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EXECUTIVE SUMMARY

Nestle is the world's leading nutrition, health and wellness company today and was founded in 1866 by Henri Nestlé. It has employed around 250,000people and has factories or operations in almost every country in the world. Nestlé Pakistan has been serving Pakistani consumers since 1988. Nestlé take over the running of the company and develop its milk collection networks in 1992.Nestle are now in all seven continents & having more than 522 factories in 83 countries. In this report I have started with the introduction of NESTLE throwing highlights on its most important features of development and progressive mode. After company’s introduction I have given some detail about “Vision statement, Mission statement,how NESTLE is perfroming in pakistan ,its brands and products,, Organizational Structure of NESTLE Ltd, Benefits provided by NESTLE limited to its employees, key success features of NESTLE,and recommendations for NESTLE and IBIT.” This report also consists of financial analysis of 2010 and 2011.I have worked under NEFAM section as assistant of supervisor and my activities include complaint analysis,employes feedback,monthly requirment analysis,insertion and upgradation. I have completed my internship for the period from august 06, 2012 to october 6, 2012 and worked in various departments on the valuable instructions of my Supervisor.If one wants to enhance his/her knowledge about NESTLE this report will serve as a guide.

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CHAPTER 1 (INTRODUCTION OF NESTLE)
(1.2) HISTORY:
Nestle is the world's leading nutrition, health and wellness company.it is founded in 1866 by Henri Nestlé. Nestlé Corporate Business Principles will continue to evolve and adapt to a changing world, their basic foundation is unchanged from the time of the origins of their Company, and reflects the basic ideas of fairness, honesty, and a general concern for people.The Nestlé is multinational company it is doing business not only in Pakistan but many other countries of the world. Nestlé Pakistan has been serving Pakistani consumers since 1988. Nestlé take over the running of the company and develop its milk collection networks in 1992. Between 1988 and 1992, 100 milk tanks were installed.Nestle are now in all seven continents & having more than 522 factories in 83 countries.

(1.3 )BACKGROUND
Henri Nestlé, a pharmacist, developed a food for babies who w e r e unable to breastfeed. His first success was a premature infant who could not tolerate his mother's milk or any of the usual substitutes which eventually became the first Nestlé’s customer. After Nestlé's new formula saved the child's life and soon, FarineLactée was being sold in much of Europe. After the major invention in 1874, Jules Monnerat purchased Nestle and collectively they launched the condensed milk. In 1905 Nestle merged with Anglo-Swiss which was an condensed milk company. Soon after N e s t l e established its roots all over Europe to cater the need of the customersof Europe, as Nestle fame was on the top, s o N e s t l e t h o u g h t t o s t a r t t h e production function all over the world to increase the customer demand and meet or capture more markets. Decision to go multinational was a fruitful idea, so as now nestle has operations in America, India, England, Brazil, Australia, Pakistan, Hungary, France, Belgium, Italy, Spain and various other countries around the globe.

NATURE OF THE BUSINESS
Nestle Pakistan is the FMCG company.

MAJOR INDUSTRY:
Food & Beverages

S U B IN D U S T RY :
Diversified food

(1.4) CORE VALUES
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     

People Quality Brands Consumer Customer Performanc

(1.5) GOALS AND OBJECTIVES OF NESTLE
       To be the best & quality brand in Pakistan To meet the needs & requirements of the consumers To capture the desired market share To dwell in to the life of people & consumers To be the number one nutritious company of Pakistan To be the social responsible company & be helpful in bad times. Nestle aims to be proactive innovation and renovation culture, which is the key to Nestlé’s success in the marketplace.

(1.6 )PRESENT BOARD OF DIRECTORS
Name Syed Yawar Ali Jan J. Donald Frits Van Dijk Pierre Schaufelberger Giuseppe Bonanno Syed Baber Ali Syed Hyder Ali Director Director Director Italian Pakistani Pakistani Member Chairman Managing Director Director Director Nationality Pakistani South African Dutch Swiss

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(1.7) MISSION STATEMENT: Nestlé is dedicated to providing the best foods to people throughout their day. With unique experience of anticipating consumers’ needs and creating solutions. Throughout their lives. Nestlé contributes to peoples well-being and enhances quality of life.throughout the world.” 4|Page Internship Report .

” 5|Page Internship Report . economic and environmental sectors of the country.8) VISION STATEMENT: “ The Nestlé global vision is to be the leading health.while continuing to play a significant and responsible role in the social.(1. Deliver shareholder value through profi table long-term growth. In particular. wellness.N e s t l é P a k i s ta n s u b s c r i b e s fu l l y to h i s vision.” contributes to peoples well-being and enhances quality of life. andN u t r i t i o n C o m p a ny i n the w o rd . envision to: Lead a dynamic motivated and professional workforce – proud of its heritage and bullish about the future.

Lean Cuisine. Nestea. Milo. Purina ONE.(1. Hot Pockets. Cat Chow. Nutren Junior. chilled & frozen food Dairy Drinks Food service Healthcare nutrition Ice cream Cerelac. Purina. Nido Juicy Juice. Bakers Complete. Crunch. Thomy Carnation. Gerber. NaturNes. Perrier. Nescafé Cappuccino. Maggi. Nestea Chef. Dog Chow. Pro Plan PowerBar Jenny Craig Petcare Sports nutrition Weight management 6|Page Internship Report . Butterfinger. Nescafé Classic. Stouffer's Boost. Sjora. Poland Spring. Nesquik Cereal Aero. Minor’s. Milo.9) NESTLÉ BRANDS Baby foods Bottled water Cereals Chocolate & confectionery Coffee Culinary. Herta. Nescafé Dolce Gusto. Nescafé Decaff. Peptamen. Felix. Nestlé Ice Cream Alpo. Nescafé. Stouffer's. Cailler. Kit Kat. Nestum Nestlé Pure Life. Cookie Crisp. Smarties. Coffee-Mate. Estrelitas.Pellegrino Chocapic. Gourmet. Friskies. Fitness. Wonka Nescafé. Chef Michael’s Canine Creations. Häagen-Dazs. Beneful. Fancy Feast. Orion. Maggi. Cini Minis. Resource Dreyer’s. Nescafé Gold. Chef-Mate. Nescafé 3 in 1. Nesquik. Nespresso Buitoni. Extrême. S. Mövenpick. Lean Cuisine. Gerber Graduates. La Laitière.

NESTLÉPRODUCTS 7|Page Internship Report .

3. We recruit competent and motivated people who respect our values. Health and Wellness  Our core aim is to enhance the quality of consumers’ lives every day. 8|Page Internship Report . Supplier and customer relation  We require our suppliers. we are committed to our own customers. reliable consumer communication that empowers consumers to exercise their right to informed choice and promotes healthier diets. contractors and others involved along the value chain. Consumer communication  We are committed to responsible. Good Life. Leadership and Personal responsibility  Our success is based on our people. Nutrition. 2. and to protect employees. In the same way. 7. subcontractors and their employees to demonstrate honesty. integrity and fairness. the Nestlé name represents a promise to the consumer that the product is safe and of high standard. protect their privacy and do not tolerate any form of harassment or discrimination 6.10)Nestlé principles of Business Operations 1. We express this via our corporate proposition Good Food. injuries and illness related to work. agents.(1. We respect consumer privacy 4. Quality assurance and Product safety  Everywhere in the world. provide equal opportunities for their development and advancement. and to adhere to our nonnegotiable standards. everywhere by offering tastier and healthier food and beverage choices and encouraging a healthy lifestyle. Human Rights in our business activities  We fully support the United Nations Global Compact’s (UNGC) guiding principles on human rights and labour and aim to provide an example of good human rights and labour practices throughout our business activities 5. We treat each other with respect and dignity and expect everyone to promote a sense of personal responsibility. Safety and health at work  We are committed to preventing accidents.

and target zero waste. 10. We recognize that the world faces a growing water challenge and that responsible management of the world’s resources by all water users is an absolute necessity. 9. Agriculture and rural development  We contribute to improvements in agricultural production. Environmental sustainability  We commit ourselves to environmentally sustainable business practices. the social and economic status of farmers. favour the use of sustainably-managed renewable resources.  Water We are committed to the sustainable use of water and continuous improvement in water management. rural communities and in production systems to make them more environmentally sustainable. 9|Page Internship Report . At all stages of the product life cycle we strive to use natural resources efficiently.8.

1990 The Sheikhupura factory starts the production of powder milk Nido and cereals.Through the following below given detail we can come to know that how NESTLE make progress with the passing of time. Milkpak Ltd is manufactures UHT milk. and there aim is to bring products to people's door steps. 1912 Nestlé begins its long relationship with South Asia when the Nestlé Angel-Swiss condensed Milk Company starts importing and selling finished products in the Indian market. 1979 This year Milkpak Ltd is founded by Syed Yawar Ali currently Chairman of Nestlé Pakistan Limited. Convenience is at the heart of the Nestlé philosophy. when parent company. the Switzerland-based Nestlé SA.CHAPTER 2(NESTLE IN PAKISTAN) (2. butter and cream. Today Nestlé is fully integrated in Pakistani life.1) NESTLÉ IN HISTORY IN PAKISTAN Nestlé has been serving Pakistani consumers since 1988. A new plant acquired formerly named KDL (Kabirwala Dairy Ltd) in Punjab. first acquired a share in Milk pak Ltd. N e s t l é P a k i s t a n e n s u r e s t h a t t h e i r p r o d u c t s a r e m a d e a v a i l a b l e t o consumers wherever in the country they might be. 1981 Production develops it product in long shelf life UHT milk begins at Milkpak Limited in Sheikhupura factory. nutritious and tasty food. and is recognized as the producer of safe. 10 | P a g e Internship Report . 1988 Nestlé SA acquires a 40% shares in Mikpak Limited. and leaders in developing and uplifting the communities in which they operate.

