NESTLE COMPANY

AUTHORIZED BY:
MS. BUSHRA YAQOOB
LECTURER CIIT ATTOCK

SUBMITTED BY:
AMBER IMTIAZ
FA14-BS(BA)-002
5/21/2015
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 ACKNOWLEDGMENT

In the name of ALLAH, the most beneficent, the eternally merciful.

Alhamdulillah, all the praise to ALLAH for the strength and HIS blessing in completing this report.
ALLAH, the Almighty, on whom ultimately we depend for sustenance and guidance.

My special praise for the HOLY PROPHET HAZRAT MUHAMMAD SAW, the greatest
educator, the everlasting source of guidance and knowledge for humanity.

I am thankful to MS. BUSHRA YAQOOB for her kind and able guidance, valuable comments,
inspiring and encouraging attitude throughout this course.

I am grateful to my parents for their care and guidance in my work and studies.

I offer my special thanks to my teacher, SIR AHMED MUSTAFA who helped me sincerely during
my studies.

I am thankful to my friends who helped and encouraged me a lot in making this report.

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 DEDICATION
I dedicate this report to my beloved father

MR. MUHAMMAD IMTIAZ

And my great mother

MRS. SUGHRA IMTIAZ

Without whose caring support it would not have been possible. I have no words to
explain my parent’s love and care for me who have ignored my mistakes. my
parent’s words of encouragement ring in my ears.

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 SYNOPSIS

Nestle is a Swiss Multinational food and beverages company. The company is engaged in
manufacturing, processing and sale of food products. It is the largest food company measured by
revenues. Nestle is a human company and offers tremendous opportunities for career growth and
learning at domestic and international levels. Nestle is a number one food company in the world.
The qualitative study of this report gives the summary of the company whose products are used in
every home.

Nestle history started in 1866. It was not as successful in 1866 as it is today. Several mistakes and
changes take it to this point. Several important products are launched, several changes in
company’s structure was made. Nestle consumers are distributed widely in every part of the world.
Their products are available almost in every country. Nestle Pakistan commenced operations as
part of MilkPak Ltd. in 1981 but now the plant capacity is enhanced to produce low-fat and high-
calcium dairy products.

The vision of the company is to become leading competitor among those companies which came
in the market with the same aim of Healthier Food. The company’s mission is “Good food, Good
life”.

Nestle director and management committee is selected from Pakistan and also from all over the
world. Its offices and factories in Pakistan are located all over the Pakistan.

Nestle products and services are numerous out of which some are mentioned in the report. Nestle
Pakistan Limited earned Rs. 1,805,212 million profit after tax with excellent sales turnover for last
4 years.

Nestle received two awards which includes Best Company Award and CSR Award. Nestle BCG
Matrix tells the popularity of different products among people and the ratio of likeness and
dislikeness of different products.

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 TABLE OF CONTENTS
Acknowledgment I

Dedication II

Synopsis III

Chapter 1

1. Introduction 1
1.1 What is nestle 1
1.2 Significance of the study 1
1.3 Objective of the study 2
1.4 Research methodology 2

Chapter 2

2. Literature review 3
2.1 History 3
2.2 Nestle International 5
2.3 Nestle Pakistan 5

Chapter 3

3. Vision and mission 7

3.1 Vision 7
3.2 Mission 7
3.2.1 Mission Statement 7
3.3 Core Values 7

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Chapter 4

4. Company profile 9
4.1 Board of Directors 9
4.2 Organogram 11
4.3 Management Committee 12
4.4 MD’s Message 14
4.5 Offices and Factories 14
4.6 Products and Services 16

Chapter 5

5. Company Performance 18
5.1 Financial Performance 18
5.2 Financial Data 18
5.3 Sales Turnover 19
5.4 Achievements 20

Chapter 6

6. BCG Matrix 21
6.1 Star Category 21
6.2 Question Mark Category 21
6.3 Cash Cow Category 21
6.4 Dog Category 22

Conclusion 23

Recommendations 23

Index IV

Bibliography V

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CHAPTER 1

1.INTRODUCTION

1.1 WHAT IS NESTLE:-

Nestle is a Swiss multinational food and beverages company. The company is engaged in manufacturing,
processing and sale of food products. It is the largest food company in the world measured by revenues.

