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Nestle is a Swiss multinational company operating in several countries in the world including Bangladesh. The information below on Nestle for this case study has been gathered from Nestle Bangladesh’s official website.
The Case:
Nestle considers itself as a people-inspired company. According to Nestle, people are at the heart of everything they do. They look to promote a healthy lifestyle inside and outside work. Their culture is based on their values rooted in respect: “for ourselves, for others, for diversity and for the future”. Their ways of working and flexible environment allow the organization to adapt to the ever-changing world. Promoting an inclusive environment helps the organization bring their purpose and values to life every day. Nestle focuses on ensuring a healthy work-life balance and healthy workplace for its employees.
Protection of Parenthood:
Nestlé’s global Maternity Protection Policy is one of the most progressive programmes of its kind in the industry. It includes maternity protection for all primary caregivers of newborns, including fathers and adoptive parents. This means at least 14 weeks’ paid maternity leave and the right to extend leave up to 6 months. The policy covers employment protection and non-discrimination, a healthy and breastfeeding-friendly work environment, and flexible work arrangements.
Dual Careers:
Dual careers are increasingly becoming the family working norm. They could be local or expatriate, and they may have to make compromises from time to time, but Nestle does their best to facilitate joint career moves (career moves of couples) where they can. Nestlé With other multinationals has launched the International Dual Career Network (IDCN) to help dual career spouses with their local job search and professional integration in a new country.
Rewards:
Nestlé offers an attractive total rewards package that comprises a competitive salary and performance-oriented variable pay in return for employee’s contribution to organizational success. Besides these financial rewards, Nestle offers many opportunities for personal growth and development to help employees reach their full potential, such as an internationally mobile career that truly broadens employees’ experience and knowledge. However, their total rewards package varies locally to reflect differing candidate aspirations and to respond to what their employees value around the world. But as a global, diverse and dynamic company, they offer many exciting opportunities and a total rewards package to match.

Q1. Identify the components of total compensation of Nestle and discuss them briefly.

Q2. From your reading of the case on Nestle, what do you think, is Nestle following a Best Fit or Best Practice Approach of Compensation? Explain your answer briefly.

Q3. Do you think the benefits Nestle is providing besides an impressive salary to their employees are necessary to keep employees motivated?

 
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SECTION A: CASE STUDY
THIS SECTION IS COMPULSORY (20 MARKS)
QUESTION 1
Use the case information to answer the questions that follow.
KFC is the world’s most popular chicken restaurant chain with over 23,000 KFC outlets in more than
140 countries and territories around the world including Ghana. Its original recipe chicken, cole slaw
and fries can be found in KFC outlets all over the world and tastes basically the same wherever you go.
The globalization of KFC’s supply chain has offered tremendous opportunity, as well as increased risk,
in its development. In the 1970s and 1980s, Japan, Australia, and United Kingdom accounted for the
greatest share of the KFC’s international expansion. Following these, other markets such as China,
Europe and Latin America became attractive, offering expansion opportunities. By 1996, KFC was
operating in Mexico, the Caribbean, and in the Central and South America.
Many of these cultures were difficult to penetrate because of strong culinary traditions. KFC previously
failed in German markets because Germans were not accustomed to take-out food or to ordering food
over the counter. However, in the Asian markets, where chicken is a staple dish, KFC was more
successful. In some countries of the world such as, Malaysia, Indonesia and some others, it is illegal to
import poultry, a situation that has led to product shortages. KFC also faced challenges with quality
control of individual franchises due to long distances between headquarters and foreign franchises.
Quality control was of great concern to the franchise which overhauled its operations in 1977 to
emphasise cleanliness, service, profitability and product consistency.
Over the years, KFC has had to respond to changing customer demands. An example was the need to
change its limited menu consisting mainly of fried foods in response to customers’ demand for healthier
options. Another response by KFC was to change its name and logo from Kentucky Fried Chicken to
KFC. Furthermore, it responded to consumer demands for greater variety by introducing several new
products, such as Oriental Wings, Popcorn Chicken, and Honey BBQ Chicken as alternatives to its
Original Recipe fried chicken. The company went as far as to introduce menus specific to the different
cultures in which they operate e.g. In India, Cole Slaw was replaced with green fresh salads. A fierier
burger called Zinger Burger was also introduced. During the Navaratri festival, KFC offered a new
range of nine vegetarian products, which included Paneer burgers; Chinese tea was introduced in
Chinese outlets whilst French outlets offered more deserts.
KFC Corporation, based in Louisville, Kentucky, is one of the few brands in America that can boast a
rich, decades-long history of success and innovation.
a. What will you describe as the competitive strategy of KFC?
b. Is KFC more of an efficient or responsive supply chain?
c. The Accenture survey categorized risk in global supply chains. Which of the risk factors identified in
the survey was KFC affected by (mention 2)?
d. Which risk mitigation strategies (mention 2) do you see KFC employing in its global supply chain?
(20 marks)
 
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The manager of Cheryl’s hospital is determining how often to perform preventive maintenance. When the testing machine fails, it costs the company $15,000 in lost production. However, the cost of preventive maintenance is somewhat expensive. The cost of performing preventive maintenance is $3,000.

Weeks between Preventive Maintenance

Average Number of Breakdowns between Preventive Maintenance

1

0.039

2

0.110

3

0.131

4

0.151

5

0.176

a) Which interval (weeks between preventive maintenance) do you recommend for performing preventive maintenance? Base this recommendation on the economics as presented.

b) Suppose that the company has outsourced the preventive maintenance work. The cost of the preventive maintenance work is negotiable. With everything else being the same as provided above, what is the preventive maintenance cost that makes the manager indifferent between a one week and a two week preventive maintenance strategy? Assume that the preventive maintenance costs the same regardless of the weeks between preventive maintenance.

 
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This project asks you to put yourself in the shoes of the Quality Manager for a small but ambitious manufacturing company that wish to grow their customer base. The company is called Centre Punch Technology (CPT), and their primary business is the manufacture of centre punches for sale around the globe. The company prides itself on a strong quality reputation, and this has been the basis of its organic growth to date. Some of CPT competitors do not have that same quality reputation and have had to do product recalls for the following failure modes: ? Soft punch tips ? Punches fracture when being used ? The punch slides across the work piece when being used ? Punches going rusty in the customers tool box The Managing Director of CPT has given you the challenge of creating a New Product Introduction process that will ensure any new centre punches that the company wishes to introduce to the market place to grow its business as a minimum keep the customer satisfaction at the current levels but preferably improve them. The Managing Director (also known as the lecturing team) would like to see in your proposal the following: 1. Create a management philosophy for CPT based on the teachings of leading academics, authorities or industrialists. Your philosophy should include: a. Five golden rules that the company should always follow to ensure customer satisfaction b. Critical analysis of why you have selected your five golden rules c. Define the role that business leaders will need to play and what sort of business culture your golden rules will create (L.O. 3) d. References or case studies to support for proposal (L.O. 6) 2. A description of the Quality / Engineering tools and techniques that you are proposing the company should adopt to assure the quality of the centre punches and ensure customer satisfaction. You should identify at least 5 different methods and be able to explain: a. What the tool or technique does b. How do you apply the technique (L.O. 1) c. Classify if the technique is (L.O. 2): i. Inspection ii. Quality Control iii. Quality Assurance iv. Total Quality Management d. The benefits its application will bring to CPT (L.O. 5) 3. A one page graphical summary of the new product introduction process, the process should contain all of the tools and techniques you have identified in part 2 (see above). Please share your proposal in the form of either (L.O. 4): a. A timing plan with linked activities showing leadership for each task (L.O. 3)
 
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