The GLOBE project introduced and launched successfully. The main purpose to launch said project is intended to further cooperation and information sharing with Nestlé companies around the world. Meanwhile. Nestlé Pakistan responds swiftly to October’s devastating earthquake. Within a few years it becomes one of the world’s leading brands of bottled water. 1996 In is year Milkpak Ltd was renamed Nestlé Milkpak Ltd. Farmer milk payment entry was started in MMS (Milk Management System). A Maggi Noodles plant is installed at the Kabirwala factory.1992 Nestlé takes over the running of the company and begins to develop its milk collection network to develop direct source. 1998 Nestlé Pure life bottled water is premiered in Pakistan. 2005 Nestlé Milkpak Ltd renamed Nestlé Pakistan Ltd. using its own distribution channels to bring aid to the worst affected areas. 1997 The Kabirwala plant becomes a fully owned unit of Nestlé Milkpad Ltd formerly KDL (Kabirwala Dairy Ltd). 11 | P a g e Internship Report . 2001 Nestlé Pakistan acquires the Fontalia and AVA water companies which specialize in supplying water to homes and offices. 2004 Afghanistan becomes the fourth sales zone of Nestlé Pakistan Limited. Nestlé Milk Collection system matures in the Punjab and the company is able to buy all its raw milk from farmers directly instead of relying on contractors as an indirect source.

raita and cream. Nestlé is a customer and profit oriented organization rather than system and strategy oriented.000 Sq KMs. The mechanics of generating profit are low-cost production and high-price sales. low fat NESVITA. (2. SHEIKHUPUR FACTORY In heart of Punjab a milk products processing factory situated at Sheikhupur running business of Nestlé Pakistan Ltd. The factory starts in 1981 as a part of Milkpak Ltd. but after this in 1988 it’s expand to produce cream. Two factories producing dairy product and other threes are bottled water plant. Now it is producing flavor base yogurt. It also started supply of dairy mixes to McDonald’s. KABIRWALA FACTORY 12 | P a g e Internship Report . situated in Islam Abad and Sheikhupur cities in north of the Pakistan and Karachi in south of Pakistan. producing many products in Pakistan. sold as NESVITA brand.000 farmers over 146. That time the factory was producing only UHT milk.2) NESTLÉ PAKISTAN TODAY Nestlé becomes totally different form as passing 145 years (1867-2012) now become a leading company not only in Pakistan but doing business in many countries of the world. as well as high calcium low fat dairy products. In recent year its capacity also has been expanded. The products which are producing in it are Milkpak UHT milk. collecting the milk from farmers over the Punjab and Sindh directly estimated 190.(2.3) FACTORIES IN PAKISTAN Nestlé has four factories. butter and Desi Ghee. The aim of this company is to bring product to people on their doorsteps. tea whitener. After this it also begin producing powder milk. Nestlé Pakistan now operating the biggest Milk collection system in Pakistan. Pure Life water. Cerelac and yogurt in several flavors. On the demand of Pakistani consumers its capacity was expanded for new product. Now its products are available everywhere we want. as well as many other drinks.

It was fully owned unit in 2003. ISLAMABAD FACTORY Nestlé acquired the AVA water factory situated in Islamabad in 2001. after this it is continuously improving the brand as per international standards.Nestlé.Nestlé Milkpak acquired Kabirwala Factory formerly KDL in 1990 which is situated in Kabirwala district Khanewal Punjab after this in 1997 fully owned by Nestlé Pakistan Ltd.pk/Pages/Nestlé. Islamabad factory has been providing women workforce. In year 2005 a project for extension done by a cost of Rs.aspx RaheelAslam.0 billion. both milk products powder and liquid. Kabirwala factory producing Everyday tea whitening powder started in 2002. 2. and Nestlé is giving opportunity to work at the same location to women alongside men in its production departments Ref: 1. Currently factory is producing Nido was started in 1998 and Milkpak UHT started in 2006. In 1992 it expand to produce Maggi Noodles and in 1996 expand more to produce powder milk. the extension was milk processing capacity at triple its current size. http://www.4. Amir Nawaz Employees and supervisor 13 | P a g e Internship Report .

cost of living.1) PEST ANALYSIS:Analysis Of External Environment Political Environment  Government regulations to protect interest of society and from unfair business practices. Technological environment:  Technological environment is rapidly changing. interest rate and savings have a large impact on market place. 14 | P a g e Internship Report .  Unstable political conditions Economic Environment  If inflation rate high then rate will decrease in purchasing power. so inflation rate directly affect the company’s sale  Changes in major economical variable such as income.  Company must keep up with technological changes to match up with its environment. Social/culture environment:  Consumption behavior of Pakistani people is high so they consume more goods.  As Pakistan is a Muslim country so company cannot add any ingredient which is prohibited in Islam or which is not “Halal” .CHAPTER 3 (GENERAL ANALYSIS) (3.

their strategy makes room for adjustments. therefore. which is the world’s largest processed food and beverage company. with the best quality they can attain customer loyalty. Nestle company has worldwide reputation which helps them to retain the market even in bad situations & unfavorable conditions. Nestle cannot compromise on quality because people are more quality conscious now a days. Nestle water and these brands are almost generic to their product categories.  COMPANY IMAGE: Nestle company has a great image in the mind of people.2) SWOT ANALYSIS Analysis Of Internal Environment: STRENGTHS:  PARENT SUPPORT Nestle Pakistan has a strong support from its parent company. Cereals.  HIGH QUALITY PRODUCT: Nestle produce a good quality products.  GOOD MARKETING SKILLS AND SERVICES: Nestle is now a days working on this on this concept because they want to increase their market share. nestle captured a market with great sweep with the developed strategy. The company has access to the parent’s hugely successful global folio of products and brands. with a presence in almost every country.  RESEARCH & DEVELOPMENT TEAM 15 | P a g e Internship Report . such as in Milk pack & Nestle pure life. Maggie.(3. They are providing quality products to the customers that include their service and product.  BRAND STRENGTH: In Pakistan Nestle has some very strong brands like Nescafe.  MARKET SHARE: Nestle juices has a highest market share almost in every SBU’s line.  WELL DEVELOPED STRATEGY: Nestle has recognizes there is a right time and place for their product.

It has a competitor advantage because many local companies have no research & development departments. 16 | P a g e Internship Report .  MORE CONCERNED ON PROFIT: As being less proactive they are more concerned about profits.  HR DEPARTMENT: Nestle company has a strong HR department which Nestlé’s strong committed management of the company.  PRODUCT INNOVATION: The Company has been continuously introducing new products.Research and development department keeps Nestle in continuous knowledge about itself and competitors. thus expanding its product offerings. WEAKNESSES:  LESS PROACTIVE: Nestle being a company is less proactie t h e y c r e a t e c h a n g e s b u t usually unless competitor doesn’t change they doesn’t adopt change.  NO OUTLETS IN PAKISTAN: They don’t have direct outlets to whole sellers to create less burden on the factory distribution channels however their competitors give them a major threat by this.  LESS DISTRIBUTION CHANNEL: Nestlé’s major & bad factor is the limited distribution channel because they distributes their products to whole seller in their own factory vehicles. & their market share the main objective of every company is to gain profits but as compare to competitors it’s a drawback.

OPPORTUNITES:  SUPPORT FROM FOREIGN INVESTORS: Government support foreign investors to invest in Pakistan whi c h eventually is the opportunity for Nestle.  ENHANCE DISTRIBUTION CHANNEL: Nestle should be working on the distribution network to enhance the company’s network against its competitor.  CHANGING SOCIAL TREND: Consumers in urban areas now adopt Western lifestyles, especially the younger generation which is hugely influenced by the Western media. Younger consumers tend to follow Western life style. There was an increase in demand for Nestle products over the review period.  HEALTH CONSCIOUS: Increasing health and hygiene awareness among Pakistanis has greatly increased sales of nestle products.  MARKET GROWTH: Nestle market expands very fast. A new research proves that in future every person use 85.5 liters juices per years & uses more hygienic products because of the low hygienic conditions of the environment. THREATS:  GOVERNMENT REGULATIONS: They face problem if government employ taxes on them which force them to raise the price of their product.  INCREASE IN COMPETITION AMONG COMPETITORS: Competition among competitors is major threat to Nestle which can be controlled by the help to retaining more customers & making more loyal ones.  NO ENTRY BARRIER: There are no many entry barriers so a large numbers of local companies enter in various Nestlé’s product market.

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 INFLATION RATE: Increase inflation rate very fast so inflation is very true bad factor which can affect Nestle.  UNFAVOURABLE CHANGES IN COSUMER DEMAND: With the increase in the competitors there will be increase in the number of related products which eventually harm the Nestlé’s market. Due to which the consumers demand pattern fluctuate.  LOSS OF MARKET SHARE: When the market saturates the loss of the market share of Nestlé’s products is there major threat to Nestle.

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(3.3) NESTLE COMPETITORS:  Engro foods  Haleeb foods  Cadbury  IBL  Mitchell’s  Candy land

COMPETITIVE STRATEGY  WHAT MAKES COMPETITIVE  The hallmark of the nestle′ is the quality of the products which the company offers.

COMPETITIVE EDGE OF NESTLE  The companies all over the world get some competitive edge based on some features which other companies don’t have. For example, as the Dell has the competitive edge over other computer manufacturer companies, because they use Built-to-order Strategy while no other company in computer industry use this strategy. Similarly in Pakistan nestle has their Competitive edge basedon these Strategies:  Product Differentiation  Customer Oriented  PRODUCT DIFFERENTIATION STRATEGY Nestle is using the product differentiation strategy by providing the superior quality products. Their main focus is to keep the customers loyal. They bought shelve space in differentdepartmental stores to attract the customers. They tried to reach each group of people in which theyhave succeeded.  CUSTOMER ORIENTED Customer satisfaction is the focal point for the company. They provide hygienic productsto their customers. Products are also verified by health and safety measures and international qualitystandards.

