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PRESENTED TO: MR. SOHAIL ISLAM PRESENTED BY: ROHMA IMRAN AYESHA JAMIL ZUNAIRA TALIB ANEELA SHAHEEN RUBAB QAMAR
INTRODUCTION “Nestlé” is a Swiss-German word which means “Little Nest” which is its trademark Nestlé is the worlds’ number one food company 5 th largest company of the world according to its turn over 2 million 31 thousand people employed from all over the world 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 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) 1969 Vittel (equity interest) 1971 Merger with Ursina-Franck 1974 L'Oreal (equity interest) 1977 Acquisition of Alcon (2002: partial IPO)
1985 Acquisition of Carnation 1988 Acquisition of Buitoni-Perugina 1988 Acquisition of Rowntree 1990 Cereal Partners Worldwide 1991 Beverage Partners Worldwide (formerly CCNR) 1992 Acquisition of Perrier 1998 Acquisitions of San Pellegrino and Spillers Pet foods
2000 Acquisition of Power Bar 2001 Acquisition of Ralston Purina 2002 Acquisition of Schöller and Chef America 2002 Dairy Partners Americas and Laboratories innéov 2003 Acquisition of Mövenpick, Powwow and Dreyer's 2004 Acquisition of Valio (ice cream activities) 2005 Acquisition of Wagner, Protéika, Musashi
BUSINESS DEFINITION AND SCOPE
MISSION STATEMENT "Nestlé is the largest food company in the world. But, more important to them is to be the world's leading food company”.
PRODUCT DEFINITION Nestle, a multinational company has acquired & merged with various companies. Factors behind its success are multifarious, quality, improved technology, innovation which have created brand loyalty amongst its customers. SBU’s like Pharmacy, Breakfast Cereals and Cosmetics, Ice cream, Frozen Foods, Sauces.
BRANDS Quality and nutritional value are the essential ingredients in all of its brands. Millions of people prefer Nestlé products every day, happy with the addition to their wellness that they bring. Today Nestlé is present in different markets with the following main brands: -
Baby Foods Breakfast Cereals Beverages Bottled Water Chocolate & Confectionery Dairy Products Food Services Ice Cream Prepared Foods Petcare Pharmaceuticals Cosmetics
BABY FOODS Infant nutrition Nestlé, Lactogen, Nestogen, Cerelac, Neslac, Power. Bar, Pria etc. .
BREAKFAST CEREALS Chocapic Shreddies Cheerios Cookie Crisp Lucky Charms, Cinnamon Toast etc. .
BEVERAGES Coffee Nescafé Ricoré Ricoffy Nespresso Bonka Loumidis Fruity fruits Nestlé fruit juices
Nestea Nesquik Milo Carnation Nido Nestlé Omega Plus Coffee-Mate etc. .
BOTTLED WATER Nestlé Pure Life Nestlé Aquarel Contrex Acqua Panna Arrowhead Poland Spring Deer Park, Ice Mountain etc. .
CHOCOLATE & CONFECTIONERY Chocolate confectionery and biscuits Nestlé Crunch Galak/Milkybar Kit Kat Smarties Butterfinger Aero Polo
DAIRY PRODUCTS Nido Nespray Carnation La Lechera etc. .
FOOD SERVICES Food Services and professional products Chef Davigel Minor’s Petcare Purina Friskies Fancy Feast, Alpo, Gourmet etc. .
ICE CREAM Antica Gelateria del Corso Dreyer's/Edy's Drumstick/Extrême Maxibon/Tandem Mega Mövenpick Sin Parar/Sem Parar/Non Stop
PREPARED FOOD Lean Cuisine Hot Pockets Maggi Refrigerated products (cold meat products, dough, pasta, pizzas, sauces, snacks) etc. .
PET CARE Friskies Fancy Feast Dog Chow Cat Chow Tidy cats etc. .
PHARMACEUTICALS Alcon Pharmaceutical and cosmetic joint ventures Galderma Laboratoires innéov Patanol
CUSTOMERS Every person, of any age group, gender etc is the target customer of Nestle target its customers by knowing customer needs & demands. For this purpose it made customer profile. Customer profile based on two criteria:
Qualitative research: - This involves setting up small focus groups of consumers who express their ideas and opinions about their needs and views on different products. At one level, this might involve asking groups of athletes to talk about their lifestyles, dietary habits and training regimes. At another level, it could involve a consumer focus group discussing the quality of the nutritional labeling on a yogurt drink.
