NESTLÉ

GROUP 10

MEMBER 1. Phan Thị Thu (TK) 2. Trần Thị Thu 3. Đào Thị Thúy 4. Hoàng Thị Thủy 5. Phạm Thị Thủy 6. Vũ Bích Thủy 7. Nguyễn Thị Trà 8. Vương Thị Trà 9. Dương Thanh Trà (NT) 10. Trần Ngọc Trâm

Nestlé’s Human Management . Environmental Scanning III. Period of diversification from 1944 to 1975 5. Changes and expansion continue II. How Nestlé kept up business during World War II 4. General management strategy 2. Specific management strategy in Vietnam IV.OUTLINE I. Nestlé’s Background and History 1. Nestlé’s beginnings in Switzerland in 1866 2. World War I’s influences on Nestlé 3. Diversifying outside of the food sector 6. Nestlé’s Management Strategy 1.

Background and history of Nestlé 1. broadened its product line in the mid-1870s to include cheese and baby formulas. I cannot have a different trademark in every country. One of his agents suggested that the nest could be exchanged for the white cross of the Swiss flag. founded in 1866 by Americans Charles and George Page.. responded by launching a condensed 5 milk product of its own.. His ultimate goal was to help combat the problem of infant mortality due to malnutrition.I. economical alternative to breastfeeding for mothers who could not do so. World War I’s influences on Nestlé .. but no-one else may use my coat of arms. in his German dialect. flour and sugar in an attempt to develop an alternative source of infant nutrition for mothers who were unable to breast feed. 2. Nestlé’s beginnings in Switzerland in 1866 The key factor which drove the early history of the enterprise that would become the Nestlé Company was Henri Nestlé search for a healthy. Peter. The Nestlé Company. Henri Nestlé also showed an early understanding of the power of branding. and sauces and flavorings. began experimenting with various combinations of cow milk. Nestlé means littleness. but also bouillon cubes. anyone can make use of a cross. his company was producing not only powdered soups. He adopted his own coat of arms as a trademark. a trained pharmacist. which had been purchased from Henri Nestlé by Jules Monnerat in 1874. The two companies remained fierce competitors until their merger in 1905." Meanwhile. By the turn of the century. In 1882Swiss miller Julius Maggi created a food product utilizing legumes which was quick to prepare and easy on digestion. His instant pea and bean soups helped launch Maggi &Company. In 1875 Vevey resident Daniel Peter figured out how to combine milk and cocoa powder to create milk chocolate. Some other important firsts occurred during those years. wheat. started a company that quickly became the world’s leading maker of chocolate and later merged with Nestlé. His response was firm: "I regret that I cannot allow you to change my nest for a Swiss cross . Nestlé. the Anglo-Swiss Condensed Milk Company. a friend and neighbor of Henri Nestlé. In the mid-1860s.

