Professional Documents
Culture Documents
MANAGEMENT PRACTICES
FINAL REPORT
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PHASE
1
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Executive summary:
Nestle has been serving this world for over one hundred and thirty years. It has
differentiated itself through its high quality product mix and positioned itself as health and
Nutrition Company while targeting the health conscious people throughout the world. Nestle
started its operations in Pakistan back in1988, by acquiring a diary company MILKPAK
LTD, when people of Pakistan actually needed it.
Since Pakistan is the fifth worlds largest milk producing country therefore Nestle deals
mainly in dairy products. Moreover it also sells juices, chocolates, prepared food like
noodles, baby food, infant formula milk and breakfast cereals in Pakistan.
Nestle is a low cost leader with its efficient operations hence it provides its customers with
high quality products and sells them at a premium price. Therefore it is earning good profits.
Nestle has set its manufacturing plants at in Karachi, Lahore, Islamabad and Kabirwala. The
milk processing plant at Kabirwala district is the Nestls world largest milk processing plant.
When nestle introduced its products in Pakistan people were neither aware nor accustomed to
them. Therefore nestle ran an extensive marketing campaign to educate people and create a
need for its products.
Pakistan is a land where fresh eatables are readily available. Nestle should sell the same
quality of products in Pakistan as it sells abroad. It should also introduce more brands in
Pakistani market which it offers in other markets of the world since consumers in Pakistan are
becoming more demanding day by day.
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History:
In the mid-1860s Nestl, a trained pharmacist named Henri Nestle began experimenting with
various combinations of cow's milk, wheat flour and sugar in an attempt to develop an
alternative source of infant nutrition for mothers who were unable to breast feed. His ultimate
goal was to help combat the problem of infant mortality due to malnutrition. He called the
new product Farine Lacte Henri Nestl.
Nestl's first customer was a premature infant who could not tolerate any of the conventional
substitutes, and had been given up for lost by local physicians. People quickly recognized the
value of the new product, after Nestl's new formula saved the child's life and within a few
years,
Farine
Lacte
Nestl
was
being
marketed
in
much
of
Europe.
Henri Nestl also showed early understanding of the power of branding. Nestl means 'little
nest'. Nestle was created in 1867.
Nestl is today the worlds leading food company, with a 140-year history and operations in
virtually every country in the world. Their principal assets are not office buildings, factories,
or even brands. Rather, it is the fact that they are a global organization comprised of many
nationalities, religions, and ethnic backgrounds all working together in one single unifying
corporate culture. Their culture unifies people on all continents, with roughly half their
factories and people located in the developing world.
Nestle started it operations in Pakistan in 1988. A qualified workforce, trained by nestles or
emerging from a strong educational and industrial context, strongly influences the companys
ability to be globally competitive. The fair treatment and development of company staff and
the strengthening of the local workforce are essential long-term investments. They reinforce
the conditions for growth and sustained economic development in the locations where Nestl
operates. Nestls ability to employ thousands of people each year is an important
contribution the company makes towards future generations, providing income to
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families who can enhance their chances at better education, healthcare and standard of living
for entire families and communities.
Company Information
Ticker:
NESTL
Country:
PAKISTAN
Major Industry:
Food & Beverages
Sub Industry:
Diversified Food
Employees:
2,345 (Pakistan as of January 2008)
Currency:
Pakistan Rupee
Market Capital:
61,221,938,400
Share Type:
Ordinary
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Mission Statement:
"Nestl is the largest food company in the world. But, more important to them is to be the
world's leading food company.
At Nestl, we believe that research can help us make better food so that people live a better
life.
Good Food is the primary source of Good Health throughout life. We strive to bring
consumers foods that are safe, of high quality and provide optimal nutrition to meet
physiological needs. In addition to Nutrition, Health and Wellness, Nestl products bring
consumers the vital ingredients of taste and pleasure.
Vision statement:
Nestl aim is to meet the various needs of the consumer every day by marketing and selling
food of a consistently high quality. The confidences that consumers have in our brands is a
result
of
our companys many years of knowledge in marketing, research and development, as well as
continuity consumers relate to this and feel they can trust our products.
In particular, we envision to;
Lead a dynamic, motivated and professional workforce proud of our heritage and positive
about the future.
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Meet the nutrition needs of consumers of all ages from infancy to old age, from nutrition
to pleasure, through an innovative portfolio of branded food and beverage products of the
highest quality.
Deliver shareholder value through profitable long term growth, while continuing to play a
significant and responsible role in the social, economic, and environmental sectors of
Pakistan.
Goals of Nestle:
The main goals as described by Nestle are as follows:
Good Food, Good Life, the key to health, nutrition and wellness. With over 140
years of experience and expertise, we take great pride in bringing you the best
products because happy, healthy consumers are important to us. We develop our
products keeping your preferences, tastes and needs in mind. We understand
that you, along with millions of other consumers, know that you can trust our
products to deliver purity,
are carefully aligned to Pakistani tastes and needs. We're always trying hard to
develop new products and improve existing ones, and serve our consumers
better. That's why through constant renovation and innovation we're always
testing or launching value added products and making them available in sizes
that will suit every requirement. So explore the world of health with Nestl
products, and find out what suits your family's needs
Objectives of Nestle:
Marketing objectives are compatible with the overall corporate objectives of nestle.
Companys objective is to be the worlds largest and best branded food manufacturer while
insuring that nestle name is synonymous with the products of the highest quality.
Philosophy of Nestle:
Nestls philosophy is summed up in four words:
Good Food, Good Life.
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In their quest to become the world's leading health, nutrition and wellness company, they
do everything they can to help people live more fulfilling lives.
