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Managerial Report On Nestle
Submitted to: Sir Mohsin Zeb
Minhaj Ashraf (13782) Azad Imran Tahir (14421)
We are very grateful to the Almighty God, who have bestowed us the will to complete our project about “Nestle” which is connected to our scheme Principle Of Management. Here, we would like to take this opportunity to express our highest gratitude and compliment to the people who are involved directly or indirectly in this project especially to our Sir Mohsin Zeb who is our Principle of Management lecturer. In this report, we examine the management of the international firm like Nestle. Among the BBC global top 30 brands, we have analysis of effective management in a firm. Besides, that we have studied the management levels of Nestle & its different types of strategies i.e. corporate and business level. In the end we have discovered some areas in which Nestle can improve to increase its sale. Thank you to all people who are involved in making our report a successful one and may all your help and effort are blessed.
Table Of Content:
Executive Summary Introduction Objective Corporate Philosophy History Of Nestle Organizational Structure (Flow Chart) Core Values Nestle in Pakistan Corporate & Business Level Strategies Centralization & Decentralization Employee Relations Nestle Culture Management Hierarchy Company Structure S.W.O.T Analysis Area Of Improvement 03 04 04 05 05 14 15 16 19 20 20 24 25 26 28 28
management and industry information. International marketing refer to using common products. Although we are living in an electronic age. promotions and distribution program on a world basis. there is still much information that can only be or best be found in print resources or books at library. . Nestle management level is a decentralized as possible. may also set limits to decentralization. We have notice that the firm utilized generic managerial strategy such as low cost leader in business. We are not an expert in Nestle but we have analysis the firm’s global managerial strategy in the field of their brand awareness.3 Executive summary The main aim of international marketing is to provide solid foundations that are useful for explanation. within the framework compulsory by fundamental policy and strategy decisions requiring increasing flexibility and operational efficiencies. as well as the group-wide need for alignment and people development. journals and newspapers). price. products and system design. (Periodicals refer to magazines. prediction and control of the international business activities. Our secondary data is the most of important for our research and we contributed in the area such as Nestle area of improvement. differentiated good and services satisfy the needs of customers through a sustainable competitive advantage. That is why we effectively utilized the periodical articles which can be a great source of product. and customer service.
To obtain more reliable and high qualify source of raw materials. the bird’s nest. Nestle coat of arms. milk-based products. cereals. employees. employed skill and loyal workforce and superior quality products which successfully complete. the world’s leading food manufacturer and the market leader in both coffee and mineral water. Nestle SA is a publicly owned company. produces a wind range of products including prepared dishes and cooking aids. which refers to his name.000 employees around the world. instant coffee. pharmaceuticals and baby foods. The aim of the creating values for the company include with improve business condition for the firm. improved government functioning and regulatory. Objective of Nestle “ Nestle business objective is to manufacture and market its products in a way that creates value that can be sustained over the long term for shareholders.4 Introduction Nestle SA . It is also the world largest food and beverage company with $71 billion in annual sales and almost 230. It markets some 8000 brands that include instant coffee. including in North Korea. its products are sold in every country in the world. business partners and national economies in which Nestlé operates”. consumers. . with subsidiaries across the world. Research and development based innovation capacity and strong brands are priority for Nestle. It website addresses in 104 countries. Remarkably. has become a symbol for the products being a safe care for their consumer product safety and quality.
reliability and convenience based on business excellence principles throughout our operations. • Guarantee that all products manufactured. . • • Maximizes the use of good quality local raw materials.5 Nestle Corporate Philosophy • • Be the leading multinational company in food. economical alternative to breastfeeding for mothers who could not feed their infants at the breast. nutrition and wellness. fulfilling all obligations to Government. shareholders. with a management style that is based on "Management Commitment and People Involvement" • Be a responsible corporate citizen. imported and distributed by Nestlé Malaysia are certified HALAL by authorised Islamic certification bodies. • Protect the environment by being committed to environmentally sound business practices and taking into account the need to preserve natural resources and save energy. Produce and sell world-class products of the highest consistent quality. customers. communities and consumers. Be an exemplary employer with a progressive human resource and social policy. • Deliver shareholder value through the achievement of sustainable and profitable long- term growth History Of Nestle 1866-1905 The key factor which drove the early history of the enterprise that would become the Nestlé Company was Henri Nestlé's search for a healthy.
