Nestlé is based on the principle of decentralization, which means each country is responsible for the efficient running of its business - including the recruitment of its staff. Nestlé giving a perfect illustration of a global understanding while putting people from different countries at the head of its headquarters in Switzerland. Indeed, its “Group Management” is then composed of two Austrian people, one Spanish, one Swiss, one Mexican, two Americans, one British and also one Swedish.

Nestlé adopt a flexible way of thinking, and tolerance in intercultural communication: it is not all about respecting each people’s beliefs, but also to be tolerant of different practices and methods of application across countries.

Nestlé, established International Training and Conference Centre to encourage interaction and give employees the possibility to express themselves about the way to apply process and also to interact between each other to better share knowledge of way of doings things.

Question 1: As part of PESTEL analysis, evaluate the external factors that impact the success and failure of Nestle’s operations in the International expansion.