Nestle Company founded in 1866 by Henri Nestle in Vevey, Switzerland, the company then expanded
globally. It has over 280,000 employees and has different factories and sales operations all over the world.
More than 140 years the company is following the principles of honesty, fairness and long-term approach
which make them to be able to stand in one of the most competitive markets in the world.

Nestle is a human company and offers tremendous opportunities for career growth and learning at domestic
and international levels. With over 8000 brands preferred for their good quality, taste and health benefits.
Nestle is the number one food company in the world.

Nestle is leading the change in the food industry as it is also the leading food company in terms of having
the largest set up of research and development in food science and nutrition.

1.2 Significance:-
The presence study is conducted to highlight the significance of the world’s largest food and beverage
company, Nestle. Nestle products are widely used in the society and its products are familiar to every
person. The presence study is significant in the manner that it gives the summary of the company whose
products are the first priority of every person.

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1.3 Objectives:-
Research objectives for the present study are:

• To explore the history of Nestle company.

• To explore the vision, mission, strategies and core values of Nestle.
• To collect information about Nestle products.
• To explore the financial performance and financial data of the Nestle.

1.4 research methodology:

The methodology used in writing this report is qualitative. The information is based on hypothesis and the
data is collected by visiting different websites.

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CHAPTER 2.

2.LITERATURE VIEW

2.1 HISTORY:-
Ever since Nestle was established, they have been to committed to nurturing people worldwide. Today, as
the world’s leading food and beverages company, and leaders in health and wellness, they try to cater to all
your family’s nutritional needs, no matter where in the world you live.

1866

Nestle history begins in 1866, when the first European condensed milk factory was opened in Cham,
Switzerland, by the Anglo-Swiss Condensed Milk Company.

1867

In Vevey, Switzerland, Nestlé’s founder Henri Nestle, a German pharmacist launched his Farine lactee, a
combination of cow’s milk, wheat flour and sugar, saving the life of a neighbor’s child. Nutrition has been
the cornerstone of Nestle Company ever.

1905

Nestle merged with the Anglo-Condensed Milk Company.

1929

Acquisition with Peter-Cailler-Kohler Swiss Chocolate Company.

1938

Nescafe was launched.

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1940

Nesquik, the instant chocolate drink, was developed in the United States.

1986

The nespresso story began in 1986 with a simple idea: enable anyone to create the perfect cup of espresso
coffee, just like a skilled barista.

1988

The Italian brand Buitoni, became part of Nestle Portfolio in 1988.

2000

Acquisition of Power Bar.

2001

Nestle acquires Ralston Purina-Nestle Purina Petcare Company established.

2003

Nestle acquired Movenpick ice cream, enhancing their position as a market leader in the super premium
category.

2007

Acquired Novartis Medical Nutrition, Gerber and Henniez.

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2.2 NESTLE INTERNATIONAL:-
Today, Nestle SA is the world's best Food and Beverages Company, and a global leader in health, nutrition
and wellness. Consumers around the world, from village squares in Nigeria to the skyscrapers of New York
and Chicago, are united by the Nestle; promise of quality, taste, nutrition and convenience. Though
headquartered in Vevey, Switzerland, they now have 487 factories dotted around the globe, employing over
250,000 people in 86 countries. Their products are available in almost every country, and in 2005 their
global sales reached $73 billion. Their operations are spread across three global zones covering Europe.
The Americas, Asia, Oceania and Africa. Recognizing that every region has its special needs, the three
zones operate locally, but are united by a common vision and priorities. The voices of even the smallest
local markets are heard at their headquarters in Vevey, Switzerland.

