Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Nestle -- Infant Formula Controversy
Nestle has been accused of providing products to third world mother's that seriously violate the health of their children. It is not the products themselves that harm the health of the children. In fact, if they are used correctly, the Nestle formulas can serve as a nutritious supplement to an infant's diet. However, many of the third world mothers are unable to use the products correctly for a variety of reasons.
One reason is the cost of the products. Another is the access to clean water in which the mix the formulas with. The case study highlights the responsibility of Nestle in regard to the proper use of their products in these environments. It was argued that the marketing of infant formula in third world markets was unethical. Furthermore, even after Nestle stopped actively marketing their products in these markets, the still provided free samples as a promotional tactic.
This situation became even more complex when it was found that many mothers were transmitting HIV / AIDS to their infants in third world nations through their breast milk. Thus an infant formula that is given to the infant in a bottle is part of the solution to preventing the spread of the disease in high risk countries. Therefore, Nestle not only has a financial incentive for being part of this solution, but also an ethical obligation. The corporation must try to get their products to those who really need them while at the same time trying to ensure that they are used properly.
Problem/Opportunity
The problem and the opportunity for Nestle is how to get their products into the hands of the mothers' that need them and can use them properly. They must also ensure that the potential customers know the risks and benefits of infant formula. The decision that needs to...
The most sustainable position for Nestle is likely to passively market their products while also supplementing this strategy with a strong educational and outreach program. The company could ensure that free samples were available especially to women who are at high risk for HIV / AIDS infections. The company could also provide clinics…
5 billion category. The sales enhanced to U.S. $69.5 billion in 2003. The energy bar market is a new venture of Nestle. The purchase of Power Bar Inc., the innovator of the energy bar, places very nicely to rule supreme in the field. Nestle joined with Pillsbury's Haagen-Dazs associate to produce a new company to mix Nestle's 'frozen novelties' with Haagen-Dazs' U.S. frozen dessert business. (Chocolate, coffee, and pet care?) The
The workers had essentially no recourse if the Thai government was not willing to prosecute their case. The baby formula case does not likely result is illegal actions, but some of the marketing practices undertaken by Nestle can be considered unlawful in light of the World Health Organization's International Code of Marketing Breast Milk Substitutes. Nestle made a commitment to adhere to this code in their Infant Formula Charter. Yet,
Nestle Sustainability Nestle's key sustainable environmental policies are broken down into several core areas: resources, packaging, products, climate change, natural capital, information, water efficiency, training, and product life-cycle. They want to improve resource efficiency, improve packing, optimize the environmental impact of products, be a leader in climate change, examine how production impacts natural capital, provide accurate information about the environmental impact of their products and processes, improve overall water efficiency, train
Moving away from bottled water will actually solve many of the current ethical quandaries as well as freeing up capital for more profitable and sustainable pursuits; divestment of the bottled water subsidiaries or their slow dismantlement is recommended. Finally, Nestle must focus efforts more intensively on emerging markets. CONCLUSION Nestle is definitely poised to regain what stature and profitability it has lost in the current economic crisis, through intensive marketing campaigns
Governments in these developing countries also may have issues with foreign companies expanding within their borders. Lastly, establishing local suppliers, and the infrastructure required for these suppliers, may be a challenge, especially for those they develop from the ground up. Strategic Posture: Nestle's mission statement is simple. "Good Food, Good Life'. That mission is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage
Nestle is a large scale multinational corporation engaged in manufacturing a wide variety of food, beverages, and health care products. It was incorporated in 1866 by Henry Nestle in Switzerland as a small food manufacturing company. At present, Nestle is present in all the corners of the world and serves its customers with thousands of food and beverage brands for all types of consumers. It manufactures products for all types