in his German dialect. a friend and neighbor of Henri Nestlé. Some other important firsts occurred during those years. but also bouillon cubes. Peter. a trained pharmacist began experimenting with various combinations of cow's milk.. anyone can make use of a cross.6 In the mid-1860s Nestlé. and had been given up for lost by local physicians. People quickly recognized the value of the new product. By the turn of the century. His instant pea and bean soups helped launch Maggi & Company. In 1875 Vevey resident Daniel Peter figured out how to combine milk and cocoa powder to create milk chocolate. and sauces and flavorings. His ultimate goal was to help combat the problem of infant mortality due to malnutrition. started a company that quickly became the world's leading maker of chocolate and later merged with Nestlé. His response was firm: "I regret that I cannot allow you to change my nest for a Swiss cross . One of his agents suggested that the nest could be exchanged for the white cross of the Swiss flag. the Anglo-Swiss Condensed Milk Company.The Nestlé Company. wheat flour and sugar in an attempt to develop an alternative source of infant nutrition for mothers who were unable to breast feed. after Nestlé's new formula saved the child's life and within a few years. but no-one else may use my coat of arms. . founded in 1866 by Americans Charles and George Page. In 1882 Swiss miller Julius Maggi created a food product utilizing legumes that was quick to prepare and easy to digest. responded by launching a condensed milk product of its own.. Nestlé's first customer was a premature infant who could tolerate neither his mother's milk nor any of the conventional substitutes. Nestlé means 'little nest'. Farine Lactee Nestlé was being marketed in much of Europe. which had been purchased from Henri Nestlé by Jules Monnerat in 1874. He called the new product Farine Lactee Henri Nestlé. I cannot have a different trademark in every country. his company was producing not only powdered soups. The two companies remained fierce competitors until their merger in 1905. broadened its product line in the mid-1870s to include cheese and infant formulas." Meanwhile. Henri Nestlé also showed early understanding of the power of branding.. He had adopted his own coat of arms as a trademark.
Rising prices for raw materials. Most production facilities remained in Europe.7 1905 . Fresh-milk shortages throughout Europe forced factories to sell almost all their supplies to meet the needs of local towns. Acquiring raw materials and distributing products became increasingly difficult. its second-largest export market. and Bombay to supply the rapidly growing Asian markets. Nestlé purchased several existing factories in the United States. Nestlé added chocolate to its range of food products after reaching an agreement with the Swiss General Chocolate Company. By war's end. largely in the form of government contracts. Germany and Spain. the worldwide postwar economic slowdown. Hong Kong. and deteriorating exchange rates deepened the gloom. . the Company began full-scale manufacturing in Australia. the war created tremendous new demand for dairy products. however. and its world production had more than doubled since 1914. 1918-1938 The end of World War I brought with it a crisis for Nestlé. Britain.1918 The Company formed by the 1905 merger was called the Nestlé and Anglo-Swiss Milk Company. In 1921. the Company was operating factories in the United States. Nevertheless. and the onset of World War I brought severe disruptions. To keep up. Government contracts dried up following the cessation of hostilities. and civilian consumers who had grown accustomed to condensed and powdered milk during the war switched back to fresh milk when it became available again. By the early 1900s. the Company recorded its first loss. the Company had 40 factories. In 1907. Warehouses were built in Singapore. Condensed-milk exports increased rapidly as the Company replaced sales agents with local subsidiary companies. In 1904.
factories were established in developing countries. a powdered beverage called Milo. New products appeared steadily: malted milk. Nescafé became a staple beverage of American servicemen serving in Europe and Asia.8 Nestlé's management responded quickly. production and sales rose in the wartime economy: Nestlé's total sales jumped from $100 million in 1938 to $225 million in 1945. Profits dropped from $20 million in 1938 to $6 million in 1939. bringing in Swiss banking expert Louis Dapples to reorganize the Company. After the United States entered the war. particularly in Latin America. Connecticut. To overcome distribution problems in Europe and Asia. As the end of the war approached. The first truly global conflict ended forever the traditional Company structure. The manufacture of chocolate became the Company's second most important activity. Ironically. The Brazilian Coffee Institute first approached Louis Dapples in 1930. Nescafé became an instant success and was followed in the early 1940s by Nestea. a powdered buttermilk for infants. As in World War I. He streamlined operations to bring production in line with sales and reduced the Company's outstanding debt. Nescafé. World War II helped speed the introduction of the Company's newest product. in 1938. seeking new products to reduce Brazil's large coffee surplus. Eight years of research produced a soluble powder that revolutionized coffee-drinking habits worldwide. Neutral Switzerland became increasingly isolated in a Europe at war. The 1920s also saw Nestlé's first expansion beyond its traditional product line. . and. and the Company transferred many of its executives to offices in Stamford. Nescafé. 1938-1944 The effects of the onset of World War II were felt immediately by Nestlé. Annual production levels reached one million cases by 1943.