Good Food, Good Life
Henri Nestl chose his own coat of arms to represent the company's philosophy:
a bird's nest, with a mother feeding her young.
The image represents Nestl core values: care, family values, nutrition, healthy growth, safety
and comfort. It is a guarantee of quality and a commitment to responsibilities as a food
company and experts in nutrition.
Over the years Nestl has reaffirmed its commitment to wellness, helping consumers to live
longer, healthier, and more productive lives, no matter their age, gender or socioeconomic
status.
Good Ingredients
Three vital ingredients lie at the heart of Nestl and come together in their brands:
Their people, their research and development, and their commitment to quality.
The 250,000 dedicated people who make up the Nestl family are their source of strength and
energy. Realizing this, Nestl offer them constant professional development, and feel their
cultural diversity is one of greatest assets.
Products:
Business Lines in Pakistan:
Milked dairy and chilled dairy:
MILKPAK
NESVITA
NIDO
NESLAC
EVERYDAY
NESTLE Dahi
NESTLE Fruit Yogurt
NESTLE Raita
MILKPAK Cream
Beverages:
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NESCAFE
NEQUICK
MILO
NESTLE Fruita Vitals
Bottled Water:
NESTLE Pure Life
Baby Food:
CERELAC
Food:
MAGGI-2 Minute Noodles
Break Fast Cereals:
Corn Flakes
Honey Gold Flakes
KOKO Crunch
Chocolate & Confectionary:
KITKAT
KITKAT Chunky
Polo
Milk, dairy and Chilled dairy: wide variety of dairy products is available to cater
almost every segment of customer. Liquid Milk especially Nesvita is produced
especially for the females as it contains high content of iron, beneficial for them.
Beverages: it includes Nescafe, Milo, Nesquik, and Nestle Friuta Vitals. Their main
target market includes people of all ages.
Bottled water: businesses, students, for the people who do not have access to clean
drinking water.
Food: it includes Maggie noodles which mostly caters children and teenagers.
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Sports nutrition: it specifically targets sports persons for a nutritive protein diet.
Competitors:
Engro Foods Pakistan
Major product lines: Olpers milk, Olwell, Olper Cream, Tarang Tea whitener, Tarkka Ghee
Haleeb Foods
Major product lines: Bread, snacks, desserts and meals.
Shezan Foods Pakistan
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Major product lines: Food Products, Jams Jellies & Marmalades, Tomato
Ketchup, Sauces & Pickles, Fruit Juices Syrups & Squashes
CHAIRMAN
P.Barbeckletmathe
CEO
Corporate
governance
P.Bulcke
D.P FRICK
Operations
J.Lopez
Pharma &
Corporate
communications
cosmetics HR
R.Ramsauer
F.Castaner
Finance &
control
SBUs marketing
&sales
Innovation technology
& R&D
J.Singh
W.Bauer
W.Bauer
Nestle nutrition
Nestle waters
R.T.Laube
J.J.Harris
Organization Chart
Nestle
Professional
M.Caira
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Zone EUR: EUROPE
Online
L.Freixe
Projects, Zone
Reports,
Presentations..
Zone :)
AMS: Americas
AOA:
ASIA/AFRICA
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F.Van Dijk
L.Cantarell
Sheikhupura Factory
29thK.M.Lahore-Sheikhupura Road, Sheikhupura
+92 056 340 6615-25
+92 042 636 8710
Kabirwala Factory
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Type of Business:
Nestl Corporate Business Principles will continue to evolve and adapt to a changing world,
their basic foundation is unchanged from the time of the origins of their Company, and
reflects the basic ideas of fairness, honesty, and a general concern for people. Nestl is
committed to the following Business Principles in all countries, taking into account local
legislation, cultural and religious practices.
Consumers
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3. Consumer communication
We are committed to responsible, reliable consumer communication that empowers
consumers to exercise their right to informed choice and promotes healthier diets. We respect
consumer privacy.
Our People
5. Leadership and personal responsibility
Our success is based on our people. We treat each other with respect and dignity and expect
everyone to promote a sense of personal responsibility. We recruit competent and motivated
people who respect our values, provide equal opportunities for their development and
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advancement protect their privacy and do not tolerate any form of harassment or
discrimination.
6. Safety and health at work
We are committed to preventing accidents, injuries and illness related to work, and to protect
employees, contractors and others involved along the value chain.
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Customers
Every person, of any age group, gender etc is the target customer of Nestle
Nestle target its customers by knowing customer needs & demands. For this purpose it
made customer profile.
This involves setting up small focus groups of consumers who express their ideas
Quantitative research:
This involves only relatively few people like professional market researchers may
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SWOT Analysis
Strengths:
Companys name Nestle specifies the quality image high standard and quality product
Loyalty from customers is also the major strength for the company
Employees are also loyal due to the decentralized culture of the company
The strength of Nestle confectionary is its imported chocolates and candies, which
strengthens its image
Being a multinational company it has the capability to attract more customers than the
local companies
Weaknesses:
The distribution cost is high as compared to the competition in the local market.
Opportunities:
They have an opportunity to expand or capture the market by adding its product line.
Threats:
Existing companies are increasing their product lines that can prove to be a threat in
the coming years.
As compared to the local competitors, our distributor cost is very high. As Nestl
confectionary Products has to maintain and obey the Nestl standards.
Environment:
In line with Nestl's global commitment, Nestl Pakistan is dedicated to playing its role in
helping to protect the environment.
We comply with the Environmental Act (1997), and try to ensure that at every stage of our
operations, the environmental impact is minimal.
