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Nestle HRM and SWOT analysis

Feb 21, 2017

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Arslan Anjum
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Page 1: Nestle HRM and SWOT analysis
Page 2: Nestle HRM and SWOT analysis

NESTLE PRESENTATION

Page 3: Nestle HRM and SWOT analysis

INTRODUCTION• “Nestlé” is a Swiss-German word which means “Little Nest”

which is its trademark.• Nestlé was founded in 1867 by Henri Nestlé in Switzerland. • Today it is the world's largest and most diversified food

Company, and is about twice the size of its nearest competitor in the food and beverages sector.

• Nestlé employee around 250,000 people from more than 70 countries and have factories or operations in almost every country in the world.

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INTRODUCTIONNestlé Principle

• Nestlé is based on the principle of decentralization, which means each country is responsible for the efficient running of its business - including the recruitment of its staff.

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COMPANY PROFILEName Nestlé S.A.LogoIndustries served Food processingGeographic areas served WorldwideHeadquarters SwitzerlandCurrent CEO PeterRevenue 92.2 billionProfit 10.6 billionEmployees 250000

Main CompetitorsUnilever NV, Hershey Foods, Kraft Foods, Cadbury, GROUPE DANONE and many other companies.

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HISTORYThe history of nestle began in Switzerland in 1867 when Henri Nestle, the pharmacist, launched his product Farine Lactee Nestle, a nutritious gruel for children.Merged with the Anglo-Swiss Condensed Milk Company in 1905 Since it began of over 130 years ago, Nestle’s success with product innovations and business acquisitions has turned it into the largest food company in the world. As the years have passed, the Nestle family has grown to include chocolates, soup, coffee, cereals, frozen product, yoghurts, mineral water and other food product. Beginning in the 70s, Nestle has continued to expand its product portfolio to include pet foods.

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HISTORYToday, Nestle markets a great number of product, all with one thing in common: the high quality for which nestle has become renowned the world.

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VISSION STATEMENT

Nestlé’s aim is to meet the various needs of the consumer every day by marketing and selling food of a consistently high quality.

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MISSION STATEMENT

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NESTLE PRODUCT• Baby Foods• Breakfast Cereals• Beverages• Bottled Water• Chocolate• Dairy Products• Pet care• Cosmetics• MILO

• NESTLE Pure Life• CERELAC• MAGGI-2 Minute Noodles• Break Fast Cereals:• Corn Flakes• Honey Gold Flakes• KOKO Crunch• KITKAT• Polo• NESTLE Fruita Vitals

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SWOT ANALYSIS

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STRENGTH

Nestlé’s has much strength. • Their first is that they have a great CEO, Peter.

Peter emphasizes internal growth, meaning he wants to achieve higher volumes by renovating existing products, and innovating new products. His explanation of renovation is that “to just keep pace in the industry, you need to change at least as fast as consumer expectations.

• Strong financial position• it has largest market share• Company always adapt the new technology

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STRENGTH

• Operated factories in 77 countries, a truly global company.• Brand Name• Effective research and develop department

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WEAKNESS• Less consumer research in few areas.• The distribution cost is high as compare to the competition in

the local market.• Entering into markets that are already mature and can give a

tough competition to new entrants.

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OPPORTUNITY• They can also capture the market of home appliances.• Company can open separate stores to eliminate retailer.• They can provide incentives to retailers to increase sales

volume.• Company can enter in ice cream products

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THREATS

• Some markets they are entering already mature.• Global competitors• Increasing prices of raw material• Highly competitive market, multinational companies are very

organized and financially strong

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FUNCTION OF HRM

• Recruitment & Selection• Training and development• Compensation and Benefits• Motivation • Promotion

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RECRUITMENT AND SELECTIONWHAT THEY LOOK FOR:It takes a special sort of person to come and work at Nestlé. That's why, when selecting candidates, they look for a set of interrelated characteristics encompassing three key areas:• Knowledge

• Qualification • Job experience• Achievements

• Personality • They're looking for applicants who are dynamic and

communicative. • People, who can listen, understand and integrate the opinion of

others.

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RECRUITMENT AND SELECTION

• People who can express their ideas clearly, both verbally and on paper.

• They like candidates who show leadership, inspire others, and are self-confident.

• People who have a positive attitude to work and willing to work hard, even under pressure.

• Motivation• They expect their people to be critical and suggest improvements

wherever necessary. • They like people who are motivated themselves & can motivate

others.

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TRAINING & DEVELOPMENT OF EMPLOYEES

• New employees are prepared to gain experience in production, sales and marketing-related activities & other areas of the business.

• Activities include:-• Management Trainee Programmed• Production • Supply chain & information systems • Finance & control• Selling & Purchasing• Communication & Market Research• Employee Nutrition Training

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REWARDS & BENEFITS• To Provide the Health facilities and security.• 25 days' holiday in one Year • Mobile phone on a business need basis • Company bonus scheme • Contributory final salary pension scheme • Childcare vouchers (dependent on salary) • Gym facilities• Pick and drop facility

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MOTIVATION• Employees get Motivation by:-

• Equal Employment Opportunities (EEO)• Job satisfaction• Long-term career development• Superior pay and benefits• The personal growth that comes from experience and

training• External and Internal motivation

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ORGANIZATIONAL CHART       

http://www.edrawsoft.com

Nestle CompanyORGANIZATIONAL STRUCTURE

www.Nestle.com

ChairmanP.Barbeck-letmathe

Business Development Manager

Pharma & cosmetics HR F.Castaner

Corporate communications

R.Ramsauer

CEOP.BulckeCorporate governance

.

D.P FRICK

OperationsJ.Lopez

Finance & controlJ.Singh

Nestle nutritionR.T.Laube

Zone Europe

L.FreixeZone AOA

F.Van Dijk

marketing &salesW.Bauer

e

Nestle watersDJ.J.Harris

R&DW.Bauer

Nestle ProfessionalM.Caira

Zone AfricaL.Cantarell

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CONCLUSION Nestle is a market leader due to different reasons:• It has always maintained the quality of its products.• 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.• Due to its advertisement, Nestle attracts more customers & if

it continues to promote its products and bring all the possible innovational aspects using different product line strategies.

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QUESTION

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Q.1 What is key success factor of nestle?

• Highly development HR Department• Quality product• Understanding of culture, tradition And needs• Very favourable task environment

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Q.2 What type of global business and systems strategy did Nestle adopt? Was this strategy appropriate for Nestle Business model?

Traditionally, Nestle adopted decentralized strategy that allows local organization to manage its own business strategy according to the region. Products and services on sales in different countries were adapted to suit local market conditions.

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