. and mark all losing value relative to the Swiss franc. pound sterling. 1975-1981 After the agreement with L'Oréal in 1974. the Company became a major shareholder in L'Oréal. The Company's total sales doubled twice in the 15 years after World War II. Libby's fruit juices (1971) and Stouffer's frozen foods (1973). Nestlé's growth was based on its policy of diversifying within the food sector to meet the needs of consumers. one of the world's leading makers of cosmetics. Finally. foreign exchange rates deteriorated with the French franc. as did the purchase of Findus frozen foods (1963). dollar. Nestlé's overall position changed rapidly. 1944-1975 The close of World War II marked the beginning of the most dynamic phase of Nestlé's history. Dozens of new products were added as growth within the Company accelerated and outside companies were acquired. and from 1960 to 1974. of Taster's Choice instant coffee. between 1975 and 1977. the manufacturer of Maggi seasonings and soups. in 1966. In 1974. Meanwhile. From 1950 to 1959. In addition. becoming Nestlé Alimentana Company. The acquisition of Crosse & Blackwell. Finally. Nestlé management reached the decision to diversify for the first time outside the food industry. they quadrupled. The development of freeze-drying led to the introduction. Nestlé merged with Alimentana S. the Company's economic situation deteriorated as the price of oil rose and growth in the industrialized countries slowed. sales of instant coffee nearly tripled. followed in 1960. the British manufacturer of preserves and canned foods.9 Nestlé executives found themselves unexpectedly heading up a worldwide coffee concern. as well a company built upon Nestlé's more traditional businesses.A. For the first time since the 1920s. Nescafé continued its astonishing rise. and the price of . Throughout this period. In 1947. the price of coffee beans quadrupled.
Nestlé approached the 1980s with a renewed flexibility and determination to evolve. Nestlé's rapid growth in the developing world partially offset a slowdown in the Company's traditional markets.S. as Group Chairman Pierre Liotard-Vogt noted. between 1980 and 1984. The Company's strategy for this period was twofold: improve its financial situation through internal adjustments and divestments. the takeover. sealed in 1985. This debate had led to a boycott of Nestlé products by certain lay and religious organizations. In 1984. Taking such a step in a time of increased competition and shrinking profit margins required boldness and vision. manufacturer of pharmaceutical and ophthalmic products. Thus. a U. "Today we find ourselves with a very wide range of activities. Inc. As in 1921.. Alcon represented a leap into unknown waters for Nestlé. but it also carried with it the risks associated with unstable political and economic conditions. To maintain a balance. This issue is still alive in some quarters. At the same time. including a public offer of $3 billion for the American food giant Carnation. At the time. all of which have one thing in common: they all contribute to satisfying the requirements of the human body in various ways. the Company divested a number of non-strategic or unprofitable businesses. Nestlé's improved bottom line allowed the Company to launch a new round of acquisitions. was one of the largest in the history of the food industry." 1981-1995 Under a new Chief Executive Officer. But. Nestlé managed to put an end to a serious controversy over its marketing of infant formula in the Third World.10 cocoa tripled. and continue its policy of strategic acquisitions. Nestlé made its second venture outside the food industry by acquiring Alcon Laboratories. but there is no longer any significant boycott activity. the Company was forced to respond quickly to a radically changed marketplace. . Helmut Maucher. Even more than the L'Oréal move.
Nestlé launched a Group-wide initiative called GLOBE (Global Business Excellence). Also in 2002. aimed at harmonizing and simplifying business process architecture.11 1996-2002 The first half of the 1990s proved to be a favorable time for Nestlé: trade barriers crumbled and world economic markets developed into a series of more or less integrated trading areas. In July 2000. and a general trend towards liberalization of direct foreign investment was good news for a company with interests as farflung and diverse as Nestlé. 2003-2009 The first half of the 1990s proved to be a favorable time for Nestlé: trade barriers crumbled and world economic markets developed into a series of more or less integrated trading areas.S. and in August. enabling Nestlé to realize the advantages of a global leader while minimizing the drawbacks of size. a leading U. the joint venture Dairy Partners Americas was set up with Fonterra. Inc.S. The opening of Central and Eastern Europe. While progress since then has not been as encouraging. enabling Nestlé to realize the advantages of a global leader while minimizing the drawbacks of size. as well as China. the overall trends remain positive. and a general trend towards liberalization of direct foreign investment was good news for a company with interests as farflung and diverse as Nestlé. ice cream business was to be merged into Dreyer's.6bn acquisition was announced of Chef America. Nestlé announced that the U. . as well as China. this time with L'Oréal. a USD 2. Nestlé launched a Group-wide initiative called GLOBE (Global Business Excellence). another joint venture. The opening of Central and Eastern Europe. the overall trends remain positive.-based hand-held frozen food product business. aimed at harmonizing and simplifying business process architecture. . There were two major acquisitions in North America in 2002: in July. In July 2000. While progress since then has not been as encouraging. and Laboratories innéov was set up.
