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.

1|Page Internship Report

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 Member Nationality
Syed Yawar Ali Chairman Pakistani
Jan J. Donald Managing Director South African
Frits Van Dijk Director Dutch
Pierre Director Swiss
Schaufelberger
Giuseppe Bonanno Director Italian
Syed Baber Ali Director Pakistani
Syed Hyder Ali Director Pakistani

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Nestlé contributes to peoples well-being and enhances quality of life.7) MISSION STATEMENT: Nestlé is dedicated to providing the best foods to people throughout their day.(1.throughout the world.” 4|Page Internship Report . With unique experience of anticipating consumers’ needs and creating solutions. Throughout their lives.

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

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

NESTLÉPRODUCTS 7|Page Internship Report .

3. 2. protect their privacy and do not tolerate any form of harassment or discrimination 6. 7. integrity and fairness. provide equal opportunities for their development and advancement. and to protect employees. We express this via our corporate proposition Good Food. reliable consumer communication that empowers consumers to exercise their right to informed choice and promotes healthier diets. Nutrition.(1. 8|Page Internship Report . subcontractors and their employees to demonstrate honesty. 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. Health and Wellness  Our core aim is to enhance the quality of consumers’ lives every day. agents.10)Nestlé principles of Business Operations 1. the Nestlé name represents a promise to the consumer that the product is safe and of high standard. Good Life. We recruit competent and motivated people who respect our values. Quality assurance and Product safety  Everywhere in the world. everywhere by offering tastier and healthier food and beverage choices and encouraging a healthy lifestyle. contractors and others involved along the value chain. Safety and health at work  We are committed to preventing accidents. Supplier and customer relation  We require our suppliers. Consumer communication  We are committed to responsible. In the same way. and to adhere to our non- negotiable standards. we are committed to our own customers. injuries and illness related to work. Leadership and Personal responsibility  Our success is based on our people. We respect consumer privacy 4.

Agriculture and rural development  We contribute to improvements in agricultural production. 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. Environmental sustainability  We commit ourselves to environmentally sustainable business practices.8. the social and economic status of farmers. and target zero waste. At all stages of the product life cycle we strive to use natural resources efficiently. rural communities and in production systems to make them more environmentally sustainable. favour the use of sustainably-managed renewable resources. 9. Water  We are committed to the sustainable use of water and continuous improvement in water management. 9|Page Internship Report .

10 | P a g e Internship Report . 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.1) NESTLÉ IN HISTORY IN PAKISTAN Nestlé has been serving Pakistani consumers since 1988. 1988 Nestlé SA acquires a 40% shares in Mikpak Limited. and there aim is to bring products to people's door steps. Convenience is at the heart of the Nestlé philosophy. and is recognized as the producer of safe. 1981 Production develops it product in long shelf life UHT milk begins at Milkpak Limited in Sheikhupura factory. Today Nestlé is fully integrated in Pakistani life. nutritious and tasty food. when parent company. A new plant acquired formerly named KDL (Kabirwala Dairy Ltd) in Punjab. 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. butter and cream. and leaders in developing and uplifting the communities in which they operate. Milkpak Ltd is manufactures UHT milk. 1979 This year Milkpak Ltd is founded by Syed Yawar Ali currently Chairman of Nestlé Pakistan Limited. the Switzerland-based Nestlé SA. first acquired a share in Milk pak Ltd. 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. CHAPTER 2(NESTLE IN PAKISTAN) (2.

