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Chapter 5: Developing a Global Vision
1
PART 1—Integrated Case Assignments
Marketing Miscues
Concerns over Sustainability Result in Social Media Disaster for Nestlé
In March 2010, Greenpeace began coordinating environmental activists in a protest over Nestlé’s
alleged purchase of palm oil from an Indonesian company that Greenpeace International claimed
The coordinated efforts of the activists were composed of two major components. Greenpeace
staged a protest outside Nestlé’s headquarters in Switzerland and a mock Kit Kat commercial
Like many companies, Nestlé has a fan page on Facebook to interact with its consumers. The
Facebook fan page is a location that enables dialogue about the company’s brands. Once the
commercial parody hit the social media airwaves, protesters began posting negative comments
Interestingly, it was Nestlé’s response to actions within the social media ecosystem and not the
palm oil issue itself that caused serious problems for the company. Nestlé’s threat to delete
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 5: Developing a Global Vision
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Ultimately, Nestlé’s rules of engagement for social media became a trending topic on Twitter,
which resulted in calls for a boycott of all of Nestlé’s products. The trending occurred because
Nestlé had a social media disaster on its hands. Interestingly, that disaster was due to the way
Nestlé engaged in interactions on Facebook—not because of the fact that it had purchased palm
Sources: Raj Dash, “The Facebook Nestlé Mess: When Social Media Goes Anti-Social,” All
Facebook, March 22, 2010; Rick Broida, “Nestlé’s Facebook Page: How a Company Can Really
Screw up Social Media,” BNET, March 19, 2010,
Open-ended questions
1. How could Nestlé have handled the situation differently? Should the company have
simply shut down its Facebook page?
Most students will agree that the employee in charge of Nestlé’s Facebook fan page really
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 5: Developing a Global Vision
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2. Although the Kit Kat candy bar was at the original heart of the issue, what other
products/companies are owned by Nestlé? Could these products be affected by the Kit
Kat social media fiasco?
Students should be directed to www.nestle.com to identify the product mix at Nestlé—any
of which could have been affected. Product categories and brands are listed below.
Baby foods (Cerelac, Gerber, NaturNes, Nestum)
Bottled water (Nestlé Pure Life, Perrier, Poland Spring, S. Pellegrino)
Cereals (Chocapic, Cini Minis, Cookie Crisp, Estrelitas, Fitness, Nesquik)
Close-ended questions
True/False
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 5: Developing a Global Vision
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1. Until it was accused by Green Peace of deforestation, Nestlé had no prior controversies
surrounding its corporate ethical behavior.
True
False
OBJ: LO-3.2
TOP: AACSB Ethics
KEY: CB&E Model International Perspective
MSC: BLOOMS Level I Knowledge
2. Once accused by Greenpeace, Nestlé chose not to exercise any ethical responsibility.
True
False
OBJ: LO-3.3
TOP: AACSB Ethics
KEY: CB&E Model Strategy
MSC: BLOOMS Level II Comprehension
3. If Nestlé’s supply-chain and/or marketing managers had performed a SWOT analysis of its
supply sources for palm oil, it could have foreseen that Greenpeace might have taken the action
it did.
True
False
OBJ: LO-2.5
TOP: AACSB Analytic
KEY: CB&E Model Strategy
MSC: BLOOMS Level I Knowledge
4. Even if the Twix commercial parody infringed on its copyright, Nestlé should have allowed it
to remain because that would be doing the “right thing”—that is, it would show corporate social
responsibility.
True
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 5: Developing a Global Vision
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False
OBJ: LO-2.5, 3.3
TOP: AACSB Ethics
KEY: CB&E Model Strategy
MSC: BLOOMS Level I Knowledge
Mulple Choice
1. How could Nestlé have better anticipated that its mistake with social media would trigger a
more widespread boycott?
a. By not responding to boycott proponents on Facebook and the like
b. By better training its Facebook monitor
c. Users of social media tend to be opinionated, and so a proper response can be anticipated.
d. By censoring its social media presence
e. All of the above
OBJ: LO-4.3
TOP: AACSB Ethics
KEY: CB&E Model Strategy
MSC: BLOOMS Level II Comprehension
2. Which of the following might have helped Nestlé’s Facebook monitor prevent a public
relations disaster and a damaging boycott?
a. Seeing Facebook posters, even those against Nestlé, as stakeholders and customers
b. A code of ethics to help the moderator in better interacting with Facebook posters
c. A company that supports sustainable resources
d. To have a prepared statement from the chief ethics officer
e. All of the above
OBJ: LO-3.1
TOP: AACSB Ethics
KEY: CB&E Model Strategy
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 5: Developing a Global Vision
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MSC: BLOOMS Level II Comprehension
3. The Nestlé managers who oversee the content and interaction that takes place on its Facebook,
Twitter, and the like should now perform routine __________ to ensure that social media no
longer poses an external threat.
a. marketing analysis
b. removals of controversial postings
c. environmental scanning
d. performance reviews of its monitors
e. surveys of users
OBJ: LO-2.5
TOP: AACSB Ethics
KEY: CB&E Model Strategy
MSC: BLOOMS Level II Comprehension
4. The Natural Marketing Institute has identified a number of trends that are now becoming
American consumer values. Since Twix’s main market is the United States, which trend(s)
should Nestlé consider in both the marketing and production of its candy bars?
a. EcoTechMed
b. meaningful green
c. getting off the grid
d. component lifestyle
e. all of the above
OBJ: LO-4.2
TOP: AACSB Reflective Thinking
KEY: CB&E Model Customer
MSC: BLOOMS Level II Comprehension
5. In purchasing palm oil for its candy bars from a nonsustainable supplier, which level in the
pyramid of corporate responsibility did Nestlé neglect?
a. economic responsibility
b. social responsibility
c. ethical responsibility
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 5: Developing a Global Vision
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d. philanthropic responsibility
e. legal responsibility
OBJ: LO-3.3
TOP: AACSB Ethics
KEY: CB&E Model Strategy
MSC: BLOOMS Level II Comprehension
6. From a marketing standpoint organizational focus, by letting the social media disaster do more
damage to its reputation than selling Twix candy bars, what did Nestlé do right in doing the
wrong thing?
a. Nestlé sought to earn the trust of Twix consumers by changing suppliers.
b. Nestlé gave buyers the facts.
c. Nestlé protected the market share of its Twix brand.
d. Nestlé focused on customer value in regard to keeping Twix’s material costs low.
e. All of the above
OBJ: LO-1.3; 2.1
TOP: AACSB Ethics
KEY: CB&E Model Strategy
MSC: BLOOMS Level II Comprehension
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