Learn more about our Responsibility to the Environment projects:
Our Environmental Commitment in Action:
Our environmental commitment extends to every part of our value chain.
Thus, at the raw materials stage, we support sustainable agricultural and dairy farming
practices, including environmental protection.
When it comes to production, all our factories try to maximize eco-efficiency, i.e. increase
production while minimizing resource consumption, waste and emissions.
Our factories are equipped with complete testing and monitoring facilities for waste and air
emissions.
To eliminate air pollution, we have stopped using heavy fuel oil in our factories, which are
now run on clean natural gas. This has reduced our emissions into the atmosphere to well
below the legal limits.
Our Sheikhupura & Kabirwala factories have elaborate water treatment systems to prevent
wastewater from polluting the environment.
In 2005, we upgraded our wastewater treatment plants in both factories. That's not all; we are
continually reducing our consumption of raw water per ton of production.
Irresponsible packaging can have a heavy impact on the environment. To reduce the amount
of material used without jeopardizing the safety and quality of our products, we are always
working on new packaging solutions that have minimal weight and volume and can be easily
recycled.
We even operate a collection system for used packaging. Solid waste is collected at source
and then reused, recycled or disposed in an environmentally friendly way.
Natural gas incinerators at our Sheikhupura & Kabirwala factories are used to safely dispose
of material that cannot be recycled & dumped.
Our factories have environment committees to manage routine environment issues and
review performance. Environmental impact assessment is done in advance for every new
project and measures are adopted to minimize adverse impacts on the environment.
Our employees regularly undergo training to inculcate awareness about environment-friendly
practices.
Managerial Implications:
The problems faced by Nestle in todays world are the claims faced by it as being charged
with the responsibility of violating the International Marketing Codes. Nestle claims that I
is doing nothing wrong and unethical in the way it markets is baby foods around the world.
Baby milk action has raised the case of Syed Aamar Raza who has publicizes evidence of
Nestle malpractice in Pakistan as well. It has been claimed that company marketing is
causing unnecessary deaths and suffering of babies, largely among poor because they do not
use the proper amount of powder in order to save some volume for future use which causes
great danger to baby life.
Recommendations:
Nestle must state in writing that it accepts the international code and the subsequent relevant
World Health Assembly Resolutions are minimum requirements for every country. Nestle
must state in writing that it will require changes to bring its Baby Food Marketing policy and
practice into line with International Code and Resolutions.
PHASE
II
Education
Nestl Pakistan is involved in a wide range of programs and projects intended to improve the
lives of underprivileged Pakistanis.
1- The Shocks:
In October 2005, the biggest natural calamity in our history struck Pakistan. Thousands died
and millions were left homeless after a massive earthquake hit mountainous northern areas.
In step with the rest of the nation, Nestl Pakistan responded immediately, putting its
infrastructure and resources to work in the affected areas.
A) First Responses:
When the earthquake struck, Nestl Pakistan responded instantly, even before the magnitude
of the disaster had dawned upon the nation. They immediately donated food and beverage
items.
Within two days, they had established a crisis committee under the supervision of Managing
Director. The same day, the management team left to visit the affected areas, and by 11
October, the first six Nestl trucks left factories, bearing bottled water, powdered and UHT
milk and ready-to-cook MAGGI noodles. (2)
Within two days Nestle teams reached the worst-hit areas around Muzaffarabad, Bagh and
Mansehra. They worked in collaboration with the Pakistan Air Force and arranged for
supplies to be airdropped to the most inaccessible areas.
Other teams of Nestl volunteers supported relief work undertaken by other agencies around
the affected areas.
They also distributed 80 trucks of goods, worth Rs 20 million. Two 10-ton trucks of drinking
water were dispatched to Muzaffarabad Hospital, and volunteer teams ensured that goods
were distributed fairly and efficiently to those who needed them most.
B) Aftermaths:
After the crisis came a time for rebuilding shattered lives. Among the reconstruction efforts
some are the following initiatives:
They also intend to build an orphanage in the affected areas for the hundreds of
children who lost their parents in this disaster.
Nestle is initiating a livestock health improvement program to help the locals rebuild
their shattered lives.
C) Pitching:
Nestl employees in other countries also stepped forward and donated to the Nestl
relief fund.
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.
Society:
Taking the Nestl concept of corporate Social Responsibility to heart, they are deeply
involved in social investment and humanitarian aid.
They are committed to Pakistan's long-term betterment, and strictly follow the code of
corporate governance.
They serve their consumers through safe, high quality products & communicate with
them responsibly.
They benefit consumers by spreading awareness about healthy nutrition and lifestyles
as well as constantly developing or improving existing products for health, nutrition
and wellness.
Nestle is actively involved in several social action programs (SAPs) to improve the lives of
our country's under-privileged people. Nestle offer generous financial support to hospitals
and organizations that are dedicated to providing services to the poor. Only recently, they
donated a mobile dispensary to APWA for its medical outreach program in a remote
community near Hub, Sindh. They have always responded generously with assistance to
victims of natural disasters, such as floods, earthquakes and droughts.
Partnership for success:
In efforts to provide pure, high quality milk to consumers in distant towns, Nestl entered
into an unprecedented partnership with local farmers. A complex network of collection
centers ensures that no farmer has to go far to deliver his daily produce. His payment is
prompt and transparent. Advanced chilling systems are in place so as milk travels to factories
in Sheikhupura and Kabirwala, its quality is not degraded.
To improve the quality of milk and the lives of suppliers, Nestle have established a unique
technical assistance team that trains farmers in modern techniques. The milk collection
system has an economic and social impact far beyond the farmers themselves. Through this
Nestle has created hundreds of jobs, instituted a communications and transport network.
