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INTRODUCTION “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 2 million 31 thousand people employed from all over the world Present in 81 countries of the globe having 522 factories Over 700 products renovated or innovated in the past five years. with wellness in mind .
HISTORY Henri Nestlé established Nestlé in 1867 in Switzerland (Vevey HQ) His first product was lactogen formula for infants by the name “Farine Lacteé” .
A. Cailler. 1947 Merger with Alimentana S.A. (Maggi) 1969 Vittel (equity interest) 1971 Merger with Ursina-Franck 1974 L'Oreal (equity interest) 1977 Acquisition of Alcon (2002: partial IPO) .KEY DATES 1866 COMPANY FOUNDATION Major joint ventures 1981 Galderma 1905 Merger between Nestlé and Anglo-Swiss Condensed Milk Company 1929 Merger with Peter. Kohler Chocolates Suisses S.
1985 Acquisition of Carnation 1988 Acquisition of Buitoni-Perugina 1988 Acquisition of Rowntree 1990 Cereal Partners Worldwide 1991 Beverage Partners Worldwide (formerly CCNR) 1992 Acquisition of Perrier 1998 Acquisitions of San Pellegrino and Spillers Pet foods .
Protéika. Musashi . Powwow and Dreyer's 2004 Acquisition of Valio (ice cream activities) 2005 Acquisition of Wagner.2000 Acquisition of Power Bar 2001 Acquisition of Ralston Purina 2002 Acquisition of Schöller and Chef America 2002 Dairy Partners Americas and Laboratories innéov 2003 Acquisition of Mövenpick.
BUSINESS DEFINITION AND SCOPE .
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”. .
Sauces. a multinational company has acquired & merged with various companies. Factors behind its success are multifarious. SBU’s like Pharmacy. Breakfast Cereals and Cosmetics. innovation which have created brand loyalty amongst its customers. Frozen Foods. improved technology. quality.PRODUCT DEFINITION Nestle. . Ice cream.
Millions of people prefer Nestlé products every day. Today Nestlé is present in different markets with the following main brands:- .BRANDS Quality and nutritional value are the essential ingredients in all of its brands. happy with the addition to their wellness that they bring.
Baby Foods Breakfast Cereals Beverages Bottled Water Chocolate & Confectionery Dairy Products Food Services Ice Cream Prepared Foods Petcare Pharmaceuticals Cosmetics .
PowerBar. Neslac. Lactogen.. Nestogen. . Pria etc. Cerelac.BABY FOODS Infant nutrition Nestlé.
..BREAKFAST CEREALS Chocapic Shreddies Cheerios Cookie Crisp Lucky Charms. Cinnamon Toast etc.
BEVERAGES Coffee Nescafé Ricoré Ricoffy Nespresso Bonka Loumidis Fruity fruits Nestlé fruit juices .
..Nestea Nesquik Milo Carnation Nido Nestlé Omega Plus Coffee-Mate etc.
. Ice Mountain etc.BOTTLED WATER Nestlé Pure Life Nestlé Aquarel Contrex Acqua Panna Arrowhead Poland Spring Deer Park. .
CHOCOLATE & CONFECTIONERY Chocolate confectionery and biscuits Nestlé Crunch Galak/Milkybar Kit Kat Smarties Butterfinger Aero Polo .
DAIRY PRODUCTS Nido Nespray Carnation La Lechera etc. ..
. Gourmet etc. Alpo. .FOOD SERVICES Food Services and professional products Chef Davigel Minor’s Petcare Purina Friskies Fancy Feast.
ICE CREAM Antica Gelateria del Corso Dreyer's/Edy's Drumstick/Extrême Maxibon/Tandem Mega Mövenpick Sin Parar/Sem Parar/Non Stop .
PREPARED FOOD Lean Cuisine Hot Pockets Maggi Refrigerated products (cold meat products. pizzas. sauces. . pasta. snacks) etc.. dough.
. .PET CARE Friskies Fancy Feast Dog Chow Cat Chow Tidy cats etc.
PHARMACEUTICALS Alcon Pharmaceutical and cosmetic joint ventures Galderma Laboratoires innéov Patanol .
Every person, of any age group,
gender etc is the target customer of
Nestle target its customers by knowing
customer needs & demands. For this
purpose it made customer profile.
Customer profile based on two
Qualitative research:This involves setting up small focus groups of
consumers who express their ideas and opinions
about their needs and views on different products.
At one level, this might involve asking groups of
athletes to talk about their lifestyles, dietary
habits and training regimes.
At another level, it could involve a consumer
focus group discussing the quality of the
nutritional labeling on a yogurt drink.