S. ice cream business was to be merged into Dreyer's.6bn acquisition was announced of Chef America.S. the joint venture Dairy Partners Americas was set up with Fonterra.-based hand-held frozen food product business. and Laboratories innéov was set up. 2010+ The new decade began with Nestlé announcing the finalization of the sale of Alcon to Novartis which was completed mid-year. this time with L’Oreal. Nestlé bought Kraft’s frozen pizza business. Inc. Further highlights were the launch of the Special tea machine system and the completion of the CHF 25 billion share buyback programme – and the announcement of a new CHF 10bn programme. and in August. . a USD 2. Also in 2002.12 There were two major acquisitions in North America in 2002: in July. This represented a remarkable investment on behalf of Nestlé shareholders. Immediately following the Alcon announcement. another joint venture. . a leading U. Nestlé announced that the U.
Kohler Chocolates Suisse’s S. Waggin’Train. Protéika and Musashi Creation of Foodservices Strategic Business Division (2009: Nestlé Professional) Lactalis Nestlé Produits Frais (associate) Jenny Craig. (new name after merger) Merger with Peter. Health and Wellness Table (Year-wise) 1866 1867 1905 1929 1934 1938 1947 1948 1969 1971 1973 1974 1977 1981 1985 1986 1988 1990 1991 1992 1993 1997 1998 2000 2001 2002 2003 2005 2006 Foundation of Anglo-Swiss Condensed Milk Co. and Herta Buitoni-Perugina and Rowntree (with KitKat) Cereal Partners Worldwide (joint venture with General Mills) Beverage Partners Worldwide (joint venture with Coca-Cola) Perrier (with Poland Spring) Creation of Nestlé Sources Internationals (2002: Nestlé Waters) Creation of Nutrition Strategic Business Division (2006: Nestlé Nutrition) Sanpellegrino and Spillers Pet foods.A.A. Henri Nestlé’s Infant cereal developed Nestlé and Anglo-Swiss Condensed Milk Co. (new name). (new name after merger with Maggi) Launch of Nestea & Nesquik Vittel (initially equity interest only) Merger with Ursina-Franck Stouffer (with Lean Cuisine) L’Oréal (associate) Nestlé S. Malher. Alcon (disposed in August 2010) Galderma (joint venture with L’Oréal) Carnation (with Coffee-mate and Friskies) Creation of Nestlé Nespresso S. Launch of Milo Launch of Nescafé Nestlé Alimentana S. launch of Nestlé Pure Life PowerBar Ralston Purina Schöller. Cailler.A. Gerber and Henniez Ruzanna Kraft Food’s frozen pizza. Chef America and Dairy Partners Americas (joint venture with Fonterra) Laboratories innéov (joint venture with L’Oréal) Mövenpick and Dreyer’s Wagner.13 The Nestlé Story – all the way to Nutrition.A. Uncle Tobys and Delta Ice Cream Novartis Medical Nutrition. Technocom and Vitaflo 2007 2008 2010 .
14 Organizational Structure (Flow Chart) .
cutting-edge. Their communications to the consumer are relevant. They have profitable and diversified high quality food and beverage product portfolio. economic and environmental sectors of the country. and Nutrition Company in the world. Nestlé Pakistan subscribes fully to this vision. NESTLE envision to: Lead a dynamic motivated and professional workforce – proud of its heritage and bullish about the future Meet the nutritional needs of consumers of all age groups – from infancy to old age. Consumer insight drives all aspects of our marketing and communication efforts. Their company is seen as the No. Their milk collection and Agricultural services will continue to play the primary role in development of the dairy sector in rural Pakistan.” In particular. from nutrition to pleasure. while continuing to play a significant and responsible role in the social.Fully integrated systems (Nestlé Pakistan. through an innovative portfolio of branded food and beverage products of the highest quality. available across all sales channels. Their result-oriented organizational structure ensures effective communication and empowered self-management.15 Nestle Core values: The Nestlé global vision is to be the leading health. suppliers. motivated and ambitious professionals. delivering 60:40+ advantage to consumers. and adhere to the highest standards of responsible communication. Deliver shareholder value through profitable long-term growth. wellness. customers) ensure efficient business processes. . Their proactive innovation and renovation culture is the key to our success in the marketplace. Their brands are the preferred choice in their categories. 1 career destination for talented.
