Internship Report

On

NESTLE PAKISTAN LTD.

PAKISTAN LTD.

UZAIR SAJID

F15-1430

Submitted in partial fulfillment of the requirements

For the degree of

BBA (Hons)

at

Lahore Leads University

Lahore, Pakistan

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 LAHORE LEADS UNIVERSITY

Leads Business School

It is hereby certified that the report has been thoroughly and carefully read and Recommended
to the Lead Business School for acceptance of Final Internship Report by Uzair Sajid, F15-
1430. Session (Nov 2015 to May 2019), Morning, in partial fulfillment of the requirements
for the degree of Bachelors of Business Administration of Lahore Leads University Lahore.

Dated:

Supervisor Name __________________________

Supervisor Signature __________________________

Panel Member Name __________________________

Panel Member Signature __________________________

Head of Department __________________________

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 LETTER OF TRANSMITTAL

Head of Leads Business School,

Lahore Leads University,
Lahore.

Dear Sir,
It is to present you the internship report which is executed at NESTLE PAKISTAN LTD as
required by the university as a degree requirement for BBA program.
This report has been prepared in accordance with the guidelines issued by the department. It is the
result of my first professional experience. The report is practical application of whatever I have
studied as a student of BBA in Lahore Leads University. In this report, I have covered the
introduction of NESTLE PAKISTAN LTD, detail of my working and learning in the Accounts
Department, impact of internship on career in future. I worked on different assignments given to
me. I feel that this experience would be of great help in future.

Sincerely,
Uzair Sajid

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 Dedication

I dedicate this work to my Honorable Parents and Respected Teachers. Who taught me a lesson of
life and have been a great source of love. And encourage me throughout my academic career and
supported me in all platforms. ALLAH is great and compassionate. We submit to ALLAH all our
effort before the Almighty. We offer a humble thanks to the most benevolent that made us capable
of completing this project well in time.

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 Acknowledgement

All praise is due to Allah, the lord and cherisher of the university. May his peace and blessings be
upon Prophet Muhammad (PBUH), his household, companions and all followers of the right
Guidance till the Day of Judgment. First of all I am thankful to ALLAH Almighty who has created
me, gave me the power to understand and the power to gain knowledge. Without His kind guidance
I would have not been able to complete any task given to me. I am great full for the guidance which
has been allotted to me from Allah Almighty to understand and gain knowledge.
Allah, the Exalted, says: " Say: Are those who know equal to those who know not? It is only men
of understanding who will remember."
I give honor and privilege to my respected resource person who helped me in thinking in the right
direction by giving me this challenging task.
I would also like to thank my family, who added a boost to my confidence, and are always praying
for my success.
In particular, I would like to thank my respected teacher Mr. Hashim Awais Butt, who always
provided me a great confidence to take any task of my internship as challenge,
NESTLE PAKISTAN LTD itself provided me great espouser and guidance to fulfill my internship.
I am very thanks to the Mr. Nabeel Javaid (HR Manger) and his team especially to Miss Aqsa
Rustam who provided me every kind of help during internship and in preparing this report.

Executive Summary

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Nestlé has been serving for over one hundred and fifty years. It has differentiated itself through its
high-quality product mix and positioned itself as health and Nutrition Company.

Nestlé is the largest food selling company. It manufactures food and beverages. It gives a briefing
about all the brands of Nestlé. Nestle Pakistan Limited (NPI.), formerly known as Nestle Milkpak
Limited is a subsidiary of Nestle SA – a company of Swiss origin headquartered in Vevey,
Switzerland. It is listed on Karachi and Lahore stock exchanges. The food products include dairy,
confectionery and culinary products, coffee and beverage and drinking water. The major brands
include Milkpak UHT, Nestle Every day, Lactogen and Nescafe.

Nestlé has set its manufacturing plants in Sheikhupura, Port Qasim, Islamabad and Kabirwala.
The milk processing plant at Kabirwala district is the Nestlé’s world largest milk processing plant.
This report includes about the community services by Nestle Pakistan Limited. Also, it explains
the company profile and the infrastructure of the management.

Nestle running many brands and are operating separately. Each of the brand department is further
categorized in different departments according to the product development and sale is described
in this report. Strengths and Weaknesses are being analyzed on the basis of internal environment
and internal organizational factors. Whereas, Opportunities and Threats are being identified on the
basis of external and internal environment and factors. This report includes about the activities
performed at Nestle and also some recommendations for the company and IBIT.

Table of Contents

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Chapter 01: Introduction
1.1: Background of the host Organization 1
1.2: 1.2 Vision/Mission statement 2
Chapter 02: Business Operations
2.1 Organizational Structure (Organizational Chart) Explanation
4
2.2: Detail Working of Departments 6
Chapter 03: Business Analysis
3.1: SWOT Analysis 9
3.1.1: Strengths 9
3.1.2: Weakness 10
3.1.3: Opportunities 11
3.1.4: Threats 11
3.2: PESTLE Analysis 12
3.2.1: Political Factors 12
3.2.2: Economical Factors 12
3.2.3: Social Factors 13
3.2.4: Technological Factors 13
3.2.5: Legal Factors 13
3.2.6: Environmental Factors 13
3.3: Competitive Strategy 14
3.4: Business process analysis 15
3.5: Industry Analysis 21
3.6: Strategies of the Company 24
Chapter 4: Learning as an Internee
4.1: Initial Trainings & Orientation Briefings 26
4.2: Department Allocation 27
4.3: A Little about Human Resource Department 27
4.4: Human Resource Department Team 28
4.5: Assignments Undertaken (Duties) 29
4.6: Weekly Reports 32

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Chapter 05: Conclusion and Recommendations
5.1: Conclusion 36
5.2: Recommendations 37
References 38

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Chapter 1: Introduction
1.1 Background of the host Organization:
⮚ 1866-1905: The pioneer years:
Our history begins in 1866, with the foundation of the Anglo-Swiss Condensed Milk Company.
Henri Nestlé develops a breakthrough infant food in 1867, and in 1905 the company he founded
merges with Anglo-Swiss, to form what is now known as the Nestlé Group. During this period
cities grow and railways and steamships bring down commodity costs, spurring international trade
in consumer goods.

⮚ 1905-1913: The Belle Époque:

In 1905, Nestlé & Anglo Swiss has more than 20 factories, and starts using overseas subsidiaries
to establish a sales network that spans Africa, Asia, Latin America and Australia. As World War
One approaches, the firm benefits from the period of prosperity known as the Belle Époque or
‘Beautiful Age’, and becomes a global dairy company.

⮚ 1914-1918: Survival during wartime:

The outbreak of war in 1914 leads to increased demand for condensed milk and chocolate, but a
shortage of raw materials and limits on cross-border trade hamper production for Nestlé &Anglo-
Swiss. To solve this problem, the company acquires processing facilities in the US and Australia,
and by the end of the war it has 40 factories.

⮚ 1919-1938: Crisis and opportunity:

After the war military demand for canned milk declines, causing a major crisis for Nestlé & Anglo-
Swiss in 1921. The company recovers, but is rocked again by the Wall Street Crash in 1929, which
reduces consumer purchasing power. However, the era carries many positives: the company’s
management corps is professionalized, research is centralized and pioneering products such as
Nescafé coffee are launched.

⮚ 1939-1947: Riding out the storm:

The outbreak of World War Two in 1939 affects virtually every market, but Nestlé & Anglo-Swiss
continues to operate in difficult circumstances, supplying both civilians and armed forces. In 1947,
the company adds Maggi soups and seasonings to its product range, and adopts the name Nestlé
Alimentana.

