A case study is a detailed examination of a real-life situation or problem that necessitates analysis. The issues are discussed and supported by academic research on subjects related to the problem being addressed.
A case study response involves applying theoretical skills and knowledge to real-life situations. This case study examines Nestle's operations in Africa and Walmart's operations in Germany. Nestle, a prominent food and drinks company, operates across multiple African countries. Initially, Nestle had promising growth prospects in Africa. However, it was soon discovered that the middle class in the region was rapidly declining. During an interview with the Financial Times in Nairobi, the CEO of Nestle's equatorial region (which includes Angola, DR Congo, and Kenya) explained that downsizing the workforce was necessary for cost-cutting purposes. Unfortunately, this measure did not meet investors' expectations for a profitable mark
...et.
The Nestle Company faced accusations of causing illness and death in poor communities by promoting bottle feeding instead of breastfeeding. The Swiss court held the company accountable for these allegations. In order to avoid further accusations and ensure the well-being of children, the judge instructed the company to change its selling practices and stop promoting bottle milk, which was found to be harmful. This development greatly impacted Nestle's public reputation (Worthen, 2002).
The company faced widespread campaigns and support from individuals in various fields due to their products. The World Health Organization urged the adoption of an international code of conduct to regulate the sale of breast milk substitutes by this company, which remains a threat to their business. In response, the company altered its water supplies, resulting in additional problems. Ultimately, they were accused of negatively affecting the health
of an entire nation, leading to their downfall. Another example is Walmart in Germany, which failed for multiple reasons.
According to the findings, one factor that led to the failure of this company was preferences and culture. The American employees who were hired by the company did not fit into the context. For instance, every employee had to participate in the morning exercise before their shift, which seemed harmless in America but was disliked in Germany, where employees were expected to chant Walmart during the exercise. The ethical code in this Walmart allowed for strict monitoring of co-workers and reporting of any misbehavior, which was considered a good practice in the U.S but highly disliked in Germany. The voices of subordinate staff members were ignored and raised issues were not addressed by top management.
According to Meeks (2011), the workers' morale was decreased and frustration was caused by this. The company's lack of analysis of the local market and its failure to meet the demands of local customers also contributed to this issue. Walmart placed all its products at higher prices, placing discounted products on lower shelves, which irritated customers. Lastly, the Walmart brand name was already well-known in Germany.
The increase in environmental consciousness in Germany led to a rise in sustainability practices such as land conservation and recycling. However, the production of non-biodegradable materials like Walmart plastic bags caused frustration. Both Walmart and Nestle serve as examples for existing companies to learn from, as their weaknesses can be rectified. By studying these case studies, companies can avoid making similar mistakes that may threaten their existence.
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