Professional Documents
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Internship Report On Nestle
Internship Report On Nestle
INTERNSHIP REPORT
NESTLE KABIRWALA FACTORY (PVT.) LTD
SUBMITTED TO:
MR. MUSTABSAR AWAIS
IN CHARGE INTERNSHIP PROGRAM
ALFALAH INSTITUTE OF BANKING &
FINANCE B.Z.U MULTAN
SUBMITTED BY:
MUHAMMAD RIZWAN NAWAZ
ROLL NO.52
MBA ( BANKING & FINANCE) 5TH SEMESTER
AL-FALAH INSTITUTE OF BANKING & FINANCE,
BAHA-UD-DIN ZIKRIYA UNIVERSITY, MULTAN
Swot Analys………………………………………………………………………………… 34
Acknowledgement
I say thanks to ALLAH Almighty who bestowed me the opportunity, courage and confidence to
obtain more knowledge to complete my internship program, which will facilitate me greatly in
my intellectual development and skills capitalization. Then I pay all my respect and praises to the
greatest man of universe, Holy Prophet Muhammad (PBUH) for whom this entire universe was
created.
I would like to submit my deepest gratitude to my parents, whose prayers always supported in
every task of my life. Secondly, I am grateful to my institute, Al-Falah Institute of Banking and
Finance, B.Z.U Multan that made this learning opportunity a part of our education. I am also
thankful to all other teachers as the knowledge imparted by them enables me to gain knowledge
of the organization in a best way.
I am also thankful to Mr.Athar Bukhari, Mr. Liaqat Ali, Mr. Waseem Ahmad, Mr. Awais
Mehmood, Ms. Shazia Parveen, Mr. Kashif Khalil, and Mr. Sohaib. They gave me full
assistance regarding my area of responsibility. They were very cooperative and willing to help
when I faced any problem & asked for help. There was a very good learning environment. I will
always remember their cooperation and support.
I would also thank to all other staff of the Nestle Kabirwala Factory who helped me a lot.
PREFACE
Internship at multinationals has its prime objective to develop trained managers by offering their
broad knowledge in a number of business areas and thus preparing successful management
careers. One step to achieve this objective for students is to exercise internship program in any
recognized organization. So this internship program facilitate the students to gain some
understanding of complete working of the organization and at the same time enables the students
to face challenges in their professional life by sharpening their skills of decision making,
leadership, communication and team work.
Internship at Nestle Pakistan Ltd. (Kabirwala Factory) was an attempt to seek experience of the
corporate lifestyle of a successful multinational company. The idea was to understand the
corporate structure, while developing skills needed to thrive, of one of the leading global
multinationals whereas applying the knowledge and skills acquired during the academic career.
This wonderful experience of just 6 weeks proved to be a high inclination in the graph of my
personal learning.
EXECUTIVE SUMMARY
Nestle is the world’s largest food company. It has operations in many countries. This internship
report is based on Nestle Kabirwala Factory. It is a famous and reputed multinational
organization working in Pakistan. The report contains all activates performed in the Human
Resource department of organization. Similarly my daily assignments and the projects I
performed there. The report contains introduction of the company, and working of Human
Resource Department in specific, ratio analysis and Swot analysis are also there. In my report I
have also stated the activities which I performed during my internship in the Nestle Kabirwala
Factory. The main asset of Nestle Kabirwala Factory is its qualitative human capital. And Nestle
Kabirwala Factory is continuously improving day by day with the help of its qualitative human
capital.
NESTLE
Henri Nestle, the founder of “Nestle” created the trade-mark of the Nest, a translation of his last
name. In German, Nestle means “Little Nest.” The symbol showing 2 young birds being fed by
their mother perched in a nest on an OAK tree depicts in the motherhood, the arm, and loving,
caring, protective and sincere feelings of a mother for her younger ones. So, this symbol helps to
give a visual sign that nobody other than Nestlé can care about its consumers friendly. It shows
that the Nestle provides the purest food product to its consumers because it is as sincere with
them as a mother. It is universally understood that this reflects the maternity and affection, and
thus helps to draw a visual link between the name, “Nestle” and its products.