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⮚ 1948-1959: Greater consumer convenience:
The post-war period is marked by growing prosperity, and people in the US and Europe spend
money on machines that make life easier, such as refrigerators and freezers. They also favor
convenience foods, and Nestlé Alimentana meets this need with new products including Nesquik
and Maggi ready meals.
⮚ 1960-1980: Frozen foods to pharmaceuticals:
Acquisitions enable Nestlé to enter fast-growing new areas such as frozen foods, and to expand its
traditional businesses in milk, coffee and canned foods. In the 1970s the company diversifies into
pharmaceuticals and cosmetics. It starts to attract criticism from activist groups that allege its
marketing of infant food is unethical. Nestlé later becomes one the first companies to apply the
WHO code on breast-milk substitutes across its business.

⮚ 1981-2005: Towards Nutrition, Health and Wellness:

Following years of growth, Nestlé disposes of unprofitable brands and promotes those that satisfy
increasingly health conscious consumers, in line with its new ‘Nutrition, Health and Wellness’
ambition. The company expands in the US, Eastern Europe and Asia, and targets for global
leadership in water, ice cream and animal food.

⮚ 2006-Today: Creating Shared Value:

Nestlé articulates its Creating Shared Value approach to business for the first time, and launches
its Nestlé Cocoa Plan and Nescafé Plan to further develop sustainable supply chains in cocoa and
coffee. While strengthening its position in traditional segments, infant formula and frozen foods,
Nestlé strengthens its focus on medical nutrition.

1.2 Mission statement:

“Nestlé is the largest food company in the world. But, more important to them is to be the world’s
leading Food Company”
At Nestlé, we believe that research can help us make better food so that people live a better life.
Good Food is the primary source of Good Health throughout life. We strive to bring consumers
foods that are safe, of high quality and provide optimal nutrition to meet physiological needs. In
addition to Nutrition, Health and Wellness, Nestlé products bring consumers the vital ingredients
of taste and pleasure.

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o 1.3 Nestle Vision Statement:
The vision of Nestle Group is,

“Nestlé aim is to meet the various needs of the consumer every day by marketing and selling food
of a consistently high quality. The confidences that consumers have in our brands is a result of our
company’s many years of knowledge in marketing, research and development, as well as
continuity – consumers relate to this and feel they can trust our products”.
The Nestlé global vision is to be the leading health, wellness, and Nutrition Company in the world.
Nestlé Pakistan subscribes fully to this vision. In particular, we envision to:

Lead a dynamic motivated and professional workforce proud of its heritage and bullish about the
future.
Meet the nutritional needs of consumers of all age groups from infancy to old age, from nutrition
to pleasure, through an innovative portfolio of branded food and beverage products of the highest
quality.

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 Chapter 2: Business Operations

2.1 Organizational Structure (Organizational Chart) Explanation:

o
o

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o 2.1.1 Explanation:
Above structure shows that there are thirteen directors and a chairman are working under a CEO
who report directly to CEO. CEO has the authority to change the directors who further direct their
subordinates for every task.

o
o 2.1.2 Centralized/Decentralized:
Nestle federation is an extremely centralized organization. Nestlé community as a centralized
organization allows its subordinates to enjoy a relatively high-altitude of autonomy. Although it
still makes major strategy decisions at the headquarter level. There is a business with the matrix
structure in Nestle. A director located indoors a division has cardinal variants of reporting,
informants. A kickoff line manager reports to the collective increase manager and to the corporate
useful manager. As an international organization, the ability to organize about geographical
markets and also near productions is an advantage for nestle. Thus, the matrix structure serves
Nestlé Company well. It has a manager in charge of a product line, but each product line is also
duplicate with a manager in charge of a specific geographical area. To work out the job of matrix
structure, Nestlé Company designs its own leadership building programs.

o 2.1.3 Span of management:

In nestle top level management, leadership teams are made and assign them tasks and then teams
have to manage their own tasks as much as possible with their leaders.

o 2.1.4 Formalization:
As nestle follow its policies strictly and there is complete security system that’s why it is highly
formalized.

o 2.1.5 Work Specialization:

As nestle launches many categories of products and every product category has its own
infrastructure of management and there are relevant specialized people are working in the relevant
department so, there is also exist the principle of work specialization.

2.2 Detail Working of Departments/Operations of Departments:

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There are many brands in Nestle (juices, dairy, chilled) and are operating separately. Each of the
brand department is further categorized in different departments according to the product
development and sale.

● 2.2.1 Milk Collection & Dairy Development (MCDD):

There are the following functions that are operating in MCDD. There occurs a whole process of
the collection of the milk from different areas of Pakistan.

● Accounts Department

● Safety, health and environment department

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● Quality Assurance Department

● Research & Development

● Marketing Department

● Finance Department

● Information Technology Department

● Nestlé Distribution Channel

● Human Resource Department

o
o 2.2.2 Accounts Department:
Accounts department at MCDD prepares financial statements such as Balance sheets, Income
Statements, Cash Flow Statements on daily basis. As, the milk purchase is done along with
purchase of milk all the entries has to be prepared.

o 2.2.3 Safety, health and environment department:

This department has to ensure that the hygiene, the environment in which the milk is being
collected and to ensure the safety measures. This department ensures all employees are covered
by a certified safety and health management system.

o 2.2.4 Quality Assurance Department:

QA department has to ensure about the quality of the milk. Milk is being collected from different
areas so there are specific standards made by the QA team, that the milk that is being collected
must meet those standards. Many new techniques are being developed by the team to make is more
productive.

o 2.2.5 Research & Development:

Many developments are being happening so make things more productive. The expert of this
department fully coordinates with the marketing department and very efficiently and effectively
interprets their findings for collecting milk in more appropriate way.

o 2.2.6 Marketing Department:

This Marketing department has un-beatable marketing forces that on regular basis conduct market
surveys in order to look into Competitors position and customer’s taste. At time when the forces

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feel a change in customer preferences they immediately undertake distinctive steps and make new
sales plans.

o 2.2.7 Finance Department:

Finance department at MCDD performs various functions. The payment have to be given to all the
milkman and they also make recommendation letters for loan to banks by the farmers who are
supplying good quality milk. Also all the expense of the department is handled by finance
department.

o 2.2.8 Information Technology Department:

IT department at Nestle has a check to all systems and to the entire network of the systems at
MCDD, they check the bugs and ensures the safely transactions throughout the network.

o 2.2.9 Nestlé Distribution Channel:

Nestle distribution channel is known as their supply chain department where all the raw material
and finished goods are in and out all the day. There were two supply chain departments of Nestle
known as NDC-1 and NDC-2. NDC-1 is for raw materials and NDC-2 is for the finished goods
deliver.

o 2.2.10 Human Resource Department:

HR department is handling the personnel of both power and appliances division. Whenever it gets
any new plan either from power or from appliances it starts searching the best talent to be hired
for the respective need and prepares salaries estimates statement. In MCDD, the HR works for
hiring employees and settling down all issues related with employee’s needs, wants and
hurdles. The employees of the HR department also visit the fields to interact with the farmers.
They also arrange some meetings and also the other events.

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 Chapter 3: Business Analysis

3.1 SWOT Analysis:

Strengths and Weaknesses are being analyzed on the basis of internal environment and internal
organizational factors. Whereas, Opportunities and Threats are being identified on the basis of
external and internal environment and factors.
3.1.1 Strengths:
Nestle has following strengths:

⮚ Strong brand image:

Having strong brands like NESCAFE, MAGGIE, CERELAC etc. had given Nestle a strong
position in the industry. Nestle is world reputed and recognized organization which has positive
impact on people perception about it.