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

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. (2. Cerelac and yogurt in several flavors. The mechanics of generating profit are low-cost production and high-price sales. Now its products are available everywhere we want. SHEIKHUPUR FACTORY In heart of Punjab a milk products processing factory situated at Sheikhupur running business of Nestlé Pakistan Ltd. The aim of this company is to bring product to people on their doorsteps. as well as high calcium low fat dairy products. producing many products in Pakistan.000 farmers over 146. situated in Islam Abad and Sheikhupur cities in north of the Pakistan and Karachi in south of Pakistan. It also started supply of dairy mixes to McDonald’s.(2. Nestlé Pakistan now operating the biggest Milk collection system in Pakistan. butter and Desi Ghee. low fat NESVITA. sold as NESVITA brand. After this it also begin producing powder milk. tea whitener. KABIRWALA FACTORY 12 | P a g e Internship Report . as well as many other drinks.3) FACTORIES IN PAKISTAN Nestlé has four factories. That time the factory was producing only UHT milk.000 Sq KMs. Pure Life water. but after this in 1988 it’s expand to produce cream. Now it is producing flavor base yogurt. collecting the milk from farmers over the Punjab and Sindh directly estimated 190. Two factories producing dairy product and other threes are bottled water plant. raita and cream. In recent year its capacity also has been expanded. Nestlé is a customer and profit oriented organization rather than system and strategy oriented. The factory starts in 1981 as a part of Milkpak Ltd. On the demand of Pakistani consumers its capacity was expanded for new product. The products which are producing in it are Milkpak UHT milk.

Kabirwala factory producing Everyday tea whitening powder started in 2002. In year 2005 a project for extension done by a cost of Rs. ISLAMABAD FACTORY Nestlé acquired the AVA water factory situated in Islamabad in 2001. http://www.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. both milk products powder and liquid.0 billion. In 1992 it expand to produce Maggi Noodles and in 1996 expand more to produce powder milk.4. Amir Nawaz Employees and supervisor 13 | P a g e Internship Report . RaheelAslam.Nestlé. after this it is continuously improving the brand as per international standards. 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. It was fully owned unit in 2003.aspx 2.pk/Pages/Nestlé. the extension was milk processing capacity at triple its current size. Islamabad factory has been providing women workforce.

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

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

 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. 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.  MORE CONCERNED ON PROFIT: As being less proactive they are more concerned about profits. Research and development department keeps Nestle in continuous knowledge about itself and competitors. & their market share the main objective of every company is to gain profits but as compare to competitors it’s a drawback. thus expanding its product offerings. 16 | P a g e Internship Report .  PRODUCT INNOVATION: The Company has been continuously introducing new products. It has a competitor advantage because many local companies have no research & development departments.  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.  HR DEPARTMENT: Nestle company has a strong HR department which Nestlé’s strong committed management of the company.

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

and ensures that they have all the right people with the right skills. Since then They’ve come a long way and have contributed a huge amount to the business. it is their mandate to enhance their skills with cutting-edge training and provide them with world-standard facilities They select flexible. in the right places at the right time. 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. Over a hundred people travel out of the country every year to take advantage of their international training and development events. Learning and Development. HUMAN RESOURCE PRACTICES For nestle. 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. Understanding that their people are the bedrock of all their business strategies.1)HUMAN RESOURCE DEPARTMENT OF NESTLE PAKISTAN: HR is dedicated to their employees. innovative people who are ready to confront new challenges and make a difference. Today They are really proud to be recognized one of the most advanced HR functions within Nestlé globally. Talent Management and International HR. they created centers of expertise in Recruitment Services. They consider employees the main assets of organization and focusing on providing them the better facilities. Reward and Employee Relations. Information and Administration. Business Partnership is not a new concept. CHAPTER 4(DISCRIPTIONS OF VARIOUS DAPARTMENTS) (4. Back in 2001. 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. 21 | P a g e Internship Report .

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

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

namely: • Raw and Packing Material Department • Technical Purchase Department These departments are headed by Purchase Managers. 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.CulinaryWater. the Treasury Department has to be very efficient in order to keep track of all these transactions.  The taxable itemsinclude:Juices.ConfectioneryCoffee 24 | P a g e Internship Report . they are transferred to a single specified account for adjustment against the borrowed funds. But as the company follows a policy of being net borrowers so the inflows are adjusted against the borrowings.it is headed by the Corporate Purchase Manager. Nestlé makes all its payments on 30 days credit basis. This department has got two sections  Local Purchase Departmen  Imports department LOCAL PURCHASE DEPARTMENT This department has two sub sections. IMPORTS DEPARTMENT This department is responsible fot imports of products.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. Except for the Milk collection areas where payments are made on cash basis. 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 has recently restructured its policy of making credit sales and now almost all the sales are on cash basis.TaxationDepartment at Nestlé Milkpak Limited also falls under the Finance andControl Division.Nestlé maintains approximately 80-90 bank accounts in various banks located at different places. Therefore. This means that as soon as the inflows reach any bank account. (4.6)TAXATION DEPARTMENT It deals with the sales tax.

