PRESENTED TO KAMRAN YOUSAF SANDHU Group Members 1 Farooq Amjad 082159 2 Khuram Shahzad 083268 3 Irfan Ali 082140 4 Salman Rasheed 082119 5 Abrar Hussain 083109 INTRODUCTION One Two Three Four • “Nestlé” is a Swiss-German word which means “Little Nest” which is its trademark • Nestlé is the worlds’ number one food company • 5th largest world’s company according to its turn over • 2 million 31 thousand people employed from all over the world and present in 81 countries of the globe having 522 factories • Over 700 products renovated or innovated in the past five years, with wellness in mind HISTORY • Henri Nestlé established Nestlé in 1867 in Switzerland (Vevey HQ) • His first product was lactogen formula for infants by the name “Farine Lacteé” KEY DATES 1866 COMPANY FOUNDATION 1 Major joint ventures 1981 Galderma 1905 Merger between Nestlé and Anglo-Swiss Condensed Milk Company 1929 Merger with Peter, Cailler, Kohler Chocolates Suisses S.A. 1947 Merger with Alimentana S.A. (Maggi) 1971 Merger with UrsinaFranck 1974 L'Oreal (equity interest) 2 1977 Acquisition of Alcon (2002: partial IPO) 1985 Acquisition of Carnation 1988 Acquisition of BuitoniPerugina 3 2001 Acquisition of Ralston Purina 2002 Dairy Partners Americas and Laboratories innéov 1990 Cereal Partners Worldwide 2003 Acquisition of Mövenpick, Powwow and Dreyer's 1991 Beverage Partners Worldwide (formerly CCNR) 2004 Acquisition of Valio (ice cream activities) 1992 Acquisition of Perrier 2005 Acquisition of Wagner, Protéika, Musashi MISSION STATEMENT Good Food Good Life "Nestlé is the largest food company in the world. But, more important to them is to be the world's leading food company”. PRODUCTS Baby Foods Breakfasts Cereals Beverages & Bottled Water Chocolate & Confectio nery Dairy Products PRODUCTS (Cont’d) Food Services Ice Cream Prepared Foods Pet care & Pharmace uticals Cosmetics COUNTRIES Bangladesh China Hong Kong India Indonesia Iran Israel Japan Jordan Kazakhstan Kuwait Lebanon Malaysia Pakistan Philippines Republic of Korea Saudi Arabia Singapore Sri Lanka Syria Taiwan Thailand United Arab Emirates Uzbekistan Vietnam TOTAL 81 Countries NESTLE IN PAKISTAN Nestlé MilkPak Limited (NML) was incorporated in Pakistan under the Companies Ordinance, 1984 & listed on Karachi and Lahore stock exchanges since 1980. Joint venture between Nestle Switzerland and MilkPak Limited came about in 1988. Nestlé Pure Life was launched in Pakistan in 1998 FACTORIES FIVE Factories Sheikhupura Karachi Kabirwala Islamabad MANAGEMENT PROCESS PLANNING •Recognition • R&D •Plan •Formulation •Estimation ORGANIZING STAFFING •People •Process •Situation •Competence •Counseling •Training •Developing •Coordinating •Compensating LEADING CONTROLING •Decentralized •Comparing of Manufactured products •People oriented •Motivating activities HRM DEPARTMENT HIRARCHY Human Resource Manager Recruitment and Development Planning and Relationship HR Coordinator HRM Coordinator HR Coordinator HRM Coordinator Assistant Assistant Time Office Personnel Management HR Coordinator HRM Coordinator HR Coordinator HRM Coordinator Assistant Assistant ABRAR HUSSAIN FUNCTION OF HRM Recruitment & Selection Training and development Compensation and Benefits Motivation Promotion RECRUITMENT AND SELECTION Each year, number of Eligible persons and top you graduates are recruited. All have strong academic qualifications and Essential language. Technical skills & relevant internships or professional experience. High degree of adaptability. Unquenchable thirst for knowledge. The ability to assume control anywhere in the world. TRAINING & DEVELOPMENT OF EMPLOYEES New employees are prepared to gain experience in production, sales and marketingrelated activities & other areas of the business. Activities include: Production, Supply chain & information systems, Finance & control, Selling & Purchasing, Communication & Market Research. REWARDS & BENEFITS To Provide the Health facilities and security. 25 days' holiday in one Year Mobile phone on a business need basis Company bonus scheme Contributory final salary pension scheme Childcare vouchers (dependant on salary) Gym facilities at larger sites Staff shop at most sites MOTIVATION Employees get Motivation by: Equal Employment Opportunities (EEO) Immediate job satisfaction Long-term career development Superior pay and benefits The personal growth that comes from experience and training Materialistic as well as internal motivation PROMOTION ADVERTISING CHANNELS Internet Television Newspapers Magazines SALMAN RASHEED SWOT ANALYSIS Brand name R&D department Unique features and technologies 40 & 60% test result criteria Less consumer research in few areas Market expansion by using bio-technology Baby milk action Product acceptance STRENGTHS WEAKENESSES OPPORTUNITIES THREATS CORPORATE LEVEL STRATEGY Diversification Strategy: A number of brands have introduced in Pakistan & also new in process. Vertical Integration Strategy: Only Manufacturing and Selling Consolidation Strategy: No consolidation Geographic Expansion Strategy: It has increased & also it will be in future. BUSINESS LEVEL STRATEGY Cost Leadership Strategy: No Differenciation Strategy: Due to Quality bases Focus: All market segments DIFFERENTIATION Our service is very efficient as compared to others. Nestle is now supplying water door to door for their regular customers. Nestle water is available now in many packing they are more convenient as well a s economical. Their quality check is much better than others so there is no need to bother about the quality and the taste of its products. FUNCTIONAL LEVEL STRAEGY Finance Department HR Department Production Department R & D Department Marketing Department Others LEADERSHIP PRINCIPLES Their motto is: "Teamwork with responsible leadership". Nestlé is people & product oriented. Value for its stake holder but would not favor ,short term profit at expense of long term business development. As decentralized as possible. Concept of Continuous improvement of activities. NESTLE FAVORS •1 Flat organization structure •2 Clear level of responsibility •3 Function responsibilities •4 Team with its leader FAROOQ AMJAD SUGGESTIONS Bonus packages and increment in salaries for a selective level of work and efficiency should be awarded to attract the employees’ concern. Staff should be made more responsible by implementing strict rules and regulations and taking disciplinary actions against any un-professional behavior. CONCLUSION Nestle is a market leader due to different reasons: Its price is high against its competitors but it matches its quality with its competitors. Its packaging is good. We can easily find Nestle from any retailer shop. Behavior of employees is not professional and every department should treat equally. THANK YOU