Quantitative research: This involves only relatively few people like professional market researchers may interview thousands of people through postal or telephone interviewing. Nestlé regularly uses both forms of research to gain a clear idea of consumer opinions and trends. Using these customer profile techniques, Nestle developed its different product strategies to target the customers.
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
• Nestlé Waters is number one in Vietnam with its La Vie brand. • Annual consumption person varies in Asia, from 1. 2 L in Pakistan to 47 L in Thailand.
INTRODUCTION Nestlé Milk. Pak 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 Milk. Pak Limited came about in 1988. Nestlé Pure Life was launched in Pakistan in 1998
SEGMENTATION Segmentation of world in three zones Ø US Ø Asia Ø Oceania & Africa Nestle has divided the whole Pakistan in to three zones: Ø Northern Zone Ø Central Zone Ø Southern Zone
REGIONAL SALES OFFICES Nestle has 10 Regional Sales Offices in all over the Pakistan. : Karachi F - 77/1, Block 7, Clifton, KDA Scheme 5, Karachi, Sind, Pakistan Phone: (021) 5833935 -6 Fax: (021) 5833937 Hyderabad 178, Block C, Unit 2 Latifabad, Hyderabad, Sind, Pakistan Phone: (0221) 860403 Fax: (0221) 863202 Sukkur F - 33/5 - CWorkshop Road. Sukkur, Sind, Pakistan. Phone: (071) 615946 Fax: (071) 615946 Lahore 29 -B, Main Gulberg, Lahore, Punjab, Pakistan. Phone: (042) 5754335 -6, 5761484 Fax: (042) 515061
Faisalabad House No. 24 -Y-103 Madina Town, Faisalabad, Punjab, Pakistan Phone: (041)726993 Fax: (041) 47438 Gujranwala Plot No: 144 -A, First Floor Satellite. Town Market, Gujranwala, Punjab, Pakistan. Phone: (055) 3733415 Fax: (055) 3733415 Peshawar 201, 2 nd Floor, City Tower, Jamrud Road, B Block, Peshawar, N. W. F. P. , Pakistan Phone: (091) 840859, 842415 Fax: (091)45516 Multan Surij Miani Road, Chungi No. 1, Multan, Punjab, Pakistan Phone: (061) 515061 Fax: (061) 515061
Quetta 63 B - D, Chaman Housing Scheme, Opposite Askari Park Quetta, Baluchistan, Pakistan Phone: (081) 834887 Fax: (081) 822297 Islamabad 74 -W, Yaseen Plaza, 1 st Floor, Blue Area, Islamabad, Pakistan Phone: (051) 271874 -75, 824328, 824384, 274376 These offices work under their respective zonal offices Registered & Corporate Office Is in Lahore 308 - Upper Mall, Lahore PABX: 5757082 -95 Fax: 5711820
FACTORIES Nestle has two factories in Pakistan for the production of different food items. One in Sheikhupura near Lahore and other in Kabirwala near Multan
INTRODUCTION Gujranwala Plot No: 144 -A, First Floor Satellite -Town Market, Gujranwala, Punjab, Pakistan. Phone: (055) 3733415 Fax: (055) 3733415
HIERARCHY REGIONAL MANAGER (1) SALES ADMINISTRATION EXECUTIVE (1) AREA SALES MANAGERS (3) TERRITORY INCHARGES (10) SALES DISTRIBUTION STAFF
CEO MANAGEMENT DIECTOR FINANCE MANAGER MARKETING MANAGER PRODUCTION MANAGER NATIONAL SALES MAANGER ZONAL SALES MANAGER ZONAL SALESMANAGER ZONAL SALES MANEGER NORTH CENTER SOUTH SALES DEPT A/C DEPT SALES PROMOTION DEPT REGONAL SALES MAANGER SALES DEPT A/C DEPT AREA SLAES SUPERVISOR SALES FORCE
MANAGEMENT PROCESS PLANNING • Recognition • R&D • Plan • Formulation • Estimation ORGANIZING • People • Process • Situation LEADING • Decentralized • People oriented • Motivating activities CONTROLLING • Comparing of Manufactured products
Nestlé has very strong flexible liberal structure with tight internal control with strict check & balances. Zonal and regional managers are told budget limitations & targets guidelines from Vevy (HQ)
SWOT ANALYSIS STRENGHTS: Ø Value added products Ø Brand name Ø Six brands having Ø 70% group sales Ø R&D department Ø Unique features and technologies Ø 40 & 60% test result criteria
Weakness: Less consumer research in few areas. Opportunity: Market expansion by using biotechnology. Threats: Ø Baby milk action Ø New and indirect competitors Ø Product acceptance
COMMITMENT The continuous progress and leadership is made possible through the collective commitment of the tens of thousands of individual Nestlé employees who, on a daily basis, work to make this a better planet on which to live.
