in 1970, nestle the swiss based MNC manufacturer and distributor of food and beverage products was accused of hooking mothers of Africa onto the use of infant formula-powered milk for their babies rather than mothers' milk. given the powder had to be mixed with water and African water was impure many babies died. so,the sales and product executives in Switzerland were not aware that the infant powered milk was being mis-sold and mis-represented leading to dead African babies. is it fair to say that nestle made significant and profound changes to its governance structure after this event.

a) explain what was lacking in the Nestle Africa business. Dis they make an unsafe product to meet a need which did not really exist?

b) consider whether nestle was responsible for setting up a standalone subsidiary in Africa with little oversight. Define what would consider to be a more appropriate structure. think of the need for strong product support from a well-resourced head office.