Very complex organizational structure

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This forced the company to announce a series of price increases in 2023, which would obviously affect customer demand for its products and their affordability in low-income regions such as Sub-Saharan Africa. The invasion of Ukraine has also contributed significantly to the current inflationary environment, as Ukraine is one of the world’s largest producers of grain, a key raw material used in a wide range of Nestlé products. The unavailability of cheap Russian fossil fuels is also one of the factors contributing to the rise in energy prices and a major component of the current inflation.


As you would expect from a company of this size and scope, Nestlé has a very complex organizational employment data structure. This is necessary to keep track of the various local and international supply chains involved in the production and distribution of its products across a wide geographic area and to numerous customer segments worldwide.

While this may be necessary to keep operations running smoothly, it comes at a high cost, both in terms of financial resources and manpower. It also increases the likelihood of redundancy, confusion and slow decision-making.