⮚ Loyalty from customers:

Loyalty from customers is also the major strength for the company. Nestle has been serving its
consumers since 140 years and it is a very long time span. Similarly Nestle Pakistan has been
serving Pakistan since so long.

⮚ Decentralized culture:
Employees are also loyal due to the decentralized culture of the company. Nestle gives chance to
their employees to deal any complaint or issue direct with their respective manager. It is a good
gesture for employees of the company.

⮚ Strong financial position:

Nestle has strong financial position which enable it to attract more new investors and help it to
raise funds from banks.

⮚ Strong core competencies:

Nestle has strong core competencies i.e. highly expert human resources which enable it to produce
new high quality innovative products. Company has the ability to compete in a dynamic
environment.

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⮚ Modern operation facilities:
They have highly developed websites. They are always ready to answer any query online. Nestle
modern operation facilities are also important strength which enable it to produce high
standardized quality products.
⮚ Own distribution network:
Nestle has its distribution network which make it easy to provide Nestle products at all possible
places on time.

⮚ Parent company support:

Nestle has strong support from its parent company (Situated in Switzerland). So, this support helps
the company to flourish.

⮚ Good quality products:

The World largest processed food and Beverages Company. And the good quality of the products
has given it a strong position.

⮚ Worldwide existence:
A presence in almost every country. This worldwide existence (Africa, America, Asia, Europe,
and Oceania) is a key strength of Nestle.

⮚ Introducing new products:

Continuously introducing new products on frequent basis thus expanded its products offering.
Example, coffee capsules of different flavors.

3.1.2 Weaknesses:

⮚ Dependent on the outside Milkmen:

Raw material is basic input for every organization and milk is core raw material of Nestle for
which it is dependent on the outside Milkmen. Nestle has no single its own dairy form which
provide high quality milk to the firm.

⮚ Packaging dependence:
Another weakness of Nestle Milkpak Ltd. is that its total packaging depends upon Packages (Pvt.)
limited.

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⮚ Advertisement:
Company mostly advertises its milk products, advertisement of confectionary products is not so
better.
3.1.3 Opportunities:
Following are some opportunities for Nestle Pakistan Limited:

⮚ Can establish its own diary forms:

Nestle can go for “Backward integration” and establish its own diary forms. Currently, Nestle is
dependent on the outside Milkmen. Nestle should open its own diary forms because Nestle has
strong financial position.
o
⮚ Potential to expand to smaller towns:
Potential to expand to smaller towns and other geographies. The company has the option to expand
its product folio by introducing more brands.
o
⮚ Open stores
Company is trying to open new stores in universities. Company can enter in ice cream products
and snacks.

3.1.4 Threats:

Followings are the major threats for Nestle Milk Pakistan Ltd.

⮚ High Price:
Purchasing power of people in Pakistan is decreasing day by day and prices of Nestle products are
comparatively high. So in long run, Nestle may face problem if such trend continues.

⮚ Fierce competition:
In some products Nestle is facing fierce competition. For example, in Milkpak Nestle is facing
competition from Chaudhary Dairies Limited who has launched “Dairy Queen” at lower prices
which has decreased market share of Milkpak. CDL has also launched “N’rish” milk powder at
lower prices; it also has capability to decrease the market share of “NIDO”. So in long run, if
Nestle do not respond to such competitors, they may create a lot of problems in other products
also.

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⮚ Instability of Government:
Pakistan politics structure is very instable and is depressing economic activities and volatile
business environment in the state. Such instable environment may influence the performance of
all industries operating in state and Nestle may also be influenced from such trends of instability.

3.2 PESTLE Analysis:

The pestle analysis of entire business environment of Nestle will give the hints to improve the
operations on right time, at right place with right direction. Pestle analysis can give more result
oriented opportunities to Nestle for the future business growth along with sustainable profits.

3.2.1 Political Factors:

Nestle serves in several countries. The rules and regulations set by the government are different in
different regions. Nestle should focus on these political dynamics like taxation, import export
excise duties, government permission to enter in to the target segment and also to introduce
hygiene products allowed by the regulated bodies. Moreover in the contemporary trends keeping
in view the government stability, Nestle should consider and recognize all the related risks that
could be involved. Nestle should also consider the changing global regulations which are yet to
adopt by the company. Albeit nestle is such an organization which in real sense promote the
government health policies by maintain the quality standards and rules and regulations.

3.2.2 Economic Factors:

Different countries have different level of development. Economy of countries differs everywhere.
So Nestle has to set different economic policies for different targeted segments. The price of the
product is an important decision to take while strategizing the economic policies according the
inflation rate and the buying power of the segments. Nestle company should made an analysis
report on frequent basis to get the knowledge of the inflation rates and different income levels.
Nestle is contributing a lot in promoting the economic worth of farmers by producing the products
at a local level for the satisfaction of the consumer.

3.2.3 Social Factors:

The shared thoughts and beliefs of the customers influence the business operations. The culture,
life style, norms and values force Nestle to deliver the specific product to the right segment. Nestle

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so far has considered the social perspective well. The company has well understood the concept
that consumers changing attitude has immense importance. People are now very much prone to
the healthy life style. Nestle has made a good reputation of understanding and evaluating the
consumers behavior and the related dynamics. Nestle is a global brand but the product has been
produced locally in order to sustain the quality. Adherence to the strong values and principals has
always been the priority of the company that assists in building the trust on the consumers.

3.2.4 Technological Factors:

Technology gives many opportunities for the development of new products or improvement of
existing ones. New techniques of marketing such as internet and e-commerce are important to
focus in this modern era. Therefore Nestle uses technology in several business operations like to
maintain the databases with the help of software. The rampant use of social media has narrowed
the gap between the direct interaction of consumer and the company. Nestle should follow such a
maxim that accelerate innovation with the help of technological advancements. Nestle is already
using the state of the art technology for the production of various products, they are meeting the
global standards by installing the contemporary plants.

3.2.5 Legal Factors:

Legal factors involve the legal environment of a company and its influence on the operation to
meet the demand and minimize the cost. For instance, Nestle has to follow the health and safety
laws for their employees and also to produce hygiene products for the customers. Nestle need to
focus on these too while operating in different regions of the world.

3.2.6 Environmental Factors:

Today the world is more conscious to have clean environment. Nestle need to focus on these rules
and regulations also to produce healthy food with environmental friendly operations. Several
countries set different rules, so to increase the acceptance of the products by the targeted segment
the rules are significant to follow. Nestle has also been taking into account the considerable
attention towards the social contribution. The other related concerns are the realm of recycling and
the issues pertaining to the packing.
3.3 Competitive Strategy:

Nestlé describes itself as a food, nutrition, health, and wellness company. Recently they created
Nestlé Nutrition, a global business organization designed to strengthen the focus on their core

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nutrition business. They believe strengthening their leadership in this market is the key element of
their corporate strategy. This market is characterized as one in which the consumer’s primary
motivation for a purchase is the claims made by the product based on nutritional content.

In order to reinforce their competitive advantage in this area, Nestlé created Nestlé Nutrition as an
autonomous global business unit within the organization, and charged it with the operational and
profit and loss responsibility for the claim-based business of Infant Nutrition, HealthCare
Nutrition, and Performance Nutrition. This unit aims to deliver superior business performance by
offering consumers trusted, science based nutrition products and services.