More than 900,000 farmers and their dependants have been directly affected by milk
purchases.
Today, 14 years after Nestl first entered the milk district in force, the hard work and
determination of Nestls milk collection & technical assistance teams and their dedication to
Corporate Social Responsibility have raised the bar for dairy concerns in Pakistan
Quality Assurance:
Nestle takes the motto of Good Food, Good Life very seriously. At every step, from
collecting raw materials from rural farmers to distributing finished goods in city
supermarkets, employees are trained and retrained to understand their role in ensuring that
consumers enjoy food and beverage items of the highest quality. The Nestl name on a
product is a promise to consumers that:
It is safe to consume
It complies with all relevant laws and regulations and meets high standards of quality. In
addition, they constantly try to improve and tighten existing regulations. They ensure the
highest possible benefits and protection for the consumers. For this reason, Nestle actively
participate in the revision of food standards with the government.
Nestle is committed in offering products and services to its customers that meet their needs
and/or preference and provide sound nutrition.
All Nestl functions across the Value Chain are fully responsible to follow mandatory norms
and instructions for maintaining agreed quality standards. Nestle follows the international
standards of the World Health Organizations Codex Aliment Arius on food production. All
factory laboratories operate according to Good Laboratory Practices guidelines.
Sheikhupura and Kabirwala laboratories have long enjoyed an 'Excellent' rating in the
worldwide proficiency tests conducted by Nestl SA (Switzerland), and attest to the worldclass quality of factories.
Nestle focuses on facts and results and strive for zero defect and excellence in everything
they do. They constantly look for competitiveness and opportunities for Continuous
Improvement of the quality standards delivered to their consumers.
In the process of transforming raw material into finished products, Nestle aims to
make the best possible use of them by minimizing wastage, adopting safe working methods,
efficient use of natural resources and minimizing the impact on the environment. Nestl
Pakistan Ltd. is also committed to communicate Safety, Health and Environmental
Performance to its stakeholders. (6)
Legal Responsibility
Corporate Governance Principles:
We are dedicated to following the best practices laid down by our parent company, Nestl
SA. We have implemented the Corporate Governance Principles established by Nestl SA,
covering four core areas:
Recognizing the need to maintain transparency and verify the application of corporate
standards, Nestl Pakistan has established an internal audit department that monitors
administrative and operational functions throughout the company. Thanks to its operations,
we can be assured that adequate internal controls are in place, management information is
reliable, resources are used effectively, and company assets are safeguarded.
liters of milk a day. He takes six liters on his new bicycle to a Village Milk Collection Centre
a kilometer away. Every Tuesday, he receives payment at published rates. 60% of the family
income derives from Nestl's milk pay.
"I thank God that now, for the first time in my life, I sleep in peace. I no longer fear for my
family's future, he says.
The above excerpt is an extract from 'Nestl in Pakistan 1988-2004: The Development of a
Milk District', by Rmy Montavon.
A Quiet revolution:
In 2005 Nestle restructured agricultural services so that they now consist of over thirty fulltime agronomists, vets and agricultural engineers to help the farmers of the Punjab with their
milk production. Yet there is another crucial stakeholder in every milk-producing farm: the
farmer's wife.
Nestle has created seven teams of three women each, all trained vets, sociologists and
specialists in animal husbandry.
Their task is to meet farmers' wives and empower then through training in milk production,
animal husbandry, and hygiene, and to give them an understanding of Nestl's milk collection
system. In effect, there's a quiet revolution going on in Pakistan's milk district. (9)
Improving Feed:
Even before calling Nestl in, Milkpak Ltd. had tried to ensure that milk cows were given
fresh fodder during the summer. Nestle teams are always prepared to offer practical advice.
They have planted a variety of fodder crops, which they demonstrated to farmers on field
days. Nestle gives stress on the importance of giving cattle enough water, and train farmers in
hygiene and milking.
Better Equipment:
Agricultural services staff have drawn up technical plans for cowsheds, which are provided
free of charge. Nestle mechanics have also developed prototypes of machines to cut fodder
quickly and inexpensively.
Starting 2004, Nestle went a step further and proposed a system of small loans for farmers
who wanted to make improvements to their farms, such as building cowsheds. They drew up
the sample specifications for a model farm to be presented to the banks disbursing the loans.
The Service even helps farmers fill out applications for loans.
HUMAN RESOURCE
HR is dedicated to their employees, and ensures that they have all the right people with the
right skills, in the right places at the right time. Understanding that their people are the
bedrock of all their business strategies, it is their mandate to enhance their skills with cutting
edge training and provide them with world-standard facilities. They select flexible, innovative
people who are ready to confront new challenges and make a difference. Their
groundbreaking Management Trainee Programmed aims to develop talented young men and
women and help them achieve their potential in a dynamic and enabling environment.
Over a hundred people travel out of the country every year to take advantage of their
international training and development events.
They are a people company. Their people are their greatest strength, and nothing can be
achieved without their commitment and energy. At Nestl Pakistan their opinion counts.
Here you'll fit into a corporate culture that's based on a set of fundamental principles and
values. These are:
Proactive cooperation
They're proud of their traditions and heritage, and as times change, these core values
keep evolving.
RECRUITMENT
WHAT THEY LOOK FOR:
It takes a special sort of person to come and work at Nestl Pakistan. That's why, when
selecting candidates, they look for a set of interrelated characteristics encompassing three key
areas: knowledge, personality and motivation.
