1) In a succinct and precise manner describe the vision for Nestlé. a. Where do you see them (in which areas) in the future? b. How will they measure success? c. How does that compare with where they

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Henley Business School

Post Graduate Diploma in Management Pr actice (PGDip )

Case Study E xam

Nestl é South Africa: leading multi -stakeholder partnership response in the COVID -19 context

Preamble

The exam date has bee n set and confirmed for 28 November 202 2. The intent of this note is to give

adequate pointers to help you prepare yourself for this important milestone in your personal road of

development and rediscovery.

Open Book Exam

To help you answer the exam questions you are allowed to use any material o r notes that you have of

your own or any source reference material from lectures and /or your own personal research. You

have to reference this material used to help you put forth your answer. However, any reference or

excerpts you use should be typed in yo ur answer paper and argued accordingly. To refer to material

without synthesising for the examiner and an independent reader would not suffice. Obviously, you

would be best placed to have revised your source materials and summarised it into categories/

top ics/themes that you can easily refer to.

The Structure of the Exam

• The E xam will consist of three (3) compulsory questions .

• A well -prepared delegate may be able to answer these three questions in 180 min (3 hours).

How to use your time in the Exam

• Use the first 10 minutes to read the exam paper carefully to ensure that you fully understand

what is required in each question.

• For each question identify the theory that you are planning to use as guideline in your answer.

• Check the mark allocation for e ach question as well as the word count allowance to plan your

time per question.

• Strictly follow your planning to ensure you have enough time per question to complete.

• When reading your paper before submission check for 3 things:

o Did I clearly identify and referenced the theory?

o Did I apply the theory in a systematic and integrated fashion?

o Did I motivate my answer?

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Key pointers to success

• Use diagrams and charts . You can use a pen to draw your charts clearly, but it is not an art exam .

• Keep your answe r to brief paragraphs and make us e of bullet points (although not cryptic in style).

• Your revision notes should be in bullet form with cha rts, arranged in an order that works for you.

• Give each question only the time it requires .

Background to the questions (2 readings)

READING 1: Nestl é South Africa: leading multi -stakeholder partnership response in the COVID -19

context

READING 2: Three reasons why your company should aim to tackle social issues. (Source: Community

Coordinator at Shared Value Ini tiative | June 21st, 2016 )

While the Great Recession put a dent in the public’s trust in corporations, faith in business is now

gradually on the rise. According to the 2016 Edelman Trust Barometer, no other institution recorded a

larger gain in trust among the general population last year than corporations . In the same survey, 80%

of respondents agreed companies should take the lead on solving the world’s most pressing social

problems.

Amidst this climate, Fortune Managing Editor Alan Murray took the s tage at last month’s Shared Value

Leadership Summit to interview four company leaders who featured in a new ranking last year: The

Change the World List, which spotlights 50 companies who address major social problems as a core

part of their business strat egy and innovation.

In the interview, senior representatives from the “Change the World” companies – MasterCard (#11),

Novo Nordisk (#18), Ayala (#29), and CVS (#31) – discussed how purpose and social issues are affecting

their core models, their brand power, and growing into new markets. Here are the three biggest

benefits they found in tying profits to purpose:

1. Your business will be more viable in the long term.

In all of these companies, social purpose drives business decision -making – and it’s delivering for the

bottom line. “I wasn't approaching this from a shared value perspective,” said CVS Health EVP Helena

Foulkes in regards to the CVS Health rebrand. “It was a practical issue for us at the time.” The rebrand

was one way to unify the organi zational structure, which housed both CVS Pharmacy and Caremark.

As CVS started to use their defined purpose – helping people on their pathway to better health – as a

filter for business decisions, it became clear that the only way of communicating that ex ternally was

to stop selling cigarettes and tobacco products. That official 2014 decision meant immediately giving

up $2B in annual revenue, but according to Foulkes “it has paid off” in the long term with new business,

rising stock prices, and increased c ustomer loyalty.

Ed Brandt, EVP at MasterCard, described a similar journey, starting 5 years ago: “Our long -term growth

is going to be dependent on global prosperity,” he said. “We need the economy to be able to grow in

developing countries.” As regulation escalated after the financial crisis, increasingly the company

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partnered with local governments to increase financial access to emerging markets and their “huge

growth potential,” he said.