The 1920s also saw Nestlé’s first expansion beyond its traditional product line. and. The Brazilian Coffee Institute first approached Louis Dapples in 1930. Ironically. and its world production had more than doubled since 1914. a powdered beverage called Milo. and the Corporation transferred many of its executives to offices in Stamford. After the United States entered the war. He streamlined operations to bring production in line with sales and reduced the Corporations outstanding debt. as well a company built upon Nestlé more traditional businesses. largely in the form of government contracts. bringing in Swiss banking expert Louis Dapples to reorganize the Corporation. seeking new products to reduce Brazil’s large coffee surplus. Nescafé became a staple beverage of American servicemen serving in Europe and Asia. How Nestlé kept up business during World War II The effects caused by the onset of World War II were felt immediately by Nestlé. To overcome distribution problems in Europe and Asia. Nestlé executives found themselves unexpectedly heading up a worldwide coffee corporation. In 1921. and the onset of World War I caused severe disruptions. the Corporation recorded its first loss. By the early 1900s. . Neutral Switzerland became increasingly isolated in a Europe at war. the Corporation had 40factories. The end of World War I brought with it a crisis for Nestlé. In 1907. Most production facilities remained in Europe. factories were established in developing countries. Nestlé purchased several existing factories in the United States. To keep up. The manufacture of chocolate became the Corporations second most important activity. Fresh milk shortages throughout Europe forced factories to sell almost all their supplies to meet the needs of local towns. Germany and Spain. particularly in Latin America. The first truly global conflict put an end to the traditional Company structure. in 1938. Rising prices for raw materials. the Corporation was operating factories in the United States. the war created tremendous new demand for dairy products. As the end of the war approached. Condensed milk exports increased rapidly as the Corporation replaced sales agents with local subsidiary companies.The Corporation formed by the 1905 merger was called the Nestlé and Anglo-Swiss Milk Company. By the end of the war. and Bombay to supply the rapidlygrowing Asian markets. however. Connecticut. 3. Profits dropped from $20 million in 1938 to $6 million in 1939. Acquiring raw materials and distributing products became increasingly difficult. World War II helped speed up the introduction of the Corporations newest product. Annual production levels reached one million cases by 1943. Nestlé added chocolate to its range of food products after reaching an agreement with the Swiss General Chocolate Company. Warehouses were built in Singapore. powdered buttermilk for infants. the worldwide post-war economic depression and deteriorating exchange rates deepened the gloom. production and sales rose in the wartime economy: Nestlé’s total sales jumped from $100 million in 1938 to $225 million in 1945. Nescafé. Government contracts dried up following the cessation of hostilities. and civilian consumers who had grown accustomed to condensed and powdered milk during the war switched back to fresh milk when it became available again. As in World War I. Hong Kong. the Corporation began full-scale manufacturing in Australia. In 1904. New products appeared steadily: malted milk. Nevertheless. Britain. its second-largest export market. Nescafé. Nestlé’s management responded quickly. Eight years of research produced a soluble powder that revolutionized coffee-drinking habits worldwide. Nescafé became an instant success and was followed in the early 1940s by Nestea.

between 1980 and 1984. To maintain a balance. Nestlé made its second venture outside the food industry by acquiring Alcon Laboratories. The Corporations strategy for this period was twofold: improve its financial situation through internal adjustments and divestments. the manufacturer of Maggi seasonings and soups. manufacturer of pharmaceutical and ophthalmic products. Changes and expansion continue Under the new Chief Executive Officer. The acquisition of Crosse & Blackwell. After the agreement with L’Oreal in 1974. In 1974. In 1947. the British manufacturer of preserves and canned foods. the Corporation was forced to respond quickly to a radically changed marketplace. becoming Nestlé Alimentana Company.. the Corporations financial situation deteriorated as the price of oil rose and growth in industrialized nations relented. Nestlé managed to put an end toa serious controversy over its marketing of infant formula in the Third World. Libby’s fruit juices (1971) and Stouffers frozen foods (1973). all of which have one thing in common: they all contribute to satisfying the requirements of the human body in various ways. as did the purchase of Findus frozen foods (1963). foreign exchange rates deteriorated with the French Franc.A. But. Dozens of new products were added as growth within the Corporation accelerated and outside companies were acquired. For the first time since the 1920s. In addition. 5. Taking such a step in a time of increased competition and shrinking profit margins required boldness and vision.S. Inc.. a U. between 1975 and 1977. Nescafé continued its astonishing success. they quadrupled. Diversifying outside of the food sector Finally. Pound Sterling.4. Thus. and continue its policy of strategic acquisitions. Alcon represented a leap into unknown waters for Nestlé. as Group Chairman Pierre Liotard-Vogt noted. Period of diversification from 1944 to 1975 The end of World War II marked the beginning of the most dynamic phase of Nestlé history. The Corporations total sales doubled twice in the 15 years following World War II. but it also carried with it the risks associated with unstable political and economic conditions. Finally. Nestlé’s rapid growth in the developing world partially offset a decline in the Corporations traditional markets. and Mark all losing value relative to the Swiss Franc. From 1950 to 1959. Nestlé approached the 1980swith a renewed flexibility and determination to evolve. and from 1960 to 1974. Nestlé overall position change rapidly." 6. Meanwhile. At the same time. one of the worlds leading makers of cosmetics. Helmut Maucher. the Corporation divested a number of non-strategic or unprofitable businesses. Nestlé growth was based on its policy of diversifying within the food sector to meet the needs of consumers. followed in 1960. As in1921. Throughout this period. Dollar. Even more-so than the L’Oreal move. and the price of cocoa tripled. the price of coffee beans quadrupled. Nestlé merged with Alimentana S. sales of instant coffee nearly tripled. "Today we find ourselves with a very wide range of activities. The development of freeze-drying led to the introduction of Tasters Choice instant coffee in1966. the Corporation became a major shareholder in L’Oreal. Nestlé’s management made the decision to diversify for the first time outside of the food industry. This debate had led to a boycott of .

