MID TERM ASSIGNMENT MANAGERIAL ECONOMICS “Nestle Pakistan Limited Company” SUBMITTED TO MS. SHAZIA KOUSAR SUBMITTED BY M.SHAHBAZ MARAJ ALIA MEHMOOD ADNAN ASHFAQ M.AFZAL M.AHSAN Page 1 of 10 M.COM (026) M.COM (082) M.COM (022) M.COM (073) M.COM (080) ABOUT NESTLE: Nutrition has been in our DNA Since1867 when HenriNestlé developed the first infant food. Today, millions of consumers Across Pakistan mirror our emphasis on Nutrition, realizing that food choices impact their health And quality of life. Nestlé Pakistan today, is a leading Food & Beverage Company in Pakistan with a key focus on nutrition, health and wellness reaching the remotest of locations throughout the Country to serve consumers and continue to enhance the quality of life of people throughout its value chain. Since 1867, when Henri Nestlé invented the first infant food, nutrition has been in our DNA. Today more and more consumers mirror our emphasis on nutrition, as they realize that food choices affect their health and their quality of life. Our company’s strategy is guided by Nestlé’s corporate business principles which are in line with internationally accepted best practices and ethical performance culture. Nestlé Pakistan Ltd is a subsidiary of Nestlé S.A. – a company of Swiss origin headquartered in Vevey, Switzerland. It is a food processing company, registered on the Karachi and Lahore stock exchanges and operating in Pakistan since 1988 under the joint venture with Milk Pak Ltd and took over the management in 1992. For last many years in a row, the company has won a place among the top 25 companies of the Karachi Stock Exchange. Nestlé’s existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Nestlé Pakistan operates in many ways but people, products and brands are the basis of the Company’s image. It respects the cultures of the regions it operates in and recognizes the need Page 2 of 10 for quality of life of their people. As a result our priority is to bring the best and most relevant products to people, wherever they are, whatever their needs are, and for all age groups which is ensured through our effective marketing, vast sales and distribution network. Having its center of operations in Lahore, the company operates four production facilities. Factories in Sheikhupura and Kabirwala are multi product factories, whereas the ones in Islamabad and Karachi produce water. At Nestlé we believe to be successful in the long-term and create value for our shareholders, we must also create value for society; we call this Creating Shared Value. Making important contributions to society and going a step beyond by giving value to communities, we have strengthened our value chain across Pakistan. Nestlé Pakistan is proud of its commitment to excellence in product taste and safety. Directors’ Report To the Shareholders Nestlé Pakistan remains committed to enhancing nutrition of as many Pakistanis possible by diversifying into new functionalities. Innovation & renovation remain an integral part of the Company’s vision to positively enhance the quality of life. Nutrition Nutrition, Health and Wellness: our values Nestlé pride itself on being the leading Nutrition, Health and Wellness Company. Our products and brands are the flag bearers of our values. We build our nutrition credentials with continuous research and development and are committed to creating nutritional awareness among our consumers. Page 3 of 10 CERELAC – Nourishing Generations! With its long history in Pakistan, NESTLÉ CERELAC is now with its second generation of users and is a household name trusted by mothers and endorsed by doctors as the best weaning option in Pakistan. Page 4 of 10 NESTLÉ CERELAC was introduced in Pakistan in 1992, positioning itself as the “First step to solid food”. Over time it has come to be perceived as the trusted partner of the Pakistani mother. After the introduction of Bifidus BL in the cereals, NESTLÉ CERELAC also extended the benefit of strengthening natural defenses of babies. With the passage of time the brand has built its reputation as the complete food that offers ‘’Big nutrition for small tummies’’. NESTLÉ CERELAC understands that each stage of a baby’s growth is distinguished and their nutritional needs evolve as they grow. Accordingly, NESTLÉ CERELAC infant cereals are grouped into stages according to the changing nutritional needs of a growing child, providing the