The Information Systems Department comes under the Finance and Control Division at Nestlé Milkpak Limited. Therefore an In House Council was established in 1995. Information Systems play a vital role. who handles the Legal Affairs Department at Nestlé Milkpak Limited. This amount is then added to the price of an item and it is sold at profit to the distributor. They entered into transactions with third parties. Especially. and Nestlé has employed its Own lawyer to look after its best interests. Legal complications started arising. With time disputes arose with respect to these business transactions. 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. 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. provided me the information on the legal affairs department ESTABLISHMENT OF AN IN HOUSE COUNCIL Nestlé Management took control of Milkpak Limited in 1992.8)THE LEGAL AFFAIRS DEPARTMENT It deals in all the legal matters of the organization. Nestlé Milkpak had employed a couple of external lawyers to look after its legal matters.most of these contracts were getting mature.Proper hardware and software is necessary to maintaineffectiveness and efficiency. So. Top managers weretoo busy in their own activities and coordination was lacking greatly. The distributor in turn.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. AzeemNaqvi. 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. but they were not being sufficiently taken care off. (4. Multinational corporations like Nestlé employed foreigners who were easily exploited by the locals. By 1995.7)INFORMATION SYSTEMS DEPARTMENT Information Systems (IS) Department has a very important role in any organization of the modern century.  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.The exchange of information is a continuous function and the decision making process is based on this information. includes the amount of sales tax in his final price and sells the product to the end consumer. The rates of sales tax in case of registered to registered firms is 15% and 3% for non-registeredfirms.

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

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

The Inter CompanyAccounts show the transactions being made at the Sheikhupura Factory. brochures. Therefore.12)SALES DEPARTMENT The Sales Department is responsible for carrying out the sales of Nestlé confectionary covering the whole of Lahore. 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). which acts as the monitoringagent. the Area Sales Managers are assigned with the targets by the upper management. making the distribution equally available everywhere (4. pamphlets. MAIN STRATEGY OF NESTLE Every organization has forms some strategy to follow. The area managers a d m i n i s t e r t h e s e territories. advertisements boards. advertising on newspapers. Monthly. PRODUCT AVAILABILITY From time to time activities such as area storming.(4. handouts and by the stall activity of marketing department.It 28 | P a g e Internship Report . Thus. To conduct the sales efficiently and effectively. discovering new places or areas are beingdone.13)GENERAL LEDGER DEPARTMENT (GLD) the General Ledger Department at the Finance and ControlDivision of Nestlé Milkpak Limited.All Inter Company Control Accounts are maintained at the GLD. banners. 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. 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. This is the most important sub-section of theFinancial Accounting Department FUNCTIONS PERFORMED BY THE GLD This department performs a variety of functions. KabirwalaFactory and the Milk Collection Centers.

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

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

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

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

have yielded remarkable results over the years. the company has created over 1200 permanent job opportunities for the skilled. For example. apart from hundreds of contractual jobs. It has also played a remarkable role in expansion and vitalization of the dairy and livestock sector. regardless of origin. religion. as gas burns cleaner than heavy fuel oils. Apart from professional skills and insight. Steps have also been taken to reduce raw water consumption for cleaning and other purposes. 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. the capacity and willingness to apply these policies are the main criteria for progressing in the organization. 33 | P a g e Internship Report . without compromising their quality of their quality. import substitution of milk powder. All waste packaging material is weighted and this information is sent to the management to challenge all departments and suppliers to improve the operations. engineering & production is encouraged to improve the performance of the packaging machines and the supplier to improve the quality of their material supply. SOCIAL In the social sector.its policies. Through generation of tax revenue. export and infusion of over 2.2) NESTLE CONTRIBUTION TO OTHER SECTOR ECONOMIC Nestlé Milkpak Ltd makes a significant contribution to the economic sector of Pakistan. Efforts to reduce the quantity of packaging material used for our products.3 billion rupees in the rural economy through milk purchases. race. nationality. ENVIRONMENT Another key area where the company is proud to have made a contribution in the environment. unskilled and professional manpower. gender or age (5. of which BOD & COD is continually monitored by the engineering department. This positively impacts on the efficiency of waste water treatment plant. the company plays an active role in promoting economic growth. Nestlé Milkpak Ltd continues to make investments in expanding its production lines as well as bringing in new technologies. Nestlé Milkpak has switched over its fuel supply from heavy fuel oil to gas. affirming its faith and confidence in the country's future.By making available the processed and packaged dairy.

