Category: Nestle

Case Work Nestle.
1. Was it appropriate to implement the BEST project at Nestle USA?
For Nestle, it was appropriate to implement the BEST project aimed to introduce new methods of communication and service delivery.  The need for the BEST was cre­ated by lack of skills and ‘old’ technology, lack of cooperation between division and size of organization, and new methods of doing business worldwide. Only in this case, Nestlé could compete on the global scale. The BEST project would help to disseminate knowledge and help employees to cope with new complicated tasks. The problems, faced by Nestle, were caused by resistance to change and lack of technical skills, ambitious timeline and lack of management support. The company did not focus on employee’s motivation and work design programs pursuing their own goals and development strategies. Most of the employees were afraid of changes they could not cope with. It is possible to say that it would be better to implement (and test) the BEST project in one of the divisions, and then, apply it to the entire organization.
 2. In what ways do you think that nestle USA realized saving of $325 million?

In spite of the fact that the BEST project failed and cost Nestle $210 millions it helped to improve communication based on technology and innovative systems as a part of the BEST project. Without IT change, Nestle would not be able to compete with national companies and respond to changing economic and social conditions. New technology helped Nestlé to save time and improve information interchange. Using the ‘old methods’ of doing business Nestle would not be able to compete on the national (and global) scale. The BEST project provided global connectivity and served as a foundation for national systems. Also, it linked the supplier and customer logistics into one process. You may also be interested in BCG matrix of NESTLE
3. Why is this story is more about change management that software implementation?
This story is about change management because it describes improvements and restructuring of the old system. Change process means regular repairs and maintenance, choice of introducing new technology or methods of work. The aim of technology was to improve current activities without “changing the ways [they] did business”. Nestle planned organizational change caused by the need to respond to new challenges and the need to cope with potential problems (poor communication and inefficient data sharing).
References
1.      Senior, Barbara. (2001). Organizational Change, Capstone Publishing.
 

Case Work Nestle

Nestle – Maggi Brand.
History and origin of Nestle The company was founded in 1867 on the shore of Geneva vevey in Switzerland and its first product was “Farine Lactee Nestle” which is an infant cereal formulated by Henri Nestle to provide improved infant networks. Nestle has spread worldwide through various acquisitions and mergers from the year 1905-2007. It bears the name of a real man Henri Nestle. The company trademark is a bird in the nest derived from his personal cost of arms.
This symbol invokes value upon which the company was build. The values are security, maternity and affectionate nature and nourishment, family and tradition. It is one of the leading branded processed food companies in the country with a large market share in products like instant coffee, milk products etc. It also has a significant share in the chocolates and other semi-processed food market. One of its most successful brands in India is that of Maggi. Nestle product list –
Nestle India manufactures products of truly international quality under internationally famous brand names such as NESCAFE, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID and NESTEA its products range from syrups, Nestle milkmaid, ice-cream, jams, honey, candies, Nestle fresh and natural dahi, , Nestle slim milk, Maggi sauces, Maggi pizza mazza, Maggi pichkoo, Nescafe cappuccino, Nescafe sunrise, Nescafe Munch, Nestle milo smart plus, Nestle iced tea with green tea etc The Brand – Maggi origins

Maggi is a Nestle brand of instant soups, stocks, bouillon cubes, ketchups, sauces, seasonings and instant noodles. The original company came into existence in 1872 in Switzerland, when Julius Maggi took over his father’s mill. It quickly became a pioneer of industrial food production, aiming at improving the nutritional intake of worker families. It was the first to bring protein-rich legume meal to the market, which was followed by ready-made soup based on legume meal in 1886. In 1897, Julius Maggi founded the company Maggi GmbH in the German town of Singen where it is still established today.
In 1947, following several changes in ownership and corporate structure, Maggi’s holding company merged with the Nestle company to form Nestle-Alimentana S. A. , currently known in its francophone homebase as Nestle S. A.. Today, Maggi is particularly well known in the Baltic states for its dry soups. In Bangladesh, India, Pakistan, Nigeria, Australia, New Zealand, Brazil, Mexico and the Philippines, for its seasonings, such as Maggi sauce, which is a household product. And in Malaysia, Indonesia, India and Singapore for its instant Maggi noodles .
In West Africa, and parts of the Middle East, Maggi cubes are used as part of the local cuisine. Throughout Latin America, Maggi products, especially bouillon cubes, are widely sold with some repackaging to reflect local terminology. In the German, Dutch and Danish languages, lovage has come to be known as “Maggi herb”, because it tastes similar to Maggi sauce, although, paradoxically, lovage is one of the few herbs not present in the sauce. In Indonesia, Thailand and Vietnam Maggi seasoning sauce is a popular condiment used in flavouring meals, and the bottles are familiar sights on restaurant tables.
Maggi in India- Maggi in India is best known for its flagship product of instant noodles with its various desi sub-segments such as the traditional dal atta, veg atta and rice noodles along with their various variants, Curry, Masala, Tomato, Chicken in the traditional and shahi pulao, lemon Masala and Chilly Chow in the rice noodle segments. Nestle unleashes brand maggi in India almost 25 years ago in 1983 with the launch of its traditional ‘2-minute noodles’ in its masala, tomato, chicken flavours, followed by its curry flavor some years down the line.
Various products under Maggi – Noodles – MAGGI Vegetable Multigrainz Noodles, MAGGI 2-Minute Noodles, MAGGI Vegetable Atta Noodles, MAGGI Cuppa Mania Sauces – MAGGI Sauces, MAGGI Pichkoo, Tomato, Chilli garlic, Chilli, Extra hot chilli. MAGGI PASTA- MAGGI Pazzta Cooking Aids – MAGGI Magic Cubes, MAGGI Bhuna Masala, MAGGI Coconut Milk, Powder MAGGI Pizza Mazza, MAGGI Masala-ae-Magic, White rice seasoning, chicken stock, chicken stock less salt, beefand vegetable stock. Soups – Cook-up soups and instant soups, MAGGI Healthy Soups, Sanjeevani MAGGI Healthy Cup
Maggi Noodles Brand Ambassador – Nestle’s Maggi Noodles has recently introduced a new range of ‘devilled’ noodles which is expected to ignite the taste buds of local youth. Coming under three categories – devilled chicken, devilled kottu and devilled chilli chicken – the range has been created to suit the local palate, which often craves hot and spicy food. Taking the new range forward, the company also introduced its Brand Ambassador for the devilled noodles, Sri Lankan-born Bollywood actress Jacqueline Fernandez.
Maggi Devilled Noodles are extremely youth centric with dynamic, vibrant, fun and hot brand personalities. Jacqueline Fernandez was choosen as Brand Ambassador as she fits very well with this youth-centric range. As a young, dynamic and vibrant youth icon of international fame with a strong Sri Lankan identity, she had blended with the essence of the Maggi Devilled Noodles. Strategies Adopted by Nestle’ for the Maggi brand Nestle’ managed to create new product categories under the brand name of Maggi.
They adopted the following strategies : Maggi introduced the Maggi sauces category and promoted it under the brand name of Maggi. Since it is always easier to promote a product under the brand name of the established brand as the expenditure and people recognition time is less. More than it both are similar product category as sauces and noodles are interrelated to each other. Nestle’ also introduced the pizza variant by which one can be able to create the pizzas at home. It was also promoted under the brand name of Maggi.
Nestle’ also used the cultural base marketing in India as knowing the fact that indian people like rice, they introduced Maggi rice noodle mania. Also Nestle’ was able to successfully use the umbrella branding for Maggi. They introduced many variants under the brand name of Maggi. By doing so, they were successful in making the product popular, there was a greater acceptance for the product, they required a relatively lesser time to be accepted, they did not need to spend so much on advertising and promotional activities, and also it gave strength to the Brand name and ncreased brand equity. Maggi was successfully able to postion its noodles in the minds of the consumers as fast food items that can be eaten for breakfast or even lunch. They introduced new categorieshaving a coompelete diet of protein, calorie level, which is a must for the children. By doing this emotional marketing they were successfully able to market this product. And now it has successfully enjoys a 90%percent market share in this segment Diversification strategies –
The strategies of diversification can include internal development of new products or markets, acquisition of a firm, alliance with a complementary company, licensing of new technologies, and distributing or importing a products line manufactured by another firm. Generally, the final strategy involves a combination of these options. This combination is determined in function of available opportunities and consistency with the objectives and the resources of the company.
For the brand Maggi development of new products or perhaps even increasing brand extension , focusing on health as well as even a wide variety of flavours like cheese etc could help maggi diversify. Target Market of Nestle for the Maggi brand At the initial stage Nestle targeted the working women, however soon it realized that in order to boost sales its target market should be the children and teenagers. So they changed their positioning and came up with two minute noodles as it could be easily made by teenagers within a short p of time.
Nestle also has recently targeted housewives as by introducing the health noodles they can be consumed as the complete food which gives necessary calories to meet all health requirements. For these variants they introduced th new positioning “Taste bhi, health bhi”. Reasons for brand extensions- Maggi brand was extended to a variety of culinary products like soups, sauces, ketchups, and various cooking aids . they wanted to offer heathy products under the Maggi brand, in a bid to attract health conscious consmers. They were various health issue relating to the ingredient used that led to brand extensions.
They also wanted a strong brand recall, since maggi was doin gvery well in the market they wanted to use this as a positive point and went for a brand extension. Maggi’s competitors- Maggi main competitors were that of ‘Top Ramen’and that of ‘Hakka Noodles’and ‘Chowmeen’ due to which it had witnessed a decline in sales however with the new strategies adopted and new promotional activites it was a]ble to get back on top. Various Tag lines of Maggi- Through its adds maggi has been positioned as a ‘fun’ food for kids which mothers could prepare easily.
Some of the Tag lines used by Maggi for various add’s are- •‘Mummy,bhook lagi hai’(Mom I’m hungry) •‘Bas 2-minute’(only 2 minutes) •‘Fast to Cook Good to Eat’ •‘Taste bhi, Health bhi’ Suggest a new product- Future plans of Maggi – The company continuously focuses its efforts to better understand the changing lifestyle of modern India and anticipate consumer needs inorder to provide convenience, taste, nutrition, and wellness through its products. The company will focus on changing lifestyles and innovate and renovate to create delight in everyday meals.

Nestle – Maggi Brand

Nestle.
10-11 Your firm organized its foreign operations in an international division. With foreign markets growing fast, the firm considers changing its organizational structure. What options does it have? What are the pros and cons of each option? Figure 1 Figure 1 illustrates the relationship between each elements of organizational architecture. Hill et. al (2012) identifies these elements one by one. Organization structure means three points.
First, the formal division of the organization into subunits, such as product divisions, national operations and functions; second, the location of decision making responsibilities within that structure; third, the establishment of integrating mechanism to coordinate the activities of subunits including cross functional team and pan regional committees. Control system is the method to measure the performance of subunits and to judge the managers when running those subunits. Incentives are used to reward appropriate managerial behavior. It is close connected with the performance.
Processes refers to the manner in which decisions are made and work is performed within the organization. Organizational culture refers to the norms and value systems that the employees of an organization share. People here means both the employees of the organization and the strategy used to recruit, compensate and retain those individual and type of people with skills, values and orientations. Organizational structure The organizational structure has three dimensions: vertical differentiation, horizontal differentiation and the integrating mechanisms.