The Corporate Wellness Unit was designed to integrate nutritional value-added in their food and
beverage businesses. This unit will drive the nutrition, health and wellness organization across all
their food and beverage businesses. It encompasses a major communication effort, both internally
and externally, and strives to closely align Nestlé’s scientific and R&D expertise with consumer
benefits. This unit is responsible for coordinating horizontal, cross-business projects that address
current customer concerns as well as anticipating future consumer trends.

Nestlé is a global organization. Knowing this, it is not surprising that international strategy is at
the heart of their competitive focus. Nestlé’s competitive strategies are associated mainly with
foreign direct investment in dairy and other food businesses. Nestlé aims to balance sales between
low risk but low growth countries of the developed world and high risk and potentially high growth
markets of Africa and Latin America. Nestlé recognizes the profitability possibilities in these high-
risk countries, but pledges not to take unnecessary risks for the sake of growth. This process of
hedging keeps growth steady and shareholders happy.

When operating in a developed market, Nestlé strives to grow and gain economies of scale through
foreign direct investment in big companies. Recently, Nestlé licensed the LC1 brand to Müller (a
large German dairy producer) in Germany and Austria. In the developing markets, Nestlé grows
by manipulating ingredients or processing technology for local conditions, and employ the
appropriate brand. For example, in many European countries most chilled dairy products contain
sometimes two to three times the fat content of American Nestlé products and are released under
the Sveltesse brand name.

Another strategy that has been successful for Nestlé involves striking strategic partnerships with
other large companies. In the early 1990s, Nestlé entered into an alliance with Coca Cola in ready-

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to-drink teas and coffees in order to benefit from Coca Cola’s worldwide bottling system and
expertise in prepared beverages.

European and American food markets are seen by Nestlé to be flat and fiercely competitive.
Therefore, Nestlé is setting is sights on new markets and new business for growth.

In Asia, Nestlé’s strategy has been to acquire local companies in order to form a group of
autonomous regional managers who know more about the culture of the local markets than
Americans or Europeans. Nestlé’s strong cash flow and comfortable debt-equity ratio leave it with
ample muscle for takeovers. Recently, Nestlé acquired Indofood, Indonesia’s largest noodle
producer. Their focus will be primarily on expanding sales in the Indonesian market, and in time
will look to export Indonesian food products to other countries.

Nestlé has employed a wide-area strategy for Asia that involves producing different products in
each country to supply the region with a given product from one country. For example, Nestlé
produces soy milk in Indonesia, coffee creamers in Thailand, soybean flour in Singapore, candy
in Malaysia, and cereal in the Philippines, all for regional distribution.

3.4 Business process analysis:

3.4.1 Marketing Strategy:
The products include features that contain the combination of both health and hygiene keeping in
mind the individuals requirements in terms of taste. However the marketing will be done
considering the concept of mass percentage.

Products will be tailored to individual needs (desired taste) but promotion will attract all of them
collectively. Furthermore Nestlé will be following pull strategy and approach its end users itself
with the help of various promotional activities. For the distribution of products, no intermediary
(whole sellers) is involved. The distribution channel is direct.

o
o
o 3.4.1.2 Target Market:
Knowing the fact that Nestle cannot be everything for everyone, it will be targeting only those
segments that can provide best possible returns so that it may reach its goals effectively and
efficiently. The target market collectively consists of males and females in Lahore and Karachi of

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age group less than 18-30 belonging to middle class, not finding any other provider on terms of
quality, hygiene and taste.

3.4.2 Market Segmentation:

Nestle has divided its market into geographic, demographic, psychographic and behavioral
segments. These segments will help to understand the market better and in implementation of
marketing strategies.

3.4.2.1 Geographic Segmentation:

The geographic segmentation is based on the weather conditions as enjoying ice cream is popular
mostly all over the Pakistan but keeping in mind the market conditions and secondly to reduce the
initial expenses (not to over load the business.

3.4.2.2 Demographic Segmentation:

Nestlé has demographic segmentation for its products that comprises of following variables: Age:
Below 18. 18-30, 30+ Gender: Male, female

3.4.2.3 Psychographic Segmentation:

The psychographic segmentation of Nestle is based on the classes such as lower class, middle class
and upper class.

3.4.2.4 Behavioral Segmentation:

Firstly, the segment includes people who are interested and like enjoying Nestlé products.
Secondly, it includes people who are willing to buy but not finding any other in the region up to
the level they desire with respect to quality, hygiene and taste. Thirdly, there are people who are
not interested in the concept at all.

3.4.3 Nestle Marketing Mix:

Marketing Mix is defined as a set of controllable tactical marketing tools that firm blends to
produce the response it wants in the target market. The marketing mix consists of every thing the

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firm can do to influence the demand for its products. The many possibilities can be collected into
four groups of variables known as the four P’s that are as follows:

o 3.4.3.1 Product:
Product stands for goods and services that the company offers to target market. Nestlé kit Kat is
in four sizes including K.K Chunky, while Polo is in three sizes. The shape and the color of the
Kit Kat and Polo are quite attractive for the customers. The labeling, packaging of the Kit Kat and
Polo includes the Nestlé brand and logo. The packaging includes an expiry date and time along
with a manufacture date. Second part of labeling includes the quantity of product in grams along
with ingredients and contents of chocolates and candies.

o 3.4.3.2 Price:
The amount of money charged for a product or service, or sums of the values that consumers
exchange for the benefits of having or using the product or services. The price of Nestlé Kit Kat
and Polo varies increases with the increase in its size.

o 3.4.3.3 Placing:
Placing stands for company’s activities that make the product available to the target consumer.
Nestlé’ distribution is using the direct distribution channel to supply confectionery products
weekly to the retailers.

o 3.4.3.4 Promotion:
Producing a quality product, pricing it attractively and making it available for the target consumer
is not the only problem companies need to solve. Modern era is the era of communication with
customer, assuring customer satisfaction, demands for personal and non-personal communication
with the target customer to build a relationship with them. In an area-storming activity, giving out
products free, gift hampers, attracts new customers; kites depending on the season (for existing
and potential customers) are given. The basic purpose is to explore the area that is being unexposed
and to bring awareness in the people.

3.4.4 Global Brands of Nestlé:

Following are the categories in which Nestlé global is manufacturing its products.

25
⮚ Baby Food
⮚ Drinks
⮚ Bottled Water
⮚ Food Service
⮚ Cereals
⮚ Chocolate & confectionary
⮚ Coffee
⮚ Culinary, chilled & frozen food
⮚ Dairy
⮚ Food Service
⮚ Health care nutrition
⮚ Ice-cream
⮚ Pet care
⮚ Food Management

3.4.5 Brands in Pakistan:

Nestle product line is divided into following major categories:

Ambient Dairy

⮚ Nestlé Milkpak

⮚ Nestlé Milkpak Cream

⮚ Nestlé Bunyad

⮚ Nestlé Milo

⮚ Nestlé Everyday

⮚ Nestlé Nesvita Calcium Plus

⮚ Nestlé Nido Fortigrow

Chilled Dairy

⮚ Nestlé Yogurt Sweet ‘N’ Tasty

26
⮚ Nestlé Milkpak Yogurt

⮚ Nestlé Zeera Raita

⮚ Nestlé Pudina Raita

Juices

⮚ Nestlé Fruita Vitals

⮚ Nestlé Nesfruta

Bottled Water

⮚ Nestlé Pure Life

Culinary & Food

⮚ Nestlé Maggi Noodles

⮚ Maggi Chotoo

Baby Food

⮚ Nestlé Cerelac

Breakfast Cereals

⮚ Nestlé Koko Krunch

⮚ Nestlé Milo Cereal

⮚ Nestlé Corn Flakes

Coffee

⮚ Nescafé Classic

⮚ Nescafé Gold

Confectionery

⮚ Kitkat
o Nestle Fruita Vitals:
As we already know that Health. Fitness and nutrition is the basic plan of Nestle. And Nestle Fruita
Vitals fulfills the needs of its consumers with vitamin, calcium and minerals, all the necessary
Vitamins. Calcium and minerals are filled in fruit juices. Nestle Fruita Vitals includes Apple
Nectar, Red Grapes, Pineapple Nectar, Guave Nectar, Orange Nectar and Peach Nectar.