Nestlé is the world’s leading nutrition, health and wellness company. The company employs
more than 280,000 people and has 456 factories in 84 countries. Nestlé products are sold in
almost every country in the world. Founded in 1866 in Vevey, Switzerland, where it is still
based, Nestlé has often been called “the multinational among multinationals”. Only about
1.5percent of its sales are generated in its home country, and all but 12 of its factories are
situated abroad. The CEO is Paul Bulcke, and the General Management includes a Belgian, two
Canadians, one Dutch, a Frenchman, a German, a South African/British, three Spaniards, one
Swiss, one American and one Swiss American. Nestlé is a truly public company with over
250,000 shareholders of which around one third are Swiss. As the world’s leading nutrition,
health and wellness company, Nestlé is the worldwide leader in product categories such as
MISSION STATEMENT
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.
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”.
SLOGAN
He said:
Headquartered in Lahore, the Company operates five production facilities. Two of its
factories in Sheikhupura and Kabirwala are multi product factories. One factory in Islamabad
and two in Karachi produce bottled water. Through its effective marketing and a vast sales and
distribution network throughout the country, it ensures that’s its products are made available to
consumers whenever, wherever and however.
Nestle has the unique ability to provide a complete range of food products, services and well-
known brands to meet the needs of consumers around the world. It is not a faceless corporation
catering to faceless consumers, but a human company providing a response to individual human
needs. It respects the cultures of the countries it operates in and recognizes the need for quality
of life of their people.
Nestle Pakistan operates in many ways but people, products and brands are the main flag bearers
of the Company’s image.
On the one hand, it has brought prosperity to farmers through an assured and growing income
resulting from sale of their milk, and on the other, it has enabled Nestle Pakistan to collect better
quality milk in the quantities it needs.
Realizing that rural women play an important role in animal husbandry and milk production,
Nestle Pakistan has pioneered the concept of inducting women milk promoters in its team to
educate and encourage rural women to increase per animal yield. Four teams comprising three
women each are currently working in the field. Results being very encouraging, more teams are
planned.
By taking this professional help and guidance to the farmers’ doorsteps, that they otherwise
would find difficult to access, coupled with incentives for increased milk production and a good
and prompt return for their milk, the company is playing an important role in creating
opportunities of economic growth for dairy farmers.
Kabirwala factory was established in 1983. Located in the heart of Punjab province,
Kabirwala Dairy Limited (its then name) started its Operations with the production of UHT milk
in1984. It was taken over by Milkpak Ltd in 1990. Maggi 2 minutes noodles and milk powder
plant started their productions in 1992 and 1996 respectively.
Dry mixing line was installed in 2002 to produce Every Day tea whitener, while Desi Ghee
line was installed in 2003. On February 7, 2005 nestle KBF joined GLOBE GO LIVE that
performs as a facilitator to achieve long-term business growth.
As a result of management commitment and dedicated effort and hard work of Kabirwala factory
staff at all levels it got the high status in milk powders category amongst all the Nestle factories
around the world in 2007
Kabirwala Factory has got the potential of expansion in existing and extension in the new
categories in the future.
Location:
Middle of Pakistan
East of Multan
Factory Area:
Total Land 84.46 Acres
This Factory Fact book was created with the modest aim to provide the Reader with a flavor of
this factory’s growth over the years and the present role.