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Each major area is kept under the manager who is specialist in that concerned field and is responsible for all activities.4) ORGANIZATIONAL STRUCTURE Organizational structure is the formal framework by which jobs tasks are divided. grouped. ORGANIZATIONAL STUCTURE OF NESTLE IS HIRARICHAL: 20 | P a g e Internship Report . which that department performs.e. functional departmentalization is found in organization.(3. The tasks are divided into separate jobs and then these jobs are grouped together under different departments i. and coordinated. Nestlé is a function-based organization.

The Human Resource Department is subdivided into three branches:  Shared Services  Centre of Expertise  Business Partner HR IMPORTANCE: The main objective of HR department in Nestle is to meet company needs of the human resources and the needs of the people hired by the company. Information and Administration. and ensures that they have all the right people with the right skills. it is their mandate to enhance their skills with cutting-edge training and provide them with world-standard facilities They select flexible. Talent Management and International HR. Reward and Employee Relations. HUMAN RESOURCE PRACTICES For nestle. The management of Nestle considers that in order to stay competitive and to meet the needs of their customers they should focus on their employees. Learning and Development. innovative people who are ready to confront new challenges and make a difference. they created centers of expertise in Recruitment Services. They consider employees the main assets of organization and focusing on providing them the better facilities. Back in 2001. Since then They’ve come a long way and have contributed a huge amount to the business.1)HUMAN RESOURCE DEPARTMENT OF NESTLE PAKISTAN: HR is dedicated to their employees.CHAPTER 4(DISCRIPTIONS OF VARIOUS DAPARTMENTS) (4. Today They are really proud to be recognized one of the most advanced HR functions within Nestlé globally. 21 | P a g e Internship Report . Understanding that their people are the bedrock of all their business strategies. in the right places at the right time. Business Partnership is not a new concept. Their groundbreaking Management Trainee Programmed aims to develop talented young men and women and help them achieve their potential in a dynamic and enabling environment. Over a hundred people travel out of the country every year to take advantage of their international training and development events.

e. Structure: There are five support departments for the Supply Chain. Export Marketing. it has started working and performing vitalfunctions for the organization.Concerned Group Brand Managers or Brandmanagers were contacted to gather first handinformation. Theseare      ExportMarketing DemandPlanning CustomerOrder ServicesTransportation National Distribution Center Out of these five departments. falls under the FCM and works atthe Head Office. starting from the procurement of raw and packaging material. Functions of the Supply Chain: The supply chain department performs a range of functions. Purchase.3)MARKETING DEPARTMENT The Marketing Department is responsible for all sort of activities including the promotion. The fifth department i.2)SUPPLY CHAIN DEPARTMENT The concept of having a Supply Chain Department is a new one in Pakistan. This trend ismostly prevalent in the developed markets.advertising and tools used for generating demand.(4.The Marketing department is also responsible for arranging stalls and functions for the promotional and official reasons respectively. (4. production planning are different issues but Nestlé Milkpak has undertook the concept of getting the hurdles attached with these resolved under one umbrella. four are headed by the Supply Chain Manager with threeworking at the Head Office and the National Distribution Center at the SheikhupuraFactory. Nestlé Milkpak has recently introduced thisconcept in its company functions and the supply chain department is passing throughvarious stages of completion. the manufacturing process and thedistribution of the finished goods to the consumers. Nonetheless.The Marketing Manager or more popularly known as MM at Nestlé heads this 22 | P a g e Internship Report . logistics.

(4. Group Brand Managers are assigned Brand Managers for each single brand of product. The Treasury Manager is directly reporting to the Finance and Control Manager. both physical and material assets. has been arranged so that there is no extra burden on any person.4)TREASURY DEPARTMENT Treasury Department comprises of three sections.division. It has been structured in a way to deal with all external financial relationships. These sale receipts are adjusted at one bank account. The main Treasury receives Sale Receipts from the north. These three sections fall under the Treasury Manager who is responsible to coordinate and look after the workings of each section. • The Share Registration dealing with the investor relations i. Each Group Brand Manager is responsible for a variety of products. 23 | P a g e Internship Report .e. follow the Group Brand Managers. south and central zones on a daily basis. keeping all knowledge about the Stock exchange and the Central Depository Committee ofwhich Nestlé Milkpak is a member. External financial relations for Nestlé Milkpak are:  Shareholders  Suppliers or Vendors  FinancialInstitutions As repeatedly mentioned that Nestlé Milkpak has divided the country into three zones for its convenience. the first looking after all the daily transactions with the Financial Institutions. Following is the structure of the Treasury Department at Nestlé Milkpak Limited • The Treasury dealing with the payments and receipts connected with every zone. • The Insurance section dealing with the area of risk management for the assets of the organization i. the second sub-section is of Share Registration and the third deals with the Insurance concerns of the organization. After him.e. The Treasury Department is a new department at Nestlé Milkpak Limited. This kind of setup. It is a comprehensive department handling various kinds of jobs. The Treasury Department also has links with all the three zones. It works in co-ordination with them to know about the actual cash requirements in each zone and their respective regions.

The taxation department has to deal in three different kinds of taxes  Sales Tax  Excise Tax  Income SALES TAX Sales tax is levied on certain items produced by Nestlé Milkpak. This means that as soon as the inflows reach any bank account. Except for the Milk collection areas where payments are made on cash basis.5)CORPORATE PURCHASE DEPARTMENT Corporate Purchase department at Nestlé Milkpak Limited responsible for purchase and Purchase can be of two types either raw and packing material purchase or technical purchase. (4. But as the company follows a policy of being net borrowers so the inflows are adjusted against the borrowings. namely: • Raw and Packing Material Department • Technical Purchase Department These departments are headed by Purchase Managers. This department has got two sections  Local Purchase Departmen  Imports department LOCAL PURCHASE DEPARTMENT This department has two sub sections. Nestlé makes all its payments on 30 days credit basis.CulinaryWater. they are transferred to a single specified account for adjustment against the borrowed funds. (4. excise duty and income tax of the employees of the organization. A minimum level of cash is maintained at all the accounts for every region and zone.Nestlé maintains approximately 80-90 bank accounts in various banks located at different places.TaxationDepartment at Nestlé Milkpak Limited also falls under the Finance andControl Division. IMPORTS DEPARTMENT This department is responsible fot imports of products. Therefore.ConfectioneryCoffee 24 | P a g e Internship Report .  The taxable itemsinclude:Juices. Nestlé has recently restructured its policy of making credit sales and now almost all the sales are on cash basis.it is headed by the Corporate Purchase Manager. the Treasury Department has to be very efficient in order to keep track of all these transactions.6)TAXATION DEPARTMENT It deals with the sales tax.

Top managers weretoo busy in their own activities and coordination was lacking greatly. Information Systems play a vital role. By 1995.most of these contracts were getting mature.8)THE LEGAL AFFAIRS DEPARTMENT It deals in all the legal matters of the organization. and Nestlé has employed its Own lawyer to look after its best interests. Legal complications started arising. provided me the information on the legal affairs department ESTABLISHMENT OF AN IN HOUSE COUNCIL Nestlé Management took control of Milkpak Limited in 1992.The exchange of information is a continuous function and the decision making process is based on this information. The Information Systems Department comes under the Finance and Control Division at Nestlé Milkpak Limited. The non taxable items include:Milk PowdersCereals It is the responsibility of the Sales Tax department to calculate the figures according tothe rates implied by the government. They entered into transactions with third parties. So. AzeemNaqvi. Especially. (4. The rates of sales tax in case of registered to registered firms is 15% and 3% for non-registeredfirms. Therefore an In House Council was established in 1995. for such a large scale Multinational Corporation like Nestlé Milkpak limited that has to maintain contact not only with its establishments in the country which it is operating but also with Nestlé Headquarters and Nestlé setups in other countries. who handles the Legal Affairs Department at Nestlé Milkpak Limited.The sales tax department calculates these figures and sends them to the Budget and Control section to enable them in calculating the distributor and retailer margins (4. With time disputes arose with respect to these business transactions. but they were not being sufficiently taken care off.Proper hardware and software is necessary to maintaineffectiveness and efficiency. the endconsumer has to bear the burden of the tax eventually and this is a form of indirect tax for the producer and the distributor. This amount is then added to the price of an item and it is sold at profit to the distributor. Nestlé Milkpak had employed a couple of external lawyers to look after its legal matters.7)INFORMATION SYSTEMS DEPARTMENT Information Systems (IS) Department has a very important role in any organization of the modern century. The distributor in turn. Multinational corporations like Nestlé employed foreigners who were easily exploited by the locals. to improve co-ordination and tolook after the day to day legal affairs of the 25 | P a g e Internship Report . by a majority of shareholding in the company. includes the amount of sales tax in his final price and sells the product to the end consumer.

It prepares the product-wise Profit & Loss Accounts and verifies the costs. It is a managerial accounting department making all important decisions like "make or buy". Following major functions are performed by the Legal Affairs Department at NestléMilkpak Limited:            Opinion writing Drafting of legal documents. this department is also known as Budget & Control Department. It is working close in co-ordination with the financial accounting department whereas they are working with the actual figures and the budgeting department analyzes the estimates REPORTS PREPARED BY THE BUDGET AND CONTROL SECTION This department prepares the Long Term Plan. Marketing. Ensuring compliance with the local laws Providing periodic guidelines. (4. That is why. 26 | P a g e Internship Report . which is an estimate for the next three years.9)BUDGET AND CONTROL DEPARTMENT The Management Accounting Department is responsible for preparing budgets for each department and for every product. Therefore. Explaining the company stand to external parties Providing information and documents in legal procedures. decision by taking strict estimates of the products to be produced. This department not only has to prepare the budgets but also to control those estimates. All the work is being performed at brand level in this department. an Operational Plan is prepared which provides estimates for the next one year This process continues and the operational plan is prepared annually. this department is close in co-ordination with both the brand managers in the marketing division and the people working in the factory on budget estimates. Wetting of agreements Co-ordination with external parties. Co-ordination with the Nestlé Headquarters at Vevey Ensuring compliance with the legal policies. Sales and HumanResource. salary matters and litigation of external lawyers. and it is for all the brand groups. such as drafting of opinions. Providing legal opinions to various divisions like Finance. On the basis of long term plan.company.

