GROUP MEMBERS NAME:

• Owais Ahmed (16144)

• Owais Baloch (15993)

• Alka (16432)

• Mehak (16353)
 • CLASS = BBA-6A

• COURSE = CROSS CULTURAL MANAGEMENT

ASSIGNMENT NO.1

• COURSE INSTRUCTOR= MISS HINA AMIN

• CAMPUS = S.M.C.H.S

Assignment 1
Date: 14th October 2022

Code: HRM-301 Class: BBA(4years)-6 & BBA(2years)-

Course: Human Resource Management Duration: Two Weeks
Instructor: Sahar Khan Marks: 15 Marks

Q. Select any Organization of your choice, it can be a Multinational or Local

Organization. Prepare a descriptive report on that Organization that how they are
applying the Corporate, Competitive and Functional Strategies in their Organization.
Introduction
Nestlé has around 468 factories, operates in 86 countries around the world, and employs around 330,000
people. It is one of the main shareholders of L’Oreal, the world’s largest cosmetics company
(Nestlé). The company grew significantly during the First World War and again following the Second
World War, expanding its offerings beyond its early condensed milk and infant formula products. The
company has made a number of corporate acquisitions, including Crosse & Blackwell in 1950, Findus in
1963, Libby’s in 1971, Rowntree Mackintosh in 1988, Gerber in 2007, Kraft Frozen Pizza in 2010 and
Wyeth Nutrition in 2012. Nestlé has a primary listing on the SIX Swiss Exchange and is a constituent of
the Swiss Market Index. In 2011, Nestlé was listed No. 1 in the Fortune Global 500 as the world’s most
profitable corporation. With a market capitalization of $ US 200 billion, Nestlé ranked No. 13 in the FT
Global 2011 and No. 12 in the FT Global 2012. It is quite important to present Nestlé’s internal resources
when analyzing company’s strategic position – the key strengths and weaknesses. Nestlé’s Chairman and
CEO Paul Bulcke had set Nestlé on the path of achieving worldwide sustainable competitiveness through
the following strategic “pillars” such as low-cost, highly efficient operations; renovation and innovation
of the Nestlé product line; universal availability and ability to customize products to the local market
conditions; improved communication with consumers through better branding; research and development
capabilities with a focus on meeting today’s needs without compromising the ability of future generations
to meet their needs, and to do so in a way which will ensure profitable growth year after year and a high
level of returns for shareholders and society at large over the long-term. The company has the largest R&D
network of any food company in the world; with 32 R&D centers and over 5,000 people directly involved
in R&D (Nestlé).
 Vision Statement:
To be a leading, competitive, Nutrition, Health and Wellness Company delivering improved shareholder
value by being a preferred corporate citizen, preferred employer, preferred supplier selling preferred
products.

Mission Statement:
Nestlé is the world's leading nutrition, health and wellness company. Our mission of "Good Food, Good
Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and
beverage categories and eating occasions, from morning to night.

Hierarchy
In Top Level Of Management:

In this it comprises of governing body, boss leader chief, Boss innovation official, Boss advertising
official, and Boss activity official. This level of the board is the last phase of power. Additional time is
consumed in organizing and arranging capabilities. The top administration in settle company gives
expansive approaches of big business and the goal. They likewise have areas of strength for a
Responsibility, certainty and are risk carrier. The course and direction is likewise given by them to the
subordinates (Wooldridge and Floyd, 2013). The exercises are facilitated and constrained by these offices.

Middle Level Management:

The branch directors and departmental directors of settle are engaged with this level. More "time
consumed on directional what's more ,is organizational capabilities. The administrators of this level have
the obligation to finish and make plans for the units of the association. Administrators are additionally
associated with giving preparation to the lower level administration. They give bearings to the
subordinates to carry out the plans. Center level chiefs give inspiration to their subordinate who upgrades
their abilities and foster certainty in them. The directors additionally take part in preparing what's more,
work of lower level administration. Instances of this level can be senior supervisors, division
administrators (Cowherd and Levine, 2012).

Low Level Management:

This level is administrative degree of the executives. Settle includes bosses and workplaces in this level.
The obligation of these officials is they appoint the errand to various specialists. They give direction to
laborers in everyday exercises. Protests of the laborers are tackled by them and additionally they keep up
with great relations with everybody. They center basically around following through with the
responsibility on time what's more, attempt to do the errand as taught by the center level administration.
The directors keep beware of the quality and amount of creation. start the plans which are given by the
center level supervisory group. Models can be area leads, foremen (Ardichvili and Kuchinke, 2002).

Corporate strategy:
Nestlé’s long-term corporate objectives are to be recognized as the world’s largest and best branded food
manufacturer and leader in Nutrition, Health and Wellness, trusted by all its stakeholders, whilst ensuring
that the Nestlé name is synonymous with products of the highest quality as well as achieving the status of
“Nestlé Model”, a term which referred to Nestlé’s objectives of “organic growth between 4% and 6% each
year; continued year-after-hear improvements in earnings before interest and tax. In recent years, the
company has pursued a policy of expansion and diversification (brands diversified into specific product
groups like baby foods, bottled water, coffee, drinks, food service, sport nutrition and weight management
etc.) through acquisition and divestment to achieve a more balanced structure to the business (as an
example, Nestlé‘s 2012 acquisition of Pfizer Nutrition, enhancing its position in global infant nutrition)
(Nestlé).

• Diversification strategy

Nestle has related diversification and unrelated diversification. For the related diversification, it can be
seen from the wide product portfolio which encompassing baby foods, dairy products, chocolates,
breakfast cereals, food seasoning etc.

For unrelated diversification, nestle did it by acquiring or joint venturing with other big companies. For
example Nestle acquired Alcon Laboratories Inc. in Texas which is a pharmaceutical company
specializing in eye care.

