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Nestle-Case Study
2 TABLE OF CONTENTS 1. Introduction .............................................................................................................................. 3 2. Discussion ................................................................................................................................ 4 2.1 Requirement for Enterprise Systems in Nestle ...................................................................... 4 2.2 Key Challenges for FMCG Companies in Implementation of SAP Information Systems .... 5 2.3 Involving Individual Countries for Information Systems Implementation ........................... 9 2.3.1 Avoidance of ‘Kiss of Death’ in IT Projects Driven from the Centre ........................... 11 3. Conclusion ............................................................................................................................ 11 References ...................................................................................................................................... 13
3 1. Introduction According to annual revenue generation statistics released by Statista (2018), Nestle is considered as the foremost player in the global FMCG (Fast Moving Consumer Goods) market. This is due to the fact that Nestle has surpassed annual sales of 93.4 million US Dollars, with close competitors earning thirty times less than the market competitor (Statista, 2018). This positive score on the global scale in Nestle can be attributed to the company’s free flowing information and enterprising systems, among other things. According to the study of Madadipouya (2015), effective information system tools can considerably improve the level of productivity of the organisation’s employees, while linguistic, cultural or even communication barriers can be avoided due to timely and adequate information handling and knowledge management. This is also applicable in the case of a global company like Nestle, as shown in the figure below which has business ventures in different countries around the world and an extensive workforce and need for efficient information management for long term prevalence of competitive advantage. Figure 1: Top International FMCG Companies Based on Revenue (Statista, 2018)
4 Furthermore, Asrar-ul-Haq and Anwar (2016) states that enterprise systems implementation is a challenging and complicated procedure with several issues arising from the organisational hierarchal system that supports barriers to knowledge sharing to network centrality and organisational culture posing major challenges. On the other hand, Puthal et al. (2015) researched the topic of cloud computing in the context of multinational organisations and found that the issues of privacy and security of information is a rising concern for the sector of FMCG companies. Therefore, in this study the case study of Nestle will be critically analysed from the perspective of information system implementation, in order to develop a consultancy style report. The report will in regards to a consultant style writing, as it will analyse FMCG company Nestle and its SAP system for attainment of competitive advantage, while role of individual countries and avoidance of IT projects driven from the centre and consequential ‘kiss of death’ will also be discussed, referred to as implementation of GLOBE 2. Discussion 2.1 Requirement for Enterprise Systems in Nestle Dieringer (2004) studied a past implementation of ERP system based on SAP in Nestle and concluded that the company faced several employees oriented and technical issues in the implementation of ERP systems. The study further explains that management’s lack of

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