Triple Bottom Line Head Jakob Riis at diabetes care company Novo Nordisk agrees that a long -term

mindset shift is necessary: “If we don't have a model that's sustainable in the long run, we don't do it,”

he said. In a world where only half of 420 million diabetics are diagnosed, Novo works to train primary

care physici ans globally to detect and care for diabetes – which in turn creates demand for their

products. Riis also mentioned that Novo is developing new employee incentives to deliver on patient

outcomes rather than products sold.

2. Employees and customers will value your brand

The research is out there: There’s a new generation of employees and customers who want to work for

and buy from purpose -driven companies. The panel universally agreed that their employees were more

excited and engaged once the company more eff ectively communicated its purpose for good. “To the

employees of MasterCard, nothing was more impactful than being on that [Fortune] list,” Brandt

mentioned off -hand. Jaime Augusto Zobel de Ayala, CEO of Ayala, also marvelled at how engaged his

employees h ave been once the company began dovetailing business objectives to societal needs.

For CVS Health, the shift meant prioritizing culture change – constantly earning employees’ trust. “It's

so critical that we [as business leaders] make purpose -driven decisi ons,” said Foulkes. “Sometimes

those decisions are good for the bottom line, sometimes they're not. But when people see you doing

that as a business leader they start to think about it differently.” She added that the company measures

culture rigorously an d leaders are rewarded by how connected their people feel to the company.

3. You’ll find new market opportunit ies (and innovate to get there)

With shared value approaches, these companies are finding that emerging markets represent a huge

opportunity because they are very often untapped markets. The Fortune list highlighted Ayala’s work

in privatizing and distributing municipal water in the Philippines, which they had to approach with a

completely different model – billing communities instead of individuals. B efore Ayala stepped in, “60%

of the water in Manila was not reaching end clients,” Zobel described, “I'd like to think that a for -profit

model began to address that while bringing prices down substantially.” Murray added that Fortune

confirmed Ayala has th e metrics to prove it.

However, you need to approach these markets with different solutions and with the help of partners.

“We know the Bottom of the Pyramid is a very different service model,” said Brandt, which meant a

move toward mobile services to reac h those living in rural areas on less than $2.50 a day. To tackle

this problem MasterCard hired new people – not from banks, but from governments, NGOs, and

development agencies – to complete this work on the front lines of business development and product

design. For example, Brandt mentioned the company is working with Mercy Corps and others to

expand digital aid distribution services to rural communities in Philippines, Yemen, and other countries.

One common thread among all these companies is that they’ re applying business innovation to solve

social problems – and in that way, their business is more sustainable in the long run.

The question

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You work for Nestl é. You have been a ppointed by your comp any to head up t heir team on Leadership

Skills/Qualities, Personal Resilience and Shared V alue having recently completed your cours e with

Henley Business School and your organis ation is keen to get value from your insights. Your job is to

argue a position paper on how Leadership Skills/Qualities , Personal Resilience and Shared Value

contribute value to the organisations by answer ing various questions. You are expected to

demonstrate use of relevant tools and techniques you have recently learned and the application of

theoretical concepts in a pra ctical way to the problems posed to you.

Questions to help you prepare

1) In a succinct and precise manner describe the vision for Nestl é.

a. Where do you see them (in which areas ) in the future ?

b. How will they measure success?

c. How does that compare with where they are presently situated ?

d. What hurdles do they need to navigate?

e. How is the environment looking i.e. the playing field?

f. How are they likely to get to where they want to go ?

2) Describe the role that leadership skills and qualities play in the journey of Nestl é.

3) Describe how personal resilience support the business of Nestl é.

4) What core competencies and capabilities do you believe the Nestl é team possess and which

are crucial to develop in order to succeed on the path they have set forth in question 1.

Motivate your answer.

5) Who do you believe are their key internal and external stakeholders and do they manage their

expectations? What processes enable this?

6) What “ Shared Value” is Nestl é provid ing in their ecosystem ? Discuss this concept by referring

to Shared Value principles and the different levels of Shared Value . Discuss if and how their

view on value should be tailored to their local markets.

7) Discuss why Shared Value is important. Discuss how Nestl é can address Shared Value with

reference to employee value and the compa ny’s culture and values.

8) Compare and contrast the approach taken by Nestl é’s top three competitors in creating and

establishing their competitive advantage by using or not using the concepts of Shared Value.

What are the advantages and disadvantages of t heir respective stance on their competitive

advantage?

9) Analyse Nestl é’s approach to Shared Value and stakeholder management from an ethical

perspective.

The intent is not a theoretical discourse of generic issues but almost a bullet point clear synthesis of

the what, why, when and how.