with Pierre Marcolini. Nestlé launched a Group-wide initiative called GLOBE (Global Business Excellence). and a general trend towards liberalization of direct foreign investment was good news for a company with interests as farflung and diverse as Nestlé. a 2. Gerber and Henniez join the Corporation. . another joint venture. the takeover. T tea machine system and the completion of the 25bn Swiss Francs share buyback programme – and the announcement of a new 10bn Swiss Francs programme. Nestlé bought Kraft’s frozen pizza business.S. enabling Nestlé to realize the advantages of a global leader while minimizing the drawbacks of their size. this time with L’Oreal.6bn USD acquisition of Chef America Inc. Nestlé opened the Chocolate Centre of Excellence in Broc. the overall trends remain positive. enhancing Nestlé’s position as one of the world market leaders in the super premium category. Immediately following the Alcon announcement.8% to Novartis. Nestlé began a process of selling Alcon bydivesting 24. There were two major acquisitions in North America in 2002: in July. but there is no longer any significant boycotting. which was a leading U.-based hand-held frozen food business. In 2009. Nestlé’s improved bottom line allowed the Corporation to launch a new round of acquisitions. The opening up of trade in Central and Eastern Europe. In 2008. In 1984.S. This issue is still alive in some quarters. aimed at harmonizing and simplifying their business process architecture. At the time. ice-cream business was to be merged into Dreyers.Nestlé products by certain civil and religious organizations. The first half of the 1990s proved to be a favorable time for Nestlé: trade barriers opened and world economic markets developed into a series of more or less integrated trading areas. and in August. The new decade began with Nestlé announcing the finalisation of the sale of Alcon to Novartis which was completed mid-year. and Laboratoires innerve was set up. Nestlé announced that the U. The year 2003 started well with the acquisition of Mövenpick Ice Cream. as well as China. including a public offer of $3 billion for the American food giant Carnation. the joint venture Dairy Partners Americas was set up with Fonterra. Jenny Craig and Uncle Tobys were added to the Nestlé portfolio and2007 saw Novartis Medical Nutrition. was announced. Also in 2002. In July 2000. Nestlé entered into a strategic alliance with the Belgian chocolatier Pierre Marcolini at the end of that year. This represented a remarkable investment on behalf of Nestlé’s shareholders. one of the master chocolatiers. sealed in 1985. was one of the largest in the history of the food industry. Switzerland. Further highlights were the launch of the Special. While progress since then has not been as encouraging. In 2006.

Through this analysis. 1. Nestle will definitely grab the opportunity of rapid development in Vietnam. Nestle also supports the sustainable economic development of Vietnam and helps to improve of living standard as well as the condition of the poor. Besides. we can easily find out the advantages and disadvantages of Vietnam market. Encouraging the integration of Vietnam in the world economy by bringing it into the world trading system. Environmental Scanning In order to describe the framework of macro environmental factors that impacts on Nestlé when entering Vietnamese market. we use the PESTLE analysis which including: Political. Economic. Technology. Politic Vietnam is a country with political stability. Social. where there are also many incentives for foreign investment enterprises. and supporting the process of economic and social reforms . Thanks to the preferences.II. Legislation and Environmental factors.

