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Case Solution for Nestle East and Southern Africa Region Strategic Partnership for Shared Value

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Uploaded on July 14, 2025
Number of pages 21
Written in 2024/2025
Type Case
Professor(s) Mr karen
Grade A+

strategic partnership
shared value
ravi pillay
w32058
case study solution
case solution
case analysis
case study
case answers
nestle east and southern africa region

Institution Case Management
Course Case Management

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NESTLÉ EAST AND SOUTHERN AFRICA REGION: STRATEGIC
PARTNERSHIP FOR SHARED VALUE CASE STUDY SOLUTION

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SYNOPSIS

Nestlé SA (Nestlé), as a multinational company, engaged strategically with societal issues at the local level,
and had tasked Nestlé East and Southern Africa Region (ESAR) with evaluating its shared value initiatives.
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Nestlé ESAR’s chairperson and managing director, Bruno Olierhoek, had to determine whether to take
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forward one of the of the organization’s strategic initiatives, the Makhoba Trust initiative, which had led to
the establishment of Springfontein Dairy—a Black-owned dairy that produced milk for the Nestlé ESAR
value stream. Over the previous few years, Nestlé ESAR had partnered with a boundary agent to bring
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together support from the community for the dairy. The work carried out through this partner had helped
train young people through this period. Navigating the regulatory, business, and socio-political landscape
in South Africa required a great deal of sensitivity; addressing topics such as Broad Based Black Economic
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Empowerment (B-BBEE) was crucial.
Olierhoek believed the model that he and the team had created through the work developing the Makhoba

The Case Solution Starts From page 7

,ASSIGNMENT QUESTIONS

1. Does Nestlé appear to respond from a shareholder or stakeholder perspective to social issues?
2. Analyze the case against the principles of partnership and shared value.
a. Is the initiative a good example of a partnership?
b. Is the initiative a good example of shared value?
3. Based on your analysis above and stepping into Olierhoek’s shoes, was the initiative worthy of more
investment?

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The Case Solution Starts From page 7

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3.

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Based on your analysis above and stepping into Olierhoek’s shoes, was the initiative worthy
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of more investment?
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The substantive social impacts with a limited budget should motivate further investment along the lines of
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the 2019 budget. The project contributes materially to the community, it helped Nestlé with the B-BBEE
scorecard, and the ongoing investment supports the largest Black-owned dairy in Nestlé’s supply chain in
South Africa.
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However, in terms of expanding investment, this would depend on the students’ views on how change can
happen in the wider Southern African landscape with regard to community-owned farms.
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The authors’ views are that this is an exemplary partnership in terms of the buy-in from the community, the
excellent community leadership (through Chief Makhoba), and the appointment of a skilled intermediary

The Case Solution Starts From page 7

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EXHIBIT -2: NESTLÉ AS STAKEHOLDER VERSUS NESTLÉ AS SHAREHOLDER

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Nestlé Stakeholder View

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Nestlé’s philosophy for service and growth included diversity and inclusion.
Where possible, Nestlé sourced supplies of ingredients from local farms and suppliers.
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• Targets had been set.
• Bruno Olierhoek had learned that Nestlé had an ethic for developing and partnering.
• Nestlé aimed to create value for all stakeholders.
• Nestlé had programs in place to achieve stakeholder value globally.
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Nestlé Shareholder View
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The Case Solution Starts From page 7

, EXHIBIT -4: GOOD EXAMPLE OF A PARTNERSHIP?

YES NO/QUESTIONS
Appears to be trust and good relationships—at least viewed The voices of community members and the
from the Nestlé side and Olierhoek’s viewpoint—for Makhoba Chief are not present in the case. What
example, the intention for dialogue and a partnership “rooted might they say?
in understanding the perspectives of others and developing
a ‘win‒win’ strategy”

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The Case Solution Starts From page 7

, EXHIBIT -6: SOCIAL BENEFITS VERSUS BUSINESS BENEFITS (SHARED VALUE)

Investment Outcomes and Costs
Item Cost/Number Note
Initial production 2008 onwards 292,000 Based on 800 L a day
Multiple increases in production between 14 Multiple increase
2008 and 2018
2

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The Case Solution Starts From page 7

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