Its dairy products, powdered & liquid beverages, bakeries& cookies and confectionary business verticals are stars due to nestle having a strong hold in these businesses with large product length. Many thanks for your understanding. Unfortunately, you don't own enough credit to see this new org chart. In a classic matrix structure, product divisions and geographical areas have equal status for operating decisions. Organizational Structure An organizational structure defines how job task are formally divided grouped and coordinated. To continue, you can add a name in one of the org charts you recently viewed or test our Premium membership. Nestle Company is a decentralized organization that is organized according to the matrix structure. In the reality, the global matrix structure may … Nestle operates within a global matrix structure. Nestle as a decentralized organization permits to subordinate branches to enjoy a proportionately high-level of independence. BCG Matrix in the Marketing strategy of Nestle – Nestle have 7 business verticals offering health, nutrition and wellness products. In the case of Nestle, Nestle’s Mineral Water and Nestle’s Nescafe Coffee fall in the Star quadrant of the BCG Matrix of Nestle. This matrix structure serves Nestle well. In order to do evaluation, organization selected is Nestle. //Effective organizational function plays an important role in leaving an impact on the organizational structure. Organizational Structure – Nestle follows a matrix structure for its organizational structure. The paper is all about evaluating organizational functions and designs that impacts the organizational structure. A matrix structure is a combination of structures that often takes the form of product and geographical divisions of functional and divisional structures operation in tandem (Managing Projects, Managing People, 2008). Employee has dual reporting relationship generally to both functional manager and product manager. The global matrix structure allows for differentiation along two dimensions: the product division and geographic area. This means that there are many brands that come under the same umbrella group that makes it challenging for managing the enormous administration. An organizational structure named ‘Nestle for the future’ was implemented (Chaudron, 2010). It’s a matrix organizational structure in which the reporting relationship is setup as a matrix, rather than tradition hierarchy. Nestle as a decentralized organization permits to subordinate branches to enjoy a proportionately high-level of independence. This would include many individual brands that would arise in disharmony and conflict of interest. Organizational structure is the formal framework by which jobs tasks are divided, grouped, and coordinated. 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