Teaching Notes: Nestlé’s new recipe for success: a CEO’s strategy amid inflation

Nestlé, the world’s largest food company, was facing decreasing sales, low operating efficiencies and rising competition. The value of the stocks decreased by 29% from January 2022 to August 2024 (Naidu, 2024a, 2024b). Its problems included, overdependence on increasing price rather than innovation, slowing growth in sales, operational inefficiencies and a loss of market share (Naidu, 2024a, 2024b; Reuters, 2024a, 2024b, 2024c, 2024d). The prevailing economic uncertainties, an increase in inflation, geopolitical risks and low consumer purchasing power had compounded these challenges further. In September 2024, newly recruited chief executive...