right nutrition at each stage. Last year NESTLÉ CERELAC combined the goodness of cereals with yogurt and introduced CERELAC Yogurt. This offered additional benefits of yogurt on top of the wholesome nutrition from cereals. This product was launched with our PAS award winning campaign, ‘’Chanda Mama’’. In 2013, NESTLÉ CERELAC launched a whole new range specifically for one year old babies. NESTLÉ CERELAC for 1 year olds is especially formulated keeping children’s growing nutritional requirements in mind. It has the benefits of bigger fruit chunks, multigrain nutrition with a thicker texture and Bifidus Bl to provide optimal nutrition at this age and also help strengthen child’s natural defenses. It’s an exhilarating time to be part of the NESTLÉ CERELAC family. The brand has its eyes set on new heights and extraordinary achievements in the coming years! Infant Formula* & Maternal Nutrition LACTOGEN is the flagship brand of Infant Formula for Nestlé Pakistan. The premium infant formula range including NAN continued to offer the most scientifically advanced infant formula formulation. In addition NAN 3 was launched in September 2013 to extend the benefits to children over one year of age. Pediatric specialties range comprising of formulations including AL110, Pre-NAN and LACTOGEN RECOVER Page 5 of 10 continue to provide nutritional solution to infants with specific nutritional requirements. Nestlé also entered into the maternal nutrition category with MOM&me, a specialised pregnancy and lactation milk supplement for moms & momsto- be, an effective mean to support maternal and fetal health as well as promote breast feeding, which is our commitment. *Breast milk is best for babies. Nestlé promotes mother’s milk in all its communication to HCPs, infant formula & CERERLAC packaging and all other related material. Nestlé also strictly follows the local code as well as international code for protection of breastfeeding and marketing of infant formulas. This document is part of company information only and may be viewed accordingly. Composition of Cerelac Wheat flour, sugar, palm oil, skimmed milk, ammonium carbonate, sodium carbonate, milk proteins, malt extract, minerals, salt, vitamins. Properties of Cerelac Nestlé CERELAC® Baby Biscuits are highly nutritious for babies from 8 months onwards as a part of a varied weaning diet and they are fortified with 10 essential vitamins and minerals. Nestlé CERELAC® Baby Biscuits contain Iron and Vitamin C, which help to prevent iron deficiency anemia. Nestlé CERELAC® Baby Biscuits have appropriate shape and size for the baby to grasp which helps improve hand mouth coordination. Indication of Cerelac Nestlé CERELAC® Baby Biscuits are mini-meals, a part of Stage 3 of the Nestlé Developmental Nutritional Plan offer intended to be consumed by babies from 8 months onwards, which help them to learn self feeding and practice chewing, once they start teething. Page 6 of 10 Nestlé Nutrition Institute The Nestlé Nutrition Institute (NNI) is a not for profit organisation that fosters “Science for Better Nutrition”. NNI continued its contribution to enhance the quality of people’s lives by sharing leading science based unbranded information and education material, with health care professionals only. In this context, scientific symposia were conducted on multiple topics including “Role of Probiotics in Infants and Children” and “Nutritional Management of Diarrhea in Developing Countries”. Similarly, Health Care Professionals all over the country were engaged in round table discussions on key nutritional challenges. Characteristics Of Cerelac: 1-Cerelac contains essential fatty acids (ALA and LA), Iodine and vitamin A. 2-ALA (Omega 3 fatty acid) and LA (Omega 6 fatty acid) are the precursors of DHA and ARA. 3-ALA (Omega 3 fatty acid) contributes to brain development Iodine helps in normal development of brain and congnition. 4-Vitamin A Contributes to healthy vision Page 7 of 10 Nestle Organisational Structure The way or method through use of a hierarchy that a group, business,, organization, people or a object collaborate to achieve success on one common goal. Nestle - Present Organisational Structure Page 8 of 10 Nestle-Operational Structure Page 9 of 10 DECISION MAKING PROCESS Define the problem Determine the objective Identify possible solutions Select the best possible solution Implement the decision Page 10 of 10