Vietnam’s economic growth rate has been among the highest in the world in recent years. They oppose unjustified bans and any other discriminatory measures. There is no afraid that foreign companies will be less favored. This applies also to environmental issues. this is a good chance for many enterprises to compete in a good and fair condition. approximately 1 million people per year. etc. powder milk. facilitate Nestlé’s operation to become stronger in the Vietnamese market.). government representatives. Economic Vietnam is a market offering ground floor and growing opportunities for both local and foreign companies.2. Moreover. yoghurt. applicable and enforceable. Vietnam has joined WTO. of experience and of knowledge between the various interested parties. In order to complement that plan. placed 13th in top most populous countries in the world and 3rd place in Southeast Asia areas. industry. they cooperate with legislators through local industry associations in order to promote laws and regulations in the field of environment which are reasonable.5 percent. expanding annually at 5-8. The growing economy will result in people’s increasing consumption demand. realistic. Legislation and regulations It is the policy of the Nestle Group to strictly comply with all laws and regulations relevant to our activities. 3. while industrial production has been growing at around 14-15 percent per year. 4. rational. Society Vietnam is a very populous country. the scientific world and consumer associations. Nestle also applies this policy to environment related matters. Since Nestles’ products including many products for children care (such as milk. age group from 15-59 is 64% and age group above 60 is only 9% (according to the data of 2005). They participate in discussions on food legislation and regulations between international organizations. Population structure is young with age group from 0-14 account for 27%. . Young population becomes one of the most important advantages for Vietnam to attract many multination companies as Nestle. Thanks to all these synergies. therefore. cereal. Nestle favors the harmonization of food regulations in order to remove existing trade barriers and to avoid the creation of new ones. We favor the exchange of information. Vietnamese growth rate is quite fast. Nestle can contribute to valuable discussions and be recognized as an active partner in helping authorities to formulate comprehensive strategies in the field of the environment. Vietnam is a very potential market for Nestle to further explore and develop in the future. Young population is also the great source for workforce which attracts many foreign investors coming to Vietnam.

People now more and more care about how to live long and healthy. hills. the coastal lowlands. it’s considered as the gateway of Southeast Asia areas which is also the center of business. Nowadays. or the Chaîne Annamitique. 6.The income average of Vietnamese people is not quite high. and the . Vietnamese people have a chance to update and catch up with the technology all over the world. they pay more attention and focus more on research and development fields.3 (according to data of 2009). Environment Vietnam is located on the eastern margin of the Indochinese peninsula. People in Vietnam now easily grab a chance to use internet almost everywhere. Vietnam is a country of tropical lowlands. Internet becomes a useful tool for not only users but many administrators."). For example. Thanks to internet development. 5. however. Technology Internet has been strongly developed in Vietnam since last decade. we not only show interest in technology transfer but also try to catch up with technology situation in worldwide. It’s a very strategic position for Vietnam to attract more and more foreign investors come and invest in our companies. The average age of Vietnamese people is quite high 74. it keeps increasing in recent years. companies to expand their business. and the Giai Truong Son (Central Mountains. there are many young boys and girls wearing clothes with haircut or makeup in Korea style. Government also requires enterprises concentrate on this field and invest more capital on it. Government already see the important of applying newest technologies on manufacturing. They are also more cautious on choosing foods or taking care of family health. There are many online companies which work so effectively and attract many customers only by the internet. In Vietnam. Vietnamese living standard is much more improved than before. we can obvious see it through the Hallyu wave of our neighborhood. therefore. sometimes referred to simply as "the Chaine. In recent years. and densely forested highlands. with level land covering no more than 20% of the area. Vietnamese government pays more attentions on technology transfer since our infrastructures are still weak and lack. They do pay attention to the nutrition structure of each meal and try their best to choose the best products for all members of their families. therefore. people pay more attention to the needs of health care as well as quality and nutrition foods. Vietnam is also a country in which easily accept the culture interfere all over the world. They find it more easily to provide their services just by one click and customers also find it clear to search information about what they’re looking for. Korea. The country is divided into the highlands and the Red River delta in the north.

with the exceptions of Nestle Waters.these we call the Globally Managed . There are 15 members of the Board of Directors. We are putting many efforts to adapt and overcome this hot issue. General management strategy Nestle has a Board of Directors. Americas and Asia/Oceania/Africa) for most of the food and beverage business. It’s another advantage of Vietnam. However. + The Nestle Group is managed by geographies (Zones Europe.Mekong River Delta in the south. III. who was the former Nestle CEO. Vietnam is also one of many countries which are dealing with climate change. Management Strategy of Nestlé 1. Nestle Professional and Nestle Health Science which are managed on a global basis . lead by the Chairman Peter Brabeck-Letmathe. Full details of each member and the committees that they operate within can be found in the Broad of Directors section of Nestle. Nestle Nutrition. we have great source of natural resources which can help a lot in many light as well as heavy industry. Nespresso. The 13 designated Board Members manage diverse parts of the global business and have full curriculum vitea of each member. Nestle Purina Petcare. The day to day management of the Nestle business is taken care of by our Executive Board members.