As 2011 0. A healthy current ratio is greater than 2 (Two) Improve by: Increase current assets by increasing profit. or disposing of unproductive fixed assets and retaining Proceeds.54 considered to be 0. borrowing additional long term debt. Avoid Financing non-current assets with current liabilities. A good cash ratio is 2010 0. Nestle is far behind the satisfactory level. give users a good understanding of how well the company utilized its resources in generating profit and shareholder value.Investments has also been made in a new waste incinerator in Sheikhupura factory. 2010 0. These ratios. PROFITABILITY This section discusses the different measures of RATIOS: corporate profitability and financial performance.27 and short term investments. This way tons of material is converted into ash which is safer and easier to dispose off. (5.56 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. Cash ratio considered only cash and bank balances + Cash equivalents 2011 0. Quick Ratio This ratio provides more secure position of company’s current assets available to discharge its liabilities in short period of time. which is environmental friendly and fitted with a gas burner that gives off very low gas emissions into the atmosphere. Cash Ratio This ratio is the safest and pure form which indicates the extent of company’s cash can meet its current obligation. quick and cash ratios are far behind the level which POSITION is considered to be the satisfactory level.29 allocated savings. selling 2011 0.3) NESTLÉ RATIO ANALYSIS Name of Ratios INTERPRETATION / COMPARISON OF RESULTS Overall liquidity position of the company is not satisfactory as LIQUIDITY its current.50:1. much like the operational performance ratios.94 additional capital stock.76 Calculated ratio shows unsatisfactory result as 1:1 is considered to be an idealistic ratio in this case. Reduce current liabilities by retaining a greater portion of 2010 1. Current Ratio Measures the ability to meet current obligations in a timely manner. It is these ratios that can give insight into the all 34 | P a g e Internship Report . Quick ratio neglects the effect of inventories in current asset as these are not readily convertible in cash. The long-term profitability of a company is vital for both the survivability of the company as well as the benefit received by shareholders.

Widely used by investors. we will look at four important profit margins.72% cost of production expenses.45% common shareholders how effectively their money is being employed. or reduce expenses. The higher the ratio percentage. Return on Equity and net profit margin in this category. 2010 9.13% Return on Equity This ratio indicates how profitable a company is by comparing its net income to its average shareholders' equity. 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. The ROA ratio is calculated by comparing net income to average total assets. We have calculated Return on Assets. important"profit". and is expressed as a percentage 2010 8. it should be recognized that there are variations in ROEs among some types of businesses. The ROE tells 2010 14. The higher the return. Nestle ROE is satisfactory as it falls in the ideal range of 15-20% in 2011 and almost in 2010.80% its equity base and the better return is to investors. The return on equity ratio (ROE) measures how much the shareholders earned for their investment in the company. In this Case Nestle has profit margin but profit margin indicates that company should control its operating. industry and overall market comparisons are appropriate. 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.73% 35 | P a g e Internship Report . Peer company. which display the amount of profit a company generates on its sales at the different stages of an income statement.59% management is in utilizing its asset base. admin and 2011 11. selling. the more efficient 2011 8. Return on Asset This ratio indicates how profitable a company is relative to its total assets. increase service fees. Profit Margin Assuming a constant gross profit margin. In general. the more efficient management is in utilizing 2011 16. the ROE ratio is an important measure of a company's earnings performance. The return on assets (ROA) ratio illustrates how well management is employing the company's total assets to make a profit. In this section. however.