• Vertical integration strategy

Farming: Lease 529 hectares of government land to establish Nestle coffee bean farms. Traditional
farming practices are not environmentally sustainable Difficult to change the mindset of family farmers
Future generations do not want to take over the labor intensive family farm ´But, they may be interested
in farming with new technologies Nestle farms opens employment to anyone who wants to work, not just
successors ´By vertically integrating and removing intermediaries, can maintain margins on farming
Allows Nestle to introduce technology and ensure stable supply.

Production Facilities: Build a production facility at the leased farm for grinding, milling, sorting, and
hulling control quality can implement manufacturing best practices low water and power usage, safety
standards reduce costs by removing the intermediaries.

• Consolidation strategy
Consolidating product portfolio to focus on performing brands, having introduced 43 products following
the Maggi crisis about two year ago. The company is in the process of reviewing products in chocolate,
confectionery, coffee, milk and some other segments, which were launched 15-18 months ago as part of
its drive to introduce 'innovation-based' products. "Now we are in the process to see what is working and
what is not working. We cannot support so many products going forward. The company will take stock
of brands, which are performing well in some regions or at national level or even at some channels. You
need to priorities on what you need to focus on, and that core exercise is happening. Post Maggi crisis in
2015, Nestle had ramped up innovations to expand its portfolio beyond the noodles business, which
contributed over one third of its total sales. The process is now happening because 12 to 15 months of
exercise has taken place and that's really what we are in.The next step could not "happen without looking
what you have in the plate". Many of the categories have a long way to go in terms of penetration. Along
with consolidations, the fundamental core of the company strategy is to increase penetration and go for
volume growth.

• Geographic expansion strategy

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-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.
Competitors across the world:
1. Mondelez

2. MARS

3. Kraft Foods
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 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.

• Cost leadership
Nestlé uses significant differentiate strategy for cost leadership strategy. Nestlé follows less price
transparency and significant differentiate of products in business to enhance the productivity and profit of
the organization. By using cost leadership strategy, Nestlé winning market share from the cost-conscious
or price-sensitive customers. They follow this differentiation strategy due to the changing demand of
customers. In addition, this strategy will decrease the risk of complexity of supply chain and lower
attractiveness for discounters.

• Differentiation

Nestle uses is differentiation strategy. The main purpose of this strategy is to create a brand image in the
mind of their customers/consumers and to differentiate their products from their competitors. Nestle
manufactures more than 10, different products under 8,500 different brand names and most of their
products are easily identifiable from their competitor because of their features, quality, ingredients,
packaging, pricing, labeling and other attributes. These products are manufactured under strict quality and
health standards and maintain them. Not only that these products are sold and marketed with the
company’s promise to deliver real value for the customer’s money.
While introducing new products in the market nestle ensures that it establish a unique positioning in the
mind of their consumers and their choice parameters. They never compromise on the quality of their
products to achieve economy of scale or low-cost leadership to gain competitive edge over their
competitors. Rather, they strives to build as differentiated positioning among its industry rivals on the
basis of a product quality and associated health and nutrition benefits.

• Focus
Good food nourishes and delights the senses. It helps pets to thrive, children to grow healthily and parents
to age gracefully. It helps all of us to live life to the fullest. Good food also respects our planet and protects
resources for future generations. But times are changing fast. And we know that what’s good today won’t
be good enough tomorrow. Consider the challenge of satisfying the needs of 10 billion people by 2050 in
a responsible and sustainable way. This will demand innovation and change. At Nestlé, we’re constantly
pushing the boundaries of what’s possible with food, drink and nutritional health solutions. That way we
can enhance quality of life and contribute to a healthier future for all. Today, our business has over 270,000
employees, more than 2,000 brands and a presence in 186 countries.

Functional Strategies:
The MILO Nutrition Campaign emphasizing on the nutritional benefits of the MILO drink * The key
communication campaign, MILO PLAY MORE LEARN MORE * the campaign for highlighting the
benefits attributed to children’s involvement in sports * NESCAFÉ CLASSIC launched a new campaign
that aimed to promote and educate Malaysians on coffee and its health benefits, primarily on antioxidants.
Foods MAGGI 2-Minute Noodles ran a successful “MAGGI Mee My Way” communication campaign
encouraging Malaysians to add fresh ingredients to their favorite instant noodles * The MAGGI
TASTYLITE low fat noodles made further inroads among the weight conscious target market, with an
increased share of the modern trade. * Nestlé’s involvement in the contract farming for fresh chilies with
local farmers continues * MAGGI using the best of the chili crop for its range of Culinary Sauces.
Confectionery the “WORKING LIKE A MACHINE campaign for KIT KAT which successfully engaged
consumers.
Nestle Products:
1. Milk Pak

2. Nescafe

3. Water
4. Juices

5. Breakfast
Conclusion:
Nestlé applies extraordinary endeavors to accomplish its dreams to be the forerunner in Nourishment,
Wellbeing, and Health Organization by creating better nature of items to the shoppers. Nestlé likewise
learn about the buyer's necessities every once in a while and fulfill the purchasers however much as
could reasonably be expected. Nestlé's assets like high monetary capacity, viable key showcasing
ability, solid innovative work, as well as extraordinary initiatives have helped them through the
deterrents. Most importantly, Nestlé centers around its missions and guarantees consistency by settling
on the ideal choices to oversee and fabricate its business to convey the commitment of Good Food,
Great Life everywhere.
References:

• https://myassignmenthelp.com/free-samples/organization-

structure-of-the-nestle

• https://www.nestle.pk/brands

• https://www.marketing91.com/top-nestle-competitors-across-the-

world/

• https://www.nestle.com/about/strategy

• https://www.nestle-esar.com/aboutus/missionvision