Their immense popularity comes from their efforts to develop products that give quality and nutritional
benefits at low prices, even in the most remote regions. They distribute those using local means; in
Madagascar, for instance, backpacker salesmen sold over I2 million MAGGI tablets within six months, an
approach that was duplicated in Pakistan and Mozambique. Their consumers know that they can rely on
them to be there when they are needed.

2.3 NESTLE PAKISTAN:

In line with their parent company’s global philosophy, Nestle is proud of its commitment to excellence in
product safety, quality, and value. From spreading awareness about nutrition and wellness to digging wells
in the Thar Desert and succoring earthquake victims, they are committed to serving their country and its
people. The consumer's voice is key to Nestle Pakistan's vision and working. Whether you live in the
remotest village or the metropolis of Karachi, the consumer services team stands ready to listen to your
concerns and provide answers about their products and guidance on matters of health and wellness. Their
products are manufactured in five facilities scattered around the country, from Islamabad in the north, to
Karachi in the south. Two state-of the-art multipurpose factories are located in the agricultural heartland of
the Punjab, and the remaining three arcs dedicated to producing their trusted brands of bottled water.

Sheikhupura Factory:-

The factory commenced operations as part of Milkpak Ltd in 1981. At the time it produced only UHT milk,
but by 1988 had expanded to produce butter, cream and ghee, as well as fruit drinks. In 1988, it

became part of the joint Nestle Milkpak venture and, soon after, NESTLE® NIDO® milk powder started
being produced here. The factory started supplying dairy mixes to McDonald’s in 1998. A plant to produce
the popular Nestle NESTLE* PURE LIFET I bottled water was also commissioned. In recent years, the

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plant's capacity has been enhanced to produce fruit yoghurt, tea whitener, cream and raita, as well as low-
fat, high-calcium dairy products, sold under the NESTLE® NESVITA® brand.

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 CHAPTER 3

3.VISION AND MISSION

3.1 VISION:-
Their Vision is to become a leading competitor among those companies which are operating in the market
with the same aim to provide Healthier food and to capture large market share and also create value for the
customers.

They also wants to become a company which is preferred always, like among its competitors the customer
should choose their company. So, keeping their vision and mission in mind they focus their products and
it’s availability in the market and which is easily accessed by their valuable consumer.

3.2 MISSION:-
Nestlé’s mission, in the words of its founder Henri Nestlé, is to: “positively influence the social environment
in which we operate as responsible corporate citizens, with due regard for those environmental standards
and societal aspirations which improve quality of life.”

3.2.1 Mission statement:-

Nestlé’s mission statement is:

“Good Food, Good Life”

3.3 core values:-

The Company Core values are as follows.

• They focus on to develop a workforce which is highly motivated and can perform well in the
workplace.

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• They focus to meet the requirements and needs of their consumer which comprises of all age
groups. They can be from small infant to older age. They focus on creating high quality products
and provide services which are helpful in capturing great customer value.

• They also focus on maintaining the shareholder’s wealth but keeping in mind that to perform their
operations well with environmental and social responsibilities.

• Their brands are preferred in comparison of High quality food and Beverage products.

• They Communicate with their customer and provide them with the relevant information they
need.

• They promote their employees and motivate them to compete and to become specialized in their
work.

• They also have milk collection services which help to develop dairy sector in the rural areas of
Pakistan.

• The organization follows proactive approach which helps them to compete in the market.

Keeping all the above mentioned points in mind these points help the Organization to maintain
and run their daily operations in way which is best for both the organization and the Share Holder’s and
also keeping and running their customer trust in the long run.

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CHAPTER 4.

