NESTLE _management_

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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

5th 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,
PowerBar,
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
          COSMETICS

L’Oréal
       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.

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         Pakistan
China              Philippines
Hong Kong          Republic of Korea
India              Saudi Arabia
Indonesia          Singapore
Iran               Sri Lanka
Israel             Syria
Japan              Taiwan
Jordan             Thailand
Kazakhstan         United Arab Emirates
Kuwait             Uzbekistan
Lebanon            Vietnam
Malaysia
• Nestlé Waters is number one in Vietnam with
  its La Vie brand.

• Annual consumption per person varies in Asia,
  from 1.2 L in Pakistan to 47 L in Thailand.
     INTRODUCTION
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
           SEGMENTATION
    Segmentation of world in three zones

    US
    Asia
    Oceania & Africa

    Nestle has divided the whole Pakistan in to three zones:

 Northern Zone
 Central Zone
 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 2Latifabad, Hyderabad,
  Sind, Pakistan Phone: (0221) 860403Fax: (0221) 863202

  Sukkur F - 33/5 - CWorkshop RoadSukkur, Sind,
  Pakistan.Phone: (071) 615946Fax: (071) 615946

  Lahore 29-B, Main Gulberg,Lahore, Punjab,
  PakistanPhone: (042) 5754335-6, 5761484Fax: (042)
  515061
Faisalabad House No. 24-Y-103 Madina
Town,Faisalabad, Punjab, Pakistan Phone:
(041)726993Fax: (041) 47438

Gujranwala Plot No: 144-A, First Floor Satellite-
Town Market, Gujranwala, Punjab, Pakistan.Phone:
(055) 3733415 Fax: (055) 3733415

Peshawar 201, 2nd Floor, City Tower, Jamrud Road,
B Block,Peshawar, N.W.F.P., Pakistan Phone: (091)
840859, 842415Fax: (091)45516

Multan Surij Miani Road, Chungi No.1,Multan,
Punjab, Pakistan Phone: (061) 515061Fax: (061)
515061
Quetta 63 B - D, Chaman Housing Scheme, Opposite
Askari Park Quetta, Baluchistan, Pakistan Phone:
(081) 834887Fax: (081) 822297

Islamabad 74-W, Yaseen Plaza, 1st 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
REGIONAL OFFICE
       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
                      AREA SALES
ADMINISTRATION
                      MANAGERS (3)
 EXECUTIVE (1)


                   TERRITORY
                 INCHARGES (10)


                              SALES
                          DISTRIBUTION
                              STAFF
MANAGEMENT
                                 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       ORGANIZING     LEADING          CONTROLLING




•Recognition
   • R&D        •People      •Decentralized
                                                •Comparing of
    •Plan       •Process    •People oriented
                                                 Manufactured
•Formulation   •Situation     •Motivating
                                                   products
 •Estimation                   activities
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:

 Value added products
 Brand name
 Six brands having
 70% group sales
 R&D department
 Unique features and technologies
 40 & 60% test result criteria
Weakness:
 Less consumer research in few areas.

Opportunity:
 Market expansion by using bio-
 technology.

Threats:
 Baby milk action
 New and indirect competitors
 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:-

   Production,
   Supply chain & information systems,
   Finance & control,
   Purchasing,
   Communication & Market Research.
          MOTIVATION
  Employees get Motivation by:-

 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
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: nestle_gj_se@brain.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:

 Its price is high against its competitors but it matches
  its quality with its competitors.

 Nestle is using its brand name to promote its products
  & it’s very popular as compared to its competitors.

 Its packaging is good.

 We can easily find Nestle from any retailer shop.
 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.

 It has always maintained the quality of its products.

 Despite of all the facts, there’s need to maintain the
  condition of office and enhance the security.

 Behavior of employees is not professional and every
  department should treat equally.
•   PLANNING
•   ORGANIZING
•   LEADING
•   CONTROLLING
•   PROBLEMS
•   SOLUTIONS

				
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