Nestle Case Study

INTRODUCTION TO BUSINESSWP 123

ANALYSIS OF NESTLE CASE STUDY

HISTORY

Henri Nestlé established Nestlé in 1867 in Switzerland

His first product was lactogen formula for infants by the name “Farine Lacteé”

“Nestlé” is a Swiss-German word which means “Little Nest” which is its trademark

Nestlé is the worlds’ number one food company

5th largest company of the world according to its turn over

NESTLE IN MALAYSIA• Nestlé's commitment to providing quality products to

Malaysians dates back almost 100 years ago.

• Nestlé began in Malaysia in 1912 as the Anglo-Swiss Condensed Milk Company in Penang and later, growth and

expansion made a move to Kuala Lumpur necessary in 1939.

• Since 1962, with its first factory in Petaling Jaya, Nestlé Malaysia now manufactures its products in 7 factories and

operates from its head office in Mutiara Damansara.

MISSION STATEMENT

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

food company”.

Baby FoodsBreakfast CerealsBeveragesBottled WaterChocolate & ConfectioneryDairy ProductsFood ServicesIce CreamPrepared FoodsPetcarePharmaceuticalsCosmetics

• NESTLE PRODUCTS

ORGANIZATIONAL STRUCTURE Organizational chart clearly indicates the, responsibilities, authorities and accountability for each function.

Nestle is practicing functional structure.

Employees in the organization has clearly written job description according to the designation.

When delegations occurs, agreement is written with the mutual understanding.

FUNCTIONAL STRUCTURE

Functional organization is a common type of organizational structure in which the organization is grouped based on specialization by functional areas.

Some argue that functional departmentalization allows for greater operational efficiencies in that employees with shared skills and knowledge are grouped together by functions performed.

MANAGEMENT PROCESS

PLANNING ORGANIZING CONTROLLINGLEADING

•Recognition• R&D• Plan

•Formulation• Estimation

• People• Process• Situation

• Decentralized•People oriented• Motivating

activities

•Comparing of Manufactured

products

FAYOL’S ADMINISTRATIVE

MANAGEMENT FUNCTIONS Nestle adapt Fayol’s management process style.

Fayol was one of the most influential contributors to modern concepts of management, having proposed that there are five primary functions of management: (1) planning, (2) organizing, (3) commanding, (4) coordinating, and (5) controlling (Fayol, 1949, 1987).

Controlling is described in the sense that a manager must receive feedback on a process in order to make necessary adjustments.

Many of today’s management have reduced the five functions to four: (1) planning, (2) organizing, (3) leading, and (4) controlling.

Cont…

LEADERSHIP PRINCIPLES

Nestle practices “DEMOCRATIC LEADERSHIP

STYLE”

For taking any advice and decision Nestle

depends on its employees.

Nestle motto is:

"Teamwork with responsible leadership".

Nestlé is people & product oriented.

As decentralized as possible.

MOTIVATIONEmployees get Motivation by:-

Immediate job satisfaction Long-term career developmentSuperior pay and benefitsThe personal growth that comes from

experience and trainingMaterialistic as well as internal

motivationMotivated by Rewards & Benefits

REWARDS & BENEFITS

Health screening/on-site occupational health facilities Sick pay 25 days' holiday Mobile phone on a business need basis Company bonus scheme Contributory final salary pension scheme Childcare vouchers (dependent on salary) Gym facilities at larger sites Staff shop at most sites Flex time at some sites

COMMUNICATION

Nestle established internal and external communication channels.

Employees are free to communicate to any authority. There is no particular established channel.

Authorities are bound to listen to the employees.

THANK YOU

DONE BY :

KHANSA MAISARAH BT JAMALUDIN