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“They envision Nestlé to grow in the shortest

possible time into the number one food company in


Pakistan with the unique ability to meet the needs of consumers of
every age group from infancy to old age,
for nutrition and pleasure, through development of a large
variety of food categories of the highest quality.

They envision the company to develop an extremely


motivated and professionally trained workforce, which
would drive growth through innovation and renovation.

They aspire, as a respected corporate citizen, to continue


playing our due role in the social and environmental sectors of the country.”
In analyzing an organization it is very important to begin with
what the organization stands for and why it exists, thus leadi
ng us to the mission statements of Nestle, which states;
“Nestlé is dedicated to providing the best foods to peopl
e throughout their day, throughout their lives, througho
ut the world. With our unique experience of anticipating
consumers’ needs and creating solutions, Nestlé contrib
utes to your well-being and enhances your quality of life
.”
 Nestle is operating in a society which is very large in nature thus placin
g the organization in an external environment where there is a huge num
ber of forces which can potentially influence the functioning of nestle in
many ways.

 The external elements with which the Nestle has to deal are the eleme
nts that are directly related to it in conducting its daily operations and the
forces that may create uncertainties that can not be predicted. These ele
ments may have differentiated impact on Nestle in different countries of t
he world

Following are the components of Nestlé's Mega environment:


Political
Economic
Social
Technological and
International
 Nestlé’s mega environment in initially consists of the political restraints
and the objections that the Government has placed on Nestle on the way
it conduct its business in the country.

 Another way in which the government may influence the way nestle co
nducts it’s business is by placing quotas on the amount of products that it
can supply, which will limit the amount of revenue that nestle can genera
te.

 These constrains may include the amount of a specific tax that nestle p
ays to the government in order to conduct the business and this may have
a resulting impact on the consumers of nestle products in the shape of hig
her prices, than what it may be offering to the other countries mainly bec
ause of a lower tax it has to pay, and it is depended on the policy of the co
untry.
 The second mega external environmental factor that influences the organization is th
e economical factor, which controls the mechanism (contraction and expansion) of prod
uction, consumption and distribution.

 Nestlé makes a significant contribution to the economic sector .

 Through generation of tax revenue, import substitution of milk powder, export and in
fusion of over 2.3 billion rupees in the rural economy through milk purchases, the compa
ny plays an active role in promoting economic growth.

 The capitalist economic system consists of firms owned privately by individuals or by c


orporations. In such an economy there is a great scope for the company to take favorabl
e decisions and move towards a better organizational environment.

 Social economic structure, then the rights of owner ship and decision making (policy
making) will be transferred to the state (government) and the company will have a lower
scope and less favorable environment, in this manner the political and economical elite
will operate the organization according to their own will.
 In analyzing the social factors that can influence Nestlé’s course of business activities
,we come across the demographical statistic which includes, gender specification, age s
pecification and religious specification, how a social and cultural values of a certain geo
graphical area can influence the important shifts in the demand of the product, which
may result in nestle changing some of its strategies accordingly in order to maintain it’s
sales.

 Nestle lays a great emphasis in penetrating into the market by keeping the cultural a
nd traditional values of the geographic area in which it is conducting its operation.

 Before nestle begins its operations in any country its main emphasis is on studying th
e cultural values of that country, in order to get it’s products warmly welcomed and ma
ke it highly preferred among other company’s operating at the same level.
 Research indicates that technology tend to evolve through periods of increm
ental change through technology breakthroughs that either enhance or destroy
the competence of firms in an industry.

 Therefore nestle have to spend some of its earnings in the search of new tec
hnologies. If it ignores this factor and do not respond to it accordingly then ther
e is a possibility that rival firms may take its place.
 This includes the fluctuation in the foreign currency rates and also the
relationship between the countries, favorable trade agreement with the c
ountries and also the free trade zones, government rebates, tax free zon
es and a better infrastructure. .

 Nestle provides different range of products in the different countries t


hat it is operating inn.
 Moving towards the second type of external environment of nestle, which is cat
egorized as the task external environment, it includes the specific elements outsid
e the organization’s environment with which the organization interfaces while it co
nducts the course of it’s business.

 Following are elements included in Nestlé’s task environment;

 Competitors
 Customers
 Supplier.
 Nestle being a multi-national has a great scope for betterment through anal
yzing the environment and then managing it through different strategies.

 Nestle principle strategies to manage its environment is to design methodol


ogies to cut down the uncertainties that may be caused to its environment as it
interfaces with many outside elements of the task and the mega environment.

 Sometimes organizations are in the dire need to alter its external elements t
o make them more compatible with the company’s need, that may involve cre
ating massive awareness to the public may be through advertisement or if Nest
le thinks that it can prosper well through creating a specialized roles that can b
e related to any department.
There are many factors that are included in the internal environment of nestl
e and the ways that they effect the company is also analyzed.

 Nestlé’s internal environment consists all the elements with in the company
, particularly the employees, management and the corporate culture, that defi
nes employee behavior.

 Although some elements affect the organization as a whole, others affect on


ly the manager. A manager's philosophical or leadership style directly impacts
employees.

 Traditional managers give explicit instructions to employees, while progressi


ve managers empower employees to make many of their own decisions.
 This include how the employees at nestle are to behave and the way they co
mmunicate within the organization and outside the organization. Managerial p
olicy guidelines are made in consultation with the senior executives of the com
pany.

 "A Policy and Procedure Forum" is held for the line managers who are respo
nsible to implement the policies approved in their respective departments.

 If any changes are made regarding the policies or procedures of Nestle, it is


the responsibility of the Human Resources Manager to convey the change to th
e line managers.
 Nestle, the employees share some values which are within the organizatio
n and reflects what nestle is about, nestle have some employees that have se
t some standards for other employees and are known as heroes.

 It is understood that the performance of any organization is depended on t


he overall performances of its employees, and they could only perform well
when they are motivated and have an example (hero) from within the organiz
ation that sets a benchmark.

 Along with nestle providing food products to its customers and generating
revenues and commitment to safety and quality, it is also committed to a nu
mber of cultural values.
 After giving some time to analyze all the elements of Nestle including the external an
d the internal environment of the organization, many factors came up and were discusse
d, even though the organization is very successful as a whole and was very difficult to po
int out some of the weakness how ever some factors were discovered that the organizati
on should take under consideration, following are some of the problems which were fou
nd and their possible solutions.

 Commencing with some of the problems revealed within the organization first point t
hat came up existed internally which included the Human Recourse department of the o
rganization and it was found that HRM department is not giving good salaries to the emp
loyees, so employees are de-motivated and don’t work with the company for very long.

 This problem can be solved by providing bonus packages and increment in salaries for
a selective level of work and efficiency should be awarded to attract the employees’ con
cern.
 Nestlé is a gigantic organization. Basically it is a food concern emphasizing on produci
ng good food for good health. The seed Henri Nestlé had planted in 1866 is now a tree w
hich provides extremely qualitative food to billions of people all around the world. It is al
so providing jobs to millions of people in more than 479 factories in 81 countries.

 The fact can be judged by this that it is the number one food manufacturing and proc
essing company of the world. It is bigger than Kraft foods and Cadburys international.