Professional Knowledge:
They look for good academic results at university or equivalent qualifications. However, the
class of the degree you have obtained, though very important, is not the only criterion for
selection.
Other experiences during their studies, previous jobs, assignments, language theses and any
other significant extracurricular activities and achievements, are also given the right.
They look for candidates who can identify a problem, analyze it, look at different options,
and come to reasoned conclusions. They want people with drive and tenacity, energy and
enthusiasm, who can initiate a project and follow through
to the end. All these skills are vital during a career at Nestl Pakistan.
Personality:
To succeed at Nestl Pakistan, you need more than professional knowledge. You need a flair
for the field of activity of their choice, an open mind, and a willingness to dig in and learn
new skills and ideas. They're looking for applicants who are dynamic and communicative.
People, who can listen, understand and integrate the opinion of others, people who can
express their ideas clearly, both verbally and on paper.
They want people who like to negotiate, even with very different partners, and to solve
problems in complex situations .They like candidates who show leadership, inspire others,
and are self-confident, yet realistic. People who have a positive attitude to work and willing
to work hard, even under pressure. They seek people who can be objective in their assessment
of themselves and of others.
Motivation:
While they expect loyalty to their company, they expect their people to be critical and suggest
improvements wherever necessary. They like people who are motivated themselves & can
motivate others.
A Nestl employee is characterized by creativity and dynamism. They don't only look for
specialists, but people who have knowledge and skills in more than one field, with broad
interests. To sum up, they want people with purpose and ambition, though not at the expense
of others.
They want people who take responsibility for their actions, who consider Nestl their own
business, and who show an entrepreneurial spirit.
Recruiting process:
Applying for a current job / graduate program / internship
Please look through the vacancies and choose which you are interested in.
Create your CV by filling out the online form.
Once the application is complete, you will receive a confirmation message telling you that it
has been received and is being processed.
Receiving CVs:
They will review and select CVs that best match open jobs. Please note that only completed
CVs will be taken into account.
Register for our talent pool:
If there is no job opening suitable for you, you can still register your details in our database.
You will then be considered as a potential candidate for new up coming positions.
TRAINING
Management Trainee Programmed:
If you're young, bright and hard working, the Management Trainee Program may be the place
for you. They hire fresh graduates as potential managers to develop new competencies and
skills through on-the-job development. You'll be hired in one of various departments at
inductee level on a 12-month training program. Once you've completed the program, you will
be assigned independent responsibilities supporting the company's business needs. They
begin sourcing Management Trainees in January. Preliminary interviews and screening is
organized according to the graduation schedules of Pakistani and foreign universities, and are
followed by interviews with senior management.
irrespective
of
the
area
in
which
employees
work.
healthy
nutrition
choices
for
themselves
and
their
own
families.
A modular program:
NQ training comprises engaging modules suitable for all employees, from the Executive
Board to plant operators, and leverages the nutrition expertise of Nestl scientists and health
marketing specialists. Implementation began in 2007, with Nestl nutrition experts and
marketing specialists taking part in "train the trainer" sessions across our zones to support the
cascade of knowledge to all employees.
Key to the success of the NQ training are interactive, customized modules designed to
encourage people to participate and put knowledge into action. These are tailored to specific
needs:
Advanced module: core learning for staff who are engaged with external bodies and
consumers/customers.
A complete toolkit:
The NQ program toolkit comprises a suite of materials for trainers, including training
manuals and slide sets. For trainees themselves, learning takes place in an engaging way
using a variety of media and formats, including interactive games, motivational video content
and an on-line quiz. This is used to measure collective progress and to allow each trainee to
evaluate, in an entirely confidential way, his or her personal lifestyle choices. The toolkit also
comprises awareness-raising and motivational material that can be used and adapted to meet
local needs, including posters, questionnaires and certificates.
Ongoing development:
As nutrition and our insights into nutrition evolve, so too will our NQ Nutrition training,
helping Nestl employees to keep abreast of new developments and maintain a high level of
credibility through the breadth and depth of our nutrition expertise.
Internships:
Internships are a great way to apply the knowledge and skills you are developing at university
and get experience in a leading corporation.
They offer project-based internship positions in various departments at Nestl Pakistan.
You may be hired as an intern at various points during their academic career: during
undergraduate study or graduate school.
Most internship assignments are offered during the summer months and generally run for 6 to
8 weeks.
At the end of the internship you will be required to submit a project or program report to the
company on the topic assigned to you at the beginning of the internship program.
If you impress us with their talent & hard work, you may be considered for employment
opportunities after you have completed their studies.
policy conflict with local? Legislation, local legislation will prevail. These policies are
addressed to all those who have a responsibility in managing?
People as they will as to HR professionals??
The Nestl Management and Leadership Principles include the guidelines inspiring all the
Nestl employees in their action and in their dealings with others. The Corporate Business
Principles refer to all the basic principles which Nestl endorses and subscribes to on a
worldwide basis. Both these documents are the pillars on which the present policy has been
built.
A SHARED RESPONSIBILITY:
HR managers and their staff are there to provide professional support in handling people
matters
but
should
not
substitute
themselves
to
the
responsible
manager.
MOTIVATIONAL STRATEGIES
Adoption Assistance:
Family is an important part of who we are, which is why Tetra pack offers a valuable support
for the families through various programs.
Employee Discounts:
Tetra Pak offers discounts on a broad range of products to their employees also provide travel
and quarters, electronics, gifts, financial services, clothing and more.
Voluntary Benefits:
Tetra Pak makes a number of voluntary benefits available to you through an outside service
provider, including auto and home insurance, prepaid legal services and pet insurance.