o Nestle Nescafe:

27
Nescafe is the instant coffee. It Keep you fresh, awake your soul and keep you active is the ultimate
goal of Nescafe, what I think. Nescafe Classic, Nescafe Gold and Nescafe Cold Coffee are here to
keep you fresh with its taste.

o Nestle Cereals:
A delicious breakfast cereal made with whole grain with a rich chocolate taste that kids love. Plus
it includes important vitamins, iron and calcium. The whole grain tick on our breakfast cereals
with the green banner – this is your guarantee that they contain at least 8g of whole grain in every
delicious serving. Our breakfast cereals also typically provide 25% of the recommended daily
allowance (RDA) of vitamins and minerals per serving.

o Nestle Bottle Water:

Due to its brand name Nestle Pure Life is the most favorite of Pakistani people. Every bottle of
Nestle is very safe & secure to keep you healthy and the important thing is that Nestle Bottle Water
is processed under safety Security System (SSS).

⮚ Pakistan is the proud birth place of the NESTLÉ PURE LIFE brand ,it was first launched
in 1998.

⮚ Today, NESTLÉ PURE LIFE takes pride in being the world’s most popular bottled water
brand.

⮚ The NESTLÉ PURE LIFE brand is now one of NESTLÉ’s billionaire global brands,
Present in 30 countries spanning 5 continents.

●
● Nestle Baby Food:

o Nestle Cerelac:
As we know from the initial stage of child its safe food is vital and from innate to 3 years old child
Nestle is providing Cerelac for your baby, a perfect food for your baby. It is in different
stages/levels.

o Nestle Culinary Products

Nestlé’s commitment to healthier eating includes helping to address issues such as micronutrient
deficiencies and improving nutritional understanding. For example Maggi is very popular in

28
Pakistan and India, Child and under teenagers like Maggi Very much. Maggi is very good for
health as well.

o Nestle Confectionery:
Nestle also gives their customer’s sweet foods/product like POLO and KITKAT are here to fresh
your mouth and keep your moments lively, through these sweet products you can enjoy your
special moments of like whether you are in sport, or party, it is there to keep you and your child
lively. Apart from all things Kitkat is favorite of all ages around the globe, especially in our country
Pakistan.

3.5 Industry Analysis:

3.5.1 Porter’s Five Forces Model:

Porter’s Five Forces Model is a very important tool to analyze the industrial parameters and to
develop business strategy. Here five different factors would be discussed to highlight the
attractiveness and productivity of a market. Now we will discuss it for Nestle.[

⮚ Threat of New Entrants:

If the market is attractive the new entrants would always be a threat for the company but if the
market has been restricted to a limited resource and it has very few areas of improvement so it
becomes difficult for new entrants to get into the market and hence monopolies exist. Although
Nestle has accomplished a strong name in the market but as the food processing industry is very
huge and viable; so there are a lot of companies who already entered in this market and somehow
achieved a place in the market even though they could not cross Nestle in terms of market
share. Every year number of companies attempt to enter the market and strive for their share of
profit and productivity in the market but very few survive. Nestle has been the leader of market
for a century almost so now it has become a very big challenge for the new entrants to not only
work over their quality but they also have to cut the share of Nestle to survive which is quite equal
to impossible. Fundamentally, Nestlé is persistently on the board, and therefore the threat of new
entrants is temperate.

⮚ Threat of Substitute Goods:

Substitutes have always been in line whenever we talk about products market, every kind of
product has a substitute present which leads it to the heights of competition when taken seriously.

29
As the product is very common and daily use product so the threat of substitutes is very high here.
Like if we take the example of bottled water so the substitute of this is lean pockets that serve as a
competition. So Nestle has to innovate its products tremendously to stay in the market and to work
efficiently for removing the threat of substitutes. We can take the example of recent innovation
which is health consciousness and wellness factor that has been introduced in all products of
Nestle. Such initiatives would make it easier for Nestle to go beyond the substitutes.

⮚ Bargaining Power of Suppliers:

Bargaining power of suppliers is very important factor to be considered in any industry as they are
the main strength of the company. Nestle is known for strong relations with the suppliers around
the globe due to its immense buying power and also because of the fact that in such dairy and
agricultural products quality is always important. Nestle as always focused over strong and sturdy
business relations to make the ongoing quality stronger. Additionally, Nestlé also presents helpful
guidance to its suppliers on how to work more proficiently to decrease redundant expenses. And
thus it cares of its suppliers which I return pays them off in the form of quality products.

⮚ Bargaining Power of Customers:

The bargaining power of customers has always been an important factor in terms of company’s
performance so this should be given reasonable value while accessing the company’s position.
Customers carry huge quantity of bargaining power concerning their utilization of different Nestlé
products. Although a lot of substitute products and competitors Nestle customers have very
influential choices but still the quality that has been maintained by Nestle has made it very
successful among the users. It is very important to understand the power of the customers and also
their needs so that they can be better satisfied. This is what Nestle always cares about and that is
reflected in Nestle health and wellness programs that are being used wile creation of new products
as society has in progress of becoming more health conscious.

⮚ Competitive Rivalry Within The Industry:

Competition if healthy would bring huge success but if negative would destroy the whole industry
so it should be critically analyzed for better future of the company. Nestle has a very strong position
in the food processing industry but few major rivals do exist in the industry like Kraft Foods and
Groupe Danone. Above mentioned companies are fighting continuously to get on to each other
and avoid any sort of competition but I is still there. If we talk about marketing and advertising
these companies have spent hell of their expenditures for the purpose of effective marketing and

30
advertising and in competition they have always ut performed each other. Competition is violent
in the food processing industry, and this is a plus point for consumers. Provided that these
companies carry on in competing with each other, consumers will persistently enjoy improving
product qualities.

3.5.2 CPM Matrix;

Nestle Unilever Engro

Critical success Weight Rating Score Rating Score Rating Score

factors
0.1 4 0.4 3 0.3 3 0.3
Advertising

0.1 4 0.4 4 0.4 4 0.4

Product Quality

Price 0.1 4 0.4 4 0.4 4 0.4

Competitiveness

0.1 3 0.3 3 0.3 3 0.3

Management

0.2 4 0.8 3 0.6 2 0.4

Financial
Position
0.2 4 0.8 3 0.6 3 0.6
Customer
Loyalty
0.1 4 0.4 3 0.3 3 0.3
Global
Expansion
0.1 4 0.4 0.3 3 0.3
Market Share

Total 3.9 3.2 3.0

3.6 Strategies of the Company:

31
Through enhancing quality of life and contributing to a healthier future, we aim to deliver
sustainable, industry leading financial performance and earn trust.

3.6.1 Building on our Nutrition, Health and Wellness strategy:

Nestlé’s prosperity is based on its Nutrition, Health and Wellness system. Our originator, Henri
Nestlé, trusted that great nourishment was the way to a solid life. Today, nourishment and drinks
remain center to our methodology. Our point is to give the most delicious and most advantageous
decisions, consistently of the day and for all phases of life, conveyed in a helpful and time‑saving
way. We likewise offer customer medicinal services items to enable individuals to meet their
wellness and health objectives. This is the thing that we mean by ‘Good food, Good life’.

