Thadamalla, Joel Sarosh Primary Author mixed material bibliography Bangalore, India Amity Research Center Headquarter 2014

14 p. In 1997, Peter Brabeck (Brabeck) became the CEO of Swiss Food major Nestlé SA (Nestle). One of ambitious growth targets of Brabeck was to find ways to increase the annual sales of SFr90 billion. However, Brabeck realised that un-competitiveness had seeped into Nestle. The management had no other option but to draw up a new model or split the company. Brabeck chose to decentralise and reorganise the factories located in different countries into regions (Zones) and also created 'strategic business units' (SBUs) to oversee the management of similar products. The reportable business segments included, Zone Europe (ZEUR), Zone Americas (ZAMS) and Zone Asia, Oceania and Africa (ZAOA). For Nestle, ZAOA represented 76% of world's population, of which China and India were the most populous countries. Nestle considered India a growth engine and believed that opportunities for growth existed not only in the rural and smaller towns but also at the top-end of the market pyramid. In keeping with the belief, Nestle over the last decade, focused more on the mass market and failed to tap the opportunities at the upper end of the market. Having realised the folly, Nestle redrew its strategy to focus on premium end of the market. However, uncertainties like slow economic growth and consumption contraction in the Indian market as well as in the emerging markets remained a major concern for the company. <br> BA/BAD 3142011 Perpustakaan - Sekolah Tinggi Manajemen PPM Pusat Informasi Manajemen BA/BAD K45182 45182 0000-00-00 00:00:00 2015-03-10 00:00:00 machine generated