Each dimension will be explained below. Vertical differentiation The vertical differentiation indicated the location of decision making responsibilities within a structure. The vertical differentiation has two types of arguments: centralization and decentralization. There are four main arguments for centralization. First, centralization can facilitate coordination. An example might be a company have several different components manufactured in different countries which need coordinated. It can be achieved by centralizing production scheduling by managers.
Second, centralization can help ensure that decisions are consistent with organizational objectives. Third, concentrating power and authority in one individual or a management team can assist the top level managers to bring about needed major organizational changes. Fourth, centralization can avoid the duplication of activities by several subunits with similar activities, which can improve the efficiency. There are also five arguments for decentralization. First, the top level manager may get overburdened, which may result poor decisions. Decentralization can solve this problem.
Second, researches show that people are willing to give more to their jobs when they have a greater degree of individual freedom and control. Third, more rapid response to environmental change with greater flexibility is provided by decentralization. Fourth, decentralization can result in better decisions. This is because in a decentralization structure, the decisions can be made by person with better understanding and more information than managers. Fifth, decentralization can increase control by establish relatively autonomous, self-contained subunits within an organization.
The responsibility of subunit managers are closely connected with the subunit performance. Therefore, centralize some core decisions and decentralize some operating decisions may be worth trying. Horizontal differentiation The horizontal differentiation is concerned with how the firm decides to divide itself into subunits. The decision is usually based on the firm’s function, type of business and geographical area. Domestic According to Hill et. al (2012), many firms begin with no formal structure and are run by a small group of people.
When the firms grow, the organization is split into functions reflecting the firm’s value creation activities because the demand of management is great. It type of structure is functional structure. Top managers coordinate and control functions, such as purchasing, manufacturing, marketing and finance. Centralized decision is usual in this structure. A typical example of functional structure is the British airways, as show in figure 2. Figure 2 With the development of the firm product line, further differentiation may be necessary. A product divisional structure can be used to solve the problem caused by coordination and control.
In a product divisional structure, each division is responsible for a distinct product line, as show in figure 3 Figure 3 Each division is set up as a self-contained, largely autonomous entity with its own function. The responsibility for operating decisions is usually decentralized to product divisions. The top manager is responsible for the overall strategic development of the firm and for financial control of the various divisions. International The above two structure is based on domestic firms. When the firms expand internationally, they often group all their international activities into an international division.
Both functional and product divisions structure at home may be replicate to the global. Regardless of a firm’s domestic structure, its international division tends to be organized on geography. Figure 4 is an example for a international division. Figure 4 In the figure, the products can be manufactured by divisions A, B and C, and then export to country1 and 2. However, the production line A, B and C may also build in country 1 and 2. For firm with a functional structure at home, the firm might replicate this structure in every countries it does business.
Similar case might happen for the firms with divisional structure. Although this kind of structure is quite popular, it may raise several problems. It may create conflict and coordination problems between domestic and foreign operations. First, the top manager of this structure may not give as much voice in the organization as the top manager in domestic. Second, lack of coordination between domestic operations and foreign operations may cause isolation. In order to solve these problems, a worldwide product divisional structure and a worldwide area structure is raised and adopted by many firms.
Figure 5 illustrates these two alternative paths of development. Figure 5 The worldwide product divisional structure is often adopted by firms which are reasonably diversified and has domestic structures based on product divisions. Figure 6 is a typical worldwide product divisional structure. This structure helps to realize the location and experience curve economies. It also facilitates the transfer of core competencies. The main problem of this structure is the limitation of voice it gives to area country managers as it makes them subservient to product division managers. Figure 6
The worldwide area structure is suitable for firms with a low degree of diversification and a domestic structure based on functional structure. This structure divided the world into geographic areas and each area’s operations authority and strategic decisions are decentralized (figure 7). This structure facilitates local responsiveness. However, this structure can result in a fragmentation of the organization which makes it difficult to transfer core competencies and skills between areas. This structure is consistent with a localization strategy, but may also make it difficult to realize gains under a global standardization.
Figure 7 Hill et. al (2012) indicates that a worldwide area structure is more appropriate for firm focus on localization strategy while a worldwide product divisional structure is more appropriate for firm focus on global standardization or international strategies. An attempted is made by some firms to use a matrix structure to cope with the conflicting demands of transnational strategy. The responsibility for operation decisions for a product should be shared by the product division and various area of the firm. The global matrix structure allows for differentiation along two dimensions: the product division and geographic area.
In a classic matrix structure, product divisions and geographical areas have equal status for operating decisions. In the reality, the global matrix structure may not work as well as the theory predicts. It may appeals as clumsy and bureaucratic. The decision making can be slow and the inflexible organization may not respond quickly to market change or to innovate. The dual-hierarchy structure can also lead to conflict between the areas and the product divisions. To make the matters worse is that it is difficult to ascertain the responsibility in this structure. Integrating mechanism
For an international or a transnational firm, there is greater need for coordination rather than a firm which pursuing a localization strategy. However, the different orientation or opinion of subunits will raise different goals, which may become the impediments to coordination. In order to overcome this problem, both formal and informal integrating mechanisms can be used to achieve coordination. As show in figure 8, the formal mechanisms integrate subunits use methods from direct contact and liaison roles to teams and a matrix structure. The complexity of the formal integrating mechanisms is positive correlated with the need of coordination.
The problem of this solution is that the matrix structure tends to be bureaucratic, inflexible and characterized by conflict. Therefore, flexibility and supporting by the informal integrating mechanisms is necessary. Figure 8 The informal integrating mechanism can be defined as knowledge networks which are supported by the organization culture. Cross-unit cooperation and teamwork are the important content for the culture. The advantage of the network is that it is used as a nonbureaucratic conduit for knowledge flows with in a multinational enterprise.
An example to for the structure of the network is shown in figure 9, the manager A, B and E, F are connected indirectly through manager C, D. If one problem is raised by manager A, the manager F or E can know this situation indirectly and provide solution. In order to operate the network successfully, all the managers must share a strong commitment to the same goals and adhere to a common set of norms and values that override differing subunit orientations, which means strong organizational culture is necessary for teamwork and cooperation. Figure 9

Nestle

Nestle Group.
Management On Nestle International Ltd MGT: 141 Principal of management Prepared For: Afrins farid Assistant Professor Faculty, Business Administration Prepaid By: Km Iftakharul huq| 12310527| Nusrat jahan| 12310305| Estiaq hasan| 12310312| Israt sharmin| 12310217| Farzana sultana| 12310219| Rakib hasan| 12310532| University of Information Technology & Science (UITS) Contents December, 12, 2012 To, Afrins farid Assistant Professor Faculty, Business Administration University Of Information Technology & Science
Subject: Submission of a report. Dear Madam, With due regards and respect we state that we are very thankful to you as you assigned us this report on ‘’Management in Nestle International Ltd’’. it is a great opportunity for us to acquire the theoretical & practical knowledge about five functions of management in Nestle International Ltd which is a reputed multinational organization . we have tried our best to gather what we believe to be The most complete information available. Sincerely THE MANAGER 2. History
Nestle – the world’s largest food group, not only in terms of its sales but also in terms of its product range and its geographical presence: Nestle covers nearly every field of nutrition: infant formula, milk products, chocolate and confectionery, instant coffee, ice-cream, culinary products, frozen ready-made meals, mineral water etc. We are also a major producer of pet food. In most of these product groups and in most markets, Nestle is the leader or at least a strong number two. We are a very focused Company, with more than 94 percent of the sales coming from the food and beverage sector.