3.6.2 Understanding and serving the consumer:

Nestlé's portfolio is well positioned for development. The way to Nestle long-term achievement
keeps on being understanding and serving the purchaser. By distinguishing buyer drifts early and
acting rapidly to catch them, we stay at the bleeding edge of the fast-moving purchaser products
industry.
People these days understand the importance of sensible nutrition and of managing their health
additional proactively. They want product with straightforward, understandable ingredients,
natural or organic, and ideally locally made. Likewise, many folks don't have the time to organize
and cook meals, so they are trying to find food and beverages that are convenient too.
Nestlé has the largest research and development network within the food and beverages business,
continually innovating and renovating our portfolio to meet dynamical shopper demands. We
additionally work with leading edge partners around the world, including start‑ups, academic
establishments and public organizations. They help strengthen our own capabilities by generating
concepts, accessing skills and developing new technologies, so we tend to will stay at the forefront
of shopper trends.
We square measure focusing on merchandise with nutrition, health and wellness advantages. This
includes delivering products with less complicated ingredients, as well as more premium, organic,
natural and fortified foods and beverages. Nestlé also offers a vary of affordably-priced, high
quality, nutritious merchandise. Many of our foods and beverages, especially those for youngsters,
include additional micronutrients such as iron, iodine, vitamin A and metal to support
physiological condition and well‑being.

32
3.6.3 Increasing the efficiency:
Nestlé is committed to margin expansion. Nestle have set an underlying commercialism operative
gross margin target of 17.5% to 18.5% by 2020, up from 16% in 2016.
Nestle primary driver is to reduce structural prices in non-consumer facing areas. Well identified
projects in producing, procurement and general administration area unit expected to deliver total
savings of CHF a pair of.0 to 2.5 billion by 2020.
Nestle area unit optimizing our producing footprint and increasing potency throughout our
operations. This will each increase our capability activity and cut back our conversion prices.
Through global procurement, we leverage Nestlé’s getting power worldwide. The area unit
supporting our centralized getting activities by establishing international procurement hubs.
Scaling up the use of shared services brings further potency. We aim to increase the supply and
use of shared services to 500th by 2020.

3.6.4 Creating shared value:

Creating Shared value (CSV) is the bedrock of how Nestlé does business. It is our way of making
worth for each shareholder and for society at constant time. Nestle perceive that the prospects of
our business area unit joined to the health and resilience of the society and world in that we have
a tendency to operate. Nestle priorities are those areas with the greatest association between
Nestlé’s business and society. Nestle 41 public commitments bring to life our purpose of enhancing
quality of life and conducive to a healthier future. These commitments contribute to the UN's
Sustainable Development Goals.

3.6.5 Current year Strategy:

Nestle current year strategy is TDC (Total delivering cost). Their main motto is to save cost from
different departments. Nestle gives different projects to different departments of TDC. They use
DMIAC (Define, Measure, Analyze, Improve and Control) method for cost saving. Nestle Pakistan
have a pressure from main office of cost saving because the expenses of Nestle Pakistan is very
high as compared to other plants of Nestle.

33
 Chapter 4: Learning as an Internee

Internship Summary:
The Internship program is a dynamic activity basically an attempt to seek out experience of the
corporate lifestyle of a successful multinational company. The period of my internship with such
esteem organization like Nestle Sheikhupura Factory Pakistan is a great delight for me.

4.1 Initial Trainings & Orientation Briefings:

Initial training and orientation session was followed by Miss. Faiza Butt (HR Specialist) and Abdul
Rauf (SHE department Manager). Before commencement of the Internship at Nestle Pakistan Ltd.
a training regarding the safety and hygiene issues inside the factory was offered to ensure safe
working during the internship period. Safety, Health & Environmental (SHE), Hygiene and
Quality are at the heart of Nestle Business Policy. Thus every new recruit / internee has to undergo
such a brief training session before performing his / her duties. Later on these briefings proved out
to be very helpful in providing surety of being safe and tidy during working hours at the site. We
were given a thorough know how of keeping our self as well as our surrounding safe while moving
at plant .In addition to explaining different SHE standards and practices trainers. Nestle being a
food manufacturing company highly emphasizes on following of its quality policies and standards
that primarily revolve around the commitment of no compromise on quality and hygiene. In this
regard we were provided with some tips of maintaining personal hygiene and safety. There was
also an informative session regarding First Aid. Following are the main safety policies:

⮚ Personal Hygiene

⮚ Hand washing

⮚ Hair cap

⮚ Face mask

⮚ Shoes protocol

⮚ Coughing & Sneezing

⮚ Smoking area

4.2 Department Allocation:

34
On the orientation day all of the internees were finally told their respective departments and this
was the time when everyone headed on toward their actual meaning and reason of being in Nestle
at that very moment. I was given Human Resource Department to work in under the Supervision
of Mr. Nabeel Javed (HR Manager) and Ms. Aqsa Rustam (HR NDC).

4.3 A Little about Human Resource Department:

4.3.1 Nestle HR Policy, Theory into Practical:

The policy encompasses those guidelines which constitute a good sound basis for efficient and
effective HR management in Nestle Group around the world. They are in essence flexible and
dynamic and may require adjustment to a variety of circumstances. Therefore its implementation
will be inspired by sound judgment, compliance with local market laws and common sense, taking
into accounts the specific context. Its spirit should be respected under all circumstances. As Nestle
is operating worldwide basis, it is essential that local legislation and practices be respected
everywhere. Also to be considered is the degree of development of each market and its capacity to
advance in the management of their human resource. Should any HR policy conflict local
legislation, local legislation will prevail. These policies are addressed to all those who have a
responsibility in managing people as well as to HR professionals.

4.3.2 A Shared Responsibility:

Each employee has a distinct responsibility in dealing with people be it as a leader of a team or as
a peer. HR managers and their staff are there to provide professional support in handling people
matters but should not substitute themselves to the responsible manager. Their prime responsibility
is to contribute actively to the quality of HR management throughout the organization by
proposing adequate policies, ensuring their consistent application and coherent implementation
with fairness. Acting as business partners, the HR manager advises and offers solutions which
result in positive impact on the organization’s effectiveness. Furthermore he /she propose best
practices and provide state of the art support and counseling to his/her colleagues. Together they
act as co-responsible partners for all HR matters. The communication skills of HR staff must be
appropriate to deal with all delicate matters as they occur frequently in human relations issues.
They gain their credibility not only from their professional contribution but also through the care
and excellence of their communication skills.

4.3.3 Recruitment Policy and Joining Nestle:

35
The long-term success of the Company depends on its capacity to attract, retain and develop
employees able to ensure its growth on a continuing basis. This is a primary responsibility for all
managers. The Nestle policy is to hire staff with personal attitudes and professional skills enabling
them to develop a long-term relationship with the company. Therefore the potential for
professional development is an essential standard for recruitment. Each new member joining
Nestle is to become a participant I developing a sustainable quality culture which implies a
commitment to the organization, a sense for continuous improvement and leaves no place for
complacency, and in view of the importance of these Nestle values, special attentions paid to the
matching between candidate’s values and the company culture. Hence, a clear communication of
these principles values from the very beginning of the recruitment process is required.
⮚ Personality of the Candidate:

To succeed at Nestlé Pakistan, you need more than professional knowledge. You need a flair for
the field of activity of their choice, an open mind, and a willingness to dig in and learn new skills
and ideas. They're looking for applicants who are dynamic and communicative. People, who can
listen, understand and integrate the opinion of others, people who can express their ideas clearly,
both verbally and on paper. They want people who like to negotiate, even with very different
partners, and to solve problems in complex situations. They like candidates who show leadership,
inspire others, and are self-confident, yet realistic people who have a positive attitude to work and
are willing to work hard, even under pressure. They seek people who can be objective in their
assessment of themselves and of others.
⮚ Motivation:

While they expect loyalty to their company, they expect their people to be critical and suggest
improvements wherever necessary. They like people who are motivated themselves & can
motivate others.