RECRUITMENT Each year, number of top young graduates are recruited. All have strong academic qualifications, essential language skills & relevant internships or professional experience.
RECRUITMENT CRITERIA Graduates with a degree in Business Administration or Economics with professional experience. High degree of adaptability and mobility. Unquenchable thirst for knowledge. Superb communication skills. The ability to assume control anywhere in the world.
TRAINING OF EMPLOYEES New employees are prepared to gain experience in sales and marketing-related activities & other areas of the business. Activities include: - Ø Ø Ø Production, Supply chain & information systems, Finance & control, Purchasing, Communication & Market Research.
MOTIVATION Employees get Motivation by: - Ø Immediate job satisfaction Ø Long-term career development Ø Superior pay and benefits Ø The personal growth that comes from experience and training Ø Materialistic as well as internal motivation
REWARDS & BENEFITS Health screening/on-site occupational health facilities Sick pay 25 days' holiday 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 Flex time at some sites
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.
Nestlé FAVORS Flat organization structure Clear level of responsibility Function responsibilities Team with its leader
GENERAL INFORMATION Name of the agency: Regional Sales Office, Satellite Town, Gujranwala. Postal address: Plot No: 144 -A, First Floor, Satellite Town Market, Gujranwala, Pakistan. Postal code and City: 52250. Country: Pakistan. Phone: 92 -055 -3733415, 92 -055 -3733243
Fax: 92 -055 -3733379 E-mail: [email protected] net. pk WWW-address: www. Nestle. com Contact person: Mr. Ikram Elahi Function contact person: Sales Administration Executive Founding date: April 1997
SECURITY AND ENVIRONMENTAL MANAGEMENT Different actions like emergency exit signs, training sessions on safety are taken by the SEM committee. SEM training records are updated on monthly basis. It’s the duty of reporting safety officer in every region/area. Department is established for safety policies according to job description and according to the sensitivity of area.
Goal of safety department is “No Accident” and all the equipments and tools are working according to the safety measures. Department ensures that required medical surveillance, monitoring, removal, and reporting responsibilities for applicable exposure standards are assigned and carried out. Security and security procedures in every department is very strict. All the employees have to work under specific security rules. Budget is given to SEM committee by the head office.
Human Resource Security Management Audit All the employees and contractors are well informed about their responsibilities and company’s rules and regulations before they are hired. All third-party users are fully aware and are told their limits i. e. up to that extent they are eligible and allowed to use the facilities. All the employees are assigned to perform duties and responsibilities that they can perform.
Third party users are provided those facilities which they actually deserve. Job description is provided clearly to understand the responsibilities in a proper way and to perform up to required standards. All the employees have to face interviews that totally reflect each and everything regarding their personality and character. Prospective employees and contractors are asked to sign agreements that specify what their security roles and responsibilities are.
Third party users are asked to sign the agreements about their duties and responsibilities as a proof to make sure that they are fulfilling their promise/duties. Organizations security role and responsibilities are according to information security policies in order to avoid any violation. Implementation of security policies is according to security requirements. Security roles and responsibilities are documented for the guidance of organizations new associates.
All personnel implement our organization’s information security policy as they are given in-depth information about our security policies. Security policies are developed as there is no risk to face for any sort of un-authorized destruction. Security events must be reported to the organization in order to achieve protection and establish security policies according to requirements.
Security roles are not communicated to job applicants during the pre-employment process and neither to non-staff members. Job description is linked with security policies so they are documented and communicated properly.
ORGANIZATIONAL STRUCTURE Organizational chart clearly indicates the, responsibilities, authorities and accountability for each function. Employees in the organization has clearly written job description according to the designation. When delegations occurs, agreement is written with the mutual understanding.
HUMAN RESOURCE MANAGEMENT Evaluation of the employee is done quarterly in a year. Wages, salaries and fringe benefits increases with the working duration of employees in the organization. Training programs are offered primarily and frequently to improve the skills of employees. Company’s policies and procedures are displayed as a chart in every office of Nestle and they are also accessible at net
BUDGETING AND EXPENSE CONTROL Limited budget is given annually to every office of Nestle’. If extra budget is required then that particular office put forward the request to the CEO of head office and CEO approves the budget according to the need and situation. Amount and rate of expenditures are made according to the budget given.