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

well-established companies can push the liability component of their balance sheet structure to higher percentages without getting into trouble. like the debt ratio. INVESTMENT When looking at the financial statements of a company many RATIO: users can suffer from information overload as there are so many different financial values. EBITDA. EPS is calculated by dividing profit after tax to 2011 weighted average issued share capital of company. its ability to meet interest expenses may be questionable Nestle has a satisfactory level of paying interest expenses out of revenue.Nestlé.pk/About-Nestlé/Pages/FinancialReports. Investment valuation ratios attempt to simplify this evaluation process by comparing relevant data that help users gain an estimate of valuation Earnings per share This ratio describes the overall performance of the company and let its shareholders to analyze how well company is performing. Nevertheless. 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.5 or lower. Value 2. large. The debt-equity ratio appears frequently in investment literature.67 company can pay interest expenses on outstanding debt. 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. Ref: http://www. this ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities. This includes revenue. a company finding itself in financial/operational difficulties can 2011 23.78:1 or the percentage means that a company is using less leverage 78% and has a stronger equity position. Generally. 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. When a company's interest coverage ratio is only 1. comparing total liabilities to shareholders' equity.16 future plans of the organization and market behavior. a lower 2010 0.97 gives us information that one share of the company is entitled to how much profit of the company. Idealistic EPS depends 2010 upon various factors such as political and economic conditions. The lower the ratio. Debt equity ratio of 1:1 is considered good.aspx 37 | P a g e Internship Report . gross margin. The ratio is also high with relation to its competitor. pro forma earnings and the list goes on. operating cash flow. 10.60 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 2010 14. While the non-payment of debt principal is a seriously negative condition. However. as opposed to total assets in the debt ratio. Interest Cover The ability to stay current with interest payment obligations is absolutely critical for a company as a going concern. the more the company is burdened by debt expense. Similar to the debt ratio.

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

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

and welcome every opportunity to meet customer needs. 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.000. Nestlé places great importance on the quality of the milk purchased and extensive tests are undertaken at all stages of the purchasing chain. 40 | P a g e Internship Report . from the smallest to the largest.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. Only the purest. unadulterated milk can be accepted for processing. NESTLE network of milk collection centers draws milk from an estimated 190. DETAIL I will tell firstly about the Milk collection and dairy development department because I spent my most of time in this department (6. Milk is received into 3.000 Village Milk Centers and a similar number of Chilling Centers from where it is collected and trucked to the factories in Kabirwala and Sheikupura.2) Milk Collection and Dairy Development: The Milk Collection and Dairy Development Section is charged with purchasing the milk requirements of the two factories. to achieve this. which is the first step to ensuring that every Nestlé product is of the quality our customers have come to expect. They are keen to interact with our suppliers – current and potential. NESTLEtwo Large Scale training farms are further testimony to sincerity in this commitment.

farmer demonstration days. Milk Collection Dairy Development Operational team is committed to implement the guidelines and procedures in accordance with Nestlé standard to ensure workplace safety. 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. monitor & control expenditures against budgets. increase traditional farm size to large dairy farms. mechanization. implementation of best farm practices.) are our tools. food safety and regulatory compliances. Consumer Trust and preference is their priority and team always work for continuous improvement to keep continue our journey towards Zero Waste. disease control. breeding and feeding are their strategic pillars Knowledge transfer to farmer families through training at farms. ensure accurate and timely payments to all vendors including milk suppliers & transporters. Nutrition. farmer meetings. Health and Wellness Company. And not only this. encourage best farm practices implementation by coaching at farm level. enhance operational efficiencies through effective cost 41 | P a g e Internship Report . but also help achieve sustainable milk growth and build farmer’s trust in Nestlé. etc. introduce commercial farm inputs through private channels (AI.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. 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. 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.