Scholarship Program:
The Nestl Scholarship Foundation is proud to sponsor a scholarship program that provides
financial assistance. Scholarship recipients are selected based on academic record,
demonstrated leadership skills, and participation in school and community activities.
Long-Term Care:
Long-Term Care insurance is available to protect employees and eligible family members
from the potential cost of nursing homes or other long-term care.
Employee Assistance Program (EAP):
Nestl provides EAP services at no cost to employees and their eligible family members for
confidential access to professional counselors trained to help with a variety of personal and
family issues.
Pick and Drop Facilities:
Nestle provide their employee pick and drop facility, the timing of employee come into the
workplace is also not disturb. All employees are relatively on the time in their workplace.
Good Working Environment:
Working environment is very suitable for employees. Nestle is multi national company so
they provide their employees effective working environment that encourage employee to
done their work continues effectively.
Games:
According to the employee fitness, Nestle held gaming programs for their employees.
is
committed
to
being
leader
in
workplace
safety
and
health.
The Nestl Occupational Health and Safety Management System (NSMS) was revised in line
with the 2007 edition of the international standard OHSAS 18001 and reissued to all Nestl
operations, reinforcing our commitment that Safety is non-negotiable.
They are also working towards external certification of our factories against OHSAS 18001.
This will provide a common language around our health and safety management systems, and
make it easier to demonstrate implementation of these standards to our stakeholders.
The number of workplace injuries has been reduced. For example, in 2008 the number of
injuries leading to one or more days away from work in Nestl decreased to almost one
quarter of that seen in 2001.
Major focus on preventing accidents:
Over the years, Nestl has developed a strong network of local Safety, Health and
Environment functions that develops and shares best practices in accident prevention across
the
world.
Involving employees:
Employees at all levels are employed to assume ownership of workplace safety. Behavior
based safety programs are being implemented in all operational sites (including factories and
distribution centers). Safety observations made by those most concerned are gathered and
analyzed
and
measures
to
eliminate
or
manage
risks
are
implemented.
Nestl regards its people as its most valuable asset and places the highest priority on
protecting them. In every country where we operate, our company emphasizes the need for
safe working environments, which must meet our strict global corporate standards.
We are determined to provide a safe working environment for all our employees, contractors
and visitors and we are vigilant in continuing to implement Health and Safety practices and
programs at all our sites.
applicable to Nestl.
Continually monitoring, reviewing and establishing new objectives aimed at
which enable a safe and sustainable return to work for affected employees.
Providing information, training and supervision to employees and contractors to
ensure they understand their roles and responsibilities in eliminating or minimizing
contractors.
Consulting with employees and other stakeholders on Health and Safety Matters.
STRENGHTS
The strengths of Nestl confectionary products including Kit Kat, Polo & Fox are as follows:
Companys name Nestl signifies the quality image high standard and quality
product.
Loyalty from customers is also the major strength for the company.
Employees are also loyal due to the decentralized culture of company.
People trust on products due to the proper health and safety measures.
The strength of Nestl confectionary is its imported chocolates and candies, which
strengthens its image.
Being a multinational company it has the capability to attract more customer than the
local companies.
Company has the ability to compete in a dynamic environment.
Company always adapts the new technology.
WEAKNESSES
The weaknesses are as follows:
There is not much margins for retailers to prefer its sales.
They need to improve the facilities like chillers.
The distribution cost is high as compared to the competition in the local market.
Company mostly advertises its milk products, advertisement of confectionary
products is not so better.
OPPORTUNITIES:
They have an opportunity to expand or capture the market by adding its product line.
They have the opportunity to offer snacks.
They can also capture the market of home appliances.
THREATS
Existing companies are increasing their product lines that can prove to be a threat in
the coming years.
Company like Cadbury is giving more discounts to retailers as compared to
distributors due to which retailers prefer its products for sale.
As compared to the local competitors, our distributor cost is very high. As Nestl
confectionary Products has to maintain and obey the Nestl standards.
Some companies are competing on the basis of cost.
BCG Matrix
Stars
The stars are the high relative market share and high market growth. Nestle
beverages i.e. are somewhat the stars in their business, because with the high quality and new
designs which comes every now and then makes them more popular among the customers,
because customer with upper class wants the quality and nestle offers the best quality food
items.
Cash Cows
The cash cows are their baby food items i.e. nestle cerelace and other baby food
products. Company has to take measures to make these products as stars.
Dogs
The pharmaceutical products are nestle Dog, because it has low-share business with
low growth market especially when we talk about Pakistani market. The company has to
think on what it can do by improving the low share and growth market.
Question Marks
The question marks are the breakfast cereals. They have high market growth but
low market share. The company has to decide about which question mark they should try to
build into the stars and which one of these should be phased out.
Competitive Strategy
The hallmark of the nestle is the quality of the products which the company offers.
The companies all over the world get some competitive edge based on some
features which other companies dont have. For example, as the Dell has the competitive
edge over other computer manufacturer companies, because they use Built-to-order Strategy
while no other company in computer industry use this strategy. Similarly in Pakistan nestle
has their Competitive edge based on these Strategies:
Product Differentiation
Customer Oriented
Product differentiation Strategy
Customer Oriented
Customer satisfaction is the focal point for the company. They provide hygienic
products to their customers. Products are also verified by health and safety measures and
international quality standards.
MARKETING MIX
Marketing Mix is defined as a set of controllable tactical marketing tools that firm blends to
produce the response it wants in the target market. The marketing mix consists of every thing
the firm can do to influence the demand for its products. The many possibilities can be
collected into four groups of variables known as the four P's that are as follows:
1.