of Switzerland and Milkpack Ltd. in 1988. MILO RTD and UHT. The first to come was a milk powder plant. desi ghee . MILO and NESLAC came under production in 1994 and MILO RTD in 1995. Local packing of imported coffee under the name of NESCAFE 3 in 1 commenced the same year. Nestle in Pakistan: A consequence of joint venture arrangement between Nestle S. In 1996. In 1997 NESTLE WHEAT and two variants of POLO viz. To meet the demands of the large food market that Pakistan offered. In 1998 a substantial capital investment was made to launch several products and install two new state-of-the-art technologies. A new variant Lemony was added to the range of popular FROST fruit drink flavors and a new 1-liter packing of FROST was introduced. SWEET TREETS were launched in early 1998. This was followed by LACTOGEN 1 & 2 in 1991.all under the brand name of MILKPACK and juice drinks under the brand name FROST. Nestle Milkpack reorganized and reinforced the production of existing brands and gave shape to new production lines. Packaging of coffee under the brand name of NESCAFE CLASSIC was undertaken the same year. Flavored milks under the brand FRESH & FRUITY came under production on the new Tetra Filling Machine equipped with the modern "slim" format. the first such product to come was CERELAC . With the installation of the roller dryer in 1990. The addition of two flavors of POLO: Blackcurrant and Strong Mint increased the number of POLO variants to five.16 Non-strategic activities and products are outsourced or discontinued. Nestle Pak Ltd first confectionery plant of POLO Mint was installed and the production of NESTLE PURE ORANGE JUICE commenced. Strawberry and Orange was introduced. which not only began producing NIDO in 1990 but was also critical to the production of several milk-based products in the future. . By 1988.an internationally recognized brand of infant cereal. the existing production facility of Milkpack in Sheikhupura became a part of Nestle Milkpack. The year 1992 saw the introduction of tea whitener EVERYDAY and milk powder in bulk packing named GLORIA. it had expanded its operation and was also producing butter. The Milkpak Sheikhupura factory commenced operations in 1981 as a producer of UHT milk. cream.A.
variety. Millions of consumers the world over trust Nestlé products for good reason: when they choose a Nestlé product they have the satisfaction of choosing quality. our products are developed keeping our consumers. we take great pride in bringing you a portfolio of health and wellness because happy. their preferences and health in mind. And so our philosophy is Good Food for a Good Life! At Nestlé. healthy consumers are important to us.17 Nestle Pakistan Products: We believe that food plays a key role in achieving a well-balanced person. . With over 140 years of experience and expertise. taste. convenience and the good nutrition.
everyone is invited to contribute to improvements enhancing Company results and personal development.18 Sales Force Human Resource Management at Nestle: A Company providing a response to human needs throughout the world with specific concern of the well-being of both its consumers and its employees. Health and Wellness. Therefore. which makes people its most important asset. For them. we can conclude that the models that Nestle follows are: . Nestlé aims to increase sales and profits but. Nurturing starts from day one on the job. . their people are the key drivers for our success. At Nestlé Pakistan their integrity. they are their top priority. . people management and decision making skills enabling success at work. NESTLÉ’S SPIRIT “Making Big Investments in People” Nestlé Pakistan makes big investment in people. Involvement of people at all levels starts with appropriate information on the Company’s activities and on the specific aspects of their work. at the same time. to raise the standard of living everywhere it is active and the quality of life for everyone. Through open communication and active co-operation. professional skills and performance is what matters. This is reflected in its attitude and its sense of responsibility towards people.’ The Nestlé Spirit' and that makes Nestlé Pakistan a great place to work. innovate and write success stories.High Performance. Business dynamics and need directed training programs offer employees with opportunities to acquire and develop desired functional. At Nestlé Pakistan they believe in building leaders who can take on challenges. They trust their people and believe in giving early responsibilities and encourage them to actively contribute to the long term sustainable growth of the business. Nestle Pakistan is a vibrant company enhancing the quality of life of its consumers by offering them world class food products driven by Nutrition. Nestlé is also convinced that it is the people who form the strength of the Company and that nothing can be achieved without their commitment and their energy. Nestlé Pakistan provides its employees a dynamic professional environment bound by one spirit.High Involvement &.High Commitment.
