Nestle
- 1. Nestle Pakistan 2017 BAZLAMUKHTAR AHSAN AHMED SHAIKH MUHAMMAD OWAIS DANISH QAMBAR ABBAS ASAMA BHADELIA
- 2. Executive Summary Nestle is one of the best food companies not only in Pakistan but all over the world. The Members working in the Organization are concern about developing the high standards in the Market. They basically focus on making sure that there products are best to use. Now, in making this Project my main focus is to study all the strategies followed by the Nestle Company. Which are centered on 4P’s of marketing. We got the information from different resources where most common is the Internet. Through Internet I got the overall history and background of the company. I have covered all the main aspects of the Project.In the competitive market today a company’s marketing strategies are of greatimportance and this is the reason I have chosen this company because of its well-known reputations. Moving through the overall companies Vision, Mission, and Business Philosophy and covering all the main aspects of the project and then at last I have given references from which sources I got this information and be able to complete the project.
- 3. Introduction Nestle is the world's leading nutrition, health and wellness company today and was founded in 1866 by Henri Nestlé. It has employed around 250,000 people and has factories or operations in almost every country in the world. Nestle is the world's leading nutrition, health and wellness company today. Being the world's leading bottled water company is based on a firm economic model: strong brands, global presence, innovation capacity, environmental stewardship and passionate people. Brief History Henri Nestlé, a pharmacist, developed a food for babies who were unable to breastfeed. His first success was a premature infant who could not tolerate his mother's milk or any of the usual substitutes which eventually became the first Nestle’s customer. After Nestlé's new formula saved the child's life and soon, Farine Lactée was being sold in much of Europe. After the major invention in 1874, Jules Monnerat purchased Nestle and collectively they launched the condensed milk. In 1905 Nestle merged with Anglo-Swiss which was an condensed milk company. Soon after Nestle established its roots all over Europe to cater the need of the customers of Europe, as Nestle fame was on the top so Nestle thought to start the production function all over the world to increase the customer demand and meet or capture more markets. Decision to go multinational was a fruitful idea, so as now nestle has operations in America, India, England, Brazil, Australia, Pakistan, Hungary, France, Belgium, Italy, Spain and various other countries around the globe. Nestle is now in all seven continents and have more than 522 factories in 83 countries. Organization Structure
- 4. Nestlé Pakistan follows a flat, matrix organizational structure. The departments are divided function-wise and product-wise. All the products use different functional departments, and all the functional departments have specific product departments within them. The span of control is wide, as each department head has many direct and indirect reporting relations with his subordinates. Also, as in a pure matrix form, nearly all employees have two or more departments to report to, directly or indirectly. The Managing Director of Nestlé Pakistan reports directly to the Head Office in Switzerland, and gets guidance and objectives from them. Directly under the Managing Director are different functional departments: Business Executive Managers Head of Human Resource Department Head of Sales Department Head of Supply Chain Head of Food Services Department Head of Technical Department Head of Finance Department Head of Corporate and Legal Department The following departments have an indirect reporting relationship with the Managing Director: Head of Nutrition Head of Waters UNDP Project The first two departments are required to report directly to the Head Office, while the UNDP Project comes under the United Nations.
- 5. Since this paper aims to analyze the Human Resource Function and the Brand Function in detail, the following is the departmental structure of the aforementioned functions. Vision Nestlé’s vision is to be the globally recognized leading Nutrition, Health and Wellness (NHW) Company. Nestlé Pakistan subscribes fully to this vision and the values that come with it. In particular, we envision: Leading a dynamic, passionate and professional workforce, proud of our heritage and positive about the future Meeting the nutritional 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 Delivering 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 Mission
- 6. To positively enhance the quality of life of people of Pakistan by all that we do through our people, our brands, products and our Creating Shared Value (CSV) initiatives. Moto To be the leading Nutrition, Health and Wellness Company in Pakistan Tag Line Good Food, Good Life, to feel right at home Ambition Nestlé is the world's leading nutrition, health and wellness company. "Good Food, Good Life" is the promise we commit to everyday, everywhere – to enhance lives, throughout life, with good food and beverages. They focus on to develop a workforce which is highly motivated and can perform well in the workplace. They focus to meet the requirements and needs of their consumer which comprises of all age groups. They can be from small infant to older age. They focus on creating high quality products and provide services which are helpful in capturing great customer value. They also focus on maintaining the shareholder’s wealth but keeping in mind that to perform their operations well with environmental and social responsibilities. Their brands are preferred in comparison of High quality food and Beverage products. They Communicate with their customer and provide them with the relevant information they need. They promote their employees and motivate them to compete and to become specialized in their work.
