HomeResearch & Knowledgeback to HomeStrategyback to Research & KnowledgeManaging internal growth at Nestlé: The story of LC1back to Strategy

Case Study

Managing internal growth at Nestlé: The story of LC1

By Peter Lorange and Brian Rogers

12 pages

May 2000

Order this case study

Reference: IMD-3-0840

This case highlights how Nestlé, the world’s largest food company, attempted to deal with managing internal growth. Nestlé’s CEO, Peter Brabeck, emphasized internal growth in early 2000 because he believed that it was a better measure of the company’s competitiveness in the global marketplace. He stressed that internal growth could be achieved by focusing on internally-developed new products and/or renovating existing ones. Brabeck was also convinced that Nestlé’s long-term profitability would hinge on the company’s ability to achieve internal growth targets. LC1, a successful yogurt product launched by Nestlé in 1994, had become a symbol of what could be accomplished by focusing on internal growth. Although it was a challenge, Brabeck hoped to inspire managers at Nestlé to develop more LC1-type products. Key issues in the case are: (1) how to create an environment in which managers think like entrepreneurs, and (2) how to encourage managers to develop and quickly launch innovative products.

Keywords

Internal Growth, Food

Settings

World/global
2000

Type

Field Research

Available Languages

English

Related material

Teaching note

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Keep reading

Article

Taking political risk out of the equation - David Bach

With half the world going to the polls this year, how do businesses manage political risk? IMD’s David Bach suggests businesses must look beyond th...

Where Mario Draghi’s €800bn industrial strategy for Europe falls short

The former Italian premier and ECB president’s call for massive EU investment is a wake-up call to Europe’s economic stagnation. But can the contin...

Where Mario Draghi’s €800bn industrial strategy for Europe falls short

The former Italian premier and ECB president’s call for massive EU investment is a wake-up call to Europe’s economic stagnation. But can the contin...

Embedding responsible innovation in corporate strategy

Innovation is a core element in the business toolbox. A new framework is helping corporate leaders integrate social sustainability in their innovat...

Innovation Sustainability Strategy

By Bala Mulloth, Jill Kickul and Tatiana Iakovleva

in I by IMD

9 September 2024

Article

Generational wealth: Embracing "Lotus" model for family business succession

There is a Chinese saying that wealth does not last beyond three generations, and the reality is that sustaining family businesses is a significant...

Family Business Strategy Organizational Design

By Marleen Dieleman

in The Edge Malaysia

5 September 2024

Video

Embracing circularity - Long-term profitability

Julia Binder and Manuel Braun delve into why a circular approach to business can help build more resilience and boost profitability.

Strategy

By Julia Binder and Manuel Braun

in I by IMD

Video

Embracing circularity - Long-term profitability

Julia Binder and Manuel Braun delve into why a circular approach to business can help build more resilience and boost profitability.

Strategy

By Julia Binder and Manuel Braun

in I by IMD

Article

Abstract thinking: how artworks can sharpen decision-making

Peter Lorange explains how artworks support his decision-making process and can also help new businesses thrive.

Decision Making Strategy

By Peter Lorange

in I by IMD

Article

How a new approach to demand planning can redefine success

Demand Planning Key Performance Indicators (KPIs) are frequently criticized for being too complex or irrelevant. However, an emerging approach is g...

Strategy

By Ralf W. Seifert, Richard Markoff and Matthew Spooner

in I by IMD

Article

How a new approach to demand planning can redefine success

Demand Planning Key Performance Indicators (KPIs) are frequently criticized for being too complex or irrelevant. However, an emerging approach is g...

Strategy Supply Chain

By Ralf W. Seifert, Richard Markoff and Matthew Spooner

in I by IMD

5 August 2024

Embedding responsible innovation in corporate strategy

By Bala Mulloth Jill Kickul and Tatiana Iakovleva
in I by IMD 9 September 2024

Summary

Innovation is a core element in the business toolbox. A new framework is helping corporate leaders integrate social sustainability in their innovat...

Contact

Research Information & Knowledge Hub for additional information on IMD publications