1. Prepared by:
1. Abderezak Ali

2. Inside this case
 Executive summary of the
case
 Theory on business
environment
 Introduction to Nestle
 Analysis of the case
 The Incident
 Conclusion
 And recommendation

3. Executive Summary
 The case seeks to examine the Nestle experience with
respect to social media controversy in their facebook
page
 The first section introduces Nestle and some theories
regarding business environment
 The second section builds up on the critical analysis of
the incidents that led to the controversy
 The last section concludes by explaining the lessons
obtained from the case and recommending various
ways on which similar cases can be handled and
adapted

4. Business Environment
 Business Environment: refers to all external forces which
have a bearing on the function of business.
 The business environment poses threats to a firm or
offers immense opportunity for potential market
exploitation
 Business environment can be studied at different sub
categories including
economic, political, technological, natural, global and
sociological

5. Sociological Environment
 It refers to people’s attitude to work and
wealth, role of
family, marriage, religion, race, cast, education,
ethical issues, and social responsiveness of
business
 This case shows the reaction of people to an
organization which seems not responsible for
the environment protection i.e. deforestation.
 So the next slide will tell us about Nestlé

6. Source: Nestlé website
Company origins
 Henri Nestlé, born in 1814, began with developing a
formula for babies whose mothers couldn’t breastfeed
 After a series of acquisitions and merges, a company
emerged by the name Nestlé and Anglo-Swiss Milk
Company in 1905 (Nestlé, n.d.)
 The company expanded rapidly during World War I due
to high demand, even though resources were scarce
 By war's end, the Company had 40 factories, and its
world production had more than doubled since 1914
 Now, Nestlé employees over 280, 000 people and has
a facility in almost every country.

7. Plunging Into Social Media
 Nestlé decided to reach out into the new trend of social
media roughly around the beginning of August 2006
 Their first post on Facebook was:
Nestle I'm on the page as well,
viewing from Vevey .
January 21, 2009 at 3:17am

8. Analysis of The Incident
 On March 17th Greenpeace, an organization devoted to
environmental protection, posted a video on YouTube
in protest of Nestlé 's workings with a company that
was involved in deforestation in Indonesia.
 Nestlé was quick to respond by demanding the video
be taken down since it infringed on copyright laws.
 YouTube complied as it agreed with Nestlé.
 Greenpeace angry at this attempt to stop them they
started attacking Nestlé’s Facebook page

9. For More read http://tinyurl.com/nestlepalmoil.
Analysis of…
 In response Nestlé wrote the following
Nestlé and palmoil: we're concerned. We announced
our commitment to using only Certified
Sustainable Palm Oil by 2015. We have
accelerated investigation of palm oil supplies to
identify any unsustainable palm oil. Given our
uncompromising food safety standards, we have
done this in a deliberate manner as we use palm
oil for food and not soap or other personal care
products.

10. Analysis of…
 This was a good move responding as quickly as they
could but the beginnings of social media misuse
 A Customer Adrian Peters responded
So is it true that you're still buying unsustainable palm
oil as Mr Woolley points out? Also '...by 2015, ' in five
years a lot of irreplaceable forest could be wiped out by
then. Simply put Kit Kats bear no importance to life
compared to ancient endangered forests, which is more
important in reality? Surely you can use other less
damaging oils instead of palm oil. No?
March 17, 2010 at 12:40pm

11. Analysis of…
 Nestlés response
I suppose I could repeat 'as fast as food safety allows‘ and
then you could repeat your post. 2015 is the year that
many industrial users of palm oil are aiming at to have
fully switched to sustainable palm oil.
March 17, 2010 at 1:10pm
 Another customer Dawn Camp wrote
tsk tsk tsk.... state a fact and don't get testy when
it's a business related site
March 17, 2010 at 1:26pm

12. For more read http://tinyurl.com/nestlepalmoil.
Analysis of…
 More and more negative responses and use of an
altered version of Nestlé by customers
 Nestlé wrote the following in response
We welcome all comments, but please don't post using
an altered version of our logo as your profile pic.
And please read our statement to answer many
questions. March 18, 2010 at 8:11pm
 But people still continue using the altered version of
Nestlé logo as their profile photo

13. Analysis of…
 The extreme point of the fiasco was this comment by
Nestlé
To repeat: we welcome your comments, but
please don't post using an altered version of any
of our logos as your profile pic - they will be
deleted.
March 19, 2010 at 2:26am
 The attempt of controlling people’s comments caused a
tremendous uproar.

14. Analysis of…
 The previous postings had gotten around 25 comments
but this one had well over 150 comments within a
matter of hours
 It was this post that Nestlé began deleting the replies
made by the irate people and started arguing directly
with them instead of posting general announcements.
 This resulted in the loss of many customers and a
decrease in the sales of its product aligned with a lot of
bad comments in its facebook, twitter , Youtube and
other accounts

15. Analysis of…
 Nestlé soon realized that they were making matters
worse and about 12 hours after their original post they
made a public apology.
This (deleting logos) was one in a series of
mistakes for which I would like to
apologies. And for being rude. We've
stopped deleting posts, and I have
stopped being rude.
March 19, 2010 at 2:26am

16. Analysis of…
 Nestlé made several posts about their new policies
regarding deforestation and sustainable palm oil plan for
2015.
 People kept posting negative comments but it was now
mixed a little with people commending Nestlé for their
move.
 They next tried writing a letter to Greenpeace to
appease their people but this too was met with great
resistance
 Finally, they attempted to go back to their routine post
on their activities abroad.

17. Conclusion
 Admit mistakes on time: If there is a problem and you
know it, you might as well as readily admit to it.
 NEVER be condescending towards a commenter:
don’t try to give lectures to commenter's
 You don’t make the rules in social media: Accept that
by choosing the medium, you choose to talk to the consumer as
an equal.
 Always have a plan: Having a crisis management plan in
place that can be deployed online at the first hint of trouble is of
utmost importance.

18. Recommendation
 To have somewhat loosely structured rules, as
guidelines for the employees that were responding to
people’s comments
 To expect both positive and negative comment
 To use a media that better suits with needs
 Diverting the attention of customers was a good move
by Nestlé to settle such kind of social fiasco
 To control their own responses in future so as to
prevent another fiasco.

19. Questions??
The group welcomes any
 suggestions,
 questions