4.4 Human Resource Department Team:

Mr. Nabeel Javed

(HR Manager)

Ms. Faiza Butt Ms.Aqsa Mr. Waseem

(HR Specialist) (HR NDC) Recruiter
4.5 Assignments Undertaken (Duties):

36
Following are the some major assignments that are given to me by Ms. Aqsa Rustam (HR NDC)
during my internship.
⮚ Plant
visits of factory
⮚ Learning
process of factory plants
⮚ Basic
Learning of Microsoft Offices(Words & Excel)
⮚ An
Introduction to SAP
⮚ Celebrati
on of 14 August 2014
⮚ DMAIC
Project

4.5.1 Visit to the Sheikhupura Factory Plants:

One of the interesting parts of our training program was our visit (internees at industrial
Performance department) to the Sheikhupura Factory. This visit was allowed and assigned by Ms.
Aqsa Rustam. This was the venture in which we all my fellow internee and me went on together.
Before, visiting the Specific plants, Ms. Aqsa Rustam our coordinator, gave a detailed briefing
about the brands being produced at the setup. She also briefed about the measures taken at the
factory level to ensure the quality of products. Due to shortage of time, we were visit to the only
specific plants. Following are the some plants that we visit during internship:
⮚ Receptio
n and Standardization department
⮚ Quality
Assurance department
⮚ Powders
Plant
⮚ UHT
Plant (Liquid dairy)
Milk is received from tanks to reception lines 1600-1800 tons milk can be received during 8- 12hrs.
The capacity of milk reception is about 2 million liters in flush season and 1.7-1.8 million liters
milk in normal season but in summer decreases from 1.3 To 1.4 million liters. There are eight lines

37
for milk reception and the capacity of each line is 40,000 liter per hour. Through milk delivery
points in 2,000 villages, Nestlé Pakistan procures milk from over 190,000 farmers spread over
146,000 square kilometers who supply close to half a million tons of milk a year to two Nestlé
factories. There are about on average 50-60 sub-centers/ locations that are the base level milk
collecting points. Once satisfied, he takes the milk to the Main Reception and Cooling Stations
where milk is poured into huge tanks and then dispatched to the factories. Lastly, a milk inspector
measures the fat content, the non-fat solids content, and the milk's acidity. When the milk is
standardized according to requirement then it dispatch to required departments. QA department
assures the safe food for consumers. QA has the following labs to analyze the characteristics of
raw material; semi-finished, and finished products:
⮚ Receptio
n lab
⮚ Bacto
Lab
⮚ Physical-
chemical Lab
⮚ Sensory
Lab
⮚ Packagin
g lab
⮚ Incubatio
n Lab
Well trained and skilled staff carries out all analysis to assure the best quality products. After this
milk goes to Liquid Dairy (UHT) plant and Cream goes to Powder plant where specific products
produced. The first plant was the Dairy plant, where MILKPAK UHT, NIDO, CREAMS, DESI
GHEE, EVERYDAY etc. are rooted. All the products except for powdered milk i.e., EVERYDAY
and NIDO are started and completed here. We were provided with caps and overcoats here. The
visit of the production setup was a very exciting experience.

4.5.2 Basic Learning of Microsoft Offices (Word, Excel and Power-point):

The growth of personal computers in the business world owes itself to the development of a piece
of software that accountants loved: the spreadsheet. Accountants saved hours of time and reduced
errors by using this early office productivity tool to replace large paper spreadsheets. Along the
way other office productivity tools emerged, all of which contribute to efficiency and productivity

38
in modern work environments. Microsoft has done an excellent job of developing quality office
productivity software that is used in a number of those work environments.

Work Environments:
There are many different environments in the modern working world. The standard office where
employees process various documents is fairly ubiquitous. In educational environments teachers
and administrators track assignments and records on students. In retail establishments employees
capture and analyze sales and inventory data. In sales environments salespeople develop
presentations to capture the attention and dollars of their clients. While the list of various work
environments goes on, there are some standard functions accomplished by Word, Excel and
PowerPoint. In Nestle work environment most of the work done by using the Microsoft Offices
(Word, Excel and Power-point).

4.5.3 SAP (System Applications and Products):

SAP stands for Systems Applications Products in Data Processing. Designed and developed by 5
IBM engineers during the 1970s as a standard based software alternative to custom built ERP
software, SAP has come a long way. SAP has been in the forefront of ERP software ever since.
SAP develops ERP products to be used by companies to manage their enterprise. This includes
managing their day to day operations, logistics, finances, month end, quarter end and yearly
activities, reporting, HR etc. Although there are a couple of other ERP vendors who do the same,
the key differentiator for SAP is the way in which SAP integrates all these operations and makes
for a seamless system that is both easy to use and at the same time sophisticated enough to include
all kinds of complex activities that are needed for any kind of enterprise. Examples of some of
these activities could, be running Material resource planning, recruiting and managing an
employee’s lifecycle, disbursing payrolls, recording all financial transactions and drawing balance
sheets and P/L statements of the company etc.

4.5.4 Celebration of 14 August 2014:

It is tradition of Nestle to celebrate national occasions whether it is of Aftaar Party, Birthdays of
National personalities, Defense day or 14 August as Pakistan Day. During my internship we
celebrated 14 august with patriotic enthusiasm among the employees of Nestle KBF. We decorated
the interior of the Admin department of Nestle KBF with Pakistani flags and balloons. We arranged
a quiz competition and national song singing event among the employees. The winners of quiz

39
competition were awarded with T shirts. In the national song singing event, 5 volunteer among
each department sung the national song and other employees sung with them. On the day of 14
august, celebration ceremony started at 9 am. First of all, recitation of Holy Quran and Naat took
place. After that national anthem was played and national flag was hoisted by the Factory & HR
Manager and all other employees wavered small flags. Afterwards, volunteers from the employees
sung national songs and others also sung with them. The celebration ceremony lasted for nearly 4
hours and it ended with playing of national anthem.

4.5.5 DMAIC:
(Define, Measure, Analyze, Improve and Control) is a process for continued improvement. It is
systematic, scientific and fact based. DMAIC is a data-driven quality strategy used to improve
processes. It is an integral part of a Six Sigma initiative, but in general can be implemented as a
standalone quality improvement procedure or as part of other process improvement initiatives such
as lean.
This project assigned to me by factory management department. It is related with the new
introducing project namely “Total Delivering Cost” to all employees and convincing them to
support that project by their votes online on specific define chatter. DMAIC stands for:
D =Define
M= Measure
A = Analyze
I = Improve
C = Control
Define: Define precisely the scope of the project
Measure: Understand the problem
Analyze: Identify the root causes
Improve: Implement actions to solve root causes.
Control: Ensure results are sustainable in the long term (process standardization).

