarks (Galeshchuk, pg 99).
Question 9
Nestle ensures that most of its employees are also members of the community organizations that deal with food insecurity and hunger programs. It helps to support children’s homes and those in refugee camps.
Question 10
The mission of the company is good food for a good life. It is enhanced to ensure good tasting with eating occasions ranging from morning to night. The company continually engages in research nutrition research from the community it operates to ensure it satisfies the expectation of the people
Question 11
The company is a shareholder model. It is because Nestle still holds all the intellectual property rights by the founders.
Question 12
Nestle is not a stateless corporation. However, an increased number of operation will soon make the company be stateless soon and join companies like Apple, and Amazon
Question 13
Nestle employs the decentralization organization structure, which is commonly referred to as a matrix structure. It ensures that every subsidiary enjoys its powers of independence to make institution based decisions.
Question 14
The company will benefit most from the hybrid structure as it will minimize the cost of management as well as the losses incurred. It is because of the ratio sharing terms of the matrix structure.
Work Cited
Galeshchuk, Svitlana. “Prediction of Trading Profit of Transnational Company Using Artificial Neural Networks: A Case Study of Nestle in Europe.” Journal of Global Economics, Management and Business Research 7.2 (2016): 96-102.