NESTLE: HOW TO KEEP THE MAGIC GOING....

Getting to Know Nestl

Presented by,
Syed Atique Hossain ID- 23002
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ABOUT THE COMPANY

Founded by Henri Nestl Worlds biggest Food and Beverage Company Developed first milk product in 1867 Merger with the Anglo-Swiss Condensed Milk Company. Was listed number 1 in fortune global 500 as the worlds most profitable organization. Ranked no. 13 in FT global 2011 with market capitalization of $200. Mainly deals in chocolates, milk products, Maggi, soup, sauce, coffee, tea, milkmaid, and mineral water etc..
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PRINCIPLES AND OBJECTIVES

To create value Nestle does not favor short term profit Create trust among the customer Ensures that the highest standards are met throughout the organization. Recruitment of the right people & on going training & development Continue to maintain its commitment

Senior Management of Nestle

The executive board, a distinct entity from the board of directors

Board of directors

Executive vice president

Senior vice president

Deputy Executive vice president

Honorary chairman

Honorary chairman

Global Organization

Swiss company - global reach. Peter Brabeck CEO of the company-1997. approximately 254,000 people working. Operating in more than 70 countries. Worlds leading food & beverage company. People, brands & products are key.

Our Responsibility

Environment

Infant Formula Policy

Quality

Coffee Prices

UN Global Compact

Sustainability

Gene Technology

Nestl Donations

Water

Nestl in the Community

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Marketing and Nestle

Marketing and Nestle

Nestle uses the World Wide Web/Intranet/Extranet Nestle E-commerce- Increased Effieciency Nestle- Interactive Marketing Nestle- EIS Nestle implemented six -SAP modules- purchasing, financial, sales and distribution, accounts payable, accounts receivable and advanced planning and optimization.

Business Strategy
Grow existing businesses
focus on priority groups with growth and profit potential achieve 60/40 improve brand positioning and communication

Develop new businesses

improve innovation & renovation select acquisition candidates

Reduce cost
reduce structure cost reduce production cost restructure business portfolio

Benchmarking

Benchmarking is the process of comparing one's business processes and performance metrics to industry bests or best practices from other industries. Dimensions typically measured are
Quality time cost.

12 Stage approach to Benchmarking

Select subject Define the process Identify potential partners Identify data sources Collect data and select partners Determine the gap Establish process differences Target future performance Communicate Adjust goal Implement Review and recalibrate
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CONT..

Benchmarking is a continuous systematic procedure that measures a firms product and process against industry leaders. As NESTLE is industry leader in food products, each factory has its benchmark to improve quality. Nestle Milk Pak Kabirwala takes NestleTambula factory Australia as bench mark, which is the best Nestle factory in all over theworld. Nestle Milk Pak Kabirwala is at 2nd number.

How can Nestle effectively utilize benchmarking?

How well Nestle is performing compared to other companies? (competitors). What are the best practices? (technology) What improvement opportunities should Nestle focus on? (future) Internal growth rate? (performance)

Swot analysis- strengths

1.Nestl is adapting its industrial base to the changing requirements of the business environment. History
Nestl's industrial set-up is largely based on the economic and political realities of the 60's, 70's and 80's: Local markets Local production
Falling trade barriers. Decreasing transportation cost. Importance of IT. Etc.

Present
- operating with a modern

manufacturing base, economies of scale, flexibility, appropriate technology & design, low cost operation & location, - Nestl is striving for an optimized, -industrial base to ensure long-term competitiveness.
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High market share Size and financial power Strong brand portfolio Operational efficiency dedicated & focused company experience & competences consumer insight constant renovation + innovation consistent sales & marketing support specialist brand HQ + Factory + strong R&D team.

Weakness

Limited presence inn organic food Subsidiaries difficult to manage. Lack of retailed presence. Too much products distract from core business. Slow growth rate of Chocolate & Dairy products.

Opportunities

Continuous growth in US coffee market Further development of global brands. Partnerships & farmer support. Ethical business activities and growth Emerging market penetration. More health based products in Germany & US.

Threats

Private label growth Increased competition in bottle water from niche brands Global image may harm all brands if One brand fails. New diet trends. Competitors like HUL, DANONE, HERSHEY FOODS, CADBURY SCHWEPPERS.