Product History:
1984: LIQUID MILK BASED PRODUCTS UHT MILK
Nestle System:
Nestle has best systems but others are also consulted. Following are the own systems of Nestle
Nestle Certifications
Certifications of nestle Pakistan Ltd. are as under
ISO 14001(safety)
OSHAS 18001(safety)
HACCP (operation pre- requisite, critical control point, pre-requisite programmed)
Integrated pest management (IPM)
ISO 2200 granting
(Combination of HACCP related to safety and ISO 9000 related to quality and many more
things)
A successful GLOBE system that works for Nestle around the world in order to communicate
confidential data
As a result of management commitment and dedicated effort and hard work Of Kabirwala
factory staff at all levels KBF got the high status in milk powders category amongst all the
Nestle factories around the world in 2001. It was achieved because of continuous
improvement drive and passion to become best in the World.
Kabirwala Factory has got the potential of expansion in existing and extension in the new
categories in the future.
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 proposes best
practices and provides state of the art support and counseling to his/her colleagues. Together they
act as co-responsible partners for all HR matters.
This partnership is the key for efficiency in people management.
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.
Recruiting Process
Generating Candidates:
Through following means the candidate are generated
o Career Website
o Generating candidates overview
o Employee Referral Program
o Graduate Trainee Programs
o Internships
o Job fairs
o Job Posting Portals
o Media Selection Guidelines
o Partnering with Universities (CEMS)
Receiving CVs:
They will review and select only and only those CVs out of all, that best match open jobs,
Similarly, only selected candidates are contacted for that purpose. In any case, you will receive
an e-mail telling you when the job you applied for has been filled.
Professional applicants
You should expect a series of individual interviews with HR and line managers. These will
generally focus on your background and motivation as they’ll as how you likely fit Nestlé’s
culture and values.
Internships applicants
The candidate is interviewed by HR as they’ll as a line manager. These interviews generally
focus on the candidate’s background and motivation as they’ll as how you likely fit Nestlé’s
culture and values.
Recruitment Process
Purpose
This policy applies to all personnel involved in recruiting staff. This policy:
Ensures all recruitment activities are conducted in full recognition of, and
maximum regard for, the principles of equal employment opportunity
Establishes minimum standards of recruitment
Seeks to maximize opportunities to recruit the best person for each job
Recognizes & complies with current legislation governing all aspects of
recruitment
Will be reviewed regularly and modified as required, to reflect Company policy,
best practice in recruitment and compliance legislation
Identifying vacancies
It is the responsibility of each line manager to identify vacancies within their department. Where
necessary, the line manager, their manager and the Corporate Recruitment Manager discuss
whether the vacancy should be filled, and if so, whether by a full time, part time or contract
employee.
Authorizing recruitment
A Recruitment Requisition form, signed by the line manager and the Division Head/
NPL HRM / MD, is the only acceptable authorization for initiating recruitment for any position.
Interview panels: May be formed for recruitment of positions entailing diverse or multi-faceted
functions. Expert views of different functional Managers may be required at such points. The
Corporate Recruitment Manager will establish interview panels in consultation with the
recruiting Line Manager.
A standard interview guide will be used for each interview so that all applicants are reviewed
against the same criteria. Behavioral interviewing techniques are the preferred method of
conducting interviews.
5. Check references
Carry out and document a minimum of 2 verbal reference checks for the preferred short-listed
applicants. No employment offer will be made prior to the completion of these reference checks.
The applicant’s highest academic qualification will be confirmed with the issuing academic
institution prior to any employment offer.
6. Choose the successful applicant
The recruiting line manager is responsible for making the final hiring decision. On Division
Head / recruiting Line Managers selection of the successful candidate, the remuneration, job
conditions and an appropriate commencement date will be decided by the Division Head
supported by HR. A Status Change Form must be completed by the recruiting Line Manager and
approved by the Division Head and NPL HR Manager for successful candidates.
7. Notify the successful applicants
Successful applicants will receive a written offer of employment from the Company prior to
commencing work. The offer will detail the following:
Professional Development
Learning
Each employee, at all levels, is conscious of the need to upgrade continuously her/his knowledge
and skills. The willingness to learn is therefore a non-negotiable condition to be employed by
Nestlé. First and foremost, training is done on-the-job. Guiding and coaching is part of the
responsibility of each manager and it is crucial to make each one progress in her/his position.