The details regarding those are on the coming pages.. The budget and control department sets up suitable limits for these expenses.This department controls factory costs through variance reports. The Ist remarkable achievement I found there was that customers were paying there debts in advance. (4. This pricing structure should take into account the distributor and retailer margin. The Selling Price Calculations are also made in this department which verify the ones already made at the factory level. Accounts Payable (ACP) and the AccountsReceivable(ACR). so that the brands have an idea of how much expenditure they can sustain on marketing. Pricing structure The pricing structure is prepared in collaboration with the Accounts Receivable Section of the Finance and Control department. It means that who ever(TheDistributor) wants any product must pay for it. and inventory is dispatched only on confirmation from the bank about the availability of funds. Variance reports Variance reports are prepared at the brand level and the differences between the actual values obtained from the Financial accounting department and the ones estimated in this section is measured.marketing expenses. The FCM has six furture sections reporting to him. CONTROLS IMPLEMENTED The budget and control section is responsible for the control of the following expense items of the company. 27 | P a g e Internship Report . I was injected in it on the first day after we took our letters from Human Resource Department. Which is not prevalent any where. (4.The first achievement is amazing in itself because this phenomenon is not taking place anywhere in the world.The financial accounting department at Nestlé was further subclassified in to threedepartments. Product fixed Marketing expense Every brand is allocated an acceptable budget for making .11)THE ACCOUNTS DEPARTMENT Itis headed by the Financial Accounting Manager The Accounts Department has three further Sub-sections namely the General Ledger Department (GLD).10)FINANCIAL ACCOUNTING DEPARTMENT THE FINANCE AND CONTROL DIVISION at Nestlé Milkpak is headed by the Finance and Control Manager or popularly known as the FCM. These departments work in close collaboration with other departments.

It 28 | P a g e Internship Report . banners. advertisements boards. making the distribution equally available everywhere (4. the Area Sales Managers are assigned with the targets by the upper management. Thus. The Inter CompanyAccounts show the transactions being made at the Sheikhupura Factory. To conduct the sales efficiently and effectively. PRODUCT AVAILABILITY From time to time activities such as area storming. there are some t e r r i t o r i e s t h a t h a v e been assigned some area of Lahore. This is the most important sub-section of theFinancial Accounting Department FUNCTIONS PERFORMED BY THE GLD This department performs a variety of functions. advertising on newspapers. which are All Control Accounts of the subsidiary ledgers of the creditors of ACP and the debtors of ACR are handled at General Ledger Department (GLD). KabirwalaFactory and the Milk Collection Centers.(4.All Inter Company Control Accounts are maintained at the GLD. MAIN STRATEGY OF NESTLE Every organization has forms some strategy to follow. pamphlets. handouts and by the stall activity of marketing department. tasteof the customer is developed and awareness is brought among people about the healthy living thatcan be achieved by healthy and delightful eating. strategies adopted by Nestléthat have proved fruitful are as follows:  Consumer communication  Product availability and development CONSUMER COMMUNICATION With the help of electronic media. which acts as the monitoringagent. brochures.13)GENERAL LEDGER DEPARTMENT (GLD) the General Ledger Department at the Finance and ControlDivision of Nestlé Milkpak Limited. The area managers a d m i n i s t e r t h e s e territories. Therefore. Monthly. discovering new places or areas are beingdone.12)SALES DEPARTMENT The Sales Department is responsible for carrying out the sales of Nestlé confectionary covering the whole of Lahore.

product discounts andvolume discounts being offered on different brands.consolidates all accounts to make the final Balance Sheet and the Profit and LossAccount for the company.The transactions relating to the fixed assets such as the calculation of the Insurance Valueand the Tax Written Down Value is the responsibility of this department.It acts as the monitoring agent for the customer allowances. 29 | P a g e Internship Report .Monthly statements are prepared.Reconciliations are made for the Product Fixed Marketing Expenses (PFME) and the Customer Allowances (CA) etcVouchers are received from different departments like the Treasury. A module called NEFAM (Nestlé Fixed Assets Management) is usedspecifically for this purpose. I will explain the fixed asset management in detail in next coming pages. the ACP and ACR for final posting and monitoring at the General Ledger Department. is handled at this section of the Financial AccountingDepartment. Ledgers of all thesevouchers are maintained at the GLD. Nestlé Fixed Assets Management.

Nestle Milkpak has created mutually beneficial relationship with the farmers.coupled with incentives and a good and prompt return for their milk. unmatched in size. Owing to this tremendous growth in the volume of an extremely high quality raw milk. good animal husbandry practices.As a service to farmers.up gradation of milk loading and transportation system.1) BUSINESS REVIEW MILK COLLECTION The core raw material of Nestle Milkpak is milk. Over the last twelve years. with longer shelf life. adherence to the highest acceptance standards at all milk collection points. chillers have been installed to lower milk temperature to 4°C for preventing bacteria development during long hauls to the factories. including thefactories. To promote milk production. By taking professional help and guidance to their doorsteps. increase in the chilling capacity and aboveall. who assist them in vaccination and treatment of livestock. means the bacteria count. staffed byqualified veterinary doctors. the Company's prime concern has been to improve the quality and volume of milk for UHT processing and for other milk based products. Nestle Milkpak is successfully promoting the use of molasses toenrich the fodder and has arranged its distribution to farmers at cost. productivity and efficiency. sub-centers and centers. This was achieved through a comprehensive strategy and sustained efforts to overhaul the milk collection process. Driven by its commitment to quality and having realized that only self-collection could eliminate its dependence on poor quality milk available from outside sources. which they otherwise find difficult to access. stated simply. which are undertaken by a large fleet of specially insulated tankers. Nestle Milkpak can boast of the largest milk collection network in the country. Nestle Milkpak now produces a superior quality and better tasting UHT milk. high in fat and solid-non fats (SNF) and very low in Total Plate Count (TPC) which. At these centers. provision of high yield fodder seed etc. intensive education program for the farmers and the milk collection staff. Milk is collected through a vast network of village milk centers (VMCs). the Company successfully established its own collection system and expanded its operations over a very large milk shed area in Punjab.CHAPTER 5(FINANCIAL ANALYSIS) (5. 30 | P a g e Internship Report . Today. improved breeding. the milk collected by Nestle Milkpak is low in sodium.5 In terms of quality. which translates into opportunities of economicuplift for the rural population. Nestle Milkpak has established an Extension Service.

In 1996. Strawberry and Orange were introduced. desi ghee – allunder the brand name of MILKPAK and juice drinks under the brand name FROST. it had expanded its operation and was also producing butter. the first such product to come was CERELAC . the most prestigious project. Local packing of imported coffee under the name of NESCAFE 3 in 1 commenced the sameyear. This was followed by LACTOGEN 1 & 2 in 1991. MILO and NESLAC came under production in 1994 and MILO RTD in1995. SWEET TREETS were launched in early 1998. 31 | P a g e Internship Report . Packaging of coffee under the brandname of NESCAFE CLASSIC was undertaken the same year. NESTLE PURELIFE was also commissioned in December. in 1988. Nestle Milkpak also contracted to supply dairy mixes to McDonald's. To meet the demands of the large food market that Pakistan offered. Flavored milks under the brand FRESH & FRUITY came under production on the new Tetra Filling Machine equipped with the modern "slim" format. for its popular soft serves and milk shakes.PRODUCTION As a consequence of joint venture arrangement between Nestle S.In 1997 NESTLE WHEAT and two variants of POLO viz. including TOFFO and two variants of SOOTH. of Switzerland and Milkpak Ltd. And to top it all. MILORTD and UHT Cream were also shifted over to this new format. Based on the latest water treatment and bottlingtechnology. With the installation of the roller dryer in 1990. A new variant Lemony was added to the range of popular FROST fruit drink flavors and a new1-liter packing of FROST was introduced. Nestle Milkpak reorganized and reinforced the production of existing brands and gave shape to new production lines.an internationally recognized brand of infant cereal. the existing production facility of Milkpak in Sheikhupura became a part of Nestle Milkpak. this marked the entry of Nestle Milkpak in the Pakistan water market and that of Nestlein the world water market. increased the number of POLO variants to five. which not only began producing NIDO in 1990 but was also critical to the production of several milk-based products in the future.ERS' Menthol Eucalyptus and Honey Lemon.A. In 1998 a substantial capital investment was made to launch several products and install two new state-of-the-art technologies. By 1988. cream. The addition of two flavors of POLO: Blackcurrant and Strong Mint. The year 1992 saw the introduction of tea whitener EVERYDAY and milk powder in bulk packing named GLORIA.The first to come was a milk powder plant.The expansion of high boiled sweet line continued in 1999 with the introduction of FruitDrops and BUTTERSCOTCH. Nestle Milkpak's first confectionery plant of POLO Mint was installed and the production of NESTLE PURE ORANGE JUICE commenced. A new flexible confectionery line enabled the manufacture of a wide range of high and low boiled sweets and toffees.The Milkpak Sheikhupura factory commenced operations in 1981 as a producer of UHT milk.