In addition. called Sarsabz at RenalaKhurd. 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. Team of 514 permanent and 520 contractual staff is dedicated to collecting quality Milk from an area of 146. Although the main source of milk supply to factories is from the traditional farmer. the ability to deliver sustainable results while adhering to our values. 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. ensure compliance to standard operating procedures and standing instructions and do all this and more while ensuring that the core function of the department.optimization initiatives. and to work to encourage and develop our farmer suppliers on a daily basis. 42 | P a g e Internship Report . has been established at the same time where four breeds of imported animals are kept to demonstrate the potential. the local dairy industry is in great need of superior genetic high milk yielding animals to satisfy the huge demand of the future. local experience and evidence of the successful maintenance and management of exotic cows. Human resource: The Human Resources Department is committed to developing employees. 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.000 square KMs. 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. 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”. that is to fulfill the company’s demand for fresh milk is not impaired in the process. They recognize the great efforts of this large field team to collect high quality milk. The Creating Shared Value (CSV) projects undertaken through Milk Collection are testimony to our sincerity and commitment to development of the dairy production sector. A demonstration and training farm.

farm economics. with safety at number one priority. Fresh Milk transport: NESTLE is committed to prove Fresh Milk Transport Operations as a competitive advantage for milk procurement operations. shed layout as well as technical support regarding nutrition. Efficiency. 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. feasibility studies. linkages with animal importers and dairy equipment suppliers. 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. 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 . monitoring and evaluation and many more. breeding. among them “Sales Tax refund” initiative was declared a Super Star initiative in 2010. They believe that with this foundation.Services provided by this department includes a range of assistance such as land selection. 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.

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

I. Additionally. FIXED ASSET MANAGEMENT NESTLÉ FIXED ASSETS MANAGEMENT (NEFAM) Definition of Assets Assets are economic resources. 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. Replacement and Rationalization: This consists of replacement of existing obsolete assets. which are owned by a company and expected to provide benefit in future operations. energy saving and similar motives. rationalization.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. whichare not yet manufactured by Nestlé Milkpak Limited. II. safety. Capacity Increase:Increase of the existing production capacity for products already manufactured in themarket concerned are included in this group of investment. III. New Products: It consists of proposals for installations required for the manufacture of products. The replacement of existing production related equipment may bring an increase in capacity. The NEFAM module has allotted numbers 1-6 for these investments:  Land  Building  Machinery & Equipment  Tools & Furniture  Vehicles  Information System 45 | P a g e Internship Report . protectionof the environment. (6.

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

1 Office Equipmen t4.2 Lease Hold Land 2 = Building 2.2 Telephone and Communication TEN DIGITS INVENTORYNUMBER A ten digit inventory number is used for marking all the assets e.2 Industrial Building on L. Software concerns purchases of computer programs or packages in connection with a hardware investment.1 Free Hold Land 1.L 2. office information and professional workstations as well as telecommunications located at Head Office.3 Office Building 3 = Plant & Machinery 3.g. sales offices and other sites.2 Air Conditioners and Refrigerators 4.3 Miscellaneous and Workshop Equipment 4. warehouses.2 Lorries. data processing.3 Motor Cycles 6 = Information TechnologyEquipment 6.6 Furniture and Fixtures 5 = Vehicles 5. factories.H.1 Motor Cars 5. Third digit used for type of investment 47 | P a g e Internship Report .H. First two digits used for year of purchase of particular assets. SUB TYPE OF INVESTMENT/ ASSETS 1 = Land 1. information storage. Pick-ups 5.2 Milk Tanker 4 = Tools/ Furniture 4.INFORMATION TECHNOLOGY This concerns hardware i.4 Electric Equipment 4.L 2.1 Machinery and Machinery Equipment 3.1 Industrial Building on F.1 Computer and Software 6.5 Laboratory Equipment 4.e. Jeeps.

