IN PRACTICE: GLOBAL SUCCESS STORIES
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the appeal of its products locally. Brands not known in Europe
or North America are mainstays in Asia, like Milo, a milk-based
chocolate drink. In many cases NestlŽ
e markets identical products
under different names in different regions.
» Most large companies, particularly those selling to consumers,
are subject to intense public scrutiny by pressure groups, partic-
ularly in the developed world but increasingly also in LDCs.
The days when such groups could be dismissed as radical
extremists are long gone. Public attitudes have changed on
many issues over the last few decades. Problems of LDC devel-
opment, globalization, energy conservation, environmentalism,
``green'' and genetically-modified food, product labeling, and so
on are everyday topics of discussion in the media and are impor-
tant factors in government policy-making. They have profound
effects on the way large companies do business. Like other firms,
NestlŽ
e has to respond to these issues, and actively participates
in the process, publishing detailed information on its efforts at
environmental conservation and adhering to a wide range of
international codes of business practice.
» NestlŽ
e has occasionally been accused of ``going slow'' on reform.
It is hard to see how any large corporation could do otherwise.
The challenge is how to continue to grow in a highly competitive
business while acceding to the newer ideas on sustainable LDC
development. Like Ford, NestlŽ
e faces widely differing consumer
demands and regulatory requirements across the world, and any
change to packaging, product contents, or marketing strategy
requires considerable expenditure of resources.
» The company's sales of breast milk substitutes in LDCs is said
to have declined, although the precise details are not known.
In a 1988 interview, a company spokesman was reported as
saying ``infant formula in developing countries is now less than
1 percent of our consolidated sales. It would be very easy simply
to drop this matter, be rid of the controversy. Why don't we do
it? Because we believe we fulfill a need.''