Nestle is present around the globe, on all continents, with around 230,000 people working in more in an 84 countries with 466 factories and with sales representatives in at least another 70 countries. Many of our brand names are familiar to you: Nescafe, Nido, Maggi, Polo, Smartest, Milo, Perrier, Friskies, KitKat, Crunch…. Some of our products have broken records: 3,000 cups of Nescafe are consumed every second. and KitKat merited an entry in the Guinness Book of World Records as the world’s best-selling chocolate bar with 418 KitKat fingers eaten every second around the world!
Nestle management provided their employees functionally with good environment, they also influences their employees various facilities like Healthy Salaries, increments. We are acquired more experience to research and analysis this report, that help us future job performance. We create this by Microsoft office 2007. Finally, we thanked those people who are help through valuable information of as. Also thanks our honorable Teacher Afrins farid for her guideline 2. 1Background of the Report: Management is a phenomenon.
It is a very popular and widely used term. All organization are involved in management because it helps and directs the various efforts towards a definite purpose. We are student of BBA program, our principal of management Afrins Farid Assigned as to prepare a report on ’Management in Nestle International Ltd’’. We have made a survey for required information in Nestle official site in net. We have selected our topics as ’Management in Nestle International Ltd’’. We have prepared our report on December 07, 2012 which will be submitted by December 12, 2012. . 1. 2Objective: The report aims to provide information on suggest more valuable information a report on ‘Management on Nestle International Ltd’. The objective of Nestle is to gain more market share and become the global market leader in the Food and Nutrition industry. The company has to experience a hardship in order to sustain that position especially to stay ahead of Cadbury. It is because that Cadbury is being acquired by Kraft food which is the world leader in the chocolate business.
Nestle’s business objective, and that of management and employees at all levels, is to manufacture and market the Company’s products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, business partners and the large number of national economies in which Nestle operates; 1. 2 Management. Objectives: The report aims to provide 3Primary employee motivated effected by the Nestle International Ltd though information on suggest more valuable information to how the 1. 2. 1Scope of the study:
There is a certain boundary to cover this report. Our particular report only covers on how the ‘Management on Nestle International Ltd’. we mainly focus five function of business ; managerial skills. 1. 2. 2. Limitation of the study: We are lucky enough to get change to prepare a report on ‘Management on Nestle International Ltd’. We tried heart ; soul to purpose a well-informed a report. But unfortunates we faced some difficulties’ when preparing this report. We tried to overcome the difficulties. In spite of trying our level best some difficulties that hamper our schedule report work.
The employee of regional office of Bangladesh was too busy of their work. For this, they did not sufficient time to fulfill our queries and some of them neglected us to support. 1. 2. 3. Difficulty in collecting data: Many employers of the organization were not well known about all information that we asked them. Many of them also hesitated to answer the questions. These things humped the information collection. 1. INTRODUCTION Nestle with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestle and is today the world’s leading nutrition, health and wellness Company.
Sales for 2007 were CHF 107. 6 ban, with a net profit of CHF 10. 6 bn. We employ around 276 050 people and have factories or operations in almost every country in the world. The Company’s strategy is guided by several fundamental principles. Nestle’s existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for short-term performance. The Company’s priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives.
The Nestle Addresses navigation at the top of this page will give you access to Nestle offices and websites around the world. We demonstrate through our way of doing business in all the countries where we are present a deep understanding of the local nature of nutrition, health and wellness; we know that there is no one single product for everyone – our products are tailored to suit tastes and habits wherever you are. 1. 1Nestle at a glance: Nestle S. A. Industry Food processing Founded Anglo-Swiss Condensed Milk Company (1866) Ferine Lactee Henri Nestle (1867)
Nestle and Anglo-Swiss Condensed Milk Company (1905) Founder(s) Henri Nestle, Charles Page, George Page * Henri Nestle endowed his company with the symbol derived from his name. His family coat of arms, the nest with a mother bird * protecting her young, became the Company’s logo and a symbol of the Company’s care * and attitude to life-long nutrition. The Nestle nest represents the nourishment, security and sense of family that are so essential to life. * Headquarters Vevey, Switzerland * Area served Worldwide * Key people Peter Brabeck-Letmathe (Chairman)
Paul Bulcke (CEO) * Products Baby food, coffee, dairy products, breakfast cereals, confectionery, bottled water, ice cream, pet foods) * Revenue CHF 83. 64 billion (2011) * Operating income CHF 12. 53 billion (2011) * Profit CHF 9. 487 billion (2011) * Total assets CHF 114. 09 billion (2011) * Total equity CHF 58. 27 billion (2011) * Employees 328,000 (2012) * Website www. nestle. com 1. 1. 2 KEY DATES 1866|  | Foundation of Anglo-Swiss Condensed Milk Co. | 1867|  | Henry Nestle’s Infant cereal developed| 1905|  | Nestle and Anglo Swiss Condensed Milk Co. new name after merger)| 1929|  | Merger with Peter, Cailler, Kohler Chocolats Suisses S. A. | 1934|  | Launch of Milo| 1938|  | Launch of Nescafe| 1947|  | Nestle Alimentana S. A. (New name after merger with Maggi)| 1948|  | Launch of Nestea and Nesquik| 1969|  | Vittel (initially equity interest only)| 1971|  | Merger with Ursina-Franck| 1973|  | Stouffer (with Lean Cuisine)| 1974|  | L’Oreal (associate)| 1977|  | Nestle S. A. (new company name)| |  | Alcon (2002: partial IPO)| | | | 1981|  | Galderma (joint venture with L’Oreal)| 1985|  | Carnation (with Coffee Mate and Friskies)| 986|  | Creation of Nestle Nespresso S. A. | 1988|  | Buitoni-Perugina, Rowntree (with Kit Kat)| 1990|  | Cereal Partners Worldwide (joint venture with General Mills)| 1991|  | Beverage Partners Worldwide (joint venture with Coca-Cola)| 1992|  | Perrier (with Poland Spring)| 1993|  | Creation of Nestle Sources Internationals (2002: Nestle Waters)| 1997|  | Creation of Nutrition Strategic Business Division (2006: Nestle Nutrition)| 1998|  | San Pellegrino and Spillers Pet foods| |  | Launch of Nestle Pure Life | 2000|  | Power Bar| 2001|  | Ralston Purina| 2002|  | Scholler and Chef America|  | Dairy Partners Americas (joint venture with Fonterra)|  |  | Laboratories inneov (joint venture with L’Oreal)| 2003|  | Move pick and Dreyer’s| 2005|  | Wagner, Proteika and Musashi| 2006|  | Acquisition of Uncle Toby’s and Jenny Craig. Creation of Foodservices Strategic Business Division|  |  | Lactalis Nestle Produits Frais (associate)| |  | Jenny Craig, Uncle Toby’s and Delta Ice Cream| 2007|  | Acquisition of Novartis Medical Nutrition, Gerber and Henniez. |  |  | Re-launch of Foodservices as Nestle Professional. |  |  | Partnership with luxury chocolate maker Pierre Marcolini. 1. 1. 3 Vision Beyond sound nutrition, the future of foods will increasingly be driven by science. Nestle scientists are looking ahead to the foods of the future. Nestle R&D is translating nutrition and food science in two ways: * From consumer needs into research priorities * From emerging science into consumer benefits, and services. The vision of Nestle R&D is long term. 1. 1. 4 Mission At Nestle, we believe that research can help us to make better food, so that people live better life. Good food is the primary source of good health, so we are trying to make good food.
To provide fresh and pure products to the customers, we introduced (SHE) Safety, Health and environment policy to protect health of our employs and keep clean our surrounding environment. 3. Senior Management: The executive board, a distinct entity from the board of directors, includes: * Peter Brabeck-Letmathe, Chairman of the Board of Directors, Nestle S. A. * Paul Buckle, Chief Executive Officer, Nestle S. A. * Werner Bauer, Executive Vice President, Nestle S. A. , Chief Technology Officer, Head of Innovation, Technology, Research & Development * Friz van Dijk, Executive Vice President, Nestle S.
A. Asia, Oceania, Africa, Middle East * Chris Johnson, Executive Vice President, Nestle S. A. United States of America, Canada, Latin America, Caribbean * Jose Lopez, Executive Vice President, Nestle S. A. Operations, GLOBE * John J. Harris, Executive Vice President, Nestle S. A. Chairman & CEO of Nestle Waters * Nandu Nandkishore, Executive Vice President, Nestle S. A. CEO of Nestle Nutrition * James Singh, Executive Vice President, Nestle S. A. Finance and Control, Legal, IP, Tax, Global Nestle Business Services * Laurent Freixe, Executive Vice President, Nestle S. A. Europe * Petraea
Heynike, Executive Vice President, Nestle S. A. Strategic Business Units, Marketing, Sales and Nespresso * Marc Caira, Deputy Executive Vice President, Nestle S. A. Head of Nestle Professional Strategic Business Division * Jean-Marc Duvoisin, Deputy Executive Vice President Nestle S. A. Head of Human Resources and Centre Administration * David P. Frick, Senior Vice President and ex officio Member of the Executive Board Brazil headquarters in Brooklin Novo, Sao Paulo According to a 2006 global survey of online consumers by the Reputation Institute, Nestle has a reputation score of 70. 4 on a scale of 1–100. . 1. Management of Nestle Management of Nestle believes in an open door policy and highly discourages bureaucracy in the operational process. The Organization offers an international and multicultural working climate which is conducive to creativity, innovation and the development of personality, and which gives new employees responsibility at an early stage of their career, and opportunities of fast development of high performers. Nestle is a human company where people are the most important asset and where they can develop their personality and skills to their own and their families’ satisfaction.
Nestle offers a competitive compensation package and social benefits in line with Nestle’s commitment to high standards. In addition, the organization offers progressive development through on-going training throughout your career. Training possibilities are available to all staff. Nestle recently introduced e-learning in Bangladesh, a web-based programmed for self development. When joining Nestle, your training is not over – it is only just the beginning Management is defined as the process of setting and achieving goals through the execution of 5 basic management functions that utilize human, financial and material resources. Efficiently means using resources optimally / best possible use * Effectively means getting the things done/making right decision and implementation 4. PLANNING Planning of Nestle: Planning: Deciding what needs to happen in the future (today, next week, next month, next year, over the next five years, etc. ) and generating plans for action. * Decision Making and the Planning Process Strategic goals Strategic plans Tactical goals Operational goals Operational plans The organization’s mission The Environmental Context • Purpose • Premises • Values • Directions Tactical plans
Kinds of organization plan * Strategic Plans * A general plan outlining resource allocation, priorities, and action steps to achieve strategic goals. The plans are set by and for top management. * Tactical Plans * A plan aimed at achieving the tactical goals set by and for middle management. * Operational Plans * Plans that have a short-term focus. These plans are set by and for lower-level managers. 4. 1. 1 Time frame for planning * The Time Dimension of Planning * Is based on the principle of commitment. Planning must provide sufficient time to fulfill the managerial commitments involved. Long-range Plans * Cover present and future strategic issues; normally extend beyond five years in the future. * Intermediate Plans * Usually cover from 1 to 5 years and parallel tactical plans. * Are the principal focuses of organizational planning efforts. * Short-range Plans * Have a time frame of one year or less. * include action plans and reaction (contingency) plan 4. 1. 2Planning Staff * Planning staff personnel gather information, coordinate planning activities, and take a broader view than individual managers. * Planning Task Force * Created when the organization wants special circumstance addressed. * Board of Directors * Establishes corporate mission and strategy. May engage in strategic planning * Chief Executive Officer * Usually serves as president or chair of the board of directors. Has a major role in the planning process and implements the strategy 4. 1. 3. B arrier to goal setting and planning: 4. 1. 4Policies and strategies in the planning process * They give mid and lower-level managers a good idea of the future plans for each department in an organization. * A framework is created whereby plans and decisions are made. Mid and lower-level management may add their own plans to the business’s strategies.. Organizing: (Implementation)pattern of relationships among workers, making optimum use of the resources required to enable the successful carrying out of plans. Nestle has a Board of Directors, led by our Chairman Peter Brabeck-Letmathe, who was the former Nestle CEO. There are 14 members of the Board of Directors. Full details of each member and the committees that they operate within can be found in our Board of Directors section. The day to day management of the Nestle business is taken care of by our Executive Board members.
The 13 designated Board Members manage diverse parts of the global business and a full curriculum vital of each member can be found in the Executive Board section. In addition to how our managers carry out their work as leaders, Nestle pragmatically implements The following organizational principles: • Being as decentralized as possible to optimally respond to the needs of consumers, within the framework defined by our fundamental policies, strategic directions and operational efficiencies • Ensuring collaboration of all Nestle businesses and compliance with Nestle principles, policies And standards (Nestle in the Market approach) Building and maintaining a structure which assures operational speed, with a strong focus on results and removing unnecessary obstacles. • Establishing flat and flexible organizations with minimal levels of management and broad ps of control, which also enable people development. • Setting a shared vision and common goals to leverage the strength of people and organizational alignment. • Defining clear levels of responsibility. Teamwork does not affect the manager’s duty towards his/her people and business results . A team must always have a leader who assumes full responsibility 4. 2. 1.
A Mutual commitment: Living up to the Nestle Management and Leadership Principles is a commitment and a responsibility for everyone in our Company. To be effective, engaging and inspiring, all Nestle people must “walk the talk” and lead by example in their daily work; in this context, actions speak louder than words. Therefore, at Nestle, in addition to professional skills – and regardless of origin, nationality, religion, race, gender, sexual orientation and age – the capacity and willingness to live up to these principles are the key criteria’s for progressing within the organization 5. Staffing:
Job analysis, recruitment and hiring for appropriate jobs. Staffing involves: -Manpower planning -Recruitment selection ; placement -training ; development 5. 1. Training: Process of altering employee behavior ; attitudes in a way that increases the probability of goal attainment * The most common topics covered in cultural training include: Social| history | Politics| Business| customs| Economics| | | | | Training and development is the field which is concerned with organizational activity aimed at bettering the performance of individuals and groups in organizational settings.
It has been known by several names, including employee development, human resource development, and learning and development. Major types of cross-cultural training programs Environmental Briefings Cultural Orientation Language Training Cultural Assimilators Sensitivity Training Field Experience Orientation ; Training Programs at Nestle Formal Orientation Local Training International Training Literacy Training Nestle Apprenticeship Program
International Training Nestle’s success in growing local companies in each country has been highly influenced by the functioning of its international Training Centre, Switzerland. International Training: Classes are carefully composed to include people with a range of geographic and functional backgrounds. Typically a class contains 15–20 nationalities. The Centre delivers some 70 courses. Attended by about 1700 managers each year from over 80 countries. Only 25% of the teaching is done by outside professionals, as the primary faculty is the Nestle senior management.
Its providing services for over 30 years. Managers from around the world to learn from senior Nestle managers and from each other. Country managers decide who attends which course. The programs can be broadly divided into two groups: 1. Management courses 2. Executive courses Training and trainer around the world: Local 1. DMBP: Distribution Management Best Practice. Trainer: Anirban Basu, Nestle India. 2. FMBP: Field Management Best Practice. Trainer: Ziaul Hafiz, Nestle Bangladesh. 3. DMBP plus: Distribution Management Best Practice.
Trainer: Anirban Basu, Nestle India. Managing Partner: Good to Better. Trainer: Anirban Basu, Nestle India. International 1. SDS: SAR (South Asian Region) Distributor Solution (Distribution Management System), Chennai, India, 2009. 5. 2Findings ; Recommendation Nestle said that from the factory floor to the top management, training at Nestle is continuous. And because it is mainly given by Nestle people, it is always relevant to your professional life. Approach is unique in many ways: * It reflects the company’s decentralized nature.
Whichever country you are working in, you will be given the knowledge and tools you need to respond to local needs * It encourages you to broaden your horizons, by working with people from many different countries and cultures in the course of your career For international assignment Preliminary Visits Preliminary trip of host country Accept or reject the assignment based on experience Language Training Host country language skills and adjustment: improves expatriate’s effectiveness and negotiating ability, info of host country, social support * Role of English language Knowledge of corporate language: a common company language –English Practical Assistance Adaptation to new environment, assist in relocation 6. Leading/directing: Determining what needs to be done in a situation and getting people to do it. Nestle managers at all levels are more with leading and inspiring people to add value to the Company and society rather than with exercising formal authority. This calls for a high personal commitment of each employee and a common mindset geared towards results. In an increasingly dynamic world, leaders face Significant challenges and opportunities.
These stem from shifts to new social patterns and unprecedented worldwide competition. Achieving ongoing success requires that each Nestle leader understands the context and capitalizes on it, as described in the following principles: Lead to win • Has built credibility as a result of coherent action, leadership and achievement. • Is able to think from different perspectives and to create a climate of innovation. This implies openness to risk and the possibility of making mistakes, but also the willingness to correct and learn from them. • Believes in the importance of alignment and management of expectations. Has broad interests, a good general Education, responsible behavior as well as a balanced lifestyle. Manage for results • Embraces personal commitment and courage in execution. This includes the capacity and the willingness to take initiatives and risks while maintaining composure under pressure. • Values proactive cooperation in order to create synergies at local, regional and global levels. • Embraces change and is able to implement it and manage its consequences. • Believes in achieving business objectives rooted in compliance and sustainable practices. Grow talent and teams Has a passion for building and sustaining an environment where people have a sense of personal commitment to their work and give their best to promote our Company’s success. • Cares for and develops the leaders of tomorrow through addressing all areas that Allow them to progress in their work and to expand their capabilities. • Understands the importance of continuous learning and improvement, as well as sharing knowledge and ideas freely with others. • Is committed to giving and receiving honest, accurate and timely feedback, including performance evaluation, in a climate of mutual respect . Believes in the importance of building diverse teams, and promotes the advantages of gender balance. Compete and connect externally • Constantly looks for ways to satisfy our consumers and customers while attracting new ones in unique and compelling ways. • Displays curiosity and open-mindedness as well as a high level of interest in other cultures and lifestyles. • Believes in openness and dialogue with outside stakeholders about future trends in society, technology, consumer habits, and business opportunities. Understands the external impact of our operations and, as a result, proactively seeks to engage and partner with the community, authorities, shareholders and other stakeholders. Strategic leadership To force the businesses to become more efficent To crete a regional manufacturing network To integrate the company ‘s business on a global scale 7. Controlling/monitoring: * Types of Controls 1. Areas of Control 1. Physical resources—inventory management, quality control, and equipment control. 2. Human resources—selection and placement, training and development, performance appraisal, and compensation. . Information resources—sales and marketing forecasts, environmental analysis, public relations, production scheduling, and economic forecasting. 4. Financial resources—managing capital funds and cash flow, collection and payment of debts. Strategic control Structural control Operations control Financial control * The Purpose of Control 2. Control is one of the four basic management functions. The control function, in turn, has four basic purposes. Adapt to environmental change Limit the accumulation of error Control helps the organization Cope with organizational complexity Minimize costs
Steps of controlling process: Establish standards Measure performance Compare performance against standards Maintain the status quo Correct the deviation Change standards Determine need for corrective action 2 1 4 3 Checking progress against plans. 1. The regulation of organizational activities so that some targeted element of performance remains within acceptable limits. 2. Provides organizations with indications of how well they are performing in relation to their goals. 3. Control provides a mechanism for adjusting performance to keep organizations moving in the right direction. Basic roles
Category Role Example Interpersonal Figure head Leader Liaison Representing the org. Motivating employees Coordinating activities Informational Monitor Disseminator Spokesperson Scanning industry reports Sending memos Making speech Decisional Entrepreneur Disturbance handler Resource allocator Negotiator Developing new ideas Resolving conflict Examining budgets Pursuing agreements * Interpersonal: roles that involve coordination and interaction with employees. * Informational: roles that involve handling, sharing, and analyzing information. * Decisional: roles that require decision-making. 8.
Management skills: * Political: used to build a power base and establish connections. * Conceptual: used to analyze complex situations. A conceptual skill is the ability to imagine the integration and coordination of the parts of an organization – all its processes and systems. A manager needs conceptual skills to see how factors are interrelated, to understand the impact of any action on the other aspects of the organization and to plan long range. * Interpersonal: used to communicate, motivate, mentor and delegate. * Diagnostic: ability to visualize most appropriate response to a situation. Technical: Expertise in one’s particular functional area. Technical skills are the knowledge of and ability to use the processes, practices, techniques or tools of a specialty responsibility area. E. g. accountants, engineers, salespersons, etc. Implementation of policies and strategies * All policies and strategies must be discussed with all managerial personnel and staff. * Managers must understand where and how they can implement their policies and strategies. * A plan of action must be devised for each department. * Policies and strategies must be reviewed regularly. Contingency plans must be devised in case the environment changes. * Assessments of progress ought to be carried out regularly by top-level managers. * A good environment and team spirit is required within the business. * The missions, objectives, strengths and weaknesses of each department must be analyzed to determine their roles in achieving the business’s mission. * The forecasting method develops a reliable picture of the business’s future environment. * A planning unit must be created to ensure that all plans are consistent and that policies and strategies are aimed at achieving the same mission and objectives. . Levels of management Most organizations have three management levels: first-level, middle-level, and top-level managers. [These managers are classified in a hierarchy of authority, and perform different tasks. In many organizations, the number of managers in every level resembles a pyramid. Each level is explained below in specifications of their different responsibilities and likely job titles. 9. 1. Top-level managers Consists of board of directors, president, vice-president, CEOs, etc. They are responsible for controlling and overseeing the entire organization.
They develop goals, strategic plans, company policies, and make decisions on the direction of the business. In addition, top-level managers play a significant role in the mobilization of outside resources and are accountable to the shareholders and general public. According to Lawrence S. Kleiman, the following skills are needed at the top managerial level * Broadened understanding of how: competition, world economies, politics, and social trends effect organizational effectiveness. The role of the top management can be summarized as follows – * Top management lays down the objectives and broad policies of the enterprise. It issues necessary instructions for preparation of department budgets, procedures, schedules etc. * It prepares strategic plans ; policies for the enterprise. * It appoints the executive for middle level i. e. departmental managers. * It controls ; coordinates the activities of all the departments. * It is also responsible for maintaining a contact with the outside world. * It provides guidance and direction. * The top management is also responsible towards the shareholders for the performance of the enterprise. 9. 1. 1Middle-level managers Consist of general managers, branch managers and department managers.
They are accountable to the top management for their department’s function. They devote more time to organizational and directional functions. Their roles can be emphasized as executing organizational plans in conformance with the company’s policies and the objectives of the top management, they define and discuss information and policies from top management to lower management, and most importantly they inspire and provide guidance to lower level managers towards better performance. Some of their functions are as follows: * Designing and implementing effective group and intergroup work and information systems. Defining and monitoring group-level performance indicators. * Diagnosing and resolving problems within and among work groups. * Designing and implementing reward systems supporting cooperative behavior. 9. 1. 2. First-level managers Consist of supervisors, section leads, foremen, etc. They focus on controlling and directing. They usually have the responsibility of assigning employees tasks, guiding and supervising employees on day-to-day activities, ensuring quality and quantity production, making recommendations, suggestions, and up channeling employee problems, etc.
First-level managers are role models for employees that provide: * Basic supervision. * Motivation. * Career planning. * Performance feedback. Factors that influence a manager to fit in one of the style: * The task that is being undertaken * The traditions of the organization * The type of Labor Force * The size of the group * The personality of the Leader * Personalities * Time 10. The Nestle factories are operating in the region of: 1. Africa 2. America 3. Asia 4. Europe 5. Oceania Being a company dedicated to food from the beginning, Nestle remains ensitive to culinary and eating habits, and responds to specific nutritional problems, whilst also setting and matching new trends such as growing out-of-home consumption and caring about the wellbeing of its consumers. * Zone Asia, Oceania and Africa ; 6. 6% organic growth, strong performance in most emerging markets ; Japan continued to suffer deflation but achieved positive RIG, With good performances in Soluble coffee and Chocolate ; China slow due to product exchange in Dairy, but on improving trend ; South Asia, Africa and Middle East amongst the highlights 0. 1Nestle Focus in Bangladesh Nestle is the world’s leading Nutrition, Health and Wellness Company. In Bangladesh we have Maggi noodles and soups, breakfast cereal, Nescafe, coffee mate, baby food, milk and a seasoning. However, worldwide we have more than 10000 products in different variants. As of today, we employ over 276,000 people across more than 500 state-of-the-art facilities around the world. But it was never our ambition to be the biggest at what we do – it was our ambition to be the best. That sums up what we mean by Nestle Focus.
It means we also appreciate that size and success are nothing without the finer details – such as genuine care for our consumers, a commitment to our people and a wider sense of responsibility towards our customers, suppliers and our communities. When you work for us, you’ll see the difference that makes at every stage. It will mean becoming part of an organization which can offer you subsidiary of Nestle S. A. whatever you want from your career. Nestle Bangladesh Limited started its first commercial production in Bangladesh in 1994. In 1998. Nestle S. A. ook over the remaining 40% share from our local partner when Nestle Bangladesh became a fully owned Nestle Bangladesh’s vision is to be recognized as the most successful food and drink Company in Bangladesh, generating sustainable, profitable growth and continuously improving results to the benefit of shareholders and employees. Our factory is situated at Sripur, 55 km north of Dhaka, the factory produces instant noodles, cereals and repacks milks, soups, beverages and infant nutrition products. Today Nestle Bangladesh Ltd. is a strongly positioned organization.
The Company will continue to grow through our policy of constant innovation and renovation, concentrating on our core competencies and our commitment to high quality, with the aim of providing the best quality food to the people of Bangladesh. In Bangladesh, Nestle started its operation in 1994 and its factory is situated in Sreepur, Gazipur. Nestle Bangladesh directly employs more than 650 people and more than 1000 people are employed by suppliers and distributors in connection to Nestle. Our products in Bangladesh are Nido, Nescafe, Maggi noodles and soup, breakfast Cereals, Coffee-Mate, Nestea, Nesfruta ,Nesfrappe and many more.
Nestle is present around the globe, on all continents, with around 230,000 people working in more in an 84 countries with 466 factories and with sales representatives in at least another 70 countries. Nestle is the world’s largest food group, not only in terms of its sales but also in terms of its product range and its geographical presence. Nestle covers nearly every field of nutrition: infant formula, milk products, chocolate and confectionery, instant coffee, ice-cream, culinary products, frozen ready-made meals, mineral water etc. Nestle is a focused company, with more than 94 percent of the sales coming from the food and beverage sector.
Did you know 3,000 cups of Nescafe are consumed every second? KitKat merited an entry in the Guinness Book of World Records as the world’s best-selling chocolate bar with 418 KitKat fingers eaten every second around the world! 10. 2 Selected awards, certifications and rankings * In May 2006, Nestle’s executive board decided to adapt the existing Nestle management systems to full conformity with the international standards ISO 14001 (Environmental Management Systems) and OHSAS 18001 (Occupational Health and Safety Management Systems), and to certify all Nestle factories against these standards by 2010.
In the meanwhile a lot of the Nestle factories have obtained these certifications. For instance, Nestle’s three factories in Japan (Himeji factory: Hyogo Prefecture, Shimada factory: Shizuoka Prefecture and Kasumigaura factory: Ibaraki Prefecture) have each obtained ISO standard certifications: ISO14001, ISO 22000 (Food Safety Management Systems) and OHSAS 18001 as of the end of December, 2008. * In 2009, Nestle Waters earned a sixth LEED certification. The certification was given by the U. S. Green Building Council’s Leadership in Energy and Environmental Design which the company become its first recipient.
It highlights the environmentally conscious elements of the facility which enables them to receive the certification. * Nestle Purina received in 2010 the Malcolm Balding National Quality Award for their excellence in the areas of leadership, customer and market focus, strategic planning, process management, measurement, analysis and knowledge management, workforce focus and results * In September 2011, Nestle occupied 19th position in the Universal’s global ranking of Best Employers Worldwide. According to a survey by Universal Communications Nestle was in 2011 the best employer to work for in Switzerland. Based on independent research by the Corporate Research Foundation Institute, Nestle (South Africa) has been certified in 2011 as a Best Employer in South Africa. * Nestle USA has been recognized by Business Week magazine as one of the “Best Places to Launch a Career. ” Business Week ranked Nestle USA #25 on their annual list of the best companies for new college graduates to launch their careers. * For the twelfth consecutive year, Fortune Magazine included in 2011 Nestle in their list of The 10 Most Admired Companies in the World. Nestle won in 2011 the Stockholm Industry Water Award for its leadership and performance to improve water management in its internal operations and throughout its supply chain. * The International Union of Food Science and Technology (IUFoST) honored Nestle in 2010 with the Global Food Industry Award. * In May 2011, Nestle won the 27th World Environment Center (WEC) Gold Medal award for its commitment to environmental sustainability. * In 2011, Nestle Malaysia won an award of the Association of Chartered Certified Accountants for their Sustainability Reporting. On 19 April 2012, The Great Place to Work® Institute Canada mentioned Nestle Canada Inc. as one of the ’50 Best Large and Multinational Workplaces’ in Canada (with more than 1,000 employees working in Canada and/or worldwide). * In April 2012, Nestle obtained an A+ rating from the Global Reporting Initiative (GRI) for their global annual report on Creating Shared Value. To reach A+ the company provided new data in their annual report on a number of criteria such as human rights, diversity and gender, climate change, biodiversity and corruption.
Nestle was the first food and Beverage Company to achieve an A+ rating from the GRI for a global sustainability report. * On 21 May 2012, Gartner published their annual Supply Chain Top 25, a list with global supply chain leaders. Nestle ranks 18th in the list. Address: Nestle Bangladesh Ltd. Address: Gulshan Tower, Plot # 31, Road # 53, Gulshan North C/A City:Dhaka Location:Gulshan Phone:+880-2-9882759 Ext-255 Category: Milk Products Produce: For tetra Ltd 9, Prince Street P. O. Box-92032 Oakland, Newlands Nestle consumer service Post box no-11037, Uttra,Dhaka Care line number: 01730637853 0800217777 e-mail:concumer. [email protected] nestle. com

