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Trouble was brewing for Nestle in India with a lab test finding MSG in Maggi noodles, a product brand which had been adjudged ‘most powerful’ and ‘most trusted’ in India;it was being banned in different parts of the country. Paul Bulcke, CEO of Nestle SA, arrived in New Delhi to face the heat and take necessary damage control measures. The case challenges the participants to review the events leading to a total ban on all the nine variants of Maggi noodles imposed by FSSAI, the Indian Regulator, by Nestle India. It also challenges them to suggest ways of taking care of the business in future in India as well as its effects in other countries.

The learning outcomes are as follows: identifying and prioritising of stakeholders’ needs during crises; gaining insight into applying contextual intelligence in leaders’ decision-making on philanthropic investments; and evaluating initiatives by differentiating between creating shared value and corporate social responsibility.

On 15 March 2020, Bruno Olierhoek, Chairman and MD, Nestlé East and Southern Africa considers his dilemma of where to focus his community support initiatives during COVID-19, which could reflect their company’s purpose of enhancing quality of life and contributing to a healthier future in their response to the crisis? Also, creating shared value (CSV) was in their DNA as a company, and they wanted to do more than philanthropic gestures; therefore, they had to decide carefully about leveraging their strategic partnerships in the relief effort. The case highlights existing community involvement projects, pre-COVID-19, which illustrate multi-stakeholder collaboration. These existing trust relationships and partnerships are then leveraged during the COVID-19 pandemic. The case highlights unintended consequences of Nestlé’s gesture of donating food products to the 5,000 frontline health-care workers for specific stakeholder groups, such as the positive emotional responses of Nestlé’s own employees. These events in the case relate to existing theoretical frameworks, such as corporate citizenship which elicits pro-organisational behaviour in stakeholder groups.

Postgraduate programmes MBA or MPhil.

Teaching Notes are available for educators only.

CSS: 7 Management Science

Operations and Logistics.

Senior undergraduate students and postgraduate students specialising in agricultural economics/agribusiness/supply chain management and can also be used for executive training for supply chain managers and corporate social responsibility (CSR) managers of food companies.

This case presents an industry leading company – Nestlé’s sustainable initiative in its dairy supply chain in China. The case begins with the background of China’s dairy industry, followed by an introduction of the case company. The case then moves on to the comparison of Nestlé’s fresh milk supply chain operation before and after 2008 and different approaches to help the dairy suppliers’ transformation. The focus is on Nestlé’s innovative industry collaboration platform, the Dairy Farming Institute.

This case allows students to explore the following theoretical frameworks: sustainable supply chain management; supply chain leadership, supply chain learning and supply chain structure. By analysing this case, students should be able to gain an understanding of how multinational corporations (MNCs) play a supply chain leadership role in supply chain learning of sustainable supply chain initiatives.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 9: Operations and Logistics.

In 2015, NESTLÉ India underwent a major crisis as the product which contributed to nearly 30% of its sales had to be taken off the shelves. Maggi—the go-to convenience food for all generations (especially kids and young adults)—which had entered the market in 1983, was banned. With a market share of 70-80% before the ban, NESTLÉ, which got the ban lifted in November 2015, had to undergo the task of winning back the lost market. Over a period of 8 months after its relaunch, the brand regained about 60% of its market back, but the question is how could such brand disaster be avoided in future? The case revolves around a major brand recovering from a brand disaster, and whether they did it well enough or could the situation have been managed better. It also enquires as to what road should be taken forward from here. It notes the action taken by the government against the brand and leaves it to the judgment of the readers if the actions taken against the brand were a little too harsh, solely because MNCs are usually considered a soft target in India. The readers must also understand and analyse the different brand relaunch strategies that were adopted by NESTLÉ and the next steps that should be taken by it.

After a tumultuous five months, Nestle India was exonerated in the Maggi crisis just in time for Diwali. Although the mood was one of vindication, the leadership team with Suresh Narayanan at the helm, knew they faced a major challenge to regain lost glory. Stock price had plummeted along with consumer confidence which went down from over 90 to less than 5 per cent. Part B traces the efforts of Nestle India to not only reinforce the message of product quality but also to engage consumer trust. Through changes in product strategy, organizational structure, and multi-pronged communication, Maggi was able to rekindle the emotional connect with the consumer and surge back. On 30 November 2019 despite loss of market share, consumer faith and trust in 2015, Nestlé India was trading at INR 14,453/55 (NSE/BSE;~US$225) per share after hitting a record low of INR 4981 (~US$76) on 29 February 2016. Part B of the case outlines the measures Nestle India took to bounce back and asks if Nestle India's reputation out of the woods. Could the past come back to haunt Maggi or was the worst behind them? 1. Evaluate communication strategies available to organizations in a crisis situation. 2. Analyse the power and influence of consumer sentiment in reputation management.

