Nestle a Social Media Nightmare Harvard Case Solution & Analysis

Nestle a Social Media Nightmare Case Solution

Introduction

Nestle was established in 1866 by Henry Nestle and the Page Brothers. It has immediately succeeded and became largest food and Nutrition Company of the world. Despite the lower sales and profits in World War I and World War II, it continued its journey and remain aggressive in its growth. After its establishment in Switzerland Nestle continued to grow in about 86 countries with over 278,000 employees worldwide. By 2009, sales of the Nestle reached to CHF107.6 billion and its profit became CHF10.43 billion.

The categories and net sales from these categories at nestle includes drinks 27 percent, food and dairy products 26 percent. Ready to prepare products 18 percent. However, 12 percent of the sales of the company is accounted towards chocolate. Furthermore, Europe has remained traditionally originated sales of the Nestle in 2009 that was 32 percent.

In Canada a non-government organization named Greenpeace stemmed towards it movement. It was a anti-nuclear protesters. It was formed in 1971 in Vancouver, British Columbia, Canada. Greenpeace aimed to take action that assures safety and health of the Earth through maintenance of nature on Earth. It not headquartered in Amsterdam and Netherlands in over 41 countries in order to accomplish its mission. Its regional offices are situated in 28 regions that were not incorporated with government financing. They were standing upon the 2.8 million people around the world. These people fund them in order to rescue the natural resources of the Earth that are causing through industrial development.

Problem Identification

Greenpeace was with the movement of preventing Earth from the hazardous issues. Among several issues of the Earth carbon emission has identified as one of the critical issues of the earth. The major cause of carbon emission was deforesting into different areas of the world. Moreover, it was also evaluated from the research that Indonesia was going to be third largest country for the deforesting and activating carbon emission in response. Indonesia was one of the targeted area for clearing the forest area in order to encourage palm oil. Another issue was also raised when a report of Centre for Orangutan Protection was issued that highlighted deaths of orangutan due to deforesting and the report also declared that 1,500 orangutans were died by 2006.

In response to these issues, Nestle was also accused of producing chocolate and of its suppliers was based on Indonesian forests area in which death of orangutan caused.

Current Situation

Greenpeace movement for orangutan

Greenpeace was stimulated in 2010 issuing video on Youtube. Aim of the video was to highlight the harmful practices of Nestle that has promoted deforesting and reason of the death of orangutan. Greenpeace wanted to aware people about hazardous conduct of Nestle. Hence, it launched that video on Youtube. The purpose of launching video was to restrict Nestle from buying Palm Oil that were produced after deforesting in Indonesia.

Greenpeace issued video in which fingers of Orangutan were eaten instead of Kit Kat chocolate of Nestle. The video further requested to Nestle to stop buying Palm Oil from that forests that are hazardous to be clear. The video went viral and received 10,000 views initially.......................

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