its development. Nestlé’s recognize that its consumers have a sincere and legitimate interest in the behavior. conduct and the responsible attitude of its managements and employees. The Nestlé brands follow these above mentioned policies and does not make their ownpolicies. NESTLE basic foundation is unchanged. First came NESCAFE FrothedOriginal. Andthe last product line of the year to be commissioned in November was that of NESTLE Plain Yogurt. taking into account local legislation cultural and religious practices. honesty anda general concern for people.The policies formed by the Nestlé are for every employee of Nestlé around the world. Nestlé’s believes that. The fruit juice range was expanded by the production of Mango and Orange. Therefore recruitment of the right people and ongoing training and development are crucial. a high quality product with special Stay-Fresh Seal.13 Nestlé’s continues to maintain its commitment to follow and respect all applicable local lawsin each of its markets. its culture and 32 | P a g e Internship Report . although in certain areas. and reflects the basic ideas of fairness. NESCAFE Frappe RTD wasto come next. On the confectionery side. and that without its consumers of the company would not exist. Nestlé’s business objective is to manufacture and market the company’s product in such away as to create value that can be sustained over the long term for shareholders. as a general rule. legislation is the most effective safeguard of responsible conduct. The time of origin of their company. Members of Nestlé are strongly committed to the company. Nestlé is committed to the following business policies in all countries. additional guidance to staff in the form of voluntary business policies is beneficial in order to ensure that the highest standards are met throughout the organization. TuttiFruiti was added under the umbrella of POLO and Wild Cherrywas added to the SOOTHERS range. 2000. and business partners.MangoMix. The success of NESTLE PURE LIFE in PET bottlesencouraged the commissioning of 5-gallon bottles production line for home and office in June. Nestlé’s is conscious of the fact that the success of a corporation is a reflection of the professionalism. followed by its two other flavors: Mocha and French Vanilla. Nestlé’s does not favor short-term profit at the expense of successful long-term business development. NESTLE POLICIES Business policies will continue to evolve and adapt to a changing world. it has the capacity to store up to 8300 pallets (approximately 8000tons).The year 2000 saw the production of some exciting products.Spread over 6614 square meters. beliefs and actions of the company behind brands in which they place their trust. a National Distribution Center (NDC) was completed and became functional in June. To meet the needs of safe and quality storage for the ever expanding product range and their volumes. employees.consumers.

regardless of origin. export and infusion of over 2. For example. It has also played a remarkable role in expansion and vitalization of the dairy and livestock sector. the capacity and willingness to apply these policies are the main criteria for progressing in the organization. Nestlé Milkpak Ltd continues to make investments in expanding its production lines as well as bringing in new technologies. the company has created over 1200 permanent job opportunities for the skilled. as gas burns cleaner than heavy fuel oils. Efforts to reduce the quantity of packaging material used for our products.By making available the processed and packaged dairy. without compromising their quality of their quality. have yielded remarkable results over the years. import substitution of milk powder.2) NESTLE CONTRIBUTION TO OTHER SECTOR ECONOMIC Nestlé Milkpak Ltd makes a significant contribution to the economic sector of Pakistan. This positively impacts on the efficiency of waste water treatment plant. the company plays an active role in promoting economic growth. nationality. race. Steps have also been taken to reduce raw water consumption for cleaning and other purposes. religion.3 billion rupees in the rural economy through milk purchases. engineering & production is encouraged to improve the performance of the packaging machines and the supplier to improve the quality of their material supply. Apart from professional skills and insight. 33 | P a g e Internship Report . This drastically reduces gases such as carbon di oxide and carbon monoxide from being emitted into the atmosphere and keeps the emissions well below the legal limits. Nestlé Milkpak has switched over its fuel supply from heavy fuel oil to gas. of which BOD & COD is continually monitored by the engineering department. All waste packaging material is weighted and this information is sent to the management to challenge all departments and suppliers to improve the operations. gender or age (5. Through generation of tax revenue. affirming its faith and confidence in the country's future.its policies. SOCIAL In the social sector. unskilled and professional manpower. ENVIRONMENT Another key area where the company is proud to have made a contribution in the environment. apart from hundreds of contractual jobs.

50:1. These ratios. Measures the ability to meet current obligations in a timely manner.3) NESTLÉ RATIO ANALYSIS Name of Ratios INTERPRETATION / COMPARISON OF RESULTS LIQUIDITY POSITION Current Ratio Overall liquidity position of the company is not satisfactory as its current. This section discusses the different measures of corporate profitability and financial performance. Reduce current liabilities by retaining a greater portion of allocated savings. This ratio is the safest and pure form which indicates the extent of company’s cash can meet its current obligation. much like the operational performance ratios.76 2011 0. A healthy current ratio is greater than 2 (Two) Improve by: Increase current assets by increasing profit.29 2011 0.54 Nestle is far behind the satisfactory level. which is environmental friendly and fitted with a gas burner that gives off very low gas emissions into the atmosphere. quick and cash ratios are far behind the level which is considered to be the satisfactory level. This ratio provides more secure position of company’s current assets available to discharge its liabilities in short period of time. or disposing of unproductive fixed assets and retaining Proceeds. Cash ratio considered only cash and bank balances + Cash equivalents and short term investments. Avoid Financing non-current assets with current liabilities. give users a good understanding of how well the company utilized its resources in generating profit and shareholder value. A good cash ratio is considered to be 0. As inventories are sometime hard to cash so by subtracting their effect from the current assets provide more realistic picture regarding ability of the company to discharge its liabilities. The long-term profitability of a company is vital for both the survivability of the company as well as the benefit received by shareholders. Calculated ratio shows unsatisfactory result as 1:1 is considered to be an idealistic ratio in this case. selling additional capital stock.94 2010 Quick Ratio 1. 2011 0. (5.56 2010 Cash Ratio 0. Quick ratio neglects the effect of inventories in current asset as these are not readily convertible in cash. borrowing additional long term debt. This way tons of material is converted into ash which is safer and easier to dispose off. It is these ratios that can give insight into the all 34 | P a g e Internship Report .Investments has also been made in a new waste incinerator in Sheikhupura factory.27 2010 PROFITABILITY RATIOS: 0.

The ROA ratio is calculated by comparing net income to average total assets. Peer company. we will look at four important profit margins.13% This ratio indicates how profitable a company is by comparing its net income to its average shareholders' equity. and is expressed as a percentage 2011 8.73% 35 | P a g e Internship Report . Return on Asset This ratio indicates how profitable a company is relative to its total assets. however.72% 2010 9. The return on equity ratio (ROE) measures how much the shareholders earned for their investment in the company. or reduce expenses. Widely used by investors. Nestle ROE is satisfactory as it falls in the ideal range of 15-20% in 2011 and almost in 2010. The higher the ratio percentage. it should be recognized that there are variations in ROEs among some types of businesses. the ROE ratio is an important measure of a company's earnings performance. In general. the operating profit margin tells us something about a company's ability to control its other operating costs or overheads Measures operating performance It can be improved by increase margins. Return on Equity and net profit margin in this category. selling. The ROE tells common shareholders how effectively their money is being employed. the more efficient management is in utilizing its asset base. 2011 11.45% Profit Margin Assuming a constant gross profit margin. industry and overall market comparisons are appropriate. the more efficient management is in utilizing its equity base and the better return is to investors.59% 2010 Return on Equity 8.important"profit". In this section.80% 2010 14. admin and cost of production expenses. 2011 16. We have calculated Return on Assets. which display the amount of profit a company generates on its sales at the different stages of an income statement. financial analysts consider return on equity ratios in the 15-20% range as representing attractive levels of investment quality But ROE cannot be alone interpreted as debt effect on company may produce results which are more volatile even having high return on equity. In this Case Nestle has profit margin but profit margin indicates that company should control its operating. The higher the return. increase service fees. The return on assets (ROA) ratio illustrates how well management is employing the company's total assets to make a profit.

Debt Ratio The debt ratio compares a company's total debt to its total assets. the debt-equity ratio provides another vantage point on a company's leverage position. Companies use these operational liabilities as going concerns to fund the day-to-day operations of the business and aren't really "debts" in the leverage sense of this ratio. it will give some background information on the debt of a company. in this case. the more risk that company is considered to have taken on.95:1 or 95% To a large degree. even if you took the same company and had one version with zero financial debt and another version with substantial financial debt. these operational liabilities would still be there. i. which is gives a general idea of a company's financial leverage as does the debt-to-equity ratio while the interest coverage ratio shows how well a company can meet its obligations.e. the more leveraged it is and the riskier it is considered to be. one thing to note with this ratio: it isn't a pure measure of a company's debt (or indebtedness). Generally. creditors and obligors have committed to the company versus what the shareholders have committed 0. Overview of Debt will give a good idea of the different classifications of debt. Basically. The debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. A low percentage means that the company is less dependent on leverage. These ratios give users a general idea of the company's overall debt load as well as its mix of equity and debt. lenders. This is a measurement of how much suppliers. The more debt compared to assets a company has.. Debt ratios can be used to determine the overall level of financial risk a company and its shareholders face. The lower the percentage. In general. such as accounts payable and taxes payable. which is used to gain a general idea as to the amount of leverage being used by a company. large. 2011 48. While it is not mandatory in understanding the individual debt ratios.DEBT RATIOS: The third series of ratios in this tutorial are debt ratios. The ratios covered in this section include the debt ratio. the greater the amount of debt held by a company the greater the financial risk of bankruptcy. the less leverage a company is using and the stronger its equity position. The easy-to-calculate debt ratio is helpful to investors looking for a quick take on a company's leverage. money borrowed from and/or owed to others. In general. the higher the ratio.93% 2011 36 | P a g e Internship Report . as it also includes operational liabilities. which is signaled by a high debt ratio. well-established companies can push the liability component of their balance sheet structure to higher percentages without getting into trouble However. which in some sense can muddle this ratio Debt to Equity Ratio The debt-equity ratio is a leverage ratio that compares a company's total liabilities to its total shareholders' equity.92% 2010 43.