We have used data mostly from published sources like The Economic Times, Forbes, The Times of India and the annual reports of Nestlé India Ltd. Because we classify it as a Teaching Case Study as per the guidelines of Emerald Publishing, we have ensured that any data presented in the case has been acquired only from published sources and is not internal company data. Citations have also been provided wherever necessary.

On 6 June 2015, Nestlé India’s top product Maggi instant noodles was banned nationwide for an unspecified period. The ban was imposed due to allegations of Maggi containing high amounts of lead and message, and consequently violating the food safety standards. What followed was the destruction of massive stocks of Maggi which had been taken off from shelves of stores countrywide. Furthermore, the company faced a huge blow financially as its sales plummeted. This case delves into how Nestlé India adopted relevant strategies to successfully avert the Maggi crisis. Some remedial measures included appointing a Managing Director who understood the market, improving the communication channel and boosting the churn out of new products along with greater emphasis on marketing and advertising.

This case is aimed mainly at undergraduate level students in the field of management studies and public relations management. This case is also relevant for students pursuing a specialization in Crisis Communication, Public Relations, Marketing and Organizational Change.

The case explicates a situation wherein an international flight from Newark to Ahmedabad, with a stopover in Mumbai, is delayed during the final leg of its journey between Mumbai and Ahmedabad. The situation is further exacerbated by the fact that all international and domestic passengers are already on board when they face this five-hour delay. The case provides a rich context to discuss issues related to difficult communication and persuasion during crisis. The captain communicates with the passengers, through a series of announcements, with updates on the situation. He attempts to manage the escalating tension within the airplane and does succeed to a certain level. The case highlights the significance of timely and well-crafted messages during crisis situations. It also illuminates how the use of rhetorical strategies influence customer perception of credibility and at times, shift attribution of blame.

Gaining skills in analyzing context during a crisis situation, using a political, economic, social, technological, legal and environmental framework understanding strategic leadership engagement with stakeholders to cultivate an environment for emergent change gaining skills in drawing up a strategic communications plan.

On 15 May 2020, Alec Moemi, Director-General of the South African Government’s Department of Transport (DoT), contemplates how his department can use the opportunity that COVID-19 presents to transform the transport system and to maintain relationships with business and the taxi industry beyond COVID-19? The nation was just reeling from a first: the President announced a “lockdown” which meant that all economic activity except “essential services” could operate. Life almost ground to halt and South Africans faced a new reality. No movement out of your property unless it was a medical emergency or if you needed to buy food. The minibus taxi, an economic enabler to millions of South Africans also had to stop operating. The South African DoT had a mammoth task of communicating to a range of stakeholders. However, the most sensitive being the minibus taxi owners, drivers and their related associations. How would they accept the news that they will not have a livelihood for the next few weeks or perhaps even months? Given the nature of industrial shift patterns and need for a more flexible transport system for workers, some organisation’s such as Nestlé contracted private transport services to ensure their staff travelled to work safely. Nestlé also had their own compulsory sanitizing protocols in place to support private transporters.

Postgraduate programmes, including MBA, MPhil Corporate Strategy and Masters’ Public Administration and Executive Education Programmes.

Teaching notes are available for educators only.

CSS: 7 Management Science.

This case describes the challenges faced by Amul in organising dairy farmers into a co-operative and creating continuous opportunities for value addition. Participants in the case discussion are required to review the developments in the organisation and recommend a strategy for the future.

This case can be used in management of international business courses to illustrate the analysis of market attractiveness, the importance of fit between firm capabilities and market requirements, and the effects of multimarket competition. It describes the international expansion challenges facing EAC Nutrition, the infant formula division of a Danish conglomerate, in early 2002. Growth in EAC's core markets of Thailand and Malaysia has stagnated and EAC is contemplating three expansion options: entry into India, geographic expansion within China, and product line expansion in existing markets.