World War I created a tremendous demand for dairy products in the form of government contracts. Nestlé purchased factories in the United States and production doubled; however, when the war ended the contracts dried up. It became necessary for Nestlé to diversify their product line to include coffee and ironically World War II (WWII) helped speed the introduction of this beverage. The NESCAFÉ beverage became a staple of American servicemen in Europe and Asia (Nestlé.com).

Nestlé entered its most dynamic phase following WWII when for the first time they diversified outside the food industry by becoming a shareholder in L’Oreal one of the world’s leading makers of cosmetics (Nestlé website). They continued to diversify their portfolio by acquiring Alcon Laboratories, Inc., a U.S. manufactur

Nestle (2003, October 16). Nestle:Good food, good life. Core Values. [Internet] Available:

The end result of the Japanese research has placed the United States in a following position instead of a leading one. Domestic companies now have fallen short of meeting customer expectations. However, intense research and gains in this area have been made through the continually changing TQM focus. Such initiatives as Six Sigma and other quality control criteria that are based around continuous improvement is the avenue that was realized.

http://www.nestleusa.com/corporateSite/coreValues/core_values.asp

Wenworth, B. Nestlé ERP Odyssey – An ERP implementation fraught with costly mistakes; hard –won lessons May 15, 2002 Issue of CIO Magazine retrieved from the World Wide Web on October 18, 2003. Available at http://www.cio.com/archive/051502/Nestlé.html

In the end, the new SAP system has allowed Nestlé to reduce inventory and save on supply chain cost. Nestlé learned the hard way that an enterprise wide rollout involves much more than simply installing software. “When you move to SAP, you are changing the way people work …challenging their principles, beliefs and the they have done things for many, many years.” (Dunn, J., CIO Magazine, 2002).

The consumer is the reason for being and the company must understand, and anticipate the best products for the consumer’s needs. The customers have the appreciation and Nestle supports the critical role the customers play in purchasing the Nestle products. There is mutual respect between the company and it’s customers. Nestle appreciates that the customers have come to expect quality products from the world’s largest food company. The performance at Nestle is committed to achieving the financial and strategic objectives while keeping the core values as the number one priority in continuing to bring the best products to market throughout the world.

The result is that Japan is now an ensign for quality. Japanese companies have adopted quality as a governing principle and now perform to the standard of the customer.

Some topics in this essay:
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