NESTLE

B YA I S H A T A H I R

Pesented by: WINX Club

Introduction:o Nestle is the largest food company in the

world. This company based in Switzerland-Europe.

o Nestle was first created in Angelo-Swiss. o In the 1860’s, Henri Nestle, a pharmacist,

launched world’s first prepared infant cereals “Farine Lactee” in Vevey Switzerland.

o In early 1906, the company was operating factories in the United States, Britain, Germany and Spain.

o In 1905, nestle merged with the Angelo-Swiss condensed milk company.

o Six world-wide corporate brands, Nestle, Nescafe, Nesvita, Maggie, Buitoni, Friskies.

o In 2006 Nestlé's sales, at $80billion, accounted for 1.5% of the total global food market

VISION “To be a leading, competitive, Nutrition, Health and Wellness Company delivering improved shareholder value by being a preferred corporate citizen preferred employer preferred supplier selling preferred products”

"Nestlé is the largest food company in the world. But, more important to them is to be the world's

leading food company”.

GOALS AND OBJCTIVES

To achieve compatibility with international voluntary standards on environmental management systems.

To build mutual trust with consumers, governmental authorities and business partners.

To ensure continuous improvement of nestles environmental performance.

Conservation of natural resources and minimization of waste.

To establish the benchmark for good business practice. Employing new technologies and processing. Measuring the cost and benefits to business of it’s

activities. Monitor progress. Audit results.

CULTURE OF NESTLE

o Energetic and collaborative working environment.

o People influence the business through their skills and knowledge.

o Nestle want from its employees to bring your dedication, determination and great ideas to the table.

o There is enthusiastic team behind ideas.o Accept challenges.

VALUES Integrity coupled with a strong work ethic The desire to do quality work Friendly, open and honest communication A spirit of cooperation and openness to other ideas

and opinions A realistic approach to business An openness to future trends and new business

opportunities Pride in enhancing our company’s reputation and

performance A passion for our products and brands 

PERFORMANCE CULTURE

A high performance culture supported by differentiated rewards. key to the delivery of individual and business objectives. challenging responsibilities and priorities . ensuring that employees are aware of how their work impacts

Nestlé. most important factor in determining your opportunities within

Nestlé. If you’re keen to take on new and bigger responsibilities, you

have to show that you’re able to do so. We should stress the words 'strongly' and 'consistently‘. At Nestlé, the end and means are equally important.

VERTICAL STRUCTURE

Chairman

CEO

Corporate Governance

Corporate Communications

Pharma & Cosmetics HR

Operations Finance & Control

Marketing & Sales

Innovation technology & R&D

Nestle nutrition Nestle waters Nestle professional

Zone EUR:Europe Zone AOA Asia/Africa Zone AMS : Americans

ELEMENTS IN VERTICAL ORGANIZATION

1. Chain of command

Employees and management are connected by the chain of command.

Defines who report to whom. In nestle there is a leadership team on top

level management and under the leadership team middle and junior level management work under their supervision.

DELEGATION OF AUTHORITIES

Top positions management cannot personally perform all the tasks needed to achieve their goals, they must use the chain of command to distribute authority among their organizational members to ensure that the work is completed.

THREE LAYER STRUCTURE

Junior Middle Top

Leadership team Top Management

(Work under Middle management

Leadership Junior Management

Team)

CENTRALIZED

Extremely centralized organization. Nestlé community as a centralized

organization allows its subordinates to enjoy a relatively high-altitude of autonomy.

Makes major strategy decisions at the headquarter level.

Business with the matrix structure in Nestle.

Span of management

Span of management refers to the number of people who report directly to each manager. As nestle is a centralized organization so, span of management is a key determinant how closely managers can interact with and supervise their employees.

Wide Tall Structure Span of management

Formalization

Formalization is the use of written documents to systematize, link, and control the activities of organization members. As nestle follow its policies strictly and there is complete security system that’s why it is highly formalized.

Work Specialization

Every product category has its own infrastructure of management.

Relevant specialized people are working in the relevant department so, there is also exist the principle of work specialization.

INFRASTRUCTURE OF MANAGEMENTBusiness Unit

 Supply Chain

Technical Department

Raw material

Procurement Distribution

Production Operation Processing

Finance Department

Budgeting Costing

Human Resource DepartmentAppoint members

Nestle Corporate Business Principles

1. Consumers

o Nutrition, Health and Wellnesso Quality assurance and product safetyo Consumer communication

  2. Human rights and labour

practices

o Human rights in our business activities

3. Our people

o Leadership and personal responsibilityo Safety and health at work

4. Suppliers and customers

o Supplier and customer relationso Agriculture and rural development

5. The environment

o Environmental sustainabilityo Water

Production Division

Human Resource Division

Marketing Division

Finance Division

Milk Collection Division

Quality Assurance Department 

Brand Wise Production Department 

Packaging Department 

Personnel Department 

Treasury Department 

Accounts Department 

Agricultural Services Department 

Logistic Department 

Customer Relation Department 

Sales Department 

Distribution Department 

Research & Development Department 

DEPARTMENTS IN NESTLE

Pakistan

Syria

Thailand

Uzbekistan

Philippines

Bangladesh

Hong Kong

Indonesia

Israel

Jordan

Kuwait

Malaysia Singapore

Saudi Arabia Sri Lanka Taiwan United Arab Emirates Vietnam Republic of Korea China India Iran Japan Kazakhstan Lebanon

PRODUCT DEFINITION

Nestle, a multinational company has acquired & merged with various companies.