Quantitative research:This involves only relatively few people like professional market researchers may interview thousands of people through postal or telephone interviewing. Nestlé regularly uses both forms of research to gain a clear idea of consumer opinions and trends. Using these customer profile techniques. Nestle developed its different product strategies to target the customers. .
COUNTRIES Bangladesh China Hong Kong India Indonesia Iran Israel Japan Jordan Kazakhstan Kuwait Lebanon Malaysia Pakistan Philippines Republic of Korea Saudi Arabia Singapore Sri Lanka Syria Taiwan Thailand United Arab Emirates Uzbekistan Vietnam .
• Nestlé Waters is number one in Vietnam with its La Vie brand. • Annual consumption per person varies in Asia. from 1. .2 L in Pakistan to 47 L in Thailand.
Nestlé Pure Life was launched in Pakistan in 1998 .INTRODUCTION Nestlé MilkPak Limited (NML) was incorporated in Pakistan under the Companies Ordinance. 1984 & listed on Karachi and Lahore stock exchanges since 1980. Joint venture between Nestle Switzerland and MilkPak Limited came about in 1988.
SEGMENTATION Segmentation of world in three zones US Asia Oceania & Africa Nestle has divided the whole Pakistan in to three zones: Northern Zone Central Zone Southern Zone .
Unit 2Latifabad. Pakistan Phone: (021) 5833935-6 Fax: (021) 5833937 Hyderabad 178.33/5 . Main Gulberg. Sind. Pakistan Phone: (0221) 860403Fax: (0221) 863202 Sukkur F . Block C.: Karachi F . Block 7. Sind.Karachi. PakistanPhone: (042) 5754335-6.Phone: (071) 615946Fax: (071) 615946 Lahore 29-B. Sind.Lahore. 5761484Fax: (042) 515061 .CWorkshop RoadSukkur.77/1. Hyderabad.REGIONAL SALES OFFICES Nestle has 10 Regional Sales Offices in all over the Pakistan. Pakistan. Punjab.Clifton. KDA Scheme 5.
P. Pakistan. Punjab. Chungi No. B Block. First Floor Satellite-Town Market. Gujranwala. Punjab. City Tower.Peshawar. Pakistan Phone: (041)726993Fax: (041) 47438 Gujranwala Plot No: 144-A. 24-Y-103 Madina Town.1..W. Jamrud Road. Pakistan Phone: (091) 840859.Faisalabad House No. Pakistan Phone: (061) 515061Fax: (061) 515061 .Phone: (055) 3733415 Fax: (055) 3733415 Peshawar 201.F.Multan. N. 842415Fax: (091)45516 Multan Surij Miani Road. Punjab. 2nd Floor.Faisalabad.
824384. Yaseen Plaza. Lahore PABX: 5757082-95 Fax: 5711820 . Islamabad. Chaman Housing Scheme.Quetta 63 B . Pakistan Phone: (081) 834887Fax: (081) 822297 Islamabad 74-W.824328. Opposite Askari Park Quetta. 1st Floor. Blue Area. Pakistan Phone: (051) 271874-75.D. 274376 These offices work under their respective zonal offices Registered & Corporate Office Is in Lahore 308 Upper Mall. Baluchistan.
FACTORIES Nestle has two factories in Pakistan for the production of different food items. One in Sheikhupura near Lahore and other in Kabirwala near Multan .
REGIONAL OFFICE .
Punjab.INTRODUCTION Gujranwala Plot No: 144-A. First Floor Satellite-Town Market. Pakistan. Phone: (055) 3733415 Fax: (055) 3733415 . Gujranwala.
HIERARCHY REGIONAL MANAGER (1) SALES ADMINISTRATION EXECUTIVE (1) AREA SALES MANAGERS (3) TERRITORY INCHARGES (10) SALES DISTRIBUTION STAFF .
NATIONAL SALES MAANGER
ZONAL SALES MANAGER
ZONAL SALES MANEGER
SALES PROMOTION DEPT
REGONAL SALES MAANGER
AREA SLAES SUPERVISOR
MANAGEMENT PROCESS PLANNING •Recognition • R&D •Plan •Formulation •Estimation ORGANIZING •People •Process •Situation LEADING •Decentralized •People oriented •Motivating activities CONTROLLING •Comparing of Manufactured products .
Zonal and regional managers are told budget limitations & targets guidelines from Vevy (HQ) .Nestlé has very strong flexible liberal structure with tight internal control with strict check & balances.