Nestle Group

Nestle Refrigerated Foods: Contadina Pasta ; Pizza.

INTRODUCTION
The case is related to Nestle Refrigerated Foods and provides a detailed look at the use of simulated test markets to forecast a new product’s potential. Stephen Cunliffe, the president of the Nestle Refrigerated Food Company (NFRC) is seriously pondering the introduction of a refrigerated pizza to the refrigerated food category. In the late 1980s, NFRC had successfully launched refrigerated pasta and sauces to the US market. The product was an immediate success, with sales of over $50 million in the first year. Sales grew to $100 million by 1990, even with the entry of a strong competitive product by Nestlé’s International rival, Kraft. At the time of the case, however, the pasta market is showing signs of saturation and NFRC must decide whether to launch its newly developed pizza product. The case illustrates the new product development process followed by Nestle for its successful pasta introduction. It is also an introduction to simulated test markets and provides a detailed explanation of the BASES(a market research firm) model used in Nestlé’s new product forecasting. It outlines the pizza business opportunity and questions whether NFRC should proceed with the launch.
PROBLEM DEFINITION

The Primary decision for Cunliffe to be taken is whether to launch Pizza or not. And if it is to be launched then the following questions need to be answered:
1.      Which form of pizza to be launched, the pizza “kit” or the pre-assembled, heat-and-eat pizza?
2.      How large a market could be targeted?
3.      What market share could be achieved?
ANALYSIS
At the very onset, let’s analyze the Pasta launch. A commendable outcome indeed is a result of risky initiative. Following risks were taken while the launch of Contadina pasta and sauces:
A small company, Lambert’s Pasta ; Cheese was acquired at a premium in order to be the first company to bring refrigerated pasta to market on a national basis. Heavy investment was done in distribution to get the product to market without high spoilage rates.
Brokers were used to sell the product, instead of using the traditional sales force.
As a result, the product was huge success and Contadina became the market leader in refrigerated pasta and sauces. But to continue the rapid growth NRFC needed other new product opportunities.
Here it is worth noting that the tests used were BASES tests. Let’s analyze the strengths and weaknesses of the BASES I (concept test) and BASES II (concept + taste test). Both tests measure market potential to a degree. The results can be used to gauge level of awareness and possible usage of a product as well as to understand customer’s perception of the product/brand. These results can be used to potential sales and marketability of the product. However, the BASES I test do not utilize any actual products (taste testing) to ascertain customer reaction. It depends solely on the replies from potential customers to forecast marketability and impressions of the product. This type of survey can be conducted quite quickly with relatively little expense. On the other hand, BASES II includes a taste test along with its concept test to gather similar information for forecasting. Hence, the results could find relevance in Pizza case also.
Now let’s consider the problem statements for the case. The first question is whether to launch pizza or not. This decision would depend on the obvious financial viability of the product in the long run. Thus the estimated demand (trial and repeat) for the two pizza options under consideration by the firm {the pizza “kit” (containing a crust packaged together with separate packets of cheese and sauce) and the pre-assembled, heat-and-eat pizza} could be considered.
For the two categories, a preliminary concept test was conducted by MRD .findings from the study were promising. Positive purchase intent for the kit was about 58% overall whereas for the pre-assembled option positive purchase intent was approximately 52%.From the exhibits, where mean concept attribute ratings before trial are given, results indicate that people believe that an assembled pizza is less likely to have a soggy crust. Also read an essay Pizza Hut business strategy
Further investigation by the R;D group indicated that the refrigerated pre-assembled concept was infeasible from a production standpoint. Not only did the flavors of the sauce and toppings migrate into one another, but also the sauce and toppings infiltrated the crust resulting in a poor quality product. The kit product was feasible. Also the national distribution was a possibility.
Forecast of demand using the BASES model described in Exhibit 9:
Taking the cue from the case of pastas and sauces, the key determinant o f the trial volumes was the trial rate forecast. Research results are analyzed as follows:
Pizza and topping
Pizza only
CONCEPT PURCHASE INTENT
17% definitely would buy
59% would probably buy.
CONCEPT PURCHASE INTENT
15% definitely would buy
43% would probably buy.
ADJUSTED TRIAL
Industry rule of thumb: 80% “definite actually buy and 30% of “probable” buy
Therefore adjust trial:
(80%)(17%) + (30%)(59%)= 31.30%
ADJUSTED TRIAL
adjust trial:
(80%)(15%) + (30%)(43%)=24.9%
ENVIRONMENT ADJUSTMENT
Seasonality
ENVIRONMENT ADJUSTMENT
Seasonality
MARKETING PLAN ADJUSTMENT
$13 MM advertising=2330 GRPs =48% awareness
58%  ACV
(31.3%)(48%)(58%)=8.71%
MARKETING PLAN ADJUSTMENT
$13 MM advertising=2330 GRPs =48% awareness
58%  ACV
(24.9%)(48%)(58%)=6.21%
(Trial household) x(repeat rate)x(repeat purchase occasions) x(avg. repeat transaction amount)=(77.4MM)(8.71%)x(22%)x(avg. 2.0)x(1.4 units)=16.61 MM units
(Trial household) x(repeat rate)x(repeat purchase occasions) x(avg. repeat transaction amount)=(77.4MM)(6.21%)x(22%)x(avg. 2.0)x(1.4 units)=2.96 MM units
In the above analysis certain assumptions were that the environment adjustment and the marketing plan adjustments for pizza ; topping and pizza only are same as that used for pasta. Also, as no actual product had been used in the concept test, we can use consumer reaction to the concept. Hence I took target households as 77.4 million. In exhibit 21, there is a big difference between Contadina users and non-users on the “top two box” scores. This will obviously affect the forecast depending on what proportions are used for Contadina users versus non-users in the population. Besides this Nestlé’s marketing research departments cautions us that parent brand image could vary from 5% to 25%. It would be worthwhile to judge the sensitivity of the forecast under 5%, 15%, and 25% parent brand penetration scenarios.
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Nestle Refrigerated Foods: Contadina Pasta ; Pizza

