Exhibit 6 Nestlé’s Hybrid Category Management Model
• Dairy SBU
• Ice Cream SBU
• Coffee and
• Food SBU
• PetCare SBU
• Brand equity
and Biscuits SBU
Food and Beverages
Strategic Business Units, Marketing and Sales
Innovation, Technology, R&D
Finance and Control
Zone Asia, Oceania, Africa, Middle East
Pharma and Cosmetics
Managed through Three Geographic Zones
Global Category Management through SBUs
Previously FoodServices; provides solutions to food and beverage professionals
Source: Booz & Company
delineating the decision rights of the various global and local teams to maintain speed in decision making. Define who is responsible for the results of each business, and be careful to ensure that the “ownership” does not get fragmented among various entities.
Establish streamlined processes for coordination between global and local teams.
Align the incentive structure for all teams involved with the chosen P&L accountability model to encourage the behaviors that will strike an optimal balance between global coordination and local flexibility. For example, in a centralized structure, employees should be encouraged to pay special attention to the needs of local markets; in a decentralized structure, employees should be rewarded
for efforts to share information with peers in other units.
If a company’s portfolio includes a diverse set of businesses, all of which may require different models, it should consider clustering them by their status as global, regional, or multiregional brands. Doing so will greatly simplify information flows to and from the local markets.
Booz & Company