When formal training programs are organized they should be purpose oriented and designed to
improve relevant skills and competencies. Therefore they are proposed in the framework of
individual development programs.
Training
Performance Evaluation
The performance evaluation (PE) is an annual cycle which aligns your individual objectives with
the business priorities in a given performance year. On-going feedback discussions with your
manager to make sure you are on right track is essential, as it allows you to take any required
measures if needed. This will ensure you and your line managers are aligned throughout the year
and make the yearend evaluation as fast based and effective as possible.
The PE form enables you to structure the PE process in quality way to increase dialogue and
alignment with your line manager.
At the end of the year, you will receive PE Rating, which will be based on the level of your
performance against your objective. This PE rating includes an overall evaluation on ‘WHAT’
you have achieved and ‘HOW’ you have demonstrated the 4 Nestle behaviors (Practice What
You Preach, Result Focus, Pro-active Co-operation & Initiative) in the execution of your
objective.
Your level of performance achieved will have direct impact on your salary review and Short
Term Bonus (STM).
PE has four phases.
Objective Settings (Jan-Feb); Performance objectives are set with the manager.
Interim Review (Jun-Aug); Review progress against objectives.
Calibration Meeting (Dec-Jan); Management meeting to ensure effective and equitable
performance evaluation across the organization.
REMUNERATION
The Nestle Remuneration Policy states the major principles of our approach to remuneration,
which is guided by a sound balance between corporate as well as local responsibilities and
between the different remuneration elements. As well, it is based on, and aligned with, Nestle
Human Resources Policy.
The main objective of this Policy is to ensure that Nestle is able to attract and retain motivated
and high-performing employees through an equitable and coherent approach to Compensation
and Benefits within the Nestle Group. Remuneration Principles are influenced by various factors
such as competitive market practices, cost considerations; business results achieved both locally
and globally as well as the individual performance.
Similarly Nestle believes that there is a link between Performance and Pay.
Nestle believes in:
Recognize high performance
Manage low performance with integrity
Increase transparency and feedback
Career management as a partnership
An open and engaging work culture
Similarly Nestle has the policy that we all know that the PE tool is being used to drive and
evaluate the right performance
Continuous Improvement
IP ensure Continuous improvement of factory performance in terms of safety, quality, service,
performance, environment and cost savings. It also ensures the proper evaluation of the
improvement ideas, concerns related to them and their implementation & sustainability. IP also
facilitates & involves in the
Nestle Performance Teams (NPT) & Continuous Improvement Teams (CIT) which basically
works on the improvement projects with SMART objectives and effective outcomes. The
employees are also rewarded for their effective ideas. Top 10 ideas are given recognition and
they are given the some monitory and extrinsic rewards to boost up this activity. Last year
another employee recognition program was launched which was very successful in Nestle
Kabirwala Factory Limited as well.
Similarly other employee recognition ceremonies are also held annually quarterly and now
Nestle Kabirwala Factory Limited has launched these programs on monthly basis. The line
manager notices down the trouble handling of the workers. Similarly they notice that when and
how the worker handled the problem and how troubleshoot the problem. So it is proved to be
very effective.
The Factory Manager gives rewards to the recognized employee so this activity has proved very
helpful in increasing the morale of the employees.
INDUSTRIAL RELATIONS
A Nestlé upholds the freedom of association of its employees and the effective recognition of the
right to collective bargaining. Nestlé wishes, also through its relationship with unions another
representative association to sustain the long-term development of the Company, both to the
benefit of the employees and of the Company, by maintaining a level of competitiveness adapted
If fifty or more people are agreed to form a union in the company, they can register themselves
as union. But they must be from non-management. After winning the election, the union certifies
itself from Labor Department and is called collective bargaining agents or CBA.
EMPLOYEE RELATIONS
Is there a good relation between non-management and Management staff?
