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Project Report on Nestle

Oct 26, 2014





Syed Ali Hadi Raza Zaidi-13604 Syed Bilal Ahmed-11971 Umair Mahmood-13559 Sharik Mahmood-13058 Usama Salam-13684

Table of ContentAcknowledgement..3 Executive Summary....4 Introduction.....5 History.....7 Product & Services..8 Mission & Vision Statement....9 Board of Directors..10 Organizational Structure of Pakistan..11 Global Sales Structure.......12 Organization Structure......13 Management Committee.14 Registered & Corporate Office............................................................................15 OB Practices in Nestle....16 OB of Nestle....19 Ob of Individuals.20 Organizational Culture of Nestle..21 Hiring & Training Programs..23 Power, Politices & Learning...24 Teams, Groups & Conflict Management.....25 Code of Conduct..26 Analysis.....27 Recommendations292

AcknowledgementWe are heartily thankful to our course facilitator Mr. Shafqat Ullah whose encouragement, guidance and support from the initial to the final level enabled us to develop an understanding of the subject and helped us in the completion of this report.

Syed Ali Hadi Raza Zaidi-13604 Syed Bilal Ahmed-11971 Umair Mahmood-13559 Sharik Mahmood-13058 Usama Salam-13684


Executive SummaryThis report is on the organizational structure of Nestl Pakistan. It starts with an introduction about Nestl followed by the history of Nestl. It gives a briefing about all the products offered by Nestl. This report also includes the management committee. The report shows an internal architecture of the working of the Nestl confectionary business. It includes the organizational behavior practices which define the communication style and the culture. It also defines the behavior of individuals and about the group in general. The objectives and policies of the organization are also stated along with the practices.


INTRODUCTIONNestl Pakistan Ltd is a subsidiary of Nestl S.A. - a company of Swiss origin headquartered in Vevey, Switzerland. It is a food processing company, listed on the Karachi and Lahore stock exchanges and operating in Pakistan since 1988 started as a joint venture with Milk Pak Ltd. and took over the management in 1992. For ten years in a row, the company has won a place among the top 25 companies of the Karachi Stock Exchange. Headquartered in Lahore, the Company operates four production facilities. Two of its factories in Sheikhupura and Kabirwala are multi product factories. One factory in Islamabad and one in Karachi produce bottled water. Through its effective marketing and a vast sales and distribution network throughout the country, it ensures that its products are made available to consumers throughout the country. Nestl Pakistan has large operations with multi-dimension areas but people, quality products and brands are the main flag bearers of the companys image. Nestl Pakistan now operates the biggest milk collection operation in Pakistan, Currently, Nestl Pakistan collects milk from an estimated 190,000 farmers spread over 146,000 sq Kms in the province of Punjab and Sindh. Nestl believes in creating shared value and is committed to the communities it works and lives with. In Pakistan, the company is working closely with communities in areas related to Nutrition, Water and Rural Development, and continues to enhance the quality of life of people through out its value chain. Nestl Pakistan today is the leading Food & Beverage Company in Pakistan with a key focus on Nutrition, Health and Wellness and reaching the remotest of locations throughout Pakistan to serve the consumers. Nestl Pakistan prides itself in being the leader in Nutrition, Health & Wellness. Ever since 1867, when Henri Nestl invented the first infant food, nutrition has been in their DNA. Today more and more consumers mirror our emphasis on nutrition, as they realize that food choices affect their health and quality of life. The companys strategy is guided by Nestls Corporate Business Principles which are in line with internationally accepted best practices and ethical


performance culture. The Companys priority is to bring the best and most relevant products to people, wherever they are, whatever their needs are, and for all age groups. Nestl is not a faceless corporation catering to faceless consumers, but is a human company providing a response to individual human needs. It respects the cultures of the countries and is committed to make a contribution to the quality of life of people. In line with Nestls global philosophy, Nestl Pakistan is proud of its commitment to excellence in product safety and quality and to providing value and services to its consumers. As a socially responsible corporate, we always focus on environment friendly operations, ethical business practices and our responsibility towards the communities.