Apart from professional skills and insight. Members of Nestle Management at all levels are strongly committed to the Company. contractors and others involved along the value chain. its development and its culture as expressed in The Nestlé Management and Leadership Principles. nationality. these are reported to the Nestle CEO. In all developing countries. has been commissioned to review Nestle infant food marketing in several countries in Africa. + Nestle has internal and external audits.) Management Commitment of nestle. They are committed to preventing accidents. + Nestlé’s success is based on their people. Nestlé employees are informed that their actions are subject to audits and that Code violations may result in punitive measures. outlining Nestle policies and procedures. Internal audits on WHO Code compliance are carried out in about 20 countries each year by corporate auditors. + Nestle has code management system according to WHO. Nestle commissions external audits on code compliance on an ongoing basis. Nestle has implemented an extensive WHO Code Management System. a major global auditing company. the capacity and willingness to apply these principles are the main criteria for progressing in the organization. race. outside of line management. + Nestlé has adopted an environmental business strategy that incorporates initiatives to address environmental policy and compliance. provide equal opportunities for their development and advancement protect their privacy and do not tolerate any form of harassment or discrimination. and response to . We recruit competent and motivated people who respect our values. In addition. We treat each other with respect and dignity and expect everyone to promote a sense of personal responsibility. gender or age. + Nestle has internal ombudsman system. regardless of origin.Businesses. Audit results are communicated to top management. to whom employees can report allegations if they are uncomfortable with reporting them to their market’s ombudsman. We also have joint ventures such as Cereal Partners Worldwide and Beverage Partners Worldwide. recognition of business opportunity. built along the lines of ISO quality assurance systems. Asia and Latin America. The procedures include built-in checks to ensure that potential code violations are avoided. who is a member of the Executive Board of the Nestle Group. to whom suspicions of WHO Code violations can be reported in a confidential manner. Bureau Veritas. religion. There is also a Corporate Ombudsman. and where violations occur. + They practice what they preach and show the example in their daily work. gives detailed operational guidelines to all Nestle employees in their daily conduct of business related to Infant Food to ensure compliance at all levels with both the WHO Code of Marketing of Breast-milk Substitutes and local regulations. Each Nestle Market has a designated Ombudsman. The manual. injuries and illness related to work. Since 2004. and to protect employees.

In addition to manufacturing efficiency. focuses on three main areas of the company’s operations: Integrated approach throughout the supply chain Water as a key priority Systematic management of environmental performance Within these core areas. are these objectives elaborated upon. The environmental performance of manufacturing processes is measured through worldwide factory surveys and environmental performance indicators (EPIs) that are verified against action plans. Perhaps the most vivid display of Nestlé’s environmental business strategy is its Nestlé Environmental Management System (NEMS). Nestlé’s commitment to the environment. Nestlé also claims the support of sustainable agricultural practices. however. established in 1996 to provide a mandatory framework for environmental management at all levels of organization. reuse. According to the Environmental Progress Report Highlights (2000). and that this progress is due to clear objectives and the implementation of a systematic approach. Nestlé also participates actively in various national packaging waste recovery schemes established in the European Union. recycling and energy recovery to minimize the impact of waste on the environment. Neither in this report nor the extended Nestlé 200 Environmental Progress Report. and are used to assess the progress toward “eco-efficient” objectives. The conservation of water resources is also an important component of the Nestlé environmental management strategy. Nestlé has supported the long-term. Figure 2 has been adapted from the Environmental Progress Report (2000). as it does not own or operate farms where raw materials are obtained. sustainable use of water.public perception and expectations. and boasts a monetary overall investment for the protection of the environment (Figure 1) that amounted to more than 3% of total capital expenditure from 1997 to 1999(NESTEC 2001). and claims to use recyclable packaging materials “wherever possible” (NESTEC 2001). The company’s Environmental Progress Report Highlights (2001) asserts that the packaging reduction results have been significant. portrayed through this environmental management strategy. This multi-step . Nestlé has encouraged more responsible environmental performance with continuous improvement in research and development to support long-term growth and competitiveness through innovation and renovation (EPR 2000). Through innovative manufacturing practices and conservation programs to help drive initiatives for water reuse and reduction. Nestlé has developed an integrated approach for considering the environment throughout the supply chain process. and illustrates the amount of freshwater use worldwide by Nestlé is “relatively small” compared with other sources of consumption.    From production operations to distribution and consumer purchasing. Nestlé states the objective in company factories is to maximize “eco-efficiency”. Nestlé has increased its focus on the packaging process to favor source reduction. or to maximize the production of goods while minimizing the consumption of resources.