a company finding itself in financial/operational difficulties can stay alive for quite some time as long as it is able to service its interest expenses The interest coverage ratio is used to determine how easily a company can pay interest expenses on outstanding debt. its ability to meet interest expenses may be questionable Nestle has a satisfactory level of paying interest expenses out of revenue. well-established companies can push the liability component of their balance sheet structure to higher percentages without getting into trouble. gross margin.aspx 37 | P a g e Internship Report . like the debt ratio. pro forma earnings and the list goes on. EBITDA.16 Ref: http://www. When looking at the financial statements of a company many users can suffer from information overload as there are so many different financial values. future plans of the organization and market behavior. Nestlé’s debt ratio of 95% seems less onerous which means that creditors have more than one and half as much money in the company than equity holders. Debt equity ratio of 1:1 is considered good.pk/About-Nestlé/Pages/FinancialReports. The debt-equity ratio appears frequently in investment literature. When a company's interest coverage ratio is only 1.97 2010 10. While the non-payment of debt principal is a seriously negative condition. Similar to the debt ratio.78:1 or 78% comparing total liabilities to shareholders' equity. The ability to stay current with interest payment obligations is absolutely critical for a company as a going concern. operating cash flow. a lower the percentage means that a company is using less leverage and has a stronger equity position.5 or lower.2010 0. Idealistic EPS depends upon various factors such as political and economic conditions. this ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities. Value gives us information that one share of the company is entitled to how much profit of the company. EPS is calculated by dividing profit after tax to weighted average issued share capital of company. the more the company is burdened by debt expense. this easy-to-calculate ratio provides a general indication of a company's equity-liability relationship and is helpful to investors looking for a quick take on a company's leverage. large. Nevertheless. as opposed to total assets in the debt ratio. However. This includes revenue. The ratio is also high with relation to its competitor.Nestlé. The lower the ratio. Interest Cover 2011 23. The ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) by the company's interest expenses for the same period. Investment valuation ratios attempt to simplify this evaluation process by comparing relevant data that help users gain an estimate of valuation This ratio describes the overall performance of the company and let its shareholders to analyze how well company is performing. Generally.60 2010 14.67 INVESTMENT RATIO: Earnings per share 2011 2.

My training period was spent learning the work of all the sub sections of this department.CHAPTER 6(EXPERIENCE) Description of activities My experience I did my training in the head office at Milk Collection dairy development.RahelAslam and Amir Nawaz.During my training. All these departments work in collaboration with each other. Starting and Ending date of Internship is: august 6. 2012 to october 6. Mostly section of my report focuses on my training program and all the details regarding the " fixed assets management department"in milk collection and dairy devlopment would follow In that section. with the help of my bosses I visited every department to get briefings regarding their work. I done my internship under my supervise M. 2012 38 | P a g e Internship Report . I was assigned to the Accounts fixed assets management department under the Finance and Control Division. This was essential to understand how the working of every department helps all the others. The Nestlé milk collection was established in 1999 and started milk collection operations for Kabirwala and Sheikhupura factory. located at Upper Mall Road Lahore.

 Recheck and mark good receivable notes and make summary on Excel  Update addition fixed assets at different location on SAP.  Enter entries of fixed asset and their location codes in SAP.1) BRIEF INTRODUCTION OF ACTIVITIES PERFORMED DURING INTERNSHIP Duties  Give me task of file sorting (files of receivable notes)  Make phone calls and update the status of repaired machines (chillers.  Update data base of out of order transformer.  Make summary of repaired Cars and vendors name  Make phone calls and update status of repaired machines 39 | P a g e Internship Report .  On excel make tally sheets and dispatch notes. generators.  Sorting of transfer good receipts(year 2011.  Make MCE (milk collection executives) complaints lists on excel. UniTech)  Update data base of bikes with reference to the employee numbers. 2010) on excel.  Sorting of delivery Challans (Candy.  Entre serial number of bikes in SAP.  Mail tags of fixed assets to different regions. 2012) and make data base on excel.  Make sheet on Excel about Tankers repair in July 2012. and stabilizers water pumps borings).  Make data base of transfer goods (year 2009.(6. meter and approved value to repair them.

They are keen to interact with our suppliers – current and potential. and welcome every opportunity to meet customer needs. to achieve this. Milk is received into 3. This activity is pivotal to the success of the Company and we have a large team of dedicated staff located throughout the Punjab and Northern Sindh. Nestlé places great importance on the quality of the milk purchased and extensive tests are undertaken at all stages of the purchasing chain.Nestlé Pakistan is strongly committed to the development of the dairy sector in Pakistan and we place great importance on the training and development of all farmers. from the smallest to the largest. Only the purest. NESTLE network of milk collection centers draws milk from an estimated 190. which is the first step to ensuring that every Nestlé product is of the quality our customers have come to expect.2) Milk Collection and Dairy Development: The Milk Collection and Dairy Development Section is charged with purchasing the milk requirements of the two factories.000 Village Milk Centers and a similar number of Chilling Centers from where it is collected and trucked to the factories in Kabirwala and Sheikupura.000. NESTLEtwo Large Scale training farms are further testimony to sincerity in this commitment.DETAIL I will tell firstly about the Milk collection and dairy development department because I spent my most of time in this department (6. unadulterated milk can be accepted for processing. 40 | P a g e Internship Report .

farmer demonstration days.) are our tools. ensure accurate and timely payments to all vendors including milk suppliers & transporters. Consumer Trust and preference is their priority and team always work for continuous improvement to keep continue our journey towards Zero Waste. Milk Collection Dairy Development Operational team is committed to implement the guidelines and procedures in accordance with Nestlé standard to ensure workplace safety. farmer meetings. encourage best farm practices implementation by coaching at farm level.Introduction to all MCDD Departments  Milk collection operations  Agri Services  Finance and control  Human resource  Large farms divisions  Fresh milk transport Milk collection operations: Nestlé is one of the leading Food. monitor & control expenditures against budgets. but also help achieve sustainable milk growth and build farmer’s trust in Nestlé. Nutrition. implementation of best farm practices. Agri services: Achieving sustainable milk growth through happy producer’s while helping country to become the best in class in dairy industry is their mission continuous knowledge transfers to farmer families. etc. Finance & control: The main roles of the Finance and Control team in Milk Collection & Dairy Development are to provide co-pilot support to management on all aspects of MCDD operations. food safety and regulatory compliances. introduce commercial farm inputs through private channels (AI. breeding and feeding are their strategic pillars Knowledge transfer to farmer families through training at farms. It is all aimed in order to cater for the increasing demand and requirement of better quality milk that will also help to make farming more economical and sustainable. Health and Wellness Company. increase traditional farm size to large dairy farms. mechanization. And not only this. disease control. enhance operational efficiencies through effective cost 41 | P a g e Internship Report .

Large farms divisions: In February 2007 Nestlé Pakistan took the bold initiative to import 100 exotic cows from Australia which set the trend for a new phase of dairy development in the country. called Sarsabz at RenalaKhurd. and to work to encourage and develop our farmer suppliers on a daily basis. the ability to deliver sustainable results while adhering to our values. has been established at the same time where four breeds of imported animals are kept to demonstrate the potential. In addition. ensure compliance to standard operating procedures and standing instructions and do all this and more while ensuring that the core function of the department. This initiative has simultaneously contributed to the establishment of a number of large farms having more than 1000 animals producing more than 20 tons of milk per farm per day. to strive for flawless execution and encourage a high performance culture”. Team of 514 permanent and 520 contractual staff is dedicated to collecting quality Milk from an area of 146.optimization initiatives. that is to fulfill the company’s demand for fresh milk is not impaired in the process. through our Milk Collection trainee program they are actively developing future leaders with an intensive and broad introduction to the many facets of Nestlé Pakistan Ltd. The Creating Shared Value (CSV) projects undertaken through Milk Collection are testimony to our sincerity and commitment to development of the dairy production sector. Nestlé Pakistan Ltd has a vital role in enhancing the quality of life of the people of Pakistan and especially the lives of small farmers throughout the rural areas. the local dairy industry is in great need of superior genetic high milk yielding animals to satisfy the huge demand of the future. This was the birth of the Large Farm Development department in Milk Collection and Dairy Development with the aim to encourage and attract new investments into corporate dairy farming. local experience and evidence of the successful maintenance and management of exotic cows. Human resource: The Human Resources Department is committed to developing employees. A demonstration and training farm. They recognize the great efforts of this large field team to collect high quality milk.000 square KMs. 42 | P a g e Internship Report . Although the main source of milk supply to factories is from the traditional farmer.

reliability & sustainability are our strategic pillars for continuous improvement Their project “Safar Bakhair” which won the Nestlé’s Global Gold Award for safe journey in 2010 (Fatality free year) and has been declared a bench mark for the worldwide Nestlé’s supply chain operations in 2011. Efficiency. breeding. farm economics. Pakistan has also got the honor to host two absolutely successful internal workshops on road safety in 2010 and 2011 In the meantime Fresh Milk Transport Team is engaged with various projects. among them “Sales Tax refund” initiative was declared a Super Star initiative in 2010. NESTLE is confident that their project of fleet management through “Satellite tracking” is another revolutionary step towards efficiency and sustainable savings and will make them proud in next year as well 43 | P a g e Internship Report . with safety at number one priority. feasibility studies.Services provided by this department includes a range of assistance such as land selection. They believe that with this foundation. Fresh Milk transport: NESTLE is committed to prove Fresh Milk Transport Operations as a competitive advantage for milk procurement operations. linkages with animal importers and dairy equipment suppliers. shed layout as well as technical support regarding nutrition. monitoring and evaluation and many more. large scale dairy farming will become more attractive and successful which will not only provide new business opportunities but also satisfy the needs of consumers for good quality dairy products.

3) NESTLÉ PAKISTAN HIERARCHY CHART(MCCD) 44 | P a g e Internship Report .(6.

Capacity Increase: Increase of the existing production capacity for products already manufactured in themarket concerned are included in this group of investment. energy saving and similar motives. I. rationalization. it also includes proposals related to products already manufactured that will undergo significant changesin • the product quality • the packaging presentation/material TYPE OF INVESTMENT There can be six types of investments according to the Nestlé Milkpak guidelines. New Products: It consists of proposals for installations required for the manufacture of products. safety. The replacement of existing production related equipment may bring an increase in capacity. which are owned by a company and expected to provide benefit in future operations. protectionof the environment. II.4) FIXED ASSET MANAGMENT In milk collection dairy development my major work was in fixed assets management that’s why I am going to explain fixed asset management. The NEFAM module has allotted numbers 1-6 for these investments:  Land  Building  Machinery & Equipment  Tools & Furniture  Vehicles  Information System III. 45 | P a g e Internship Report . FIXED ASSET MANAGEMENT NESTLÉ FIXED ASSETS MANAGEMENT (NEFAM) Definition of Assets Assets are economic resources.(6. Additionally. Replacement and Rationalization : This consists of replacement of existing obsolete assets. whichare not yet manufactured by Nestlé Milkpak Limited.