Nestle Company.
The brand chosen in the category of food in the area of Fast moving consumer goods (FMCG) is Maggi. Maggi is a brand of Nestle Company and operates all over the world. It is famous for its instant noodles and soups. The report consists of the following parts:

SWOT Analysis: Strengths: • Strong Global Corporate Brand • Pioneer and Leader • Symbol of warm, family & shelter • Research and Development • Strong brand loyal customers • Constant innovation • Advertisements • Wide range of distribution channel Weakness: • Low rural market presence constraints • Brand Proliferation

• Products are dependent on each other: • Health related issue • Uniform Brand for all food categories Opportunities: • Growing package and canned food market • High brand awareness • Other product category • Job Provider Threats: • Current competition • Future Competition Differential advantage/ Competitive edge (USP): • Quality: the quality of all Maggi products is high. • Advertisements: the ads of Maggi are • New product development: Maggi constantly does innovation in the product and make changes according to the local taste in the country where it operates. Segmentation Targeting & Positioning (STP):
There are 4 basic market segments in which Maggi operates. These are: • Geographic Segment • Psychographic Segment • Demographic Segment • Behavioural Segment Marketing objectives and goals (SMART): • To sell in the products in the rural areas of the developing countries • To start a new line of product • To start brand Proliferation • To become the market leader • To create customer brand loyalty. Marketing strategies and programmes (4P’s): • Product: It is recommended to extend the product line and start with chips biscuits and other snacks. • Price: It is recommended that the price should be increased.
• Promotion: new promotional strategies are recommended like one to one and sample marketing • Place: it is recommended that the products of Maggi should be placed at the famous retail stores. Introduction: Maggi is a brand of the Nestle Company established in 1872 in Switzerland by Julius Maggi when he took over his father’s mills. The vision of Julius Maggi behind the creation of Maggi was to sell something that is good-tasting, nutritious and accessible to all. Maggi is a brand of instant bouillon cubes, soups, stocks, ketchups, seasonings, sauces and instant noodles.
Maggi was the first one to bring protein-rich legume meal to the market and became the pioneer of industrial food product. In the year 1947 Maggi was acquired by Nestle and since then it is producing culinary products high taste and quality all over the world. Today Maggi is famous in Europe, Brunei, Malaysia, Germany, France, Poland, Slovenia, Slovakia, Netherlands, Czech Republic, India and Pakistan as a convenient food product especially by the working women who have to take care of the houses, children and work. (Maggi, USA)
The demand of Maggi is ever growing and people love the new taste and products of Maggi. One major reason for the popularity of Maggi is its adaptability i. e. the changes in the taste and flavour of the Maggi products that are made according to the country and region in which it is being sold. This has become a competitive advantage for Maggi and has created customer loyalty. SWOT Analysis: SWOT analysis is an important tool for auditing the overall strategic position of the business and its environment and helps to generate strategic alternatives.
It is also helpful in determining the internal and external factors that can influence and have impact on the growth and success of a company. It is an abbreviation for Strength, Weakness, Opportunities and threats. SWOT analysis for Maggi is given below: • Strengths: following are the strengths of Maggi. Strong Global Corporate Brand: Maggi is a brand of Nestle international limited which is a strong global brand operating all over the world. Nestle also has other product segments in the food category which includes dairy products, chocolates and infant foods which are equally famous in every part of the world.
Pioneer and Leader: Maggi was the first one to start with the instant Noodles, soups, stocks and chicken cube and so has the mover advantage in the market. Symbol of warm, family & shelter: Maggi has promoted itself with the idea of providing warmth shelter and family atmosphere and making people come closer. Research and Development: Maggi has formed Research and development Division all over the country recently it has developed one in India Strong brand loyal customers: Maggi being a brand of Nestle is well-reputed and famous therefore has strong and loyal customers.
Constant innovation: Maggi constantly make changes in its product according to the taste of the people where it operates. Advertisements: Maggi is famous for its advertisements showing happiness, shelter, warmth, love and family. Also the ads are innovative with new ideas and concepts. Wide range of distribution channel: Maggi has wide range of distribution channels that are efficient and effective. • Weakness: following are the weaknesses of Maggi. Low rural market presence constraints: in countries like India, Pakistan and Bangladesh Maggi is not present in the rural area.
It is just present in the urban side. Brand Proliferation: There is no brand proliferation done by Maggi in order to compete with the low priced product while keeping the main brand aside. Products are dependent on each other: All the products are inter-related like soups and noodles etc. Health related issue: As Maggi is related to food industry it is a possibility it may sometime cause health problem and diseases if not prepare in hygienic environment. Uniform Brand for all food categories: The same brand name (Maggi) is used for the different food items like soups, noodles, chicken cubes and stock.
• Opportunities: following are the opportunities that Maggi gets. Growing package and canned food market: the trend is changing and people now prefer canned and packaged food that are easy to cook and are prepared within a small time. High brand awareness: Maggi has positioned itself as a brand that people all around the world know about, people are aware of the brand name Maggi. This is an opportunity as it helps the brand to increase the sales and target new markets. Other product category: other product category like Biscuits, Chips and Ready to Eat Market still unexplored Maggi has the opportunity to penetrate in these also.
Job provider: there is an opportunity to go in the developing nations where there is a need for job and sell the products there. • Threats: Following are the threats faced by Maggi. Current Competition: there is a lot of competition for the brand as there are more established and powerful competitors are already there in the market like Heinz Sauce and ketchup, Knorr noodles and soups, Campbell Soups, Wai way noodles, Top Ramen and etc. Future Competition: Due to Less Entry Barriers in the Market segment for product category there is a chance for more competition in the future.
(Prakashgail, 2008) Differential Advantage or Competitive Edge: It is very important for every company or brand to have some differential advantage or a competitive advantage. It is an advantage over the competitors in which the consumers are provided greater value by means of lower prices or high quality at high risk. But today the focus has changed and it does not mean to provide the good s at low prices or high quality. Today it involves anything that is different and makes you stand aside from your competitor it involves new ways and methods, change and innovation or promotion.
Following are the competitive advantages of Maggi that makes Maggi different from its competitors in the minds of the consumers. (Cook, V, 1983) Quality: Due to the increased competition it has become essential to always keep in mind that the customers has got many choices and they can switch to other brand if they are not satisfied. Maggi being a well known and reputed brand has maintained its quality and thus quality has become a competitive advantage for it. People all around the world trust the quality and hygiene of the product.
Advertisements: the ads of Maggi are unique and different they educate and tell the customers and give instructions of how to make the instant soups and noodles. An innovative new campaign of Maggi showing the 1-2-3 of a tasty meal and educating consumers on the importance of balanced servings of carbohydrates, protein, vegetables and fruits at every meal was a hit campaign and received recognition for its innovation. The Maggi 2-minute noodles tribute campaign won the coveted gold Award at the Malaysian Effie Award in the year 2008 for its marketing and effective communication.
(www. nestle. com, 2010) New Product development: Maggi is constantly involved in research and development of new products and bringing in new flavours according to the taste of the people. This has become a competitive advantage for the brand as through this it attracts more customers and provides them with the local flavours with which they are used to. The MAGGI TASTYLITE range of low fat noodles is a recent innovation in the brand which has gained market share and volume in the market in a short time.
In India Maggi launched an Atta variant with the theme “Taste as well as health” (Sindhu, S, 2010) Segmentation targeting and positioning: Segmentation: Segmentation helps to find out the different types of customers with different needs. As a company cannot serve all the customers it has become very important to segment the market and specialize in some areas. Market Segmentation is defined as the division of the market into different homogenous groups of consumers. These are the four major segments for Maggi:
Geographic segmentation: As Maggi is operating worldwide its geographic segment includes all the countries of the world with different climate, taste and culture. It is sold in the urban areas of the developing countries like India, Pakistan and Bangladesh but it needs to penetrate in the rural areas and make such strategies that could help it to easily sell the products there. Demographic Segmentation: Maggi is liked by people of all ages but it is more preferred by the unmarried, students and the working mothers with small kids. As it is not very expensive it is affordable by everyone.
Psychographic Segmentation: Maggi is mostly used by people who have a busy schedule and have no time to cook. Also people who want change in the daily food and taste use Maggi. Behavioural Segmentation: Due to the changing behavior of the customers it has now become very important to create brand loyalty among them otherwise they will switch to the competitors product and make them regular users of the product. (Wedel, M and Kamakura, W, 2000) Targeting: After defining the market segments it is the next step to target the segments.
Above mentioned segments are the ones that Maggi targets or should target in the future. Maggi has the expertise to serve the above mentioned segments because it is an established brand and has created a good image in the minds of the people. Like McDonalds targets families in search of quality food with good clean dine-in area. (Anonymous, 2003) Positioning: Maggi has positioned itself as instant, easy to cook and nutritious range of products . Through its ads Maggi has shown that it could be easily prepared and it’s full of proteins that are needed for growth.
Not just that it has also positioned itself as being tasty and yummy. Apple computers have positioned itself as the manufacturer and seller of computers that are user-friendly. It is very importantly to position the brand correctly from the very beginning because afterwards it becomes very expensive and difficult to reposition it. (University of Southern California, 2008) Marketing Objectives and Goals (SMART): Smart Goals helps to makes dream come true. The first step towards success is to know where you want to go and the next step is to plan how to get over there.
Goals and objectives are like a roadmap by following them it becomes easy to reach the destination. Setting goals means to create written plan that has measurable and reasonable shot-term and long-term goals and objectives. (Richmond, A, 2010) SMART goals can be described as follows: S – Specific: Goals should be specific and to the point they should not be loose and vague. It should address who, what, when, where and why. Goals should define specifically the task with the date. M – Measurable: the goal should be simple and concrete and can be measured when reached.
A – Achievable: The goals should be such which could be achieved and those which are reasonable. In short the goals should be practical. Hence the goal should be feasible. R – Relevant: goals should be instrumental and relate the mission of the company. T – Timely: goals need to have time frame and the amount of time should be set in the beginning this will provide structure to the goals. There should be a target date defined for the completion of a specific task. (Anonymous, 2010) Smart Goals and Objectives for Maggi:
• To sell in the products in the rural areas of the developing countries like India, Pakistan and Bangladesh. • To start a new line of product which include ready to cook meals like that of Knorr. • To start brand Proliferation by making a low-cost rage of the expensive product and target a new market like Hienz ketchup. • To become the market leader and leave all the competitors far behind. • To create customer brand loyalty. Marketing Strategies and Programmes (the 4Ps): It is very important to create good and effective marketing strategies and programmes to make the business successful.
In this regard the marketing Mix also known as the 4Ps are used by the marketers as a tool in making the strategies and marketing programmes. The 4Ps classifies the 4 major controllable elements of the marketing plan and helps to generate the optimal response in the target market. The 4Ps include: Product, Price, Place and promotion. Special attention should be given to these 4Ps. (Perreault, W and McCarthy, E, 2005) The 4Ps for Maggi: Product: Currently Maggi includes instant bouillon cubes, soups, stocks, ketchups, seasonings, sauces and instant noodles in its brand category.
But it is recommended that Maggi extends it product category and start manufacturing and selling ready to cook meals, chips, biscuits and other likely food items. Price: the focus on price should be such that the producer and the customer both get profit and benefit. Today the strategy is to sell at lower price than the competitor. As Maggi is a well established brand that has good quality and customer acceptance it is recommended that Maggi can raise the price in the future in a way that the target market can afford it.
Place: It is very important that your product is present at the right place at the right time and in the right quantity. For this it in very necessary to have good logistic and effective distribution channels. In case of Maggi there should be proper warehouses where the products could be stored and then sold to the retailers. Promotion: promotion refers to communication with the customers. This includes sales, advertisements, sales promotion, public relations and etc. Today marketers are using one to one and sample marketing heavily. It is recommended that Maggi should also use this approach in order to penetrate in the market.
Besides this there is a trend to promote the product by sponsoring events and by advertising about the product in a movie or a TV show. Maggi should also use these new approaches and increase customer awareness and its sales. (McCarthy, 2010) Conclusion: It is a very good strategy to convert the threats in to opportunities and the weaknesses into strengths here in case of Maggi it is the best to convert all the threats into opportunities and weaknesses into strengths only in this way the company can be successful and gain customer loyalty and market-share.
At the current stage the brand is operating well and is quite successful but it is necessary to keep changing and innovating in order to progress and prosper as constant change is required everywhere. It is recommended that the goals and objectives of the company should be well stated, specific, measurable, achievable, realistic and time related. Besides this the brand should do extension in the chips and biscuit category and penetrate in the rural areas of countries like India, Pakistan and Bangladesh. Also the company should do brand proliferation and attract new customer and serve new segments.
Further it is recommended that the company should promote the brand through new means which include one to one marketing and sample marketing, advertisement in between movies and TV shows. These recommendations will help the brand in its struggle to success and market penetration. Also these will be helpful in attracting more customers and creating brand loyalty in the existing customers. References: Anonymous, 2003,” Principles of Marketing: Market Segmentation, Targeting, And Positioning for Competitive Advantage” Viewed from http://jobfunctions. bnet. com/abstract.
aspx? docid=79879 [Accessed on April 25, 2010] Anonymous, 2010, “Setting S. M. A. R. T Goals” Viewed from https://www. lehigh. edu/~inhro/documents/SMART_GoalsHandout. pdf [Accessed on April 25, 2010] Case study, n. d, “The Maggi Brand in India” Viewed from http://74. 125. 153. 132/search? q=cache:S156RUbX7GIJ:www. ibsrocks. com/forum/download/file. php%3Fid%3D525+nestle+maggi+SWOT+Analysis&cd=49&hl=en&ct=clnk&gl=pk [Accessed on April 25, 2010] Cook, V, 1983,”Marketing Strategy and differential advantage”, The Journal of Marketing, Viewed from http://www.
jstor. org/pss/1251494 [Accessed on April 25, 2010] Khaitan,A,2009,” Equity research report on Nestle India Limited”, Viewed from http://docs. google. com/viewer? a=v&q=cache:VXg9uIopLs0J:www. moneycontrol. com/news_html_files/news_attachment/2009/Hem%2520Securities-%2520Nestle%2520India. pdf+nestle+maggi+SWOT+Analysis&hl=en&gl=pk&pid=bl&srcid=ADGEESip0QR7vb708GuagVrkzXr40ld9x893PGHS2JE8PTZwG1Jw6ITdHtupI0GPuhUp3rE1cckYRQWfHz1Rs3uFcb4ak93QEDZJXu4rJoJLzF7ogkoiwhveox_sp3zmih5BRDR0ls9G&sig=AHIEtbSw3DxQaVrffxOhfXY1pNXVVj2VHQ [Accessed on April 25, 2010]
Maggi, 2010, viewed from http://www. nestleprofessional. com/united-states/en/BrandsAndProducts/Brands/MAGGI/Pages/default. aspx [Accessed on April 25, 2010] Maggi, n. d, Viewed from http://www. descubremaggi. com/Public/Default. aspx [Accessed on April 25, 2010] McCarthy, 2010,”Marketing mix 4P’s model 5P’s”Viewed from http://www. valuebasedmanagement. net/methods_marketing_mix. html [Accessed on April 25, 2010] Mehta, B, 2004,”A Brand Story “Viewed from http://www. mouthshut. com/review/Maggie_Noodles-63594-1. html [Accessed on April 25, 2010] Nestle, n.
d, Viewed from http://www. nestle. in/PreparedDishes_CookingAids. aspx? OB=3&id=55 [Accessed on April 25, 2010] Perreault, W and McCarthy, E, 2005,”Essentials of marketing: A global-managerial Approach”, McGraw –hill Series in marketing, Viewed form http://www. amazon. com/s? ie=UTF8&rh=i%3Astripbooks%2Cp_27%3AWilliam%20D. %20Perreault&field-author=William%20D. %20Perreault&page=1 [Accessed on April 25, 2010] Prakashgail, 2008,”Marketing plan:Maggi Noodles” Viewed from http://www. oppapers. com/essays/Marketing-Plan/157491? topic [Accessed on April 25, 2010]
Richmond, A, 2010,”A better way to track your goals” Viewed from http://www. career-intelligence. com/management/SmartGoals. asp [Accessed on April 25, 2010] Sindhu, S, 2010,”Maggi Best of Both worlds” Viewed from http://www. business-standard. com/india/news/maggi-bestboth-worlds/384501/ [Accessed on April 25, 2010] University of Southern California, 2008,”Segmentation, Targeting, and Positioning” Viewed from http://www. consumerpsychologist. com/cb_Segmentation. html [Accessed on April 25, 2010] Wedel, M and Kamakura, W, 2000,”Market Segmentation: conceptual and methodological