and attempts to meet policies and guidelines. Nestle launched two products: Nestcafe and a nutrition food product named Milo. As the leading coffee producer in the world. These factories are built following the common standards of the group. . In June 2009.approach has led to more structured management throughout the company. develop training and communication. In 1995. In Vietnam. It not only emphasized Nestlé’s long – term investment commitments in Viet Nam but also aimed for food product development – one of the Nestlé’s important strategies. and complete operational surveys and audits on a regular basis (Figure 3).. In Vietnam. such as ISO 14001. thus creating an adaptive ability to change with new environmental issues (NESTEC 2001). establish objectives and programs. 2. Establishing these frameworks for environmental management has focused Nestlé’s efforts on performance and continuous improvement. Long – term investment commitments. from supporting for agricultural research to making coffee campaigns . Viet Nam is one of the most potential markets of Nestle. Currently. Specific strategy in Vietnamese market Today. In 1992. The components of the NEMS aim to facilitate continuous improvement and communication while integrating innovation and renovation strategies throughout Nestlé’s long-term environmental commitment (NESTEC 2001). Nestle has 3 factories in Hung Yen. Nestlé buys about 20-25% of coffee production per year for processing at the Nestlé ‘s factories in the world. Viet Nam’s brands develop more than elsewhere. Among them. Nestlé has committed to develop the coffee sector in the country in many ways. According to Nestlé’s managers. Nestle began investing in Viet Nam with a bottled water product named Lavie. Nestle has made strategic plans. Dong Nai Province. The NEMS also allows Nestlé to perform more compatibly with international standards for environmental management systems. especially Milo and Maggi brand. the number of certified Nestlé factories implementing the voluntary ISO 14001 standards is 46. directly supporting to farmers in applying the technical advances for production . Nestle has presence in 86 countries with 465 different factories. Nestle set up a Maggi spice producing factory in Bien hoa II industrial zone. Since entering Viet Nam market. Long An. Nestle has been a positive contribution to Viet Nam’s coffee industry. a. Dong Nai..

With a slogan: you are strong enough to try? And a new image which is a strong and modern man. it does not gain the same result in Viet Nam.b. In short. health and wellness company. c. it always maintains the operating standards: compliance. Vietnamese customers do not pay attention to Redcup at all. Nestle is famous for Redcup coffee brand in the world. food security and many others… In conjunction with local authorities. Wherever Nestle operates. However. the best way is changing. energy-saving strategy. sustainable development and creating mutual value for the community. lack of clean water. Activities towards community As nutrition. the new appearance impressed Vietnamese customers. Nestle is committed to the enhancement of quality of life by helping committees in which it operates to meet basic and essential human needs. over the years. Nestle has implemented the water management projects. In Viet Nam. Vietnamese coffee built a good identification in the customers’ mind. The company has also created more jobs. . Obviously. the result is very disappointed. Although ingredients and formulations of “Vietnamese coffee” are not different from Redcup. recently. healthss and promoting an active and healthy lifestyle. Nestle executives hope that the quality of the coffee essence. the activities of Nestlé has brought many benefits to the community and created the essential foundation for Nestlé’s sustainable development. Whether it’ top brand. Thus. This brand is invested carefully and professionally. nestle has to change strategy to enter a new market like Viet Nam. the profession of processing technology will help Redcup conquer Vietnamese customers. Nestle has used its resources skills and technology to help find solutions to the many socio – economic challenges such as poor sanitation. Moreover. malnutrition. increased productive capacity for farmers and promoting sport value for children. Repositioning When developing in a new market in a new country. poverty. Nestle is not exception. the name of this new brand is easily accepted. disease. if it’s unfamiliar to local customers. some brands have to adapt to meet customers’ need. Nestle has taken repositioning for Redcup by launching a new brand named “Vietnamese coffee”. communicating about nutrition. While Redcup develops well in other markets.