COMPANY’S PROFILE
4.1 board of directors:-
1. Mr. Syed Yawar Ali 2. Mr. Magdi Batato

Chairman Managing Director

308-Upper Mall, Lahore, Pakistan 308-Upper Mall, Lahore, Pakistan

3.Mr John Davis 4. Mr. Naveed Ahmed Khan

Director Director

308-Upper Mall, Lahore, Pakistan. 308-Upper Mall, Lahore, Pakistan

5. Mr. Pierre Schaufelberger 6. Mr. Syed Babar Ali

Director Director

Avenue Nestlé 55 1800 Vevey,Switzaerland Packages Limited, Shahrah-e-Roomi, Lahore,Pakistan

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7. Mr. Syed Hyder Ali 8. Mr. Faical Krichane

Director Director

Packages Limited, Shahrah-e-Roomi, Lahore, Pakistan. CH-1803-Chardonne-Switzerland

9. Mr. Osman Khalid Waheed

Director

Ferozsons Laboratories Limited, 5 km, Sunder Raiwind Road, Raiwind, Lahore, Pakistan.

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4.2 ORGANOGRAM:-

----

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4.3 MANAGEMENT COMMITTEE:-
1. Mr. Magdi Batato 2. Mr. John Davis

Managing Director & Head of Finance and Control.

Chief Executive.

3. Ms. Samra Maqbool 4.Mr. Waqar Ahmed

Head of Communication & Head of Corporate Affairs.

Marketing Services.

5. Ms. Nadia Omer 6. Mr. Naveed Khan

Head of Nestlé Continuous Excellence Head of Technical Services

7. Mr. Arsalan Khan 8.Mr. Rustem Oghuz

Head of Sales. Head of Supply Chain

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9. Mr. Faisal Rana 10. Mr. Abdullah Javed

Business Manager, Bussines Manager,

Coffee, Milk Modifiers & Cereals. Chilled Diary

11. Mr. Asim Riffat. 12. Mr. Ali Sodazai

Country Business General Counsil &

Manager, Maternal & Company Secretary
Infant Nutrition

13. Mr. Shahzad Umar 14. Mr. Nauman Khan

Head of Human Resources. Country Business Manager

15..Mr. Babar Khan 16. Mr. Humaira Ashar

Business Manager, Beverages. Business Manager, Confectionary.

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md’s message:-
"Our Company is part of Pakistan for more than 2 decades and we take pride
in being a Pakistani company with world class international standards and
know-how. We produce in Pakistan, products targeted at Pakistan consumers,
by Pakistanis.

We engage more than a million individuals throughout our value chain from
farm to fork and all these are somehow part of our "extended family". Our
strong brands are synonymous of "quality", "responsible sourcing", "good
taste" in a nutshell "value for consumers".

We have decided as a company to include a "Creating Shared Value" component to as many businesses as
possible in line with what we have started successfully for our dairy products, many years ago, setting up
milk collection centers & dealing with around 200,000 farmers.

We are proud of what we have achieved and we need to keep up the good work & improve constantly. All
this makes me proud to head Nestlé Pakistan and lead all of you."

Magdi Batato

Managing Director.

4.6 offices and factories: -

Corporate Office
Nestlé Pakistan Limited

308 – Upper Mall,

Lahore - 54000, Pakistan.

PABX: (042) 111 637 853

Fax: (042) 35789303-4

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Corporate Resident Office
Nestlé Pakistan Limited
Zonal Sales Office-South Zone
8th Floor, Clifton Diamond
Plot # BC-10,
Clifton Block-4,
Karachi.
Pakistan.

Tel: +92-21-35833935-6
: +92-21-35875558

Regional Sales offices

Regional Sales office Regional Sales office
63-B-D, Chaman Housing Scheme, House No. 178, block C,
Opposite Askari Park, Unit 2,
Quetta. Latifabad,
Hyderabad.
Tel: 081-2834887
Tel: 022-3860403.

