PST NOTES

Geography
2.3(a)
Nestle
Headquarters: Vevey, Switzerland

Founded: 1866, Vevey, Switzerland

Revenue: 91.43 billion CHF (2018)

Country of origin: Switzerland

TNC (Nestle Pakistan):

Nestlé Pakistan is a Pakistani food company which is a subsidiary of Swiss multinational company Nestlé.
It is active in dairy, confectionery, coffee, beverages, infant nutrition and bottled drinking water areas. It
is head office is based in Lahore, Pakistan. The company was founded in 1988 by Nestlé in a joint
venture with Milk Pak. Then in 1992, Nestlé acquired Milk Pak brand from its former owner Packages
Limited.

Case Studies:
To create value for our shareholders and our company, we must create value for people in the countries
where we are present. This includes the farmers who supply us, the employees who work for us, our
consumers and the communities where we work. The following case studies of Nestlé’s efforts in the
areas of nutrition, water, rural development provide an interactive view of what the concept of shared
value looks like in action.

1. School Rehabilitation and Education Advancement:

To help improve education in rural areas, Nestle Pakistan undertook the rehabilitation of several
primary and middle schools, focusing especially on schools for girls. In 2004, in partnership with an NGO,
Nestle adopted a school in Pindi Dhallon, Sheikhupura, and achieved such an improvement of
educational facilities, including teaching aids and teacher training, that school attendance doubled.
Three schools were rehabilitated in 2004-05, and we also donated over 100 computers to schools in
poor rural and urban communities.

2. Well and Hand-Pump Installation Projects:

Potable water is a basic human necessity, yet it is denied to millions of Pakistanis. Nestle have helped
alleviate rural suffering by undertaking tube-well and hand pump installation schemes in selected areas.
Nestle first tube-well was completed in 2002 in a village of 3000 inhabitants in Tehsil Dunyapur,
Khanewal. A second one was commissioned in 2005 near Chishtian. Since then 300 hand pumps have
been installed in the arid deserts of Thar and Cholistan.
3. Help Centre for Farmers:
Nestle Milk Collection and Agricultural Services Department provides free advisory and support service
to dairy farmers. Company give training in animal husbandry practices, vaccinate and treat their milch
animals, help farmers buy feed supplements and fodder seeds, and assist in breed improvement. .

4. Healthy Kids Program:

Nestlé Pakistan inaugurated the Pilot Phase of the Nestle Global Healthy Kids program on November 1st,
2010 at Lahore. The objective of the program in Pakistan is to create an information and educational
program for raising awareness related to the nutrition, health and wellness of the school going children
from the age group of 6 to 16 years, through better understanding of nutrition value of food items,
importance of physical activity, healthy lifestyle and other key health measures such as basic hygiene.

5. Earthquake Relief:
In October 2005, the biggest natural calamity in Pakistan struck with the biggest calamity. Thousands
died and millions were left homeless after a massive earthquake hit our mountainous northern areas. In
step with the rest of the nation, Nestlé Pakistan responded immediately, putting its infrastructure and
resources to work in the affected areas. Within two days, Nestle had established a crisis committee
under the supervision of our Managing Director. The same day, the management team left to visit the
affected areas, and by 11 October, the first six Nestlé trucks left our factories, bearing bottled water,
powdered and UHT milk and ready-to-cook MAGGI noodles. As a result of our swift and carefully
planned action, we were able to distribute 80 trucks of goods, worth Rs 20 million. Two 10-ton trucks of
drinking water were dispatched to Muzaffarabad Hospital, and our volunteer teams ensured that goods
were distributed fairly and efficiently to those who needed them most.

Among our reconstruction efforts are the following initiatives:

Allocated an amount of Rs 20 million, raised through employee contributions and grants, to be used to
adopt and reconstruct a model village in Azad Kashmir. Initiated a livestock health improvement
program to help the locals rebuild their shattered lives. Nestlé SA donated an additional Rs 16 million for
reconstruction and rehabilitation work. Nestlé employees donated Rs 3.3 million from their own
salaries. Five teams of staff volunteers worked day and night in the affected areas to ensure that relief
goods got where they were needed. A medical detailing team worked with the students of King Edward
Medical University, Lahore, to collect medicines worth Rs 175,000.

2.3(c)
Explain the impact of Globalisation on Pakistan
1- Globalisation and TNCs may adversely affect the culture and tradition of Pakistan due to introduction
of Western ideas and technology
2- Globalisation and TNC can encourage polluting industries and practices as manufacturing and
resource extraction are for profit. In Pakistan industrial development tends to be poorly regulated
resulting in environmental damage

3- Globalisation and TNC can cause over exploitation of resources for example, developing industry in
Pakistan is increasing water scarcity

4- Globalisation and TNC tend to benefit the richest countries which control and dominate world trade
at the expense of developing countries. Countries such as Pakistan provide the north and west with
cheap labour and raw materials. This limits Pakistan economic development

5- Profit tend to go to more developed countries limiting the development and financial security of the
host country such as Pakistan

6- However Globalisation can increase free trade between countries encouraging TNC to invest in
Pakistan. WTO play an important role.

7- Globalisation can increase sharing of information between countries, assisting the development of
countries such as Pakistan.

Evaluate the negative impact of Globalisation on Pakistan:

Relevant points that support the statement may include:

The profits made by transnational corporations (TNCs) located in Pakistan are sent back to the TNC's
base in an another, usually developed, country. This finance is not available to help with the
development of Pakistan.

Globalisation is affecting the culture of Pakistan. For example, the national dress of Pakistan is Shalwar
Qameez, but cultural globalisation is affecting people's choices and many are adopting western style
clothing.

The introduction of fast-food outlets has altered the traditional diet of many, especially younger,
Pakistanis.

Globalisation increases the disparity between the regions of Pakistan. Large urban centres such as
Karachi benefit from the links with a broader market base and communications. However regions which
largely depend on traditional agriculture such as Gilgit-Baltistan do not receive these benefits or develop
economically.

The resulting disparity in Pakistan helps to increases rural to urban migration, particularly by younger
people. This reduces the work force in rural areas and increases the imbalance of population
distribution.

Relevant points to counter the statement may include:

Globalisation is linked to the emergence of worldwide production and markets and therefore allows
access to a range of imported products for consumers and companies. Globalisation makes the
movement and goods between countries easier which benefits Pakistan.
Globalisation has provided opportunities for developing countries, expanding their export markets and
attracting foreign capital, which helps development. However, the increase in Pakistan's exports has not
been as rapid as other countries.

However, globalisation has helped the development of Communication technology in Pakistan which has
had some benefits for the economy. This is one of the fastest growing sectors in Pakistan.

A number of TNCs have based branches in Pakistan. These have provided increased work and training
opportunities, investment in Pakistan's infrastructure and frequently offer enhanced services such as
health care for their employees and their employees and their families.