The value of the land as such must be separated from that of the buildings.LAND: It includes the value of the following: land. the furniture is capitalized in individual units. Production centers (factories) including the cost of sanitary and sewerage installations and sub structures to take production machines. Housing including cost of electrical. sewers etc. FURNITURE & OTHERS It comprises in particular all the furniture of the administrative buildings. walls. etc. will be registered as buildings. fence. outdoor illuminations. developed and undevelopedleveling and tracing of land Land improvements such as roads. cabinets for chilled products. parking lots. trucks. electric and sewerage installations. trailers. boats. fences. railway wagons. sanitary and heating installations. MACHINERY AND EQUIPMENT This type of investment covers machinery and equipment for production and general services as well as production equipment including data processing equipment related to process control systems and process management. TOOLS. BUILDINGS Under this type of fixed assets are recorded the following values: Administrative buildings (head office). warehouses and sales offices including the cost of sanitary. Buildings under construction including progress payments to construction enterprises are also shown under this heading. 46 | P a g e Internship Report . Also tools. forkliftsand indoor vehicles etc. railway lines. A building constructed on lease hold land is also included. water treatment installations. Land improvements such as roads. reservoirs. railway lines.airplanes etc. VEHICLES It Covers cars including those used for advertising. point of sale frozen food and ice cream cabinets.

1 Machinery and Machinery Equipment 3.3 Vehicles Motor Cars Lorries. First two digits used for year of purchase of particular assets. data processing.g.3 Building Industrial Building on F.1 Computer and Software 6.2 5.3 Miscellaneous and Workshop Equipment 4.H. Jeeps.1 Office Equipmen t4. warehouses.2 Telephone and Communication TEN DIGITS INVENTORYNUMBER A ten digit inventory number is used for marking all the assets e.L Industrial Building on L. information storage.H.2 Milk Tanker 4 = Tools/ Furniture 4.INFORMATION TECHNOLOGY This concerns hardware i. Third digit used for type of investment 47 | P a g e Internship Report .e.5 Laboratory Equipment 4.1 5. Pick-ups Motor Cycles 6 = Information TechnologyEquipment 6.1 Free Hold Land 1.1 2.2 Lease Hold Land 2 = 2.2 Air Conditioners and Refrigerators 4. Software concerns purchases of computer programs or packages in connection with a hardware investment.6 Furniture and Fixtures 5 = 5. SUB TYPE OF INVESTMENT/ ASSETS 1 = Land 1. office information and professional workstations as well as telecommunications located at Head Office.L Office Building 3 = Plant & Machinery 3 .4 Electric Equipment 4. factories.2 2. sales offices and other sites.

FCM. for which the MD has issued a written authorization to this effect. After being approved by the MD each individual asset requirement will be termed as Investment Proposal. PROCEDURE FOR ADDITIONS OF ASSETS Capital Investment Budget The ensuing departments or divisions will send their asset requirements (including specifications. This credit number will be called the Capital Expenditure Proposal (CEP) number. These approved investment proposals will be consolidated in the Investment Budget by the CEfor the presentation of the Capital Investment Budget Capital Expenditure Proposal Once the Zone Manager at the Center has approved the Investment Proposal. Budget Release by Managing Director The MD will officially release the approved budget against each CEP number on a need basis. CE. 48 | P a g e Internship Report . The divisional heads will approve the asset requirements if they are essential to the proper operation and growth of the business. MD will communicate the approved budget to the CE. it becomes a credit. drawings and all technical details) to their respective divisional heads. The Zone Management will allocate a number to each credit. which is to be used fromthen on in the concerned reporting and requests for issuance. Tenth digit used for child assets. The CE sends theapproved CEP's to the concerned Divisional Heads. Purchase Proposal Request For all fixed assets purchase an authorized Purchase Proposal Request has to be issued bythe person in need or responsible for the availability of materials as the case may be. Purchase Orders will be considered valid only when they are raised against a budget release.Fourth digit used for sub type of investment Fifth digit is spare for future allocation. and MM. allocation and consumptionof funds. who transfer the relevant CEPnumbers to the concerned line managers. The assets are presented to the Managing Director for approval in a joint meeting of the MD. Six to nine digits used for fixed assets inventory serial.

CE will prepare a summary of cash requirements on a monthly basis and send it to the treasury manager for arranging funds. Asset Number Allocation The asset numbers will be in accordance with the NEFAM software requirement. which is safe from the environment and maintenance point of view. physical location and reason for transfer of the asset. startingand completion date and comments of the originating and executing department.The ANT's for machinery will be made of aluminum and riveted to the machinery at aspot. For a non-production related asset addition a completion certificate will be used tosignify the physical delivery and transfer of ownership of an asset to the company. Transfer Certificate The transfer certificate will be used to signify the shifting of an asset from one cost center to another or from one location to another.Cash Requirements Summary For cash flow purposes. For alltypes of assets. The material of different types of Asset Number Tags (ANT's) and responsibilityfor their purchase and physical tagging is also the responsibility of GLD. It will provide the asset number. TheGLD will be responsible for allocation of the asset numbers to the additions in fixedassets. Allthe transfer certificates will be prepared by the sending department or cost center.which is safe from the environment and maintenance point of view.categorization of the investment. Deletion Certificate It will be used to signify the retirement of an asset from active utilization and official book of accounts of the company. the CC will provide the allocation of the expenditure incurred. Completion Certificate For a production related asset addition a Completion Certificate (CC) will be used tosignify the closure of the physical and financial requirement of a project on a given date. It will provide 49 | P a g e Internship Report . The ANT's for furniture will be made of adhesive laminated paper and pasted onto the furniture at a spot.

Utilization of Part of Deleted Asset At the time of deletion. This value should beappropriate enough to cover the market price of an asset over its useful life. The procedure for policy formulation is transparent.Sale of Production Asset in Cut Parts or Single UnitAt time of deletion. It is based on the expected market value of the deleted asset. where everyone is given a chance toexpress one's opinion. can be utilized for anyoperational activity in the Company.the asset number. pump)which does not have any identifiable cost or book value. if the threat of production of a potentially competitive product isnon-existent then the asset will be sold as a single unit. categorization of theinvestment.g. Sum Insured Sum Insured represents the value calculated by the company for each asset as to be provided to the Insurance Companies to get the asset insured. Policies areformulated in the 50 | P a g e Internship Report . physical location and reason for deletion of the asset. has the following particulars. The Minimum ResidualValue is suggested and verified by concerned authorities on the Deletion Certificate. Fixed Assets Register Structure The fixed assets register in the NEFAM. it is also decided whether the asset will be sold by weight as scrapafter having it cut in small parts or as single unit. regarding eachasset        Establishment Code Cost Center Line Number Assets Number Type of Assets Date of Purchase Date of Completion Purchase Price (Gross Book Value) OVERALL APPRAISALS ABOUT MANAGEMENT There are sets of policies which are uniform for everyone and strictly enforced. it is also decided whether any part of the asset (e. On the other hand. If the nature of the asset is such that itcan be used by the buyer to make a product which can potentially compete with existing Nestlé products available in the market then it will be sold as scrap in the form of cut parts. pipe. The ultimate approval is given by the Chief Executive.

Managerial policy guidelines are made in consultation with the senior executives of the company. of the managers at different levels with their sub ordinateswas that of an " open-door policy ". the greater the sense of ownership they'll have in their department's mission. The key to success in managing a diverse work groups encouraging open. No formal data could be obtained on the managerial style for managers at Nestlé Milkpak. Being an internee. two way communication. the managerial styles vary from person to person 51 | P a g e Internship Report . The main objective behind these meetings is to bringforth the employees at a forum. The more they feel that their input is valued. "A Policy and Procedure Forum" is held for the line managers who areresponsible to implement the policies approved in their respective departments.. The employees of a particular department and the organization as a whole knew that not only are they valued. but their opinion is also welcome. the following detail rests on my personal observation. give suggestionsfor improvement and development. If anychanges are made regarding the policies or procedures.various meetings as outlined below. it is the responsibility of theHuman Resources Manager to convey the change to the line managers. where they can discuss their problems. delegates authority.Regular meetings are organized at each level of the organization to keep the company moving in a systematic manner. The use of feedback was a very important element observed by me during my training. it can be said that a " democratic style " of leadership was observed at the organization. This style describes a leader who tends to involve sub ordinates in decision making. and uses feedback as an opportunity for coaching. Apart from the policies.Such elements. Also they can share their experiences with each other.Therefore.Some meetings are held at periodic basis which are necessary to keep a check on the a tough task of managing the people and making them adapt to the culture the Nestléteam wants to incorporate in the company. I was also asked by one of my department heads to give a feedback stating the good and bad points of the employees I was working with including the Inchargehimself. encourages participation in deciding work methods and goals. go a long way in the success of a large scale and diverse organization like Nestlé Milkpak Limited and the appropriate management style is mandatory in the achievement of targets for the company.The relation observed by me.

2) PERSONAL LEARNING Personal learning is a moral and ethical obligation set by a person to move in a smooth way to present and future. Employees are living on HR base standards to meet a society of developed country.done all given tasks in a given time period. respect others . (7.CHAPETR 7(LEARNING) (7. Duringmy internship I 52 | P a g e Internship Report . Also observe the office environment and learn many things like be punctual. have ability to work also out of your scope and be honest with your duties. job description and well experienced employees. Here I learn the importance of Microsoft excel and SAP (systems applications process) a data processing system in cooperate sector. make daily or weekly objectives. Learn how to deal with people and how to take work from them.During the internship I realized following duties. Good coordination and cooperation with peers and other staff members can impulse a person to perform better in difficult situations. • Cohesiveness • Ever Ready For Challenges • Broad vision • Learning From Cradle To Grave • Always Create Opportunities • Open Communication With The Boss • Appearance COHESIVENESS A team player can achieve more than an individual.1) KEY LEARNING: During my training session I learnt that Nestlé organization is well organized and having structure of working in line.