Regional Sales office Regional Sales office

3-k, commercial plaza, 1st floor, Habib Bank
Model town Extension, Plaza,
Lahore. Satellite town,
Gujranwala.
Tel: 042-35916752
Tel: 055-3733415

Regional Sales office Regional Sales office

Ground floor, Al-Haq Palaza, 271-A Al-Syed House,
Small D, Ground, People’s Colony I, Street No 2, Iqbal park ,
Faisalabad. Sabzazar Colony,
Bosan road,
Multan.
Tel: 041-8555607
Tel: 061-6212901.

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Regional Sales office Regional Sales office
Plot No. 395/396, sector I-9/3, House No. 5/155 sabir
Industrial area Road,
Islamabad. Jhelum cantt,
Jhelum.
Tel: 051-4859300
Tel: 0544-720004

Regional Sales office

Jalala House 42-D, Old Jamrud road,
University town,
Peshawar.

Tel: 091-5700859

4.6 products and services:

PRODUCTS:

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 ❖ UHT MILK
❖ UHT CREAM
❖ INFANT FOOD
❖ YOGURTJUICES
❖ NOODLES
❖ CEREALS
❖ WATER

SERVICES:

• Feed improvement

• Livestock breeding and health

• Equipment provision.

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CHAPTER 5.

COMPANY’S PERFORMANCE

5.1 FINANCIAL PERFORMANCE:-

By 2014, Nestle Pakistan aims to be a Rs. 100 billion Company. Nestle is the largest food and beverage
company in the world. Marketing more than 9000 brands in 85 countries with a global workforce of
250,000. Nestle is a human company and offers tremendous opportunities for career growth and teaming
at domestic and international levels. Nestle Pakistan Ltd. Is a standard-bearer of Nestle SA's global
performance; registered on the Karachi and Lahore stock exchanges, for the past five years and have been
declared one of the top 25 companies on the Karachi Stock Exchange. Nestle Pakistan Limited has posted
Rs 1,805,212 million as profit after tax in 2007 as compared to Rs 1,363,920 million earned in the
corresponding period last year. The board of directors of the company in its meeting declared that the
earning per shark stood at Rs 39.01 in the period under review against Rs 30.06 in 2013.

5.2 FINANCIAL DATA:-

NESTLE PAKISTAN LIMITED 2007 206 2005 2004

CURRENT ASSETS 5,623,823 4,627,685 3,518,718 2,356,518

FIXED ASSETS 10,045,611 8,093,101 5,087,375 3,218,513

TOTAL ASSETS 15,848,574 12,927,902 8,836,780 5,601,315

CASH AND BANK BALANCES 406,225 34,663 858,995 95,176

INVENTORY 436,573 329,346 249,921 262,148

CURRENT LIABILITIES 5,978,522 5,224,488 4,333,228 2,352,658

TOTAL LIABILITY 5,978,522 5,224,488 6,879,733 4,113,129

OWNER EQUITY 4,111,705 2,531,080 1,957,047 1,488,186

NO. OF COMMON SHARE 750,000,000 750,000,000 750,000,000 750,000,000

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 NESTLE PAKISTAN 2007 2006 2005 2004
LIMITED

CASH FLOW 1,231,574 1,783,048 262,046 1,011,859

DIVIDEND PAID 633,418 2,263,646 1,132,770 226,748

SALES 28,235,393 22,030,958 17,142,363 12,857,001

OPERAYING EXPENSES 171,086 536,636 692,924 1,027,348

OPERATING INCOME 39,980 53,151 57,961 65,959

PROFIT AFTER TAX 1,805,212 1,363,290 1,148,722 984,279

5.3 SALES TURNOVER:-

Nestle Pakistan recorded excellent sales turnover for last 4 year, driven by its focused business strategies
and expanded distribution and consumer reach. The portfolio of Nestle products also grew by new
product launches including 'Maggi Atta' noodles, Maggi recipe mixes, Nido yogurt, Ceralac baby biscuits,
and a new mango addition to the Nestle juices range. The company continued its dairy development
initiatives in collaboration with the government and other institutions to accelerate fresh milk production
in the country and to boost the ability to collect incremental quality milk. The company's net profit surged
to Rs. 1,805 million in 2007 as compared to Rs. 1,363 million in last year. Total sales of the company
increased to Rs. 28,235 million in this period, against Rs 22,031 million previously. Sales for the year
exceeded Rs. 6 million, recording a growth of 78 percent, with contribution coming from each of the
company's main product categories. In particular, excellent growth came from milks, baby food.