Nestle Company

Hr Policies of Nestle.
HUMAN RESOURCE HR is dedicated to their employees, and ensures that they have all the right people with the right skills, in the right places at the right time. Understanding that their people are the bedrock of all their business strategies, it is their mandate to enhance their skills with cutting-edge training and provide them with world-standard facilities. WHAT THEY BELIEVE IN: They are a people company. Their people are their greatest strength, and nothing can be achieved without their commitment and energy. The Nestle Difference
At Nestle you’ll find their self in a dynamic and invigorating environment, surrounded by people who are passionate about their work. You’ll feel empathized to contribute to the company’s business objectives and to achieve their own personal and professional goals. You and their colleagues shape and lead the organization – their energy is its greatest strength. Family ; Female-Friendly Organization: Diversity is central to the nature of their business. As a global organization, Nestle caters to the needs of diverse consumers.
This is only possible due to the diverse backgrounds and interests of their people and their firm commitment to embracing diversity at all levels. When they employ staff, they make a commitment to provide them with good working conditions. Female employees and their employees’ families know that Nestle Pakistan has a friendly and caring attitude. They recently set up a day-care centre, and have established a comprehensive Maternity Benefits Scheme for their female employees. Total Competitive Remuneration:

At Nestle you can be sure you’ll get competitive and fair remuneration structures. Their remuneration is benchmarked against other organizations and surveyed on a regular basis to ensure that they remain competitive. Their pay and compensation strategy is tied to the achievement of their business objectives. This linkage helps us define a growth-oriented culture, making us the most preferred employer in the market. The benefits of working at Nestle go beyond the financial. Here, you’ll find a structure to help you fulfill their ambitions and support their lives.
Read also Analyze the Ways in Which British Imperial Policies
Growth: New employees are given responsibility at an early stage, and high performers can develop fast. Their international and multicultural working climate is conducive to creativity, innovation and personal development. And you’ll get competitive working conditions, a compensation package and social benefits in line with their company’s high standards. Here, you’ll get the room to add value and make a real difference. If you’re qualified and ready to confront new horizons, you’ll have the chance for a truly international career. SAFETY AT WORK
Nestle is committed to being a leader in workplace safety and health. The Nestle Occupational Health and Safety Management System (NSMS) was revised in line with the 2007 edition of the international standard OHSAS 18001 and reissued to all Nestle operations, reinforcing our commitment that “Safety is non-negotiable”. They are also working towards external certification of our factories against OHSAS 18001. This will provide a common language around our health and safety management systems, and make it easier to demonstrate implementation of these standards to our stakeholders.
The number of workplace injuries has been reduced. For example, in 2007 the number of injuries leading to one or more days away from work in Nestle decreased to almost one quarter of that seen in 2001. RECRUITMENT WHAT THEY LOOK FOR: It takes a special sort of person to come and work at Nestle Pakistan. That’s why, when selecting candidates, they look for a set of interrelated characteristics encompassing three key areas: knowledge, personality and motivation. Professional Knowledge: Do you have a great academic record that demonstrates their intelligence, commitment and hard work?
Can you show us you have a sharp analytical mind, and the drive necessary to succeed in a competitive environment? If you think you fit the bill, you may be right for Nestle Pakistan. They look for good academic results at university or equivalent qualifications. However, the class of the degree you have obtained, though very important, is not the only criterion for selection. Other experiences during their studies, previous jobs, assignments, language theses and any other significant extracurricular activities and achievements, are also given the right.
They look for candidates who can identify a problem, analyze it, look at different options, and come to reasoned conclusions. They want people with drive and tenacity, energy and enthusiasm, who can initiate a project and follow through to the end. All these skills are vital during a career at Nestle Pakistan. Internships: Internships are a great way to apply the knowledge and skills you are developing at university and get experience in a leading corporation.
They offer project-based internship positions in various departments at Nestle Pakistan. You may be hired as an intern at various points during their academic career: during undergraduate study or graduate school. Most internship assignments are offered during the summer months and generally run for 6 to 8 weeks. At the end of the internship you will be required to submit a project or program report to the company on the topic assigned to you at the beginning of the internship program.
If you impress us with their talent & hard work, you may be considered for employment opportunities after you have completed their studies. Work/Life Balance: At Nestle they believe that the employee’s private and professional life should have a good balance. Not only because it reinforces employee’s satisfaction, loyalty and enhances Productivity but also because it positively reflects on the Company’s reputation. It helps attracting and retaining people and reconciles economical imperatives with they’ll being.
Nestle is willing to support employees who wish to take an active part in the life of the community or by assuming responsibilities in professional, civic, cultural, religious or voluntary organizations it being understood that any activity during working theirs be first approved by the Company. In the same spirit, Nestle provides flexible working Conditions whenever possible and provides its employees to have interests and motivations outside work. Relationship with Suppliers Nestle aims to deal only with reputable suppliers who are willing to apply Nestle quality standards.
Supplier relationships are benchmarked and evaluated with the objective of striving for continued improvement in the areas of quality, service, etc. As a relationship between a supplier and Nestle strengthens and progresses, it may evolve into one of preferred supplier status. Key suppliers with which Nestle has a contractual relationship are audited in order to ensure that they comply with the Nestle Corporate Business Principles or that they are working actively to achieve compliance. Whenever instances of non-compliance are brought to the Company’s attention, Nestle will demand that corrective measures be initiated.
Nestle personnel will maintain the highest standards of integrity and professional competence in all business relationships. Sanctions will be applied in the event of misconduct or abuse of established corporate standards and guidelines. PROFESSIONAL DEVELOPMENT: Learning: Learning is part of the Company culture. Each employee, at all levels, is conscious of the need to upgrade continuously her/his knowledge and skills. The willingness to learn is therefore a non-negotiable condition to be employed by Nestle. First and foremost, training is done on-the-job.
Guiding and coaching is part of the responsibility of each manager and it is crucial to make each one progress in her/his position. When formal training programs are organized they should be purpose oriented and designed to improve relevant skills and competencies. Therefore they are proposed in the framework of individual development programs. As a consequence, Attending: A program should never be considered as a reward. Adequate training programs are developed at the level of each operating company capitalizing on the availability of local, regional or global resource of the Group.
It is the responsibility of HR staff to assist the management in the elaboration of training programs. Great importance will be attached to programs enhancing the language skills of the employees. Training programs organized at the International Training Centre Rive-Reine aim at developing and sharing best practices of the various management disciplines practiced in the Group. They also strive to strengthen corporate cohesion as they’ll as to promote networking throughout the Group. Training programs should, as much as possible, be based on action learning and reduce ex-cathedra teaching to the strict minimum.
It is necessary to make optimal use of e-learning programs as a complement to or a substitute for formal training programs. According to needs they should be made available at shop floor level and enlarge the access to training. It is the role of each manager to assess progress achieved as a result of training Programs. Assessing and Developing each employee is in charge of her/his own professional development. However, the Company endeavors to offer the opportunity to progress for those having the determination and the potential to develop their capabilities.

Hr Policies of Nestle

Unilever vs Nestle.