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

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 material of different types of Asset Number Tags (ANT's) and responsibilityfor their purchase and physical tagging is also the responsibility of GLD.The ANT's for machinery will be made of aluminum and riveted to the machinery at aspot. TheGLD will be responsible for allocation of the asset numbers to the additions in fixedassets. 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. Allthe transfer certificates will be prepared by the sending department or cost center. It will provide 49 | P a g e Internship Report .categorization of the investment. startingand completion date and comments of the originating and executing department. CE will prepare a summary of cash requirements on a monthly basis and send it to the treasury manager for arranging funds. which is safe from the environment and maintenance point of view. 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. 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. For alltypes of assets. It will provide the asset number. physical location and reason for transfer of the asset. the CC will provide the allocation of the expenditure incurred. 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. The ANT's for furniture will be made of adhesive laminated paper and pasted onto the furniture at a spot.Cash Requirements Summary For cash flow purposes.

the asset number. physical location and reason for deletion of the asset. This value should beappropriate enough to cover the market price of an asset over its useful life. has the following particulars. The ultimate approval is given by the Chief Executive. It is based on the expected market value of the deleted asset. it is also decided whether any part of the asset (e. where everyone is given a chance toexpress one's opinion. The Minimum ResidualValue is suggested and verified by concerned authorities on the Deletion Certificate. categorization of theinvestment. can be utilized for anyoperational activity in the Company. Utilization of Part of Deleted Asset At the time of deletion. The procedure for policy formulation is transparent. pipe.g. On the other hand. 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. Fixed Assets Register Structure The fixed assets register in the NEFAM. if the threat of production of a potentially competitive product isnon-existent then the asset will be sold as a single unit. pump)which does not have any identifiable cost or book value. Policies areformulated in the 50 | P a g e Internship Report . 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.Sale of Production Asset in Cut Parts or Single UnitAt time of deletion. 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. it is also decided whether the asset will be sold by weight as scrapafter having it cut in small parts or as single unit.

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

respect others . Good coordination and cooperation with peers and other staff members can impulse a person to perform better in difficult situations. make daily or weekly objectives. Employees are living on HR base standards to meet a society of developed country.1) KEY LEARNING: During my training session I learnt that Nestlé organization is well organized and having structure of working in line.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.During the internship I realized following duties. (7. • 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. have ability to work also out of your scope and be honest with your duties. Learn how to deal with people and how to take work from them. job description and well experienced employees. Also observe the office environment and learn many things like be punctual.done all given tasks in a given time period. Here I learn the importance of Microsoft excel and SAP (systems applications process) a data processing system in cooperate sector. Duringmy internship I 52 | P a g e Internship Report . CHAPETR 7(LEARNING) (7.

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

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

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

 Although the employees in Finance and Marketing department are quite satisfied with the work environment.The ratio of processed milk to the whole milk market is extremely low. 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.  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 we should improve our markets. 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. 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. values added fruit juices and PureLife.  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.  Employees should be given compensation in order to keep them loyal. Like Frost.  Employees should be more involved in decision making to become more differentiated.  They should introduce creativity into the work. so that the employees can do their work active mindedly. I suggest the incentive wage system for the marketing people so that they hit targets more regularly then they are doing now. 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 %). in such a way that we can cover our reduced profits by increasing our volume 56 | P a g e Internship Report .  Company should provide incentives to shop keepers.

So by hiring new It teachers raises the standard of our department in IT.  It must have diversity in its faculty as one batch is taught by the same teacher almost in every second semester. So there is more permanent faculty. 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. By doing this students gain more and more practical knowledge of business and IT world.  Hire more good faculty of IT so that students attract towards IT.  IBIT must make better links with companies.2) RECOMMENDATIONS FOR IBIT  The method of teaching is more practical based rather than theoretical.  The evaluation system of teachers must be taken seriously as teachers know that no one will bother about it.(8.  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. they were not well reputed companies. as most of the students couldn’t find internship by themselves and even if they found.  It must encourage its students to participate in extracurricular activities like in intra-universities competition. 57 | P a g e Internship Report .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.

 All employees are so cooperative and ready to tell everything about their work. 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.(8.  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. 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.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. So this is good for upcoming internees there as they clear all their ambiguities. So this is very good organization for internship. 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 .

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. This internship program is the SPIRIT of all the courses at IBIT. professionals whose names are engraved as pioneers and geniuses of the field. Working in a group is itself a very thrilling experience because it makes you feel more important. 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 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. For the first time I got the chance for applying what Ihave learned over the years.It was an experience of life time. I learned here will definitely will be significant improvement in my future professional life. I got the chance of sitting among the ideal sort of people. 59 | P a g e Internship Report . I learned about meeting and dealing with people.

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