Product
2.
Price
3.
Place
4.
Promotion
1-PRODUCT
Product stands for goods and services that the company offers to target market.
Nestl kit Kat is in four sizes including K.K Chunky, while Polo is in three sizes. The shape
and the color of the Kit Kat and Polo are quite attractive for the customers. The labeling,
packaging of the Kit Kat and Polo includes the Nestl brand and logo. The packaging
includes an expiry date and time along with a manufacture date. Second part of labeling
includes the quantity of product in grams along with ingredients and contents of chocolates
and candies.
2- PRICE
The amount of money charged for a product or service, or sums of the values that consumers
exchange for the benefits of having or using the product or services.
The price of Nestl Kit Kat and Polo varies increases with the increase in its size.
3- PLACING
Placing stands for company's activities that make the product available to the target
consumer.
Nestl' distribution is using the direct distribution channel to supply confectionary products
weekly to the retailers.
4- PROMOTION
Producing a quality product, pricing it attractively and making it available for the target
consumer is not the only problem companies need to solve. Modern era is the era of
communication with customer, assuring customer satisfaction, demands for personal and nonpersonal communication with the target customer to build a relationship with them. In an
area-storming activity, giving out products free, gift hampers, attracts new customers; kites
depending on the season (for existing and potential customers) are given. The basic purpose
is to explore the area that is being unexposed and to bring awareness in the people.
Threat of New
Entrants
Substitute
Competitive Rivalry
Creating awareness about the Nestls products to at least 50% of the target market
within three months of launch.
The objectives are achieved through intense promotional activities, developed to get to the
target market in the best possible manner.
The promotional activities of company will develop interest for the people thus compelling
them to approach it and in return good relations with customers will be created, so they create
good word of mouth for Nestle and strive to approach it again and refer others.
Nestl will be launching the product in summers to capture most of the target customers and
as well as market share.
Nestle will be opening different outlets initially in major two cities and after gaining
primarily success it will be available in all big and small cites of Pakistan.
Marketing Strategy:
The products include features that contain the combination of both health and hygiene
keeping in mind the individuals requirements in terms of taste. However the marketing will
be done considering the concept of mass percentage.
Products will be tailored to individual needs (desired taste) but promotion will attract all of
them collectively. Furthermore Nestl will be following pull strategy and approach its end
users itself with the help of various promotional activities. For the distribution of products, no
intermediary (whole sellers) is involved. The distribution channel is direct.
Nestle
Direct Channel
Retailors
Target Market:
Knowing the fact that Nestle cannot be everything for everyone, it will be targeting only
those segments that can provide best possible returns so that it may reach its goals effectively
and efficiently.
The target market collectively consists of males and females in Lahore and Karachi of age
group less than 18-30 belonging to middle class, not finding any other provider on terms of
quality, hygiene and taste.
Market Segmentation:Nestle has divided its market into geographic, demographic, psychographic and behavioral
segments. These segments will help to understand the market better and in implementation of
marketing strategies.
Geographic Segmentation:
The geographic segmentation is based on the weather conditions as enjoying ice cream is
popular mostly all over the Pakistan but keeping in mind the market conditions and secondly
to reduce the initial expenses (not to over load the business).
Demographic Segmentation:
Nestl has demographic segmentation for its products that comprises of following variables:
Age:
Below 18. 18-30, 30+
Gender:
Male, female
Psychographic Segmentation:
The psychographic segmentation of Nestle is based on the classes such as lower class, middle
class and upper class.
Behavioral Segmentation:
Firstly, the segment includes people who are interested and like enjoying Nestl
products.
Secondly, it includes people who are willing to buy but not finding any other in
the region up to the level they desire with respect to quality, hygiene and taste.
Thirdly, there are people who are not interested in the concept at all.
consumers satisfaction as warranty to retailers in terms of expire, delivery and after sales
services.
Product Market Expansion Grid:
Nestl will be following the same strategy for its expansion:
Nestl will be low cost operator in terms of using minimum initial investment to not to
overload the business with expensive assets. Assets will be utilized in such a way that ensure
full use of existing assets at a regional level before acquiring additional ones. Selection of
ingredients is done which will give desired consumer perception at lower cost
Innovation/ Renovation:
Using strong innovation system which will able to provide each year a new product range in a
timely manner, while making best use of existing assets.
Nestl strives to provide maximum availability at the right cost at all channels.
Communication:
By making Nestls products the most visible brands in the street, placing a priority on
visibility and will also be ensuring that the company has reinforce the availability and
attractiveness of its brand in locations of high traffic flow.
one's opinion. The ultimate approval is given by the Chief Executive. Policies are formulated
in the various meetings as outlined below.
POLICY FORMULATION
Regular meetings are organized at each level of the organization to keep the company moving
in a systematic manner. The main objective behind these meetings is to bring forth the
employees at a forum, where they can discuss their problems, give suggestions for
improvement and development. Also they can share their experiences with each other.
Some meetings are held at periodic basis which are necessary to keep a check on the progress
of the company. These are:
Senior Management Meetings
Cycle Meetings
Department Wise Scheduled Meetings
Every month, the Divisional heads and the Senior Managers hold a meeting to discuss major
policy issues facing the management. The Human Resources Manager plays the role of a
guardian for establishment and development of the policies. At the Senior Management
meetings, the suggested policies are presented before the Divisional Heads and Senior
Management. The Senior Management discusses the feasibility of these policies. The
recommended policy is the one that has the approval of all members. Only after, the whole of
this exercise has been done, it is presented before the Chief Executive. He takes the ultimate
decision which is always in the best interest of the company and its employees.