The poor weather during much of the school holiday period has led to another disappointing season of sales for the main ice cream makers with the market in the first six months of the year down by 11 per cent on last year. And last week saw a major development when Nestle announced that it was giving up on the ice-cream business in Britain. The company is in advanced talks to sell its UK division, which makes brands like Orange Maid and Zoom as well as spin-off products from its chocolate ranges such as Kit-Kat ice cream and Smarties Pop-up.
The buyer is Richmond Foods, a company which specialises in the manufacture of own-label ranges for supermarkets. It may seem odd that Nestle, the world’s largest food company, can’t make a business in ice cream work here. In fact, the company has been losing money in UK ice cream ever since it entered the market nine years ago. But it is not the only one. Mars, the confectionery giant, has also been losing money in UK ice cream since its first foray into the sector in 1988. The reasons for the pain are three words displayed on freezer cabinets in newsagents up and down the country: Birds Eye Wall’s.
Wall’s is the ice cream subsidiary of Unilever, the consumer products giant whose brands include Persil detergent and Dove soap. The company’s UK market share in ice cream is so much larger than anyone else’s that all its rivals are struggling. Graham Millar, group finance director at Nestle UK, made the point last week when the company ran up the white flag. He said: “We have tried for nine years to develop our ice-cream business but have not been able to make it big enough to compete in a difficult and competitive marketplace.

Combing with Richmond should create a large enough business to compete effectively. ” A look at the market share figures tells the story. Data compiled for the last Competition Commission investigation into the ice cream sector last year showed that as of May 1999 Wall’s held a 71 per cent share of the so-called “impulse” market for ice cream, that is product bought on impulse in newsagents and convenience stores rather than tubs and multi-packs in supermarkets. Mars was the second-largest player with 15 per cent followed by Nestle with 11 per cent. This summer has seen some changes.
It is the first summer season since the Competition Commission investigation which ruled that Wall’s should no longer be able to force retailers to whom it supplied free freezer cabinets to stock only Wall’s brands. Instead, Wall’s must now allow retailers to allocate 50 per cent of their freezer space to rival brands. This has had some impact. Wall’s says its share is now 63 per cent. Nestle’s share is now reported to be 16 per cent though some say its share has been sliding recently. Other winners include Cadbury, a relative newcomer to the market which has been enjoying some success with spin-offs from its chocolate brands.
Treatts, the branded division of Richmond Foods, also reports that its share has increased. However, a look in some newsagents freezers shows that many still stock mostly Wall’s brands such as Magnum, Solero and Cornetto. This is not because they are forced to, but because they sell. And this is despite high prices which include more than ? 1 for a Magnum. As one City analyst says: “A lot of it comes down to product development and marketing. Even after the abolition of freezer ties, Unilever has eight of the top 10 impulse brands in the country.
” City analysts say Unilever is the market leader in ice cream in most of the main European markets such as France, Germany and Italy. But the difference is that Nestle has managed to establish itself as a credible number two in these countries, something it has never achieved here. The economics of the ice cream business are such that distribution costs are a fundamental part of the overheads. These fixed costs mean a company with only small sales will struggle. In the UK, only Unilever has managed to achieve those economies of scale.
Unilever has such a dominant position that the UK ice cream market has been the subject of no fewer than four competition investigations in 1979, 1994, 1998 and 2000. But though changes have been made, Unilever’s dominance has remained unchallenged. This is not to say that new entrants cannot make a mark. McDonald’s has gained market share with its launch of soft, whipped ice cream a couple of years ago, with its huge chain of restaurants providing a ready-made distribution channel. Birds Eye Wall’s has since launched its own “whippy” style ice cream from machines in newsagents and corner shops.
Where is the market heading? One worry is the overall sales decline which is not just down to poor weather. Another factor in the 11 per cent fall in the impulse market on last year is the declining number of small convenience stores and independent newsagents. These are the lifeblood of the impulse sector and they are increasingly losing out to the big supermarket chains. As for the big players. With Nestle’s ice cream business in Britain now set to be combined with that of Richmond, which accounts for 70 per cent of supermarket own-label ice cream, it may be able to give Wall’s a better run for its money.
Richmond will manufacture the Nestle brands under licence whilst stripping out overlapping costs to improve margins. A further challenge might come from Mars. Privately owned and able to take the long-term view, it has a stable of brands that are capable of making a mark. For the time being, though, Wall’s is sitting pretty with a market share more powerful than virtually any consumer brand apart from Coca-Cola. Its biggest fear is probably another Competition Commission investigation. Future of Heart brand Unilever is the world’s biggest ice cream manufacturer, with an annual turnover of €5bn.
Unilever’s Heartbrand, which is represented by a big red heart logo, is behind many famous ice cream brands, including Magnum, Cornetto, Solero, Carte d’Or and Viennetta. Magnum is one of the world’s leading impulse ice cream brands, selling around 1 billion units a year. Heartbrand products are sold in more than 40 countries. The Heartbrand operates under different names in different markets (Wall’s in the UK and most parts of Asia, Algida in Italy, Langnese in Germany, Kibon in Brazil, and Ola in the Netherlands). Heart brand has a great future due to its following unique features: Unique tastes
Mention ice cream and most people think of the Heartbrand. The brand with the big red heart logo is behind many much-loved ice cream classics from indulgent treats like Magnum and Cornetto to the refreshing fruit tastes of Solero and family favourites like Viennetta. Variety Few foods are guaranteed to put a smile on people’s faces like ice cream. But while ice cream should always be fun, we’ve an ever-growing range of lower fat, lower sugar products. Heartbrand now provides lighter versions for those watching the calories and smaller sizes for smaller appetites, as well old favourites – there’s something for everyone.
Health-friendly brand Some ice creams are best as an occasional indulgence, but others can be a regular treat, and eaten sensibly, ice cream can be part of a healthy balanced diet. Heart brand is developing products that are lower in fat, sugar-free, lactose-free, as well as low-carb options and those with more nutritional ‘goodies’ like calcium and fruit. For example:
• Two scoops of Carte d’Or Light (a 100ml serving) have 79 calories and 2. 4g fat
• Solero Exotic is delicious ice cream coated in an exotic fruit sorbet. It contains no artificial colours or flavours and has 99 calories.
• In Europe all products are now clearly labelled with energy, fat, protein and carbohydrate values, and from next year they will also be labelled with, wherever possible, fibre, saturated fat, sodium and sugars values
• Instead of increasing the size of our products, we have made many of our favourite brands such as Cornetto and Magnum available in snack size to help with portion control
• Unilever invest around €50 million in ice-cream research and development each year, of which 40% is spent in the health and well-being sector Innovations Launched in 1989, Magnum was the first ice cream on a stick especially for adults.
Today, Magnum is one of the world’s leading impulse ice cream brands, selling around 1 billion units a year. Recent successes include Magnum Temptation, Magnum Intense, Magnum 7 Sins, and Magnum Moments. Heart brand also offers delicious choice for special dietary needs – including lactose-free options, soy ice cream and ice cream for diabetics. In the US, Unilever also launched new Light and No Sugar Added ice cream and novelty products, using our proprietary ‘cold extrusion technology’. This technology enables Unilever to ‘double churn’ its ice cream to deliver a higher quality, creamy textured ice cream that is lower in fat.
Key facts
• Unilever is the world’s biggest ice cream manufacturer, with an annual turnover of €5 billion
• Heartbrand products are sold in more than 40 countries. The Heartbrand operates under different names in different markets (Wall’s in the UK and most parts of Asia, Algida in Italy, Langnese in Germany, Kibon in Brazil, and Ola in the Netherlands)
• As well as creating delicious premium ice creams, Ben ; Jerry’s has a fantastic social mission: the Ben & Jerry’s Foundation makes charitable donations of over $1. 1 million dollars a year Why Heart brand Unilever has found a way to make heart brand ice cream healthier as well as really tasty.
It has all been possible thanks to a new ice cream ingredient discovered by Unilever’s ice cream scientists. Less fat, more fruit The new ingredient is called ‘ice structuring protein’ (ISP). This protein allows making ice cream and ice lollies which are lower in fat, sugar and calories and at the same time include more fruit. Unilever now make ice creams and ice lollies which better hold their shape and are less messy to eat. Combining ISP with stabiliser technology allows making products that additionally don’t melt so easily, this is great for small children and for hot countries.
Ice structuring Ice structuring proteins are widely found in nature in, for example, fish, carrots and grass. They allow fish to survive in freezing arctic waters. The protein works by changing the shape of the ice crystals. Unilever’s ice cream scientists took this idea from nature and have applied it to heart brand ice cream with great success. It only takes tiny amounts of ISP to have the desired effect. Baker’s yeast To ensure that the ISP is as pure as possible the yeast cells are removed through several stages of fine filtration at the end of the process.
This will allow heart brand ice cream to provide the healthiest and purest ingredients to its consumers. Safety & approvals ISP is a new ingredient so safety has been Unilever’s number one priority. The company’s safety specialists have conducted exhaustive tests to demonstrate the safety of ISP. The results of these tests have been reviewed by a panel of independent world experts including allergists, toxicologists and paediatricians. The safety of ISP has also been adopted by the US Foods and Drug Administration and endorsed by the European Food Safety Authority and Food Standards Australia New Zealand.
ISP technology was submitted to the EU regulatory body for clearance for use as a novel food in 2006. After nearly 3 years of consultation, approval was given for the use of ISP in all EU member states in April 2009. Unilever now plans to sell Europe’s first ISP containing heart brand ice creams in 2010. All products containing ISP will include ISP in the ingredient list and information will be made available via customer carelines and websites. Low fat products and novelty ‘popsicle’ products have been on sale, and enjoyed, in the USA, Mexico, China, Philippines and Australia for several years
Strategy to sell Heart brand Ice creams
Unilever sell their products in over 150 countries around the world. In many countries it only manufactures the products and also export products to countries where Unilever do not have manufacturing operations. The chosen manufacturing network is generally determined by an optimised regional sourcing strategy which takes account of requirements for innovation, quality, service, cost and flexibility. Unilever ice cream business is subject to significant seasonal fluctuations in sales. However, Unilever operates globally in many different markets and product categories.
No individual element of seasonality is likely to be material to the results of the Group as a whole. Heart brand is generally sold through their own sales force as well as through independent brokers, agents and distributors to chain, wholesale, co-operative and independent grocery accounts, food service distributors and institutions. Heart brand products are physically distributed through a network of distribution centres, satellite warehouses, company-operated and public storage facilities, depots and other facilities. Unilever has a wide and diverse set of competitors in this category.
Many competitors also operate on an international scale, while others have a narrower regional or local focus. Unilever aim to compete its heart brand: • by continually developing new and improved varieties and tastes that address relevant consumer needs and aspirations; • by rolling out innovations and its brand concepts around the world; and • by striving to lower the cost of our sourcing, manufacturing and distribution processes while ensuring the quality of its brand. http://www. businessweek. com/globalbiz/content/aug2007/gb20070824_230078. htm http://www. spiegel. de/international/business/0,1518,502167,00.
html future http://www. unilever. com/brands/foodbrands/Heartbrand. aspx strategy http://www. unilever. com/sustainability/strategy/? WT. LHNAV=Our_sustainability_strategy Why heart brand 2. http://www. unilever. com/innovation/? WT. GNAV=Innovation 3. http://www. unilever. co. uk 4. http://www. unilever. com/brands/foodbrands/Heartbrand. aspx 5. http://www. businessweek. com/globalbiz/content/aug2007/gb20070824_230078. htm 6. http://www. spiegel. de/international/business/0,1518,502167,00. html 7. http://www. unilever. com/sustainability/strategy/? WT. LHNAV=Our_sustainability_strategy 11. www. qmu. ac. uk

Unilever vs Nestle

Nestle Waters.
Introduction
            In 1905, The Nestlé Food Company was born as a result of a merger between the Farine Lactée Henri Nestlé Company and the Anglo-Swiss Milk Company.  The Farine Lactée Henri Nestlé Company was founded in 1867 by Henri Nestle, and was considered the largest purveyor of infant food product. On the other hand, The Anglo-Swiss Milk Company was founded in 1866 by the Page Brothers in the Swiss state of Cham in order to proliferate a plethora of milk products. After the merger, the Nestlé Company was relocated in Vevey, Switzerland. Today, the Nestlé Company is the largest purveyor of dairy products in the world. The company is the undisputed market leader in almost all product categories. Each of their brands is the leader in their respective product categories, which includes products such as milk, coffee, ice cream, chocolates, pet food, food seasoning, and bottled water.
Henri Nestlé, the company founder, was a pharmacist who came up for baby foods that further contributed to an infant’s nutrition in order to augment its development. One of Nestlé’s first breakthroughs was the production of infant foods in order to be an appropriate alternative to an infant’s intolerance to its mother’s milk. This was considered a milestone in Nestlé’s career when it was soon recognized that it can improve a child’s growth, development, and nutrition. The milk was known as Farine Lactée Henri Nestlé, the product has been proliferated in all of Europe.

