INTRODUCTION:

I Studied 4 Multinational Companies doing retailing business and I studied the reasons
regarding their major functions that make them successful.
The Multinational Companies, their brief intro and background will be discussed in this
document and after this, the reasons and their functions will be shared that made them
successful.

Following are the Companies that I studied:

1. Nestle
2. Pizza Hut
3. Amazon
4. Walmart

INTRODUCTION:
Nestle was formed in 1905 by the merger of the Anglo-Swiss Milk Company, established in
1866 by brothers George Page and Charles Page, and Farine Lactee Henri Nestle, founded in
1866 by Henri Nestle.

Nestle’s products include baby food, bottled water, breakfast cereals, coffee, confectionery, dairy

products, ice cream, pet foods and snacks. 29 of Nestle’s brands have annual sales of over 1
billion Swiss francs (about $ 1.1 billion), including
Nespresso, Nescafe, KitKat, Smarties, Nesquik, Stouffer’s, Vittel, and Maggi. Nestle has around
450 factories, operates in 86 countries, and employs around 328,000 people. It is one of the main
shareholders of L’Oreal, the world’s largest cosmetics company.

MAJOR FUNCTIONS:
Following are some major function which made Nestle Successful:

1. Increase Growth:
We compete in attractive and growing categories. We have a global footprint with presence in
187 countries. Our portfolio includes more than 2000 brands, from global icons such
as Nescafé to local favorites like Bear Brand. Among these, 34 brands generate over CHF 1
billion each in annual sales at retail level.
2. Improve Margins:
In order to fuel faster growth we must remain disciplined on our cost management and strive for
efficiencies at all levels. This approach enables us to free up resources to reinvest in product
innovation and brand building, creating value for our consumers as well as our shareholders.
Consumer-facing marketing expenses increased by 3.4% in constant currency.

3. Creating Shared Value: The way we operate

No other food and beverage company has the global resources and local know-how to make
positive impact at the scale and pace of Nestlé. We aim to continuously improve, taking on
commitments that ensure that we enhance quality of life for everyone.
We create shared value at a scale that makes a difference. Together with our partners we are:

 Enabling people to lead healthier, happier lives by striving to make better products.
 Building strong communities and supply chains, improving livelihoods in
communities directly connected to our business activities.
 Stewarding resources for future generations by minimizing the environmental impact
of our operations.
 Maximizing long-term value by accelerating growth, improving margins and allocating
capital prudently.

4. Corporate Communication:
Corporate Communications is a core function at Nestlé. This department mobilizes the vision
and values of the company by to strategically creating messages that communicate our purpose
to internal and external stakeholders. All our activities embody the vision of the company, which
establishes our corporate identity and our position as a leader in the industry. At Nestlé we use
our expertise and creativity to consistently create messages that resonate and connect with our
employees and our consumers.

5. Safety, Health and the Environment:

Safety, Health and the Environment (SHE) has been a core principal instilled at the heart of the
company. As we have progressed through the years we have implemented and sustained SHE
management systems that positions us a recognized leader in SHE within the manufacturing
industry.   We strive to recruit the best SHE professionals and develop their capabilities. This
area requires innovation, leadership and project management skills. Come join us for a career in
Safety, Health and the Environment and begin an exciting journey to SHE excellence.
INTRODUCTION:
Pizza Hut is an American restaurant chain and international franchise which was founded in
1958 in Wichita, Kansas by Dan and Frank Carney. The company is known for its Italian
American cuisine menu, including pizza and pasta, as well as side dishes and desserts. Pizza Hut
has 18,703 restaurants worldwide as of December 31, 2019, making it the world's largest pizza
chain in terms of locations. It is a subsidiary of Yum! Brands, Inc., one of the world's largest
restaurant companies

MAJOR FUNCTIONS:
There are some major function which made Pizza Hut Successful:

1. Total Quality Management:

Quality management strategy is important for Pizza Hut. All the employees are well trained.
They are given extra classes, so that they could meet the quality standards set by Pizza Hut. This
strategy is important in order to satisfy CHAMPS:
 Cleanliness
 Hospitality
 Accuracy
 Maintenance
 Product quality
 Speed

It is implemented in Pizza Hut to fulfill the quality standards. Even there are total quality
management department is some offices of Pizza Hut around the world and their task is to check
whether the quality standard is achieved or not.