“People don’t leave the organizations they leave their bosses” So be friendly with your staff and boss and communicate freely to avoid organizational switching. A professional should be dressedup properly to influence others 53 | P a g e Internship Report . Now the question is how?The answer is very simple. that iswhy nestle is achieving its target quite efficiently . ALWAYS CREATE OPPORTUNITIES “Don’t wait for opportunities always create opportunities” “Time & Tide Waite for None” If you are able to create opportunities.At nestle.noticed that the degree of cohesiveness among the nestle employees is high. success is yours. LEARNING FORM CRADLE TO GRAVE Latest researches and journals can be very helpful in order to generate new ideas. OPEN COMMUNICATION WITH YOUR BOSS To avoid any kind of misunderstanding with your boss. Sales department offers many new courses to the employees to upgrade their knowledge. During my internship I analyzed that. he can grow especially inmarketing field where every thing is presently dynamic. communicate freely with him. EVER READY FOR CHALLENGE If a person can handle problems and challenge adequately. APPEARANCE “Treat your self as a product” Attractive appearance can be very useful to impress others. BROAD VISION “THINK BIG” Think positively to avoid any kind of discrepancy and hurdle in your task. Positive thinkingand broad vision helps you to achieve some thing different and new. by generating new and useful ideas for the organization.

the idea of being a manager has proved itself to be a great idea for me. my ideas are well thought out. The internship program at NESTLE has also been such a wonderful experience. He gave me tasks to work on and trusted me enough to complete them in a timely manner without having to micromanage me. I’m organized. was so great during my internship. MY internship has helped me figure out what type of management style I would like to adopt for myself in the future. It was really refreshing being in a professional environment where my supervisor was cool enough to trust me to do the tasks laid out for me. Both the internship coordinators at NESTLE and my internship supervisors have helped make this experience relaxed. I’ve always had a general idea of the area I want to go into.. It also helped me by confirming that a management position would be great for me.(7. since it’s been so hard for me to choose what I’m really interested in doing for a career. I had a lot of freedom and it felt really nice. and an all around great experience to prepare me for my future in the music industry 54 | P a g e Internship Report . Now that I’ve gotten the amazing opportunity to test out all of the skills I’ve learned while being in school. insightful. and was never kept in the dark about when or what assignments were due. and I’m now confident that I would be a good candidate for any Financ position in industry. without having to breathe down my neck to make sure I was doing them. Completing my internship NESTLE has helped me by showing me how I act when put in a professional environment. I have a great work ethic and it was nice to put that to use.3) PROFESIONAL LEARNING My supervisor. I was always informed of what was expected from me throughout the process. but never specifically what I would excel at. AMIR SB .

and it is anticipated that the plant might will be complete in year or two. The problem I found was the human resource coordinator don’twant to talk to anyone whom he has hired or recommended to be hired. but I am thankful to Mr.  Basically we were Finance Internee and spent our most of time in finance section. Still people at marketing are more well off than people working in finance department. I wonder why? My suggestion is to target B. Another example is of Fruit yogurt. I mean to say that there is lack of research on part of people who make feasibility study for launching a product.one should come up with that why would a child should opt for Yogurt if he can get WallsIce cream from Unilever? 55 | P a g e Internship Report . still the response from the repeat buyers is very bad. well most of the products which are launched in Pakistan are in the same form as in any European country.1) RECCOMENDATIONS FOR NESTLE Following recommendations are based on my observation during my tenure of internshipat the organization and others have been given after talking to people over there and after several discussions to my mates from IBIT. that is there are mostly one time buyers for this particular product. but it doesn’t mean that there is no threat of extinction.CHAPTER 8(RECOMMENDATIONS) (8.I have talked to almost all of the brand managers. although the Nestlé brand has attracted initial boost for the product.  Finance department is ok as far as employee turnover is concerned. marketing is goodas well. Well the Nestlé says that it has targeted children with this product. By this I mean that they should inject this thinking in product design phase not just in marketing planning phase. Thereshould be a close feedback mechanism for seeking what the employee is thinking. One example of such products is Maggi Noodles.Amir because of him we made several visits to Marketing division. their problems and about their every requirement. C and D classes. Although generally the employee satisfaction was observed to be at a higher level in both the Finance and Marketing and Sales Division. I found that people working in the finance divisions are bit depressed about there career ladder and their promotional incentives. just as I have mentioned that employee satisfaction is higher at marketing side. to my surprise they are just targeting the A class consumer. You can earn more by increasing volumes and turnover  Nestlé’s products are accepted all over the world. their satisfaction. And they are not thinking of lower classes. the product is doing very badly in market. To me the HR should is responsible for not just hiring them but keep a close eye on the working of employees.

 Although the employees in Finance and Marketing department are quite satisfied with the work environment.  Employees should be given compensation in order to keep them loyal. Like Frost. I suggest the incentive wage system for the marketing people so that they hit targets more regularly then they are doing now.  Company should provide incentives to shop keepers.  Company should conduct survey from time to time to according to which changes can be introduced in the organization to stay updated in the market. so that the employees can do their work active mindedly. Employees should be trained according to the changing standards of the organization. the problem is in their financial incentives. Nestlé has launched products which are under the same product category and thuscreating competition among themselves. The existing system of milk collection and the services being provided to farmers should be expandedto build the market share in the milk market  Prices of dairy products.  More effort needs to be put in to capture a greater share of the milk market in Pakistan. I admit that there is very little room for improvement but still it can be lowered down. values added fruit juices and PureLife. Pakistan is a market of 20 billion liters in which only 3 billion liters is covered by all companies providing tetra pack milk (Nestlé covers 60-70 %).The ratio of processed milk to the whole milk market is extremely low.  They should introduce creativity into the work. in such a way that we can cover our reduced profits by increasing our volume 56 | P a g e Internship Report . So we should improve our markets. Along with their monetary compensation for good performance there should be a continuous raise in basic pay so that they feel more attracted towards their job.  Employees should be more involved in decision making to become more differentiated.

57 | P a g e Internship Report . By doing this students gain more and more practical knowledge of business and IT world. they were not well reputed companies. So there is more permanent faculty. as most of the students couldn’t find internship by themselves and even if they found.2) RECOMMENDATIONS FOR IBIT  The method of teaching is more practical based rather than theoretical. Permanent faculty increases the worth of department and teaching standard as permanent faculty is well aware of the department and all the students so they understand the students more rather than visiting faculty. So by hiring new It teachers raises the standard of our department in IT.As BBIT is the combination of business and IT so both are equally important for the department but there are just few teachers of IT which teach all courses.  Also hire more permanent faculty in department.(8.  It must have diversity in its faculty as one batch is taught by the same teacher almost in every second semester.  Hire more good faculty of IT so that students attract towards IT.  The evaluation system of teachers must be taken seriously as teachers know that no one will bother about it.  IBIT must make better links with companies.  It must advertise their institute and should struggle to make it a brand  IBIT must have better relation with their alumni so that they can help students in their careers. Students learn more easily from practical approach and it is long lasting knowledge.  It must encourage its students to participate in extracurricular activities like in intra-universities competition.

(8. Doing work in NESTLE is really a good experience as all employees are always ready to answer all your questions frequently and give you more and more work so that you can handle all this. So this is very good organization for internship.  In these organizations different small tasks or assignments are given to group of internees so that they can themselves solve it and present it in front of top management.3) RECOMMENDATIONS FOR INSTITUTE (NEXT INTERNSHIP IN ORGANIZATION) I recommend this organization for the next upcoming internees on following reasons:  Very friendly learning and competitive atmosphere of organization. By working in this organization I feel so good and learn so many things of business and practical world which are so fruitful for me and also to upcoming internees in this organization. 58 | P a g e Internship Report .  All employees are so cooperative and ready to tell everything about their work. By doing this confidence and courageness increases in the students and they start believing on them that they can do good in business worlds it is another very good thing for the upcoming internees. So this is good for upcoming internees there as they clear all their ambiguities.

CONCLUSION Last of all I must THANK IBIT once again for providing me the golden opportunity of spending 9 weeks in such a wonderful place where most people can only dream of. I got the chance of sitting among the ideal sort of people. For the first time I got the chance for applying what Ihave learned over the years.It was an experience of life time. I have talked to almost all of my class fellows about their internship experiences and I have concluded that I am most fortunate to be at Nestlé. I learned here will definitely will be significant improvement in my future professional life. professionals whose names are engraved as pioneers and geniuses of the field.I end my report here by again thanking Allah Almighty who gave ability to complete this tedious task and all other people who have helped me in this venture. I learned about meeting and dealing with people. Working in a group is itself a very thrilling experience because it makes you feel more important. This internship program is the SPIRIT of all the courses at IBIT. 59 | P a g e Internship Report .

aspx Zindagi monthly magazines Supervisor and employees RaheelAslam& Amir Nawaz http://www.Nestlé.aspx http://www.Nestlé.Nestlé.nestle.aspx http://www.pk/Pages/Nestlé.aspx http://www.pk/About-Nestlé/Pages/FinancialReports.pk/ABOUT-NESTLÉ/Pages/MilkCollection.Nestlé.com/Pages/Nestle.aspx http://www.pk/About-Nestlé/Pages/About-Nestlé.          http://www.pk/Brand/Pages/brands-main.aspx 60 | P a g e Internship Report .Nestlé.REFERENCES AND SOURCES FOR REPORT: I have collected all the data from the following sources.Nestlé.aspx http://www.pk/About-Nestlé/Pages/AgriServices.