Nestle, the Swiss foods conglomerate is as
multinational as a company can be. About 98% of its sales takes
place oversea, and the group’s diversified operations span 150
countries. Nestle’s numerous (and generally wholly owned)
subsidiaries are operationally decentralized. However, finances are
centralized in Vevey, Switzerland. Staffed by only 12 people, the
finance department makes all subsidiary funding decisions, manages
the resulting currency exposures, determines subsidiary dividends
amounts, sets the worldwide
debt/equity structure, and evaluates subsidiary performance.
Nestle’s centralized finance...