and retaining top talent across our company are only the beginnings of the story. Our human resources teams cultivate our culture through employee learning and foster our sustained growth by ensuring employee passion is directed to help deliver on business goals. Nestlé Waters North America recognizes that our workforce – our human assets – is one of the most important characteristics that differentiate us in the marketplace. but also their different languages and cultures and. As a dynamic and flexible organization with around 280. widely differing learning needs and styles. Below is a snapshot of a few of our key opportunities . recruiting. on an individual level. Identifying. Nestlé’s Human Management The challenge for human-resource specialists in such an organization is not only in the geographically dispersed nature of the workforce.000 people employed in some 500 factories and offices across the globe.IV.

Recruitment for management levels is taken place in the head office by top management and all others at the branch level. especially for workers who operate new equipment. This is done to finally have the discretion power in the hands of Company. leadership. Incorporates practices like Job Enlargement as well as Job Enrichment. honesty and trustworthiness are looked for. local Training Program's. Another source of recruitment is campus placements and human resource consultancies to look for the enthusiastic. Openness and curiosity for dynamic and future trends in technology. Recruitment People with realism. Specific Key Performance Indicators have been enlisted by the HR department. motivated and fresh pool of talent. attitudes and behavior. integrity. changes in consumer habits. honesty and quality. Subordinate can question an unfair evaluation. Performance management There is transparent performance appraisal system. new business ideas and opportunities while maintaining respect for basic human values. It has the following characteristics: Formal assessment by Line Managers and HR once in a year with feedback. - Training There is literacy training.- Human Resource Policies Designed in alignment to the Business Objectives.on issues ranging program's from technical. Key performance indicator: Achievement following “Nestle management and leadership principles”. - Employee relations . Remuneration structure and promotion criteria take into account individual performance. hard work. There are no lateral recruitments. The existing employees are promoted to higher posts as per the requirements. and communication and business economics.to upgrades essential literacy trainings kills. It follows mainly three different policies: +Nestle management & leadership principles +Nestle human resources policy +Nestle people development review - Nestlé’s Culture Nestlé commits to a strong work ethic. Decision to hire a candidate is finally taken by HR professionals only and no preference is given to external consultant. Match between candidates values & company’s culture are recruited. personal relations based on trust and mutual respect – a personalized and direct way of dealing with each other.

and Recruitment Training Performance Management Rewards. Nestle Idea Award. Nestle have brought suitable Communication Strategy and Entrepreneurship strategy. cut high HR operation costs . Emphasis is laid on safety of employees. which is considered to be very low for a multinational corporation. Work/Life balance is given importance.Employee turnover is less than 5%. ‡ Nestle has an open culture & upward communication especially in case of grievance redressal is encouraged. Nestle Family· annual events are organized by their HR department whereby employees along with their families are invited. as illustrated in the Nestle Human Resource Policy document. recruit purposefully. Learning and development: Continuous Improvement. Long-service Awards. HR professionals should be able to inculcate the willingness to accept change and the ability to manage it. International experience and understanding of other cultures will prepare the employees to face the challenges in global markets. Incentives Employee Relations Change Management Changing Role of HR Nestle believes that life creates a climate of innovation. With human resource management viewpoint and system.. +Incentives: There are many programs such as Talent Management: To develop the framework and processes which will enable the company to identify and develop the potential of employees at Nestle. effective Training and Development. Rewards and incentives +Rewards: There is Passion to Win Awards. Creativity and Innovation.

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