TAXES AND LEGAL OBLIGATIONS Tax, finance and accounting department is responsible for all tax reports and payments. Company has its own multiple distribution channels which enables company to supply any critical items. Before any purchases, comparison market statement is made and according to the prices in that statement purchases are made.
MARKETING AND SALES PROMOTION Nestle knows the specific segment of the market, its business is attempting to serve. It determines the sales of its products against those of its competitors with the help of research.
LOCATION Nestle always make sure that all of its operations are convenient and easily accessible to its target market. Product handling is responsibility of company.
PRICING All the prices are totally based on quality, services and organization makes sure that prices should be affordable by all the customers.
[A] Segregation of Duties IC Questions: Head office payroll department controls paychecks. Checks are transferred to the banks in respective accounts of the employees. [B] General internal Controls: Accounting system is handled by accounts department. Finance department approves/reviews bank reconciliations, monthly financials/P&Ls & reviews monthly budgets to actual monthly expenditures.
Personals of finance department has a password to access the financial system. Finance department of Head Office has custody of blank checks. Sales operation department of each region reviews monthly/year end accruals.
There are 15 working leaves and 22 official leaves given to employees in a year. Every person is responsible for reviewing policies and procedures for compliance with Commission rules. [C] Control Over Expenditures: Purchase requests are made by concerned purchase department by the head of regional office and then put forward to the head office for approval. Venders entered into the accounting system on contractual basis.
Purchase requests matched to invoices when paid & time sheets approved by supervisors. Human Resource department of head office approves the executive directors' bonuses. Payroll department of head office has custody of unclaimed payroll checks. [D] Control Environment Controls: Environment committee of the factories regularly manages routine environment issues and review with the factory management their past performance and future objectives
Termination, detention etc. are the disciplinary actions taken against employees which depends on the sever-ness of violation and handled by legal department. Strict confidentiality of the names of employees. Gain it depends upon the sever-ness of situation. ]E] Commitment to Competence: Detailed job description is given and it’s revised time after time.
[F] Board Direction: Annual General Meeting is held every year other then that it depends on the situation. [G] Assignment of Authority and Responsibility: Employees are evaluated according to the company policies. [H] Risk Assessment Controls: Policies and procedures address the safeguarding of assets as company is very strict about the safeguarding of assets
[I] Communication Controls: Polices & procedures made available to staff and revised time to time. Budget requirements, expenditures etc. reports are provided to management & board in annual meeting or when asked by the head office. There is a process in place for communicating changes in accounting methods, regulations, and rules. Policies describe the process for communicating changes in accounting methods and rules to staff.
There are established internal and external communication channels. Employees are free to communicate to any authority. There is no particular established channel. Authorities are bound to listen to the employees.
[J] Monitoring: Management periodically reviews the accounting processes to recommend changes needed for improvement. [K] Information system controls: The financial system password is only known to the personals of finance department.
PROBLEMS HRM department is not giving good salaries to the employees, so employees are de-motivated and don’t work with the company for very long. Staff is not as responsible as it should be. There are not much security measures in the office. A constant threat to the company’s economic balance due to unstable government policies.
Shortage of certain products like Nestle ghee, which is a significant demand in the market. The regional office is not managed properly e. g. no board is placed to mention the identity of the office.
SOLUTIONS/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. Skilled workers of the company should join the security department to enhance the system.
Long term agreements to be signed with governmental departments. A small part of the budget should be spent for the management of the office. Inventory should be maintained.
CONCLUSION Nestle is a market leader due to different reasons: Ø Its price is high against its competitors but it matches its quality with its competitors. Ø Nestle is using its brand name to promote its products & it’s very popular as compared to its competitors. Ø Its packaging is good. Ø We can easily find Nestle from any retailer shop.
Ø Due to its advertisement, Nestle attracts more customers & has very prosperous future if it continues to promote its products and bring all the possible innovational aspects using different product line strategies. Ø It has always maintained the quality of its products. Ø Despite of all the facts, there’s need to maintain the condition of office and enhance the security. Ø Behavior of employees is not professional and every department should treat equally.
• • • PLANNING ORGANIZING LEADING CONTROLLING PROBLEMS SOLUTIONS