Business should be conducted by adhering to the values and management principles of the organization. Product’s growth through innovation and renovation (while maintaining a balance in geographic activities and product lines).19 Nestlé’s Corporate Level Strategies: Following are the corporate level strategies. Its product range.000-strong workforce. Competitive Advantage of Nestle: Its Research and development (R&D) system. . 280.less price transparency is followed. Long-term commitment to the health and well being of people in every country in the scope of their operations.to reduce the risk of complexity of supply chain and lower attractiveness for discounters. Build business based on sound human values and principles. Low cost . Global reach and. Business Level Strategy: Following are the Business Level Strategy. Differentiation .
as well as the groupwide need for alignment and people development.20 Decision Making in Nestle /Centralization & Decentralization: Nestlé is as decentralized as possible. although in certain areas. Decentralization: Nestlé recognizes that its consumers have a sincere and legitimate interest in the behavior. within the framework imposed by fundamental policy and strategy decisions requiring increasing flexibility. Work/Life balance is given importance.. conduct and the responsible attitude of its management and employees. as a general rule. Nestle Family’ annual events are organized by their HR department whereby employees along with their families are invited. beliefs and actions of the Company behind brands in which they place their trust and that without its consumers the Company would not exist. as illustrated in the Nestle Human Resource Policy document. which is considered to be very low for a multinational corporation. legislation is the most effective safeguard of responsible conduct. Operational efficiencies. Emphasis is laid on safety of employees (Nestle Policy on Health and Safety at Work( . Employee turnover is less than 5%. Therefore recruitment of the right people and ongoing training and development are crucial. Employee Relations in Nestle: Nestle provides a very healthy working environment which is one of the reasons why Nestlé’s employees state their commitment level to be very high. may also set limits to decentralization. Nestlé continues to maintain its commitment to follow and respect all applicable local laws in each of its transparent performance appraisal systems and the freedom given to those to question their seniors benefit not only the employees but even the organization as well. Nestle has an open culture & upward communication especially in case of grievance redresser is encouraged. additional guidance to staff in the form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organization. Nestlé is conscious of the fact that the success of a corporation is a reflection of the professionalism. Nestlé believes that.
Group Insurance & Accidental Insurance Scheme.These quarterly awards have been institutionalized to reward those who over-achieve their targets. not just senior managers. Reward Principles. whenever possible or practical.To recognize employees who have been with the company for more than 30 years.The level of your Reward is linked to your performance. There is also a direct link between the performance of the business and the Reward we're able to offer. Performance Driven .It was found from the correspondent that the company institutes Nestle Idea Award every quarter to recognize and award employees who come up with relevant and innovative ideas which have the potential of being implemented at Nestlé. Nestle Idea Award’. Group Insurance & Accidental Insurance Scheme. with no discrimination: Leave-Personal & Medical (fixed no. Competitive .We benchmark all aspects of Reward to ensure we offer all our employees a competitive Reward package.Our Reward programmed is designed to reflect the valuable contribution which every employee makes. hence the highest performers will see the greatest Reward. Flexible . Conveyance Reimbursement Scheme. Benefits: The following benefits are provided to all employees. .21 Rewards and Benefits in Nestle: Rewards: „Passion to Win’ awards. Inclusive . For all aspects of Reward Nestle apply the fundamental principles outlined below.We've made it our top priority to allow you to tailor the Reward you receive to your circumstances. Long-service Awards. Conveyance Reimbursement Scheme. per year)Children Education Assistance SchemeProvident fundRetirement Gratuity Scheme.
They must be good Corporate citizens. They are committed to Pakistan's long-term betterment. both positive & negative. leading and supporting cultural or welfare initiatives. the environmental impact is minimal . high quality products & communicate with the Responsibility: • Adhere to environmentally safe industrial practices • Actively involved in several social action programs (SAPs) to improve the lives of their country's under-privileged people . . During their manufacturing process they are careful to minimize environmental impact and value employee welfare highly. Responsibility to Environment: In line with Nestlé's global commitment. Responsibility and Society: Taking the Nestlé concept of corporate Social Responsibility to heart. Through the realization that businesses create social and environmental impacts. Finally. no matter where in the world it operates. Nestlé Pakistan is dedicated to playing its role in helpin g to protect the environment. nutrition and wellness. and try to ensure that at every stage of their operations. through the daily operations of their value chain . They adhere to the global Nestlé philosophy of Creating Shared Value. and strictly follow the code Corporate governance: • • They deal fairly with stakeholders. There dairy suppliers in the Punjab's milk district can attest to the agricultural and technical support they offer them. they try to benefit there consumers by spreading awareness about healthy nutrition and lifestyles as well as constantly developing or improving existing products for health.22 Corporate Social Responsibility: They believe that every single company. There are two ways of fulfilling their responsibility and practicing corporate Social Responsibility: Through social investments: giving to charities. cultural & economic life. Serves there consumers through safe. and give back to the societies to which they belong. They comply with the Environmental Act (1997). ought to be fully integrated into the local social. they are deeply involved in social investment and humanitarian aid.