2. Pizza Hut managed their risk before investment:

Before Pizza Hut invests on innovation they also do a forecast. The forecast is based on the
amount of customers and the average amount of money customers will spend on each meal.
Pizza Hut also analyzes for cost and profit, such as net margin, variable cost and fix cost.
Therefore, Pizza Hut knows whether it can make a profit or not.
Therefore, in my opinion Pizza Hut is a successful restaurant with risk management,  innovation
and unique strategies in different countries.

3. Innovation :
Pizza Hut focuses on innovation. In my opinion, without innovation, businesses cannot run long.
Nokia and Motorola, the biggest cellphone brands before, are good examples. Those brands were
replaced by Apple because they lacked innovation and Apple is more focused on new designs.
Therefore, innovation is the most important factor for the development of businesses.

4. Pricing Strategy Function:

Pizza Hut has adopted the pricing strategy function as they want to hold maximum share of the
market by maximum profit. The company satisfies the target market as the food quality is worth
the price paid. Pizza Hut can make changes if they will get maximum profits before other
competitors. And this is also some part of pricing strategy for Pizza Hut.
INTRODUCTION:
When Amazon started in 1995, it was a site that only sold books. Within a month of its
inception, the company had already shipped books to over 40 different countries. Since then,
Amazon has become one of the world’s largest e-commerce companies, accounting for
around 44% of total e-commerce sales in the United States for 2019.

MAJOR FUNCTIONS:

Following some major Successful Functions:

1. Innovation:
Amazon’s success largely stems from its innovative technologies and practices, many of
which were championed by its CEO, Jeff Bezos. Consider the Echo, Amazon’s impressive
voice command device. Echo can be used to play songs, research your favorite sports teams,
and even check the weather with a few spoken words. This innovative technology was a huge
investment for the e-commerce giant one that fostered exceptional results. Over 22 million
Echo units were sold in 2017 alone.

2. Customer Service:
Because of its commitment to world-class customer service, Amazon has developed a range
of helpful tools users can employ to track packages and quickly return or exchange ordered
items, bringing simplicity and convenience to their online shopping experiences. Amazon’s
Customer Service team has won multiple awards for its dedication to preventing and swiftly
addressing problems for customers. One of Amazon’s overarching missions is to become the
planet’s most customer-centric company and the brand’s dedication to this goal has paid
dividends.

3. Diversification:
Starting off as an online bookstore, Amazon now offers everything from soup to nuts.
Literally. A search of the site reveals over 3,000 listings for vegetable soup. Search the term
“nuts” and you’ll see over 37,000 results. Amazon now carries products in music, books,
electronics, health and beauty, automotive, grocery and clothing. Business owners can
contract with Amazon’s network of pros to get IT support, furniture assembly and even A/V
services. By diversifying its offerings, Amazon is continuously driving reach and relevance.
INTRODUCTION:
Walmart Inc. is an American multinational retail corporation that operates a chain of
hypermarkets, discount department stores, and grocery stores, headquartered in Bentonville,
Arkansas. The company was founded by Sam Walton in 1962 and incorporated on October
31, 1969. As of January 31, 2020, Walmart has 11,503 stores and clubs in 27 countries,
operating under 56 different names.

MAJOR FUNCTIONS:

Following are major functions that made Walmart Successful:

1. Single Focus to Keep Prices Low:

Throughout its 50+ years of history, Walmart has stayed true to its purpose and consistently
striven to offer low everyday prices to its customers, and because of this, Walmart has built
for itself a strong and loyal customer base. Customers walking into any Walmart store know
that they can count on low prices.

2. Minimizing Operating Costs:

Walmart is notoriously stingy when it comes to its treatment of its employees. Walmart has
been known to push wages down as far as legally possible. It offers low-benefit healthcare
plans to its employees and its executives do not enjoy the many perks typically offered to
high-ranking executives at other large corporations. These are ways for Walmart to minimize
operation costs and keep its overhead costs low.

3. Advanced Supply Chain Management:

Walmart is widely regarded as an industry leader in supply chain management. Aside from
leveraging the most up-to-date technological advances such as the barcode and RFID,
Walmart has pioneered a number of approaches that help it remain competitive in the price
war against its peers.

Other Functions:
 The friendly service the customer receives is a major factor in the customer returning.
 Great marketing and promotions
 Great prices
 And the marketing team ,coordinators , zone managers and the managers all work
together to give customers a great shopping experience upon implementing the standards
to the store employees of how to engage with the customers.
Walmart pioneered cross-docking in its supply chain strategy. Cross-docking refers to the
practice of moving products from a supplier or manufacturer directly to the customer or the
retail chain, with very little handling or storage. Walmart has strategically laid out its
distribution centres within 130 miles of the stores that they supply.