History1912-Nestl begins its long relationship with South Asia when the Nestl Angle-Swiss Condensed Milk Company starts importing and selling finished products in the Indian market. 1979-MILKPAK Ltd. is founded by Syed Babar Ali. It manufactures UHT milk, cream and butter, as well as fruit juices. 1981-Production of long shelf-life UHT milk begins at MILKPAK Ltd.'s Sheikhupura factory. 1988-Nestl SA acquires a 40 percent share in MILKPAK Ltd. 1990-The Sheikhupura factory starts the production of NESTL NIDO milk powder and cereals. A new plant is acquired at Kabirwala in the Punjab. 1992-Nestl takes over the running of the company and begins to develop its milk collection network. A Maggi Noodles plant is installed at the Kabirwala factory. 1996-MILKPAK Ltd. is renamed Nestl Milkpak Ltd. 1997-The Kabirwala plant becomes a fully owned unit of Nestl Pakistan Ltd. 1998-NESTL PURE LIFE bottled water is premiered in Pakistan. Within a few years it becomes one of the world's leading brands of bottled water. Meanwhile, Nestl milk collection system in the Punjab matures and the company is able to buy all its milk from farmers instead of relying on contractors. 2001-Nestl Pakistan acquires the Fontalia and AVA water companies which specialise in supplying water to homes and offices. 2004-Afghanistan becomes the fourth sales zone of Nestl Pakistan Ltd. 2005-Nestl Milkpak Ltd is renamed Nestl Pakistan Ltd. The GLOBE project is successfully launched, and is intended to further cooperation and information sharing with Nestl companies around the world. Nestl Pakistan responds swiftly to October's devastating earthquake, using its own distribution channels to bring aid to the worst affected areas.7

Products & ServicesMilk , Dairy & Chilled Dairy: Nestle Milk Pak Nesvita Nido Everyday Nestle Dahi Nestle Fruit Yogurt Nestle Raita MILKPAK Cream Nestle Creations Nestle Diet Yogurt Beverages: Nescafe Nestle Milo Nestle Fruita Vitals Bottled Water: Nestle Pure Life Available in 0.5, 1.5,12, 19 liters. Baby Food: Nestle Cerelac Prepared Meals: MAGGI 2-minute Noodles MAGGI 2-minute taste maker Breakfast Cereals: Nestle Corn Flakes Nestle Koko Krunch Chocolate & Confectionary: KITKAT KIKAT Chunky POLO8

Mission & Vision StatementOur Vision Nestls global vision is to be the recognized leading Nutrition, Health and Wellness Company. Nestl Pakistan subscribes fully to this vision of being the number one Nutrition, Health, and Wellness Company in Pakistan. In particular, we envision to; Lead a dynamic, motivated and professional workforce proud of our heritage and positive about the future. Meet the nutrition needs of consumers of all ages from infancy to old age, from nutrition to pleasure, through an innovative portfolio of branded food and beverage products of the highest quality. Deliver shareholder value through profitable long term growth, while continuing to play a significant and responsible role in the social, economic, and environmental sectors of Pakistan. Our Mission To positively enhance the quality of life of the people of Pakistan by all that we do through our people, our brands and products and our CSV activities. Our Ambition GOOD FOOD GOOD LIFE To be the leading Nutrition, Health and Wellness Company in Pakistan.


Board of DirectorsSyed Yawar Ali Ian J. Donald Frits van Dijk Pierre Schaufelberger Giuseppe Bonanno Syed Babar Ali Syed Hyder Ali Chairman Managing Director Director Director Director Director Director


Organizational Structure of Nestle Pakistan


Structure of Sales Department




Gulshan Town

Hasan Square


Organization StructureNestl Pakistan follows a flat, matrix organizational s t r u c t u r e . T h e departments are divided function-wise and productwise. All the products use different f u n c t i o n a l d e p a r t me n t s , a n d a l l t h e f u n c t i o n a l d e p a r t me n t s h a v e s p e c i f i c p r o d u c t departments within them. The span of control is wide, as each department head has many direct and indirect reporting relations with his subordinates. Also, as in a pure matrix f o r m, n e a r l y a l l e mp l o ye e s h a v e t wo o r mo r e d e p a r t me n t s t o r e p o r t t o , d i r e c t l y o r indirectly. T h e M a n a g i n g Director of Nestl Pakistan reports directly to the Head O f f i c e i n Switzerland, and gets guidance and objectives from them. Directly under the Managing Director are different functional departments: Business Executive Managers Head of Human Resource Department Head of Sales Department Head of Supply Chain4 Head of Food Services Department Head of Technical Department Head of Finance Department Head of Corporate and Legal Department


MANAGEMENT COMMETTIEENameUsman Iqbal Bhatti Faisal Akhtar Rana Edouard Simond Samra Maqbool Ian J. Donald Rizwan Yousuf Giuseppe Bonanno Zafar Hussain S

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