- 7. They also have milk collection services which help to develop dairy sector in the rural areas of Pakistan. The organization follows proactive approach which helps them to compete in the market. Focus Quality and safety of our products is our top priority. Brands Ambient Dairy Nestle Bunyad NIDO EveryDay Nestvita MILO MILKPACK MILKPACK CREAM ACticol Chilled Dairy Nestle Yogurt Nestle rawayati maza Actiplus Milk pack yogurt Nestle Zeera Raita Nestle Podina Raita Juices
- 8. Nestle Fruita vitals Nestle Nesfruita Bottled Water Nestle Pure Life Culinary & Food Maggi Baby Food Cerelac Breakfast Cereals Coco crunch Milo Corn Flakes Coffee Nescafe Classic Nescafe Gold Nescafe 3 in 1 Dolce Gusto Confectionery Kitkat Investor Industries involved. Auditors legal adviser
- 9. bankers transfer agent Their Shared Values Globally, Nestle made 39 commitments that we aim to meet by 2020 or earlier, to support our long-term goal of Creating Shared Value Nestle healthy kids Nutrition support program Healthy women Chaunsa Project Executive certificate in AgriBusiness management Driver Safety training program Women Agriprenure Farmer and training development Milk collection and dairy development Nestle DRDF dairy project Project WET Research and development Environment sustainability Our people Nutrition, Health and Wellness Nutrition, Health & Wellness at Nestlé is 3 dimensional.
- 10. Our core aim is to enhance the quality of consumers' lives every day, everywhere by offering tastier and healthier food and beverage choices and encouraging a healthy lifestyle. We express this via our corporate proposition Good Food, Good Life. Product Lifecycle and Food Safety by Nestle Materials Our approach to food safety covers the entire supply chain, starting with farmers and suppliers. We follow rigorous procurement and auditing processes to ensure we select safe, high quality raw materials. This includes defining specifications for the materials we use, and performing checks to ensure they always comply with the most stringent regulations and the latest scientific knowledge. If they don’t comply, we reject them. All our manufacturing facilities, wherever they are in the world, are designed to ensure we prepare our products to the highest quality and safety standards. This includes preventing foreign bodies from entering products, enabling the management of allergens, and controlling pests. Our factories are all built according to precise prerequisites, including those for a clean and safe water supply, for air filtration, and for any material that will come into contact with food, to guarantee that the materials, equipment and manufacturing environment are all designed to produce safe products. We carefully manage the flow of ingredients and products in and out of our factories to ensure raw materials and prepared foods are properly segregated. Our factories have dedicated zones, equipment and utensils for different ingredients to prevent cross-contamination. We follow certified cleaning and sanitation practices at every step of production, and our employees are trained to fully adhere to the principles of good food hygiene.
- 11. Processing Our recipes and processing techniques are scientifically formulated to deliver the safest possible products. We prepare products in quantities that provide an appropriate and consistent dosage of any nutrient, to avoid any harm linked to over- or under-dosage. And we process food at optimum temperatures to retain its nutritious value, while removing dangerous microorganisms and preventing the formation of chemical contaminants. Before a batch of product leaves one of our factories, it must pass a ‘positive release’ test to confirm it is safe to consume. At Nestlé we carry out more than 100 million tests a year to verify product compliance with internal and external standards, including for harmful compounds or microorganisms in the materials we use, the environment we operate in, and also in our products. We don’t test products to check they’re safe. We do so to verify that they are. We have so many stringent, inbuilt controls to guarantee safety, that by the time we reach the final testing stages, we’re already extremely confident that the finished product is safe. Packaging and Transportation When products are released from the factory, we make sure they reach their destination in optimum condition. For chilled or frozen products, this also means ensuring they are stored and transported at the correct temperature. Packaging has a vital role to play in ensuring our products reach consumers in a safe condition. It also carries clear information about how to prepare, store and use the product, with information on ingredients as well as any allergen risks. We make sure that best-before and use- by dates are correct so consumers understand when the product will be past its best and when it will no longer be safe to consume. This also helps to avoid generating unnecessary waste.