Yes, Nestle Pakistan has several regular team building activities involving all levels of
employees e.g. Sports Week, family day, cordial relationship with the employees union
&management.
Yes, Nestle daily has the Operational Review Meetings in which issues are discussed and
corrective actions are taken after seeking concerned opinions and regulars visits of the plant by
the team leaders and the manager.
Do Nestle has the direct access to your Management Team to give spontaneous feedback?
Yes, Plant Manager can easily be accessed, apart from that, FM can also be approached, if needs
be. Management attends the shift handover and DOR that are also attended by the operators and
responds the queries of the participants.
Recognition
Is recognition really given to employees in Nestle Pakistan?
Yes, one recently launched by the Company "Maan Humara Tum Sa” in addition to this, joint
birthday of staff, monthly lunch, hygiene trophy, CI Awards, Good Attendance Award.
Have employees been recognized for a good job (above average) you made?
Nestle employees are authorized to stop the production to take appropriate action against any
Quality and Safety issue on your plant or machine.
Feedback methods
DOR, annual performance appraisals meetings and on line coaching by the line managers help to
improve the performance.
Succession Planning
At the time of the performance appraisals, discussion is held for the future prospect.
Financial Analysis
There are five types of financial statements which are used in the any company
Balance Sheet
Income Statement
The income statement summarizes revenues and expenses and gains and losses, ending with
the net income. It summarizes the result if operations for a particular period of time.
Balance Sheet
A balance sheet shows the financial condition if an accounting entity as if a particular date. The
balance sheet consists of three major sections: assets, the resources of the firm; liabilities, the
debts of the firm; and stockholders’ equity, the owner’s interest in the firm. At any point in time,
the total amount of the assets must equal the total amount of the contributions of the creditors
and owners.
Assets = Liabilities + Stockholders equity
Retained Earnings Statement
Retained earnings statement shows the undistributed earnings of the corporation. A
Reconciliation of retained earnings summarizes the changes in retained earnings. It shows the
retained earnings as the beginning of the year, the net of the year as an addition, the dividends as
a subtraction, and concludes the end of the year retained earnings. Statement of the Owners’
equity It shows the changes in the stockholders equity at the end of the accounting period. In
shows the addition to capital, subtraction or with drawl from capital.
Cash Flow Statement
The statement of cash flow details the inflows and outflows of cash during the a specified period
of time, the same period used for the income statement. It consists of three sections:
i. Cash flow from operating activities
ii. Cash flow from investing activities
iii. Cash flow from financing activities
Key Financial Data of Nestle
(Rupees in million) 2013 2012 2011
Trading Results
Sales 86,227 79,088 64,824
Balance Sheet
Shareholders’ Funds 11,859 11,560 7,612
Net Current
Assets/Liabilities* 4,767 (3,120) (3,352)
Investor Information
- Gross Profit Ratio 28% 27% 26%
Swot Analysis
Strength
Brand: One of the greatest strengths of nestle is its brand name and brand image in the local
Pakistani market. People trust nestle. They see nestle as a top priority product. Although the
price matters a lot for a customer but when the name comes of nestle, the customer is willing to
pay any amount for the products of nestle. So they have not only the increasing customer
demand but also the customer retention as well. Similarly the consumers taste is changing, the
consumer is more aware, and consumer gives lot of importance to the hygiene and Nestle has
positioned its products in the mind of consumers as top hygienic products. So it is also a great
strength.
Time Spent in market: 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. If we talk
about specifically Nestle Kabirwala Factory, it has also been become very experienced in the
World Wide R&D: Research and Development is a key competitive advantage for Nestlé.
Without our R&D Nestlé could not have become the food industry leader in nutrition, health and
wellness. With 29 research, development and technology facilities worldwide, Nestlé has the
largest R&D network of any food company. Nestlé’s research, development and technology
network, together with local market application groups, employs over 5,000 people.