SWOT ANALYSIS STRENGHTS: Value added products Brand name Six brands having 70% group sales R&D department Unique features and technologies 40 & 60% test result criteria .
Weakness: Less consumer research in few areas. Opportunity: Market expansion by using bio-technology. Threats: Baby milk action New and indirect competitors Product acceptance .
work to make this a better planet on which to live. . on a daily basis.COMMITMENT The continuous progress and leadership is made possible through the collective commitment of the tens of thousands of individual Nestlé employees who.
. essential language skills & relevant internships or professional experience. All have strong academic qualifications. number of top young graduates are recruited.RECRUITMENT Each year.
Unquenchable thirst for knowledge. Superb communication skills. . The ability to assume control anywhere in the world. High degree of adaptability and mobility.RECRUITMENT CRITERIA Graduates with a degree in Business Administration or Economics with professional experience.
Purchasing. . Supply chain & information systems. Finance & control. Activities include: Production.TRAINING OF EMPLOYEES New employees are prepared to gain experience in sales and marketing-related activities & other areas of the business. Communication & Market Research.
MOTIVATION Employees get Motivation by: Immediate job satisfaction Long-term career development Superior pay and benefits The personal growth that comes from experience and training Materialistic as well as internal motivation .
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 (dependant on salary) Gym facilities at larger sites Staff shop at most sites Flex time at some sites .
. As decentralized as possible.LEADERSHIP PRINCIPLES Their motto is: "Teamwork with responsible leadership". Value for its stake holder but would not favor short term profit at expense of long term business development. Nestlé is people & product oriented. Concept of Continuous improvement of activities.
Nestlé FAVORS Flat organization structure Clear level of responsibility Function responsibilities Team with its leader .
92-055-3733243 . Satellite Town Market. First Floor. Gujranwala.GENERAL INFORMATION Name of the agency: Regional Sales Office. Country: Pakistan. Gujranwala. Satellite Town. Postal address: Plot No: 144-A. Postal code and City: 52250. Pakistan. Phone: 92-055-3733415.
Ikram Elahi Function contact person: Sales Administration Executive Founding date: April 1997 .Nestle.pk WWW-address: www.net.Fax: 92-055-3733379 E-mail: email@example.com Contact person: Mr.
training sessions on safety are taken by the SEM committee. SEM training records are updated on monthly basis. Department is established for safety policies according to job description and according to the sensitivity of area. It’s the duty of reporting safety officer in every region/area.SECURITY AND ENVIRONMENTAL MANAGEMENT Different actions like emergency exit signs. .
Security and security procedures in every department is very strict. removal. Budget is given to SEM committee by the head office. and reporting responsibilities for applicable exposure standards are assigned and carried out.Goal of safety department is “No Accident” and all the equipments and tools are working according to the safety measures. Department ensures that required medical surveillance. All the employees have to work under specific security rules. monitoring. .
up to that extent they are eligible and allowed to use the facilities.e. All third-party users are fully aware and are told their limits i.Human Resource Security Management Audit All the employees and contractors are well informed about their responsibilities and company’s rules and regulations before they are hired. All the employees are assigned to perform duties and responsibilities that they can perform. .
Job description is provided clearly to understand the responsibilities in a proper way and to perform up to required standards. All the employees have to face interviews that totally reflect each and everything regarding their personality and character. Prospective employees and contractors are asked to sign agreements that specify what their security roles and responsibilities are.Third party users are provided those facilities which they actually deserve. .
Implementation of security policies is according to security requirements. . Security roles and responsibilities are documented for the guidance of organizations new associates.Third party users are asked to sign the agreements about their duties and responsibilities as a proof to make sure that they are fulfilling their promise/duties. Organizations security role and responsibilities are according to information security policies in order to avoid any violation.
All personnel implement our organization’s information security policy as they are given in-depth information about our security policies. Security policies are developed as there is no risk to face for any sort of un-authorized destruction. Security events must be reported to the organization in order to achieve protection and establish security policies according to requirements. .
.Security roles are not communicated to job applicants during the pre-employment process and neither to non-staff members. Job description is linked with security policies so they are documented and communicated properly.
. When delegations occurs. Employees in the organization has clearly written job description according to the designation. authorities and accountability for each function. responsibilities. agreement is written with the mutual understanding.ORGANIZATIONAL STRUCTURE Organizational chart clearly indicates the.
Training programs are offered primarily and frequently to improve the skills of employees. Company’s policies and procedures are displayed as a chart in every office of Nestle and they are also accessible at net . Wages. salaries and fringe benefits increases with the working duration of employees in the organization.HUMAN RESOURCE MANAGEMENT Evaluation of the employee is done quarterly in a year.