Factors behind its success are multifarious, quality, improved technology, innovation which have created brand loyalty amongst its customers.

SBU’s like Pharmacy, Breakfast Cereals and Cosmetics, Ice cream, Frozen Foods, Sauces.

BRANDS

Quality and nutritional value are the essential ingredients in all of its brands.

Millions of people prefer Nestlé products every day, happy with the addition to their wellness that they bring.

Today Nestlé is present in different markets with the following main brands:-

o Baby Foodso Breakfast Cerealso Beverageso Bottled Watero Chocolate & Confectioneryo Dairy Productso Food Serviceso Ice Creamo Prepared Foodso Pet careo Pharmaceuticalso Cosmetics

BABY FOODS

o Infant nutrition Nestlé,o Lactogen, o Nestogen, o Cerelac, o Neslac,o Nido etc…

BREAKFAST CEREALS

o Golden Nuggets o Nesquik o Nestlé Fitnesso Shreddieso Trixo Cookie Crispo Chocapic

BEVERAGES

o Caroo Juicy Juiceo Miloo Nesquik Nespressoo Bonkao Loumidis o Fruity fruitso Nestlé fruit juices

o Nesteao Nesquik o Miloo Carnationo Nidoo Nestlé Omega Pluso Coffee-Mate etc..

BOTTLED WATER

o Nestlé Pure Lifeo Nestlé Aquarelo Contrexo Acqua Pannao Ice Mountaino Arrowhead Watero Ozarka etc..

CHOCOLATE & CONFECTIONERY

o Chocolate confectionery and biscuits o Nestléo Cruncho Galak / Milky baro Kit Kato Butterfingero Poloo Butter-Mentholo Ceramal

DAIRY PRODUCTS

o Nidoo Nespray o Carnation

FOOD SERVICES

o Food Services and professional products Chef

o Davigelo Minor’s Petcare Purinao Friskieso Fancy Feast, Alpo,

Gourmet etc..

ICE CREAM

o Drumsticko Extremeo Megao Mövenpick Ice Creamo Dreyer'so Sin Parar / Semo Parar/Non Stop

PREPARED FOOD

o Lean Cuisineo Hot Pockets o Maggi o Refrigerated

products (cold meat products, dough, pasta, pizzas, sauces, snacks) etc..

PET CARE

o Friskieso Fancy Feasto Dog Chowo Cat Chowo Tidy cats etc..

PHARMACEUTICALS

o Alcono Pharmaceutical and cosmetic

joint ventures Galdermao Laboratoires innéov o Patanol

o L’Oréal

COSMETICS

Nestle in PakistanCORPORATE STRUCTURE

Head Office Factories Regional Offices

LahoreKabiranwala Shiekhupura

Karachi

Hydarabad

Sakhar

Lahore

Multan

Queeta

Peshawar

Faisalabad

Islamabad

Gujranwala

Products in Pakistan

There are more than 4000 products in Pakistan.There are different products produce under each head.

Chill Dairy Juices Nestle Nutrition Ambient Dairy Nestle Professional Nestle Water etc…

New product development activities

In order to get long term success, marketing division perform following activities for new product development:

Primary product Quality test Market test Feed back Modification Commercialization (launching)

M a s o o m a I s h a q

STRENGH:

World reputed and recognized Modern operation facilities

World largest processed food and beverages companY

Strong financial position Presence in almost every country

WEAKNESSES:

Total packaging depends upon Packages (Pvt.) limited

Having complex supply chain managementNo single its own dairy form

OPPORTUNITIES:

Potential to expand to smaller towns and other geographies

Has the option to expand its product folio

E-Commerce

THREATS:

High prices and lower purchasing power of people

In few products facing fierce competition

Pakistan politics structure is very instable Depressing economic activities

SWOT Analysis

PROBLEMSSUGGESTIONS /

SOLUTIONSCONCLUSION

PROBLEMS

High market share Low growth Want to expand Don’t have enough resources Employees are demotivated due to low

salaries in HR department Unstable Govt. policies

SOLUTIONS/SUGGESTIONS

Bonus packages and increment in salaries Staff should be made more responsible Long term agreements Inventory should be maintained. Cut investment budgets, overheads, frills Maximizing existing assets, capacity,

distribution Target internal growth rate Improve supply chain, productivity, optimizing

planning

Nestle is a market leader due to different reasons:

Its price is high against its competitors but it matches its quality with its competitors.

Nestle is using its brand name to promote its products & it’s very popular as compared to its competitors.

Its packaging is good. We can easily find Nestle from any retailer shop.

References

• www.nestle.com• Nestlé centralises expertise in system technology

| Nestlé Global• Nestlé - Wikipedia, the free encyclopedia• Customer and Sales | Nestlé Global• Big Data-Startups | How Nestlé Understands

Brands