40
4.6 Weekly Report:
⮚ 1st week:
First week was full of introduction, initial trainings and orientation was conducted for us in the 1st
week. At Nestle Pakistan Ltd. a training regarding the safety and hygiene issues inside the factory
was offered to ensure safe working during the internship period. Safety, Health & Environmental
(SHE), Hygiene and Quality are at the heart of Nestle Business Policy. Thus every new recruit /
internee has to undergo such a brief training session before performing his / her duties. Later on
these briefings proved out to be very helpful in providing surety of being safe and tidy during
working hours at the site. We were given a thorough know how of keeping our self as well as our
surrounding safe while moving at plant .In addition to explaining different SHE standards and
practices trainers. Nestle being a food manufacturing company highly emphasizes on following of
its quality policies and standards that primarily revolve around the commitment of no compromise
on quality and hygiene. In this regard we were provided with some tips of maintaining personal
hygiene and safety. In the first week, department was allocated to every internee, I was sent to HR
department under the supervision of Mr. Nabeel Javed (HR Manager).

⮚ 2nd week:

In second week, all the internees were visited to factory by their respected supervisors. Ms. Aqsa
Rustam our coordinator gave a detailed briefing about the brands being produced at the setup. She

41
also briefed about the measures taken at the factory level to ensure the quality of products. Due to
shortage of time, we were visit to the only specific plants. During the visit I learned a lot of
information of plants like UHT milk plant, Chilled dairy plant, Nestle Nutrition etc. In UHT milk
plant I thought that how milk is purchased by Nestle from farmers and how they ready Milkpak
milk for consumers. Chilled dairy palnt is for Nestle Yogurt, Pudina raita, Milkpak Yogurt. Nestle
Nutrition is for Cerelac, Nestle Nido, Nestle Bunyad, Nestle Lactogen etc.

⮚ 3rd week:
In the third week, I learned basic information about Microsoft Office that was used by employees
at factory. In Nestle, work environment most of the work done by using the Microsoft Office
(Word, Excel and Power-point). Accountants saved hours of time and reduced errors by using this
early office productivity tool to replace large paper spreadsheets. Along the way other office
productivity tools emerged, all of which contribute to efficiency and productivity in modern work
environments. Microsoft has done an excellent job of developing quality office productivity
software that is used in a number of those work environments. After getting knowledge about
Microsoft, Nestle tell us about SAP. Nestle use SAP ERP system for their internal communication
of every department. SAP maintains all the internal transaction and communication record of
Nestle. SAP develops ERP products to be used by companies to manage their enterprise. This
includes managing their day to day operations, logistics, finances, month end, quarter end and
yearly activities, reporting, HR etc.

⮚ 4th week:
In forth week, I perform some managerial activities like Nestle also focus on co-curricular
activities for employees and staff members to keep them motivated and energetic. My supervisor
Mr. Nabeel javed (HR Manager) gives me a task of creating schedule for cricket tournament. There
were eight teams from different departments participating in that tournament. I prepared schedule
for the tournament. 8 teams divided into two groups, Group A and Group B. Every team plays 3
group matches. Top two teams of each group qualify for Semi-finals and them finals. 14 matches
have been played overall of 5 overs each innings. My supervisor appreciates me of doing such a
good job. It was my first managerial activity in an organization.

⮚ 5th week:
In fifth week, Ms. Aqsa Rustam (HR NDC) gives me a task of manage activities for Independence
Day. It is tradition of Nestle to celebrate national occasions whether it is of Aftaar Party, Birthdays

42
of National personalities, Defense day or 14 August as Pakistan Day. During my internship we
celebrated 14 august with patriotic enthusiasm among the employees of Nestle Sheikhupura. We
decorated the interior of the Admin department of Nestle KBF with Pakistani flags and balloons.
We arranged a quiz competition and national song singing event among the employees. The
winners of quiz competition were awarded with T shirts. In the national song singing event, 5
volunteer among each department sung the national song and other employees sung with them. On
the day of 14 august, celebration ceremony started at 9 am. First of all, recitation of Holy Quran
and Naat took place. After that national anthem was played and national flag was hoisted by the
Factory & HR Manager and all other employees wavered small flags. Afterwards, volunteers from
the employees sung national songs and others also sung with them. The celebration ceremony
lasted for nearly 4 hours and it ended with playing of national anthem. Me and my other fellows
conduct this activity and it was a great experience for me to do such kind of activity in a reputed
organization. It really was a good day for me after getting applause from audience.

⮚ 6th week:
In last week, I wind up my internship with my internship project. My main project is DMAIC of
TDC. My supervisor briefs me about my project before I start it. My duty is to minimize the cost
of third party workers MBM. There were 101 workers of MBM working in the factory for jus
gardening and cleaning of offices. I observe few days then I discuss my observation with my
supervisor. Results of my observations are that 20 workers of MBM are extra for the factory. 81
workers will be enough for the factory. I applied my observations on DMAIC (Define, Measure,
Analyze, Improve and Control). I submit my results to my supervisor on the last day of my
internship. I really happy that I have completed all my duties within time of my internship.

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 Chapter 05: Conclusion and Recommendation’s

5.1: Conclusion:
The period of my internship with such esteem organization like Nestle Sheikhupura Pakistan was
a great delight for me who enhanced my knowledge up to latest trends and bridged the gap between
theoretical knowledge and practical approaches being implemented in the industry.
The learning environment was superb, just like an ocean where you come, take what you want but
there is no deficiency in that ocean. The safety & hygiene practices followed at Nestle Sheikhupura
are superb. There was no compromise on product quality. Moreover, different departments such
as HR department, Supply chain department, Employee Relations, Trainings etc. are working
within their premises and they co-ordinate with each other for the overall effectiveness and synergy
creation. With their collective efforts, employees of the factory feel better. Nestle Pakistan
emphasize on the motivation of the employees, so employee are motivated and work more
efficiently. What I had learnt here is how to tackle the people who are busy on their lines and how
to get their attention towards us. Beside the project I had learnt how nestle is working to delight
their consumers and how nestle keep the best quality product with low cost for the consumer.

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Lastly, I would definitely say that working at Nestle Sheikhupura was a charm for me. And in
Nestlé’s view, it must be fully integrated in the social, cultural & economic fabric of the countries
in which it operates. Thus no matter which country it operates in it is committed to strengthening
local communities. At Nestlé’s Pakistan they are whole heartedly committed to meet their
obligation to Pakistan society and be a good corporate citizen of the country. I will always
remember these moments which I spent here. This was our best experience we ever had in our life.

5.2 Recommendations:

⮚ As Nestle is the best company all over the world but there is some recommendations and
suggestions.
⮚ Their prices are little bit higher so they should low their prices to increase their Customers.
⮚ About 70 % people use their products why the rest don't use them they should conduct
survey and concentrate on those facts why they are not using their products.
⮚ They should also improve their advertising. Their advertising doesn't pay long term effect
in the mind of customers.
⮚ About 17% people are not satisfied from the taste of Nestle so nestle has to improve its
taste.
⮚ Due to a great demand of nestle Milk now a days there is a shortage of nestle milk in shops
sometimes they have to consider this aspect too.
⮚ Employees should be trained according to the changing standards of the organization.
⮚ 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.
⮚ They should introduce creativity into the work, so that the employees can do their work
active mindedly.

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⮚ Employees should be given compensation in order to keep them loyal.
⮚ Employees should be more involved in decision making to become more differentiated.
⮚ Company should provide incentives to shop keepers.

References:
⮚ http://www.nestle.com/
⮚ http://www.nestle.pk/
⮚ https://bohatala.com/nestle-pakistan-internship-report/
⮚ https://www.slideshare.net/rizwannawaz49/internship-report-on-nestle
⮚ https://www.scribd.com/document/358098128/Internship-Report-Nestle
⮚ https://www.nestle.pk/assetlibrary/documents/financial_reports/nestle_ar_2013_complete
.pdf

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