Nestle is a Swiss multinational nutritional and health-related consumer goods company headquartered in Vevey, Switzerland. It is the largest food company in the world. Nestle’s products include baby food, coffee, confectionery, bottled water, breakfast cereals, dairy products, ice cream, pet foods and snacks. 29 of Nestle’s brands have annual sales of over 1 billion CHF (about US$ 1.1 billion), including, Nescafe, Kit Kat, Nespresso, Smarties, Nesquik, Stouffer’s, Vittel, and Maggi. Nestle has around 450 factories in 86 countries, and employs around 328,000 people all around the world.

Nestle System and Organization Structure

A company’s organizational chart typically demonstrates relations between people within an organization. Such relations might include managers to sub-workers, directors to managing directors, chief executive officer to various departments, and so forth. When an organization chart grows too large it can be split into smaller charts for separate departments within the organization.

Nestle Company is a decentralized organization that is organized according to the matrix structure. Nestle as a decentralized organization permits to subordinate branches to enjoy a proportionately high-level of independence. Although it still makes major strategy decisions at the headquarter level, daily operations are left up to subordinate branches to derive and perform. The responsibility for operating decisions is push down to local units (Broeckx & Hooijberg 2008).

Advantages of nestle matrix organization structure • Nestle’s organizational structure allows multiple departments to easily communicate and collaborate on a project. Because employees answer to multiple managers as opposed to just the functional manager, issues are resolved more quickly, and company-wide interaction is increased. • Its organizational structure, employees have much more autonomy and input in projects. This type of structure encourages employee contribution and places a higher value on workers' point of view • In the organization, employees work across multiple projects and with various departments within the company. This increases employee interaction and promotes a better sense of teamwork. • Nestle’s structure allows resources to be maximized because of how equipment and employees are shared across projects. Its structure also allows project managers to work in the areas of their expertise rather than being pulled across multiple projects, boosting the overall contribution of their talents. • Nestle organizational structure allows employees to work across a wide variety of projects and often requires them to utilize and/or learn different skills. Being exposed to various job duties and responsibilities can increase employee development and enhance their professional skills