CYCLE MEETINGS
Sales personnel of Nestl Milkpak Ltd. from all over Pakistan hold a meeting or a bi-monthly
sales review. The major force behind a giant food company like Nestl is its sales. Therefore
it is extremely necessary to keep a check upon the progress of the various brands and their
sales profitability. Information regarding the sales is required at each division of the company.
Marketing Managers need it to design methods for stabilizing and building the sales of
prosperous brands. The Finance and Control Division needs it to judge the viability of the
investments being made and the budget allocation, also for managing the supply against the
demand of various brands. Similarly, Technical Purchase Division too needs requisite
information for purchasing equipment for product innovations which is based mainly on the
sales. At this meeting the Zonal and Regional Sales Managers make presentations and
provide figures necessary to make interpretations.
DEPARTMENT WISE SCHEDULED MEETINGS
In addition to the high level meetings and sales preview; every department holds several
scheduled and non-scheduled meetings. Scheduled meetings are organized to keep all
members of the department up to date about the complete workings of the department.
Members discuss their problems; give suggestions for improvements, generate ideas for
development of their department and share experiences with each other as well the respective
bosses. This helps develop communication through all levels of the hierarchy. And
management remains aware of the work being done by the sub-ordinates. Non-scheduled
meetings can be called anytime to discuss urgent issues. These do not have any prescribed
date/day/time as compared to the scheduled meetings.
MANAGERIAL STYLE
One of the most difficult responsibilities that any manager assumes is that of managing
people even if he is responsible for managing a homogeneous group. The difficulty of this
task is magnified with the size of the organization and as diversity is introduced to the group
(cultural diversity, gender, age, beliefs, disabilities etc.). Nestl Milkpak Limited is an
example of such an organization which is large in size and diverse in culture. The original
culture of Milkpak Limited still prevails and the key managers face a tough task of managing
the people and making them adapt to the culture the Nestl team wants to incorporate in the
company. No formal data could be obtained on the managerial style for managers at Nestl
Milkpak, the following detail rests on my personal observation.
The relation observed by me, of the managers at different levels with their sub ordinates was
that of an "open-door policy". The key to success in managing a diverse work group is
encouraging open, two way communications. The employees of a particular department and
the organization as a whole knew that not only are they valued, but their opinion is also
welcome. The more they feel that their input is valued, the greater the sense of ownership
they'll have in their department's mission. This was exactly the case observed at
NML. Therefore, it can be said that a "democratic style" of leadership was observed at the
organization. This style describes a leader who tends to involve sub ordinates in decision
making, delegates authority, encourages participation in deciding work methods and goals,
and uses feedback as an opportunity for coaching. The use of feedback was a very important
element observed by me during my training. Being an internee, I was also asked by one of
my department heads to give a feedback stating the good and bad points of the employees I
was
working
with
including
the
Incharge
himself.
Such elements go a long way in the success of a large scale and diverse organization like
Nestl Milkpak Limited and the appropriate management style is mandatory in the
achievement of targets for the company.
MANAGERIAL POLICY
Managerial policy guidelines are made in consultation with the senior executives of the
company. "A Policy and Procedure Forum" is held for the line managers who are responsible
to implement the policies approved in their respective departments. If any changes are made
regarding the policies or procedures, it is the responsibility of the Human Resources Manager
to convey the change to the line managers. Apart from the policies, the managerial styles vary
from person to person
References:
Phase 1:
Size of nestle in 2009 and 2010
http://www.wikinvest.com/stock/Nestle_(NSRGY)
Nestle in corporate scenario
http://www.nestle.com/Pages/Nestle.aspx
Competitors
http://www.conagrafoods.com/
http://www.danone.com/en/brands/business/fresh-dairy-products.html
http://www.kraftfoodscompany.com/Brands/largest-brands/brands-O/Pages/index.aspx?
letter=o
http://www.hersheys.com/pure-products.aspx
http://www.habibfood.com/
http://www.olpers.com.pk/
Type of business
http://www.nestle.com/Common/NestleDocuments/Documents/Library/Documents/Corporat
e_Governance/Corporate-Business-Principles-EN.pdf
Phase 2:
Corporate Social Responsibility
http://www.nestle.pk/community/education.aspx
http://www.nestle.pk/community/earthquake-relief.aspx
http://www.nestle.pk/community/earthquake-relief.aspx
http://www.nestle.pk/community/society.aspx
http://www.nestle.pk/community/quality-assurance.aspx
http://www.nestle.pk/community/she-policy.aspx
http://www.nestle.pk/index/corporate-legal.aspx
Table of Contents
MANAGEMENT PRACTICES......................................................................2
PHASE................................................................................................3
Executive summary:..................................................................................4
History:................................................................................................5
Company Information.........................................................................6
Mission Statement:............................................................................6
Vision statement:......................................................................................7
Goals of Nestle:.......................................................................................7
Objectives of Nestle:..................................................................................8
Philosophy of Nestle:.................................................................................8
Products:..............................................................................................9
Business Lines in Pakistan:......................................................................................... 9
Pakistan - key positions occupied by:..........................................................................12
Registered and Corporate Offices in Pakistan................................................................13
Type of Business:....................................................................................14
Customers...........................................................................................17
SWOT Analysis.....................................................................................18
Environment:........................................................................................19
Managerial Implications:...........................................................................20
Recommendations:................................................................................................. 21
Corporate Social Responsibility....................................................................23
Education............................................................................................................ 24
Earthquake Relief:................................................................................................. 24
Partnership for success:.......................................................................................... 28
Quality Assurance:..................................................................................28