they have stopped using heavy fuel oil in their factories. all their factories try to maximize eco‐ efficiency. . Nestlé Pakistan responded immediately. Solid waste is collected at source and then reused. sport events and HIV/AIDS prevention. That's not all. Irresponsible packaging can have a heavy impact on t he environment. they upgraded their wast ewater treatment plants in both factories. whic h are now run on clean natural gas. they are continually reducing their consu mption of raw water per ton of production. In 2005. art and cultural events. There Sheikhupura & Kabirwala factories have elaborate water treatment systems to prevent wastewater from polluting the environment. We support charities. the biggest natural calamity in their history struck Pakistan. putting its infrastructure and resources to work in the affected areas. Natural gas incinerators at their Sheikhupura & Kabirwala factories are used to s afely dispose of material that cannot be recycled & dumped. To eliminate air pollution. There factories are equipped with complete testing and monitoring facilities for waste and air em issions. Environmental impact assessment is done in advance for every new project and measures are adopted to minimize adve rse impacts on the environment. they support sustainable agricultural and dairy farming practices. recycled or disposed in an environmentall y friendly way. To reduce the amount of material used without jeopardizing the safety and quali ty of their products.e. There employees regularly undergo training to inculcate awaren ess about environment friendly practices . increase production while minimizing resource consumption.23 There Environmental Commitment in Action There environmental commitment extends to every part of their value chain. In step with the rest of the nation. Social Responsibility: In October 2005. they are always working on new packaging solutions that have minimal weig ht and volume and can be easily recycled. waste and emissions . There factories have environment c ommittees to manage routine environment issues and review performance. including environ mental protection. When it comes to production. at the raw ma terials stage. They even operate a collection system for used packag ing. education and training initiatives. This has reduced their emissions into the atmosphere to well below the legal limits. Thousands died an d millions were left homeless after a massive earthquake hit their mountainous northern areas. Thus. i.
Nobody is allowed to violate his power. Due to this strong check and balance. This is their discretion to make plan and get the targeted result in the given budget. They are not completely satisfied their current performance and work for the betterment and development of the system. . The internal control system of the organization is also very tight and effective. They believe in team work. the plan does not work properly. If at any time or at any place. Similarly. This is possible only through the collective commitment. the regional managers are independent in their areas. The head office gives the guide lines to the zonal managers and tells them their budget limitation. the manager knows it at a right time and they can make it well.24 Nestle Culture: Nestle has a very strong organizational culture. They are given a certain target and a fixed amount of budget. The check and balance system is also very strong. The zonal managers are totally independent in making their plans and use their budget. they can make correction in their plans.
25 Management Hierarchy in Nestle Pakistan: Managing Director Production Manger Finance Manager Marketing Manager Zonal Manager Zonal Manger Zonal Manger Sales Department A/c Department Sales Promotion Regional Sales Manger Sales Department Assistant Sales Manager A/C Department Sales Force .
demand of the product. Planning: Firstly when a need is observed to launch any product here in Pakistan a plan is made by the process of market research. These offices work under their respective zonal offices. The promotional activities are made like posters and pamphlets and introductory samples are represented they define their goal to make and present value added products according to targeted market the staff hiring strategies and marketing strategies are planned. The cost and the expected profit that is their goal are being estimated.Location of Factories: Sales Management Process of Nestle: In Pakistan the management process is made by the management of Pakistan’s headquarters and approved by Verve’s headquarter. It also has its registered office in Lahore. For example .26 Company Structure: Nestle head-office in Pakistan is in Lahore. They observe the need. Organizing: After planning they organize the activities like which kind of people are required and the process that would be controlled by them under which situations and how they would move. One in Sheikhupura near Lahore and other in Kabeerwala near Multan. Factories: Nestle has two factories in Pakistan for the production of different food items.Nestle has divided the whole Pakistan in to three zones: Northern Zone Central Zone Southern Zone Nestle has 10 regional offices in all over the Pakistan. target market is settled.