Weakness
Strong unionization: The increasing influence of unionization in Nestle
Kabirwala Factory has been the sign that employees have been lacking trust on
management. Therefore they are joining the unions. It can also be due to the
increasing job security, sense of having less benefits and not having competitive
salaries, so thee employees are joining union and want negotiations with the
management.
Third Parties: One of the weaknesses of Nestle Kabirwala Factory is that it is relying on the
third parties in most of its operations. For example it has been working since so long but still it
has not focused on the forward integration and is completely relying on the distributors.
Relying too much on third parties can be a weakness which can turn into a threat in future.
Target Market: The target market of Nestle MilkPak is upper middle and high class because
lower middle and poor class cannot afford to buy UHT milk due to its premium price.
Opportunities
Market Opportunities: The local market is not fully saturated and still there is a huge market that
can be captured by Nestle. Specifically talking about the Nestle Kabirwala Factory There are
substantial growth opportunities considering the average yield of Pakistani animals at only 1,100
liters/annum as compared to 6,000 liters/annum for animals in Europe and USA. There are nearly
20 million milk producing animals in the country, mostly in Punjab (80%).
The overall milk market in Pakistan is 20 billion liters; out of which processed milk contributes
only 3 million liters. Nestlé MilkPak along with other processed milk businesses contributes only
2% to this large market. Nestlé MilkPak has expanded its product range by entering the cold
dairy market recently by launching Nestlé plain yogurt and now fruit yogurt is also added to it.
1. Competitors are also not there to serve the market which is not captured.
2. Nestle is only a food company but it can target other FMCG’s as well similarly it can
diversity its products and become a conglomerate as well.
3. It can gain more supplier integration which has not been done yet. For this purpose nestle
has developed two model forms in Rinala and Sahiwal
With the name of “Dairy Hub” and “Sursubz Form” respectively.
For this purpose European breeds have been imported and are
given on easy installment to the farmers. The expertise are
provided free of cost.
4. Nestle can educate the supplier and for this purpose it has started
the project named UHTP in which lady livestock workers have
been given training from villages.
5. Nestle has been relying on two distributors in south Punjab. One is located in Multan and
other is in Bahawalpur. Nestle can go for forward integration as well.
6. As nestle has targeted upper and middle class consumers, it has the greater opportunity to
Threats
Following can be the threats for Nestle Kabirwala Factory;
Limited distribution
Having a very limited number of the distributors and solely relying on them can also be a threat.
Because too much reliance on them may cause Nestle to lose of control and power over
distributor and high dependence on the distributors.
I was provided with list of all the permanent employees of the factory. Some employees CNIC
and EOBI numbers were mentioned on the list. List was segregated department wise. I started
with the Engineering department and visited different personnel there asking about the
information of EOBI cards. Some employees provided me with the EOBI card number while
some were not aware of their card number. I marked these employees on the list for applying for
their EOBI card in near future. Then I visited Quality Assurance department and similarly I
visited every department and tried to meet the employees personally. It took two to three days to
complete the visit of each department of factory. Employees work in three shifts. Those
employees whom I was unable to contact in first day of visit to their respective department
became available later on next day or day three.
The pace of work was slow initially. But gradually when employees became aware that this
exercise is in their favor, they started co-operating with me much more and also communicated
with other employees to provide me with relevant data necessary for EOBI card applying. Team
Leader also circulated message among their sub-ordinates to check about their EOBI card
number. If number is available then provide, otherwise provide relevant information.
Furthermore step was to apply for the EOBI card number of those employees having no record.
Mr. Liaqat Ali supervised this activity and employees having no EOBI card number were applied
for this card. This whole exercise of working over EOBI card number was carried out gradually
in my internship tenure of six week.
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.
CONCLUSION
The period of my internship with such esteem organization like Nestle KBF
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 KBF are superb. There was no compromise on product quality.
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.
Lastly, I would definitely say that working at Nestle KBF was a charm for me. I will always
remember these moments which I spent here. This was our best experience we ever had in our
life.