- 12. Packaging also helps to ensure traceability in our factories. We use unique batch codes, to tell us exactly when a product was produced, what ingredients went into it and where those ingredients came from. Managing Risk We have an early warning system to help us pinpoint signals that may develop into issues. The earlier we can spot potential issues, the better we can prevent or manage them. Food safety is never static. Expectations are always changing, regulations are changing and our scientific knowledge is changing. That’s why we constantly improve our procedures and share our expertise on food safety with the rest of the industry, external authorities and our consumers. Transport and Distribution We transport more than 145 000 tonnes from 1600 warehouses daily – the equivalent of 274 times around the world each day. Our partnerships with third-party logistics providers enable us to track our environmental performance and improve efficiency by reducing miles travelled, fuel consumed, GHG emissions, noise and congestion. Our reporting covers 66% of our total product volume. Our Approach As outlined in the Nestlé Policy on Environmental Sustainability, our aim is to: Optimise – streamline distribution networks, route planning and vehicle space usage; Explore – identify and define new transportation methods and alternative fuels; and Prepare – train our drivers to improve safety and environmental efficiency. We focus on making the most of our vehicle trips, reducing empty transport journeys and constantly reviewing our distribution networks, including improving route planning for our own
- 13. vehicles. Switching our preferred mode of transport from road-based to rail and sea, and increasing our use of alternative fuels, can help us lower our environmental impact. The same is true for our warehouses, where we continually test renewable energy options and energy-efficient lighting. As with every aspect of our business, new technology is key to innovation, and a critical investment area. Reducing Emissions from Transport and Distribution Our transport and distribution operations generated 3.2 million tonnes of greenhouse gases (GHGs) in 2015. We continue to work to improve the environmental performance of these operations, improving the efficiency of our distribution networks and making better use of transport space. We are making good progress in reaching our objective, reducing emissions by 2.7% in our distribution operations in 2015 against our 2014 baseline. That is the equivalent of 6600 million tonnes of GHG emitted – equal to taking 1400 cars off the road. We also continually search for ways to further reduce the energy consumption in our warehouses by improving lighting, heating, cooling and insulation. Optimise: Getting the most out of our vehicles Delivery vehicles that travel empty or with limited loads are inefficient and costly, so we are making a considerable effort to make the most of the vehicles that we use. Trucks and containers have maximum loads, defined by weights and potential volume – even a 1% improvement in how much is carried on vehicles can significantly reduce emissions and costs. We strive to ensure that ‘no vehicle leaves empty’, improving the efficiency of our transport while reducing unnecessary journeys. We work with suppliers, retailers and other manufacturers to share vehicles where appropriate. We have also redesigned several local distribution networks to improve efficiency.
- 14. Examples of how we work with other companies include: Belgium: Thanks to an industry working group, our operations in Belgium were brought together with other companies to find a shared transport solution: by collaborating on truck space and journeys, we lowered the number of trucks on the road, reducing carbon exhaust fumes by 63% and CO2 emissions by 43 tonnes per year. In some markets, our Transport Control Centres give us visibility on vehicle use across our network and help identify opportunities to reduce the number of empty vehicles. Cooperating with suppliers and customers on the use of delivery vehicles helps us avoid trucks being empty on a return journey. Explore: Finding a Better Path We aim to transfer our transportation networks from road to rail or sea wherever possible, and use natural gas in our trucks. These advances are made possible through innovation, which is where we invest to make environmental improvements. We investigate and develop opportunities for transport options that lower emissions, avoid traffic congestion, cut costs and increase efficiency. Examples include: US: Our Nestlé Waters North America bottled water brand Poland Spring began shipping via train, rather than truck. An estimated 4000 containers were shipped by rail in 2016, a reduction of more than 500 000 road miles. As part of our efforts to reduce GHG emissions, we continue to explore the viability for using cleaner fuels. We are also continuing to expand driver training from both a safety and an environmental efficiency perspective. Consumer Service
- 15. Nestlé believes in providing efficient consumer service as part of its strategy. And this consumer service is not only limited to handling consumer complaints, rather it revolves around building a long-term holistic relationship with consumers. In fact, for Nestlé, the organization chart is upside down. The consumers, and not the managers, lie at the top of the hierarchy. Thus all the activities aim to provide timely and efficient response to consumer needs and fulfilling their wants in the best possible manner. Nestlé’s advanced consumer contact management system CONSO+ helps it in customer relationship management, and forging close, long term and trustworthy ties with its consumers. Apart from the more formal lines of communication, the company also has the human element- the field staff, which remains in contact with the consumers. Thus efficient consumer service goes a long way in ensuring consumer loyalty, as well as guaranteeing higher revenues per consumer, from more consumers. Corporate Social Responsibility Nestlé understands its role as a corporate entity in the socio-economic demographics of Pakistan, for which it performs social investments and realizes and promotes the positive impacts while at the same time restricts the negative impacts that occur as a result of its operations in the value chain. Social Investments Nestlé Pakistan complies with Environment Act (1997), and tries to ensure that at every stage of its operations, the environmental impact is minimal. All Nestlé factories are eco- efficient (more production for less resource consumption, waste, and emissions) and have environment committees that manage and review environment issues.
- 16. Nestlé Pakistan responded immediately to the earthquake that struck Northern Pakistan in October 2005 by providing its infra-structure and resources to work in the affected areas in collaboration with Pakistan Air Force to distribute goods worth over Rs. 20 million. Nestle and its employees together also donated about Rs. 36 million for the rehabilitation process. Nestlé Pakistan has wide range of activities under its social investment programme. A brief outline of each activity is as follows: Nutrition program for mothers and children Financial support to victims of natural disasters Well and hand pump installation projects Help centre for farmers School rehabilitation and education advancement Research and development initiatives Conclusion Nestle is international organization, being an multinational is always great because it is always backed up by the parent company but however Nestle Pakistan is doing best in this region because of the static demand & less portfolio. Nestle management is key success factor of the company they are highly committed & they do not compromise on their tasks. Quality & sustainability is another factor that is giving nestle an edge against its competitors & Nestle Pakistan is at top because of high demand & promising quality they provide.