BUDGETING AND EXPENSE CONTROL Limited budget is given annually to every office of Nestle’. If extra budget is required then that particular office put forward the request to the CEO of head office and CEO approves the budget according to the need and situation. . Amount and rate of expenditures are made according to the budget given.
Before any purchases. . finance and accounting department is responsible for all tax reports and payments. comparison market statement is made and according to the prices in that statement purchases are made. Company has its own multiple distribution channels which enables company to supply any critical items.TAXES AND LEGAL OBLIGATIONS Tax.
its business is attempting to serve. It determines the sales of its products against those of its competitors with the help of research. .MARKETING AND SALES PROMOTION Nestle knows the specific segment of the market.
Product handling is responsibility of company. .LOCATION Nestle always make sure that all of its operations are convenient and easily accessible to its target market.
services and organization makes sure that prices should be affordable by all the customers.PRICING All the prices are totally based on quality. .
. Finance department approves/reviews bank reconciliations. monthly financials/P&Ls & reviews monthly budgets to actual monthly expenditures. Checks are transferred to the banks in respective accounts of the employees.[A] Segregation of Duties IC Questions: Head office payroll department controls paychecks. [B] General internal Controls: Accounting system is handled by accounts department.
. Finance department of Head Office has custody of blank checks.Personals of finance department has a password to access the financial system. Sales operation department of each region reviews monthly/year end accruals.
[C] Control Over Expenditures: Purchase requests are made by concerned purchase department by the head of regional office and then put forward to the head office for approval. Every person is responsible for reviewing policies and procedures for compliance with Commission rules.There are 15 working leaves and 22 official leaves given to employees in a year. Venders entered into the accounting system on contractual basis. .
Human Resource department of head office approves the executive directors' bonuses. Payroll department of head office has custody of unclaimed payroll checks. [D] Control Environment Controls: Environment committee of the factories regularly manages routine environment issues and review with the factory management their past performance and future objectives .Purchase requests matched to invoices when paid & time sheets approved by supervisors.
Termination. Gain it depends upon the sever-ness of situation. detention etc. Strict confidentiality of the names of employees. are the disciplinary actions taken against employees which depends on the sever-ness of violation and handled by legal department. ]E] Commitment to Competence: Detailed job description is given and it’s revised time after time. .
[F] Board Direction: Annual General Meeting is held every year other then that it depends on the situation. [H] Risk Assessment Controls: Policies and procedures address the safeguarding of assets as company is very strict about the safeguarding of assets . [G] Assignment of Authority and Responsibility: Employees are evaluated according to the company policies.
Policies describe the process for communicating changes in accounting methods and rules to staff. regulations. reports are provided to management & board in annual meeting or when asked by the head office.[I] Communication Controls: Polices & procedures made available to staff and revised time to time. and rules. expenditures etc. . There is a process in place for communicating changes in accounting methods. Budget requirements.
Employees are free to communicate to any authority. . Authorities are bound to listen to the employees. There is no particular established channel.There are established internal and external communication channels.
. [K] Information system controls: The financial system password is only known to the personals of finance department.[J] Monitoring: Management periodically reviews the accounting processes to recommend changes needed for improvement.
A constant threat to the company’s economic balance due to unstable government policies. . There are not much security measures in the office. so employees are de-motivated and don’t work with the company for very long.PROBLEMS HRM department is not giving good salaries to the employees. Staff is not as responsible as it should be.
which is a significant demand in the market.g. no board is placed to mention the identity of the office.Shortage of certain products like Nestle ghee. . The regional office is not managed properly e.
. Staff should be made more responsible by implementing strict rules and regulations and taking disciplinary actions against any un-professional behavior. Skilled workers of the company should join the security department to enhance the system.SOLUTIONS/SUGGESTIONS Bonus packages and increment in salaries for a selective level of work and efficiency should be awarded to attract the employees’ concern.
A small part of the budget should be spent for the management of the office. Inventory should be maintained. .Long term agreements to be signed with governmental departments.
Nestle is using its brand name to promote its products & it’s very popular as compared to its competitors.CONCLUSION Nestle is a market leader due to different reasons: Its price is high against its competitors but it matches its quality with its competitors. . Its packaging is good. We can easily find Nestle from any retailer shop.
there’s need to maintain the condition of office and enhance the security. Due to its advertisement. Nestle attracts more customers & has very prosperous future if it continues to promote its products and bring all the possible innovational aspects using different product line strategies. Behavior of employees is not professional and every department should treat equally. It has always maintained the quality of its products. . Despite of all the facts.
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