For example: “NESCAFE CLASSIC” was planned according geographically for urban areas and demographically college going young boys and girls after observing market interest and condition then Marketing strategies were according the target market so they ”GET STARTED WITH NESCAFE” The brand mangers and tertiary in-charges were hired according to the plan. And the required changes were made according to feedbacks. ”PEOPLE FIRST” Nestlé is more people and product orientated than systems orientated And they are ass decentralized as possible The motivating activities are all around for their employees as they train employees for their education.27 “NESCAFE CLASSIC” was planned to be launched in urban area for young people so the organized activities like the kind of brand managers. And over all strategies were organized. Following motivations are given to people: Life cover Sick pay 25 days' holiday Mobile phone on a business need basis Company bonus scheme Controlling: Under this managerial activity they compare its manufactured products with standard products and after feed backs they made any change if required for example they maintain their labs in Sheikupra and Kaberwala according to Switzerland’s standard and the product from there is send by time so that the manufactured products are supposed to check it according to theses stuff. The launched coffee samples were compared with the samples sent from headquarters VEVEY. . territory in-charges who inform Assistant Sales Manager were to be selected? And where the tasks to be done? Leading: It Concern as they prefer their people as they say.
Nestea. Weaknesses: Less knowledge about the host country’s culture norms and values. Nestlé aims at becoming the most efficient energy user among food manufacturers. beverages of Pepsi & Coke would can also be accepted by the people of Pakistan. down 2. For launching new product they adopt 60% and 40% test method.03 GJ per ton of product [KPI]. and although increasing production volume by 6. with the Nestlé brand itself contributing 40%. Opportunities: To expand business in different countries. limited energy consumption to 88. On a constant . Six worldwide corporate brands. Its unique features and technology of brand stretching.1% on the 2009 figure.e. Research and development department keeps nestle in continuous knowledge about itself and competitors. Nestlé. Nescafe.2% in 2010.(globalize profit)The value added products.g.28 SWOT Analysis of Nestle Pakistan: Strengths: Quality Service Brand name and image Less competitors The strength of Nestlé's brands has given the company an unparalleled position on a global basis across a wide range of product categories. Buitoni and Friskies contribute about 70% of the group's total sales. Maggi. Threats: They see following threats in future coming time: Some other Multinational companies are also planning to enter the Pakistani market . Area of Improvement & suggestions: Although Nestle manufacturing operations are responsible for a relatively small proportion of the energy used across their supply chain. it is the area where they can most easily make a large impact through improved performance.6PJ [KPI]. which equates to 2.
changes in their product mix reflecting an overall strategy towards more value-added products. . As they seek to achieve energy efficiency improvements of at least 5% in each of their key product categories over the next five years. Since 2000. which form part of the continuous improvement efforts driven by Nestlé Continuous Excellence. and industrial equipment will continue to be used as long as the factory is operational. changes resulting from acquisitions and divestitures. heat and steam. Nestlé has reduced its energy consumption by almost 3% while increasing its production volume by 73%. through the purchase of electricity.29 production volume (adjusted) basis. this ratio remains unchanged. and energy prices are rising. In addition.6 PJ in 2010 [KPI]. Therefore investments made in energy-saving projects and renewable energy solutions do generally provide long-term benefits. assuming that energy prices will continue to increase. and they should increase their investment in such schemes and extend the “return on investment” periods beyond their normal criteria.3 million GJ and a reduction in CO2 emissions of approximately 88 000 tones. Therefore. This reflects energy reduction initiatives at factory level. during which they identified more than 200 projects for a total investment of about CHF 50 million. they continue to investigate the setting of energy consumption targets by product category and exploring the viability of additional lead performance indicators. was 67. Indirect energy consumption. water savings of 1. Suggestion/ How they can improve more: Energy-saving equipment The worldwide consumption of fossil fuels is constantly increasing but the world’s resources are becoming more limited.9 million m3 were identified and the monetary savings totaled CHF 27 million. The annual savings of these projects include energy savings of about 1. they should look at investing in energy-saving industrial equipment. Their Energy Target Setting Initiative completed 12 projects in 2010.
their Maggi production plant in Singen. the factory will receive about 50 000 MWh of process heat from the foundry. the factory sources energy via an adjacent foundry’s heat exchanger. Switzerland. By running it they can get about 60% efficiency. Through a thermal oil connection.42 MWh to 1. Following the commitment to reduce energy consumption and reliance on fossil fuels. The energy consumption per ton of product can be dropped from 3. their production plant in Konolfingen. this will reduce the plant’s natural gas consumption by more than 60% and save approximately 11 000 tons of CO2 per year. To produce steam for the plant’s industrial processes.86 MWh and results in an annual reduction in CO2 emissions of 6780 tones.30 To improve the energy efficiency in new milk factories. Through the application of this concept. Once the project is ramped up to full scale . the previously lost process heat can be transferred to the plant where it is used to generate steam. generated energy savings of 46%. Germany can significantly reduce its consumption of natural gas through an innovative partnership with a neighboring industrial site. their Product Technology Centre has to develop a new concept for energy optimization for example by using “pinch technology”. .
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