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5.4 acheivements:-
Best Company Award

Amongst top 25 Corporate Sectors by Karachi Stock Exchange consecutively from 1999-2011.

CSR Award

Amongst top 10 Companies by Pakistan Centre for Philanthropy from 2006-2010.

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CHAPTER 6.

BCG MATRIX

6.1 STAR CATEGORY:-

Boston Consulting Group Matrix

Star Category

• Nestle Milkpak

• Pure life

• Nido

• Cerelac

• Nestle Fruita Vitals (Necter Juices)

These products are widely used by peoples in Pakistan. So to increase market share. Nestle should
decrease the price of these products.

6.2 Question Mark Category

• Everyday

• Milkpak Cream

There are some minor default in above mentioned products like there taste and expiry dates. These
products can become star product if these defaults be removed.

6.3 Cash Cow Category

• Nestle Dahi

• Maggi

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• Kitkat

• Polo

These product can made star products of nestle if nestle add new flavors and do penetration instead of
skimming.

6.4 Dog Category

• Nestle Koko Crunch

• Nestle Cornflakes

• Milo

• Nestle Raita

These products are not sold as much due to following factors.

• Targeting specific economic class.

• Not according to taste of peoples.

• Rare peoples like these products.

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 CONCLUSION
This report is an informative report; our team described a brief back ground of how Nestle came into
being and how it reached Pakistan. Good food good life is not just a part of their logo they make sure that
they follow this principle. Their true commitment to their consumer to their consumer is a reason that
company has developed so drastically not only, is an achievement in itself & shows how much the
consumer love Nestle products.

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 its 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. Their strategy is to provide the finest
quality, while consultancy reinventing their products to suit consumer need better their extra care of their
consumer need its secret of their success.

RECOMMENDATIONS
This is competitive world and must never forget that customers have a choice. If they are not satisfied
with a Nestlé Product, they will switch to another brand. The pursuit of highest quality at any price is no
guarantee for success, nor is a single-minded cost-cutting approach. Lasting competitive advantage is
gained from a balanced search for optimal value to customers, by simultaneous improvement of quality
and reduction cost.

Success can never be taken for granted. Nestlé must watch and learn from its competitors. If they do
something better, Nestle must improve its own performance. Nestle can achieve competitive advantage
through Quality.

Progress is followed by listening to Nestle customers and by measuring its works performance.
Shortcomings and mistakes must be analyzed and corrected. Problems must be anticipated and prevented
before they occur. Nestle also must identify and take advantage of opportunities.

To stand still is to fall behind. So Nestle must strive for continuous improvement in every area. It is
through many small improvements as well as through major breakthroughs that Nestle will achieve
excellence.

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 INDEX

Nescafe 3

Nesquik 4

Nespresso 4

Buitoni 4

Nestle International 5

Nestle Pakistan 5

Sheikhupura Factory 5

Vision 7

Mission 7

Organogram 11

MD’s Message 14

Current Assets 18

Fixed Assets 18

Cash & Bank Balances 18

Inventory 18

Current Liabilities 18

Owner’s Equity 18

Cash Flow 19

Profit After Tax 19

Achievements 20

BCG Matrix 21

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 BIBLOGRAPHY

• Nestle Pakistan: Home. (January 25, 2015). from http://www.nestle.pk/

• Home | Nestle Global. (2015). From http://www.nestle.com/
• Report on Nestle. (April 15, 2014). from http://www.linkedin.pk/
• Marketing Mix Report on Nestle. (May 18, 2014). From http://www.scribd.com/

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