IIPM Ranked No. 1 B-School In Global Exposre - Zee...
Tagged as a ‘lucid leader’, he stresses on substance over style. And for him, ‘discipline’ defines ultimate success...
He was born during World War II and in the turbulent economic times that followed, his only playground remained the surrounding Alps.... And while many of his age around the world grew up on sweet music, the only sounds he would recall as an infant, are that of thundering bombshells.... But this infant christened ‘Peter Brabeck-Lethmathe’ survived through it all and today has managed to guide Nestlé through turbulent times to become one of the largest names in FMCG industry – its Mcap touching a gargantuan $179.9 billion (as on October 1, 2007), having grown by a mind-boggling 439.75% since he became Nestlé’s global CEO in 1997!
Brabeck, a master in six languages, joined Nestlé as an ice cream salesman in 1968 and thereon served on various regional posts in Africa & Latin America. Throughout his 39 years at Nestlé, he followed a localised strategy, allowing various regional units to raise production while shutting-down many factories & chopping-off 6,000 brands from Nestlé’s book, as he admits, “My actions may sound slow in Silicon Valley, but they are fast for a company with factories in more than 80 countries and products that are sold in every country in the world!” And indeed today, Nestlé’s share prices, which have appreciated by a heart-stopping 77% to touch $448.46 (as on September 28, 2007) over just the past half-a-decade testify that his indomitable, yet incremental approach to decision-making has worked magic!
Born on November 13, 1944 in Villach, Austria, Brabeck is married with three children. A graduate in Economics from the University of World Trade in Vienna, he joined Findus, a subsidiary of Nestlé in 1968. He was sent to Chile in 1972, where he met Castro, who also introduced him to cigars! Three years later, he was again sent to Chile – but this time as the Director of Marketing for Nestlé! Sure enough, he’d learnt (to climb) fast!
During Brabeck’s tenure as CEO, Nestlé closed 156 factories globally and added 183 new ones. He has constantly put more emphasis on Nestlé’s few highly profitable global brands – including Nescafé & Nestlé – which account for 70% of total sales. And all thanks to him, today, Nestlé is a behemoth with an annual turnover of $84.42 billion (during FY 2006) with improved proft margins of 12.99% during FY 2006 (as compared to just 9.5% in 1997). Brabeck is particularly known for his string of acquisitions – including the $10.3 billion takeover of Ralston Purina pet foods and Chef America, the leading maker of frozen snacks in the US for $2.6 billion in 2001, Delta Ice-cream S.A. for $290 million in January 2006 et al – shelling out more than $25 billion during the past decade. All these for him has been a challenge as he accepts, “Nestlé’s big challenge is that we had to learn how to get operational efficiency with a relatively complex business structure. But then, this is what I think real management is all about....” Re-structuring for the sake of cost-cuts have also been on top of his agenda as he got rid of less-profitable ventures such as Nestlé’s European frozen-food, tomato-processing and Italian-meats et al, and over the years saved upto $4 billion through a multifarious project known as GLOBE.
During his reign, many complained about Nestlés volatile stocks. When asked for a justification, Brabeck shot back, “If I had run the company based on opinion of financial analysts, it would already have been bankrupt!” Sure enough, he dared to tread on, where none dared to tread... but as he calls it a day in April 2008, none can deny that this World War II baby proved himself a true soldier & a ‘priceless’ Nestlé product... since the war and well into the next millennium!
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
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ZEE BUSINESS BEST B SCHOOL SURVEY
IIPM to come up at Rajarhat
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
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IIPM Ranked No1 B-School in India
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» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
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IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
Tagged as a ‘lucid leader’, he stresses on substance over style. And for him, ‘discipline’ defines ultimate success...
He was born during World War II and in the turbulent economic times that followed, his only playground remained the surrounding Alps.... And while many of his age around the world grew up on sweet music, the only sounds he would recall as an infant, are that of thundering bombshells.... But this infant christened ‘Peter Brabeck-Lethmathe’ survived through it all and today has managed to guide Nestlé through turbulent times to become one of the largest names in FMCG industry – its Mcap touching a gargantuan $179.9 billion (as on October 1, 2007), having grown by a mind-boggling 439.75% since he became Nestlé’s global CEO in 1997!Brabeck, a master in six languages, joined Nestlé as an ice cream salesman in 1968 and thereon served on various regional posts in Africa & Latin America. Throughout his 39 years at Nestlé, he followed a localised strategy, allowing various regional units to raise production while shutting-down many factories & chopping-off 6,000 brands from Nestlé’s book, as he admits, “My actions may sound slow in Silicon Valley, but they are fast for a company with factories in more than 80 countries and products that are sold in every country in the world!” And indeed today, Nestlé’s share prices, which have appreciated by a heart-stopping 77% to touch $448.46 (as on September 28, 2007) over just the past half-a-decade testify that his indomitable, yet incremental approach to decision-making has worked magic!
Born on November 13, 1944 in Villach, Austria, Brabeck is married with three children. A graduate in Economics from the University of World Trade in Vienna, he joined Findus, a subsidiary of Nestlé in 1968. He was sent to Chile in 1972, where he met Castro, who also introduced him to cigars! Three years later, he was again sent to Chile – but this time as the Director of Marketing for Nestlé! Sure enough, he’d learnt (to climb) fast!
During Brabeck’s tenure as CEO, Nestlé closed 156 factories globally and added 183 new ones. He has constantly put more emphasis on Nestlé’s few highly profitable global brands – including Nescafé & Nestlé – which account for 70% of total sales. And all thanks to him, today, Nestlé is a behemoth with an annual turnover of $84.42 billion (during FY 2006) with improved proft margins of 12.99% during FY 2006 (as compared to just 9.5% in 1997). Brabeck is particularly known for his string of acquisitions – including the $10.3 billion takeover of Ralston Purina pet foods and Chef America, the leading maker of frozen snacks in the US for $2.6 billion in 2001, Delta Ice-cream S.A. for $290 million in January 2006 et al – shelling out more than $25 billion during the past decade. All these for him has been a challenge as he accepts, “Nestlé’s big challenge is that we had to learn how to get operational efficiency with a relatively complex business structure. But then, this is what I think real management is all about....” Re-structuring for the sake of cost-cuts have also been on top of his agenda as he got rid of less-profitable ventures such as Nestlé’s European frozen-food, tomato-processing and Italian-meats et al, and over the years saved upto $4 billion through a multifarious project known as GLOBE.
During his reign, many complained about Nestlés volatile stocks. When asked for a justification, Brabeck shot back, “If I had run the company based on opinion of financial analysts, it would already have been bankrupt!” Sure enough, he dared to tread on, where none dared to tread... but as he calls it a day in April 2008, none can deny that this World War II baby proved himself a true soldier & a ‘priceless’ Nestlé product... since the war and well into the next millennium!
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
ZEE BUSINESS BEST B SCHOOL SURVEY
IIPM to come up at Rajarhat
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
