Corporate Governance AnalysisExecutive Summary A company or an organization traditionally participates in the mobilization of resources to contribute to productivity with the objective of attaining wealth creation and other benefits to the stakeholders. For that reason, appropriate corporate governance is required to protect and improve shareholders’ interests through strategic operations and management of all the resources. This paper outlines corporate governance as exhibited in Samsung Electronics (South Korea), Nestle (Switzerland), and Singapore Airlines (Singapore). An analysis has been done on the companies’ background, their corporate governance practices, challenges and the response to the challenge.
From the analysis, it was evident that the main objective of these companies is to build customer confidence and meet their different needs. Nestle (Switzerland) Company AnalysisNestle is a Switzerland- based company that was formed as a result f a 1905 merger between two companies: Henri Nestle (1867) and Anglo- Swiss (1886). The company has engaged in effective marketing strategies, vast sales and immense distribution network across the globe to ensure availability of the products to customers irrespective of their location. The company provides a wide range of food products and services and the brand has focused on the provision of products and services that meet the needs of customers in different parts of the world.
It is a company that recognizes culture and the need for quality of life of people wherever they are. Nestle is a company committed to excellence and provision of value and services to its clients (Onkvisit, 2004). Company Background Nestle is a company that traces its history to 1866, the year when the first condensed milk company was open in Switzerland, Cham.
In 1867, the founder of Nestle, Henri Nestle (German pharmacist) launched ‘Farine lactee’ (mixture of cow’s milk, sugar and wheat flour) as he was saving the life of a child in the neighborhood in Vevey, Switzerland. From that time, Nestle Company was formed and its cornerstone became nutrition. The founder of the company used his surname as well as the logotype to define the company in such that; the meaning of his surname was ‘little nest’ and was used to name the company and design its logo.
The symbol of the nest is security, nourishment and family, and the symbol forms the platform for Nestlé’s profile (Nestle-nordic. com, 2012). In 1898, Nestle purchased its first factory out of Switzerland in Viking Melk factory, Norway. In 1905 and in 1929, the company merged with Anglo- Swiss Condensed Milk Company and with Peter- Cailler- Kohler Chocolats Suisses S. A. respectively. The company was able to experience growth especially because of the First World War whereby government contracts increased due to demand for dairy products leading to Nestle production experiencing more than double growth after the war.
In 1938, the company launched the first instant coffee in the world, known as Nescafe. In 1947, the company formed a merger with Alimentana S. A. and the brand was referred to as Maggi. In 1962, Nestle purchased Findus, and in turn, it became the first significant shareholder in 1974 in the Cosmetics Company L’Oreal. In addition, the company bought Alcon- the company that manufactured eye care kits and products- in 1977. The company continued to expand and in 1985, Nestle bought the Food Company Carnation as well.
Three years later, Nestle bought Rowntree Mackintosh, a confectionary company as well as Buitoni- Perugina, a pasta company. There were several other company that Nestle purchased including; Perrier water company in 1992, Spillers pet food company in 1998, and acquired Preparados y Congelados Alimenticios LA- a company that is involved in the production of ready -made frozen foods, refrigerated products, snacks and pizzas. In 2000, Nestle sold Findus brand in all countries with the exception of Switzerland and Italy. Nestle merged with a North American premier pet food company Ralston Purina in 2001 in order to benefit from the differentiated expertise in dry dog food (Nestle-nordic. com, 2012).