 As any company who envisions to have expanded, the company has amalgamated itself with Anglo-Swiss Condensed Milk Company inn order to augment its operations in the entirety of Europe. The company initiated operations in United Kingdom, Spain, Germany, and the United States in the early 1900’s. At the height of the First World War, a hefty demand for dairy products came into fruition through government pacts and contracts; resulting to the doubled production of the dairy company. However, this situation wouldn’t last, abruptly after the war concluded; most consumers revert into using fresh milk again, which made government contracts with the dairy company futile. The company’s management was aware of such repercussions brought about by the sudden reduction in product purchasing; causing the firm to reduce its bevy of debts and operations being streamlined.
Furthermore, Nestlé was adamant about the notion of expansion; the Company launched its chocolate products in 1920, and was eventually became the Company’s second successful product since the proliferation of its milk products. In the late 1930’s, Nestlé had to endure another letdown in its profit margins due to the economic ramifications brought about by World War II; the Company’s profits plummeted from $20 million to a measly $6 million by the culmination of the the 1930’s. Nestlé was about to turn the tables on the letdown caused by the war; the Company launched its first coffee product called Nescafé that became a favorite among American soldiers during the war. Nestlé wasn’t overwhelmed by the liabilities brought by the war, and even made its sales catapult to meteoric levels as significant revenues were generated.
 A number of acquisitions soon followed in order to augment the Company’s vision for global expansion. The culmination of the World War II saw Nestlé acquiring companies that will bolster its profit margins. It acquired Maggi seasoning in 1947. Crosse ; Blackwell, Findus, Libby’s, and Stouffer’s were all acquired in the succeeding decades. Eventually, the Company would expand on a global scale establishing factories in emerging countries. It seems that there is no stopping Nestle from acquiring almost every brand associated with dairy products. In the early ’80’s, the Company acquired the Carnation firm, the Willy Wonka Brand was brought to Nestle as well by acquiring British confectionery company Rowntree Mackintosh. As it entered the 1990’s, Nestlé would benefit from abolished trade barriers, as world markets gradually became integrated trading areas. After the turn of the century, it made two dramatic acquisitions as it merged with the Dreyer’s company in order to proliferate its brand along with Dreyer’s ice cream. It brought in Hot Pockets as it acquired Chef America as well. As more consumers were placing a premium on their health, the Company acquired the Jenny Craig fitness firm for $600 million. Nestle allied itself with pharmaceutical firm Novaritis as well when it purchased the medical nutrition division of the firm. Hints of what products the Company would soon produce such as energy drinks and bottled water.

Product Analysis
Nestlé Waters pulled the linchpin on its water business in the late ’60’s as it collaborated with the Société Générale des Eaux Minérales de Vittel. The late ’80’s saw the Company naming its bottled water as: Nestlé Pure Life. Nestle Pure Life water is treated and remineralized through the utilization of standardized industrial procedures in order to ensure product quality. Eventually, a second bottled water product was launched by Nestle called the Nestlé Aquarel, which was released on May 2000 in a number of European companies. The Nestle Aquarel is premium bottled water, which is natural spring water from nine different springs from Europe. In order to meet new consumer expectations and demands, the Nestle Aquarel applies the multi-source concept in the product itself.
 Nestle Waters has sold over 72 brands of bottled water on a global scale, which made CHF 9.6 bn in sales.  S. Pellegrino, Perrier, Acqua Panna, Vittel and Contrex comprise the international stable of brands of Nestle Waters. By the late ’90’s, the Nestle Waters Group of Companies overwhelmed each continent in the world upon acquiring the  S. Pellegrino brand that gave them the upper hand in the Italian market. In order to augment its bottled water products, Nestle was licensed by Mecosta County, Michigan in order to establish a bottling plant for $100 annual fee in Stanwood. One of the most crucial operating requirements for the plant was the pumping of 500,000 gallons of water daily. Nestle has been at odds with the Michigan Citizens for Water Conservation, which eventually lead to a campaign to suspend all plant operations in the area until the legality of use of the water by Nestle was proven. Nestlé’s series of litigations with lobbyist groups in each area they operated doesn’t end there. It seems that it is one of the deterrents that hinder the “healthy” image that Nestle projects to consumers.
Recently, the Company has initiated negotiations among local officials in McCloud, CA in order to push through with the plan of building one of the country’s biggest bottled water factories (Conlin, 2008). The proposed plan was to extract water from the pristine springs of Mt.Shasta in order to fuel the plant’s operations. However, lobbyists are there already even before an apparent contract to build the plant. Groups like www.californiatrout.org and  www.protectourwaters.org are among the lobbyists that deter the proposed building of the plant in the area. Reports say that the Company has ignored the notion of a feasibility study concerning the effects of the plant on the area’s ground water, lobbyists are clamoring for a feasible study before the Company proceeds to the building of the bottled water plant.
Analysis of the Problem
Recently, Nestle Waters has provided drinking water for the tornado victims in Waterloo, Iowa. The Company donated 35,000 half-liters of Nestle Pure Life bottled water to a plethora of level five type tornado that left thousands clamouring for food and drinking water. The millions of bottled water were distributed by the American Red Cross and the Salvation Army. The tornado has left Waterloo residents with dilapidated homes and business establishments. The relief efforts of Nestle doesn’t stop in supplying Waterloo residents with clean drinking water, the Company has collaborated with Americare and the Northeast Iowa Food Bank in order to deliver rations of meals and other necessities useful for daily living. The relief operation spearheaded by Nestle was preceded by the relief operations during unfortunate natural catastrophes such as hurricane Katrina and the rampant 2007 Southern California wildfires (PR Newswire, 2008). However, amidst the valiant efforts of Nestle Waters to project a wholesome image towards consumers, it seems it is hampered by the clamour of lobbyists that want every Nestle Waters plant relocated in a number of areas. Recently, the State of California has demanded a feasible study for a bottled water plant that the Company plans to build in Siskiyou County. The Siskiyou project will materialize if the McCloud contract will not be renewed, halting all pumping operations in the McCloud River. California State Attorney General Edmund G. Brown Jr. exclaimed that: It takes massive quantities of oil to produce plastic water bottles and to ship them in diesel trucks across the United States. Nestle will face swift legal challenge if it does not fully evaluate the environmental impact of diverting millions of gallons of spring water from the McCloud River into billions of plastic water bottles.”
In order to prevent any abrupt litigation on their part, Nestle has issued a press release declaring its stand on making a feasible study and evaluation of the proposed bottle water plant project. Nestle has sought help from the North State Resources in order to augment the study, while scientists from University of California and UC Davis will be the purveyor of data, which will be used in the plans holistic assessment. It should be noted that these areas have spring waters like those in California and Michigan, which are used for the overall processing of Nestle Water products. With this in mind, a plethora of lobbyists and environmentalists always clamor for the omission of any Nestle factory in their area. These environmentalists claim that Nestle bottling factories are major deterrents of nature in the area. Nestle Waters are obliged to make every plan to make a bottling factory an area have a supporting feasibility study in order ensure that the factory is not a deterrent to nature
Analysis of Comparative Advantage

The Product: Nestle Waters

Nestle Waters is the largest purveyor of bottled drinking water. It owns 10% of the global market share of the bottled water industry. It has overwhelmed both markets in North America and Western Europe. The Company has sold over 72 brands of bottled water on a global scale, which made CHF 9.6 bn in sales.  S. Pellegrino, Perrier, Acqua Panna, Vittel and Contrex comprise the international stable of brands of Nestle Waters. By the late ’90’s, the Nestle Waters Group of Companies overwhelmed each continent in the world upon acquiring the  S. Pellegrino brand that gave them the upper hand in the Italian market.

Competitor 1: Groupe Danone

Groupe Danone is French Company that is considered the Nestlé’s fiercest market rival. The Company claims “world leadership” in terms of dairy products and bottled water as well. Danone is the manufacturer of the world’s best-selling premium bottled water Evian, and Britain’s best-selling probiotic drink Actimel. The Company sold the cereals and biscuits division to Kraft Foods (Altria Group of Companies), which resulted to a demotion in global rankings in the biscuit market. Its current net sales composition consists of 56% of dairy sales, 28% of beverage sales, and 16% from cereals and biscuits. Danone owns a plethora of water brands worldwide as well. It owns a 51% stake on Wahaha Joint Venture Company in China. In Indonesia, it has acquired Yili, Aqua, and Robust for 92% of its holdings. With such acquisitions, Danone owns the 20% of market share in Asia (Danone, 2008).

Competitor 2: PepsiCo

PepsiCo is comprised by three major divisions namely PepsiCo America Beverages, PepsiCo Americas Foods, and PepsiCo International. PepsiCo America Beverages includes beverage business in North America and Latin America. PepsiCo brands are made available in more than 200 countries, generating sales at the retail level of more than $100 billion. Its beverage product line includes Tropicana, Gatorade, and its own bottled water product Aquafina. Aquafina is distributed across United States, Canada, and a handful of Asian countries. PepsiCo’s Aquafina reached a milestone as it became the United States best-selling bottled water product in terms of measured retail channels.Aquafina utilizes PepsiCo’s trademark seven-step purification system called HydRO-7. HydRO-7 is a water purification procedure that undergoes ozonation, reverse osmosis, and charcoal filtration. Unlike some bottled water products, Aquafina boasts of its wide array of flavored water variants such as Aquafina Sparkling, Aquafina FlavorSplash, Aquafina Alive, and Aquafina Plus. The product is available in 12-fluid ounce, 500-milliliter (16.9 fl oz), 20-ounce, 24-ounce, 1-liter, and 1.5-liter bottles, making it a versatile product in order to meet consumer diversity and preferences (PepsiCo, 2008).

SWOT Analysis

Nestle Waters

Strengths

Nestle Waters is the largest purveyor of bottled drinking water in North America and Europe. The product is established in 130 countries proliferating a wide array of beverage products. The Company boasts of a wide array of bottled water brands such as Nestle Pure Life, Nestle Vera, and the premium bottled water Nestle Aquarel. Nestle is the undisputed bottled water leader, and accounts for 10% of total sales of the Nestle Company. Although it only utilizes 0.0009% of water in the planet, this doesn’t become a hindrance for Nestle Waters to become the market leader in its industry. The Company uses an apt business model in order to sustain the quality and purity of its products. Nestle Water products are treated and remineralized in order to offer consumers fresh and safe drinking water.
As the largest purveyor of bottled water in the world, Nestle Waters have purchased a number of bottled water brands in order to proliferate its product. Its international stable of bottled water brands include S. Pellegrino, Perrier,Acqua Panna, Vittel and Contrex all of which contribute to the production of substantial revenues and increase profit margins of Nestle Waters. The S. Pellegrino acquisition is considered a significant one, due to the fact that it was the linchpin in overwhelming the European market.

Nestle Waters incorporates the Nestle brand per se. As we know, the Nestle brand suggests quality, and ensures freshness in every product. The Nestle brand does not only complement Nestle Water products, but it gives bottled water a “name”, which is synonymous with healthy and clean living.

Weaknesses

One of Nestle Waters perennial weaknesses is its locations in which they intend to build their bottled water plants. It should be noted that these areas have spring waters like those in California and Michigan, which are used for the overall processing of Nestle Water products. With this in mind, a plethora of lobbyists and environmentalists always clamor for the omission of any Nestle factory in their area. These environmentalists claim that Nestle bottling factories are major deterrents of nature in the area. Nestle Waters are obliged to make every plan to make a bottling factory an area have a supporting feasibility study in order ensure that the factory is not a deterrent to nature.
Although Nestle is considered the world’s largest food company, the firm recently declared a reduction in profit margins in a p of four years. Such decreased profit growth is an apparent result of higher cocoa and coffee prices, as well as a weak dollar rate cut into earnings. Nestle declared that Net income in the six months through June rose to 5.21 billion Swiss francs ($US4.92 billion) from 4.92 billion francs a year earlier. The Company hints that it intends to reduce operation costs due to the offset of raw material costs. Nestle executives have reiterated that it will make use of cheaper raw materials in a number of food categories.
Medical experts suggest that regular consumption of bottled mineral water is harmful to a person’s health. Studies have shown that drinking bottled water on a regular basis leads to bone deformities and other complications. Nestle Pure Life bottled water was among the brands that are considered “dull” water, which means that it lacks the essential and natural minerals of water. The Pakistan Council of Research in Water Resources claims that bottled mineral water lacks the apt mineral content that natural water has, which contains more than 150 different minerals (Dawn, 2003).

Opportunities

Since Nestle Waters are experiencing a revenue letdown, The Company should consider studying emerging markets such as Asia. It should be noted that most Asian countries have vast water resources for Nestle to utilize for its bottling operations. Nestle Waters could employ a plethora of jobless people in each country they plan to operate. This doesn’t only help Nestle increase their revenues, but it gives The Company a charitable and wholesome image through the employment of people in the country they wish to pursue their operations. In the Philippines, the Company has already established a competitive distribution network in order to gain market share and increase profit margins in the Asian sector.
Nestle Waters can benefit from fruitful partnerships with local distributors in order to bolster the proliferations its product and brand. Its current partnership with Universal Robina Corporation has paid off, in 2006 Nestle Waters declared a 9.4% increase in its global sales (Merrel, 2006). Nestle owes such success to its healthy relationship with its distributors, which help them gain significant market share and bolster substantial revenues. Such international partnerships have resulted to a significant 19.1% share in the global bottled water market.
Fresh drinking water is Nestle Waters primary products, so why not promote it as sports drink as well? As market rivals PepsiCo and Groupe Danane reinforce its stable of water products with energy drinks for professional athletes to endorse, it seems that Nestle Waters should come up with its own brand of sports drink. Nestlé’s sports drink will create opportunities for sponsorships, which will be helpful in enhancing its advertising prowess.

Threats

The Nestle Waters Company faces a dire threat of nature deterrents. Acid rain for one is a major pollutant for a bevy of pristine water springs. Intense global warming has dried up bodies of water which includes the supply of water springs. Nestle Waters’ bottling plants will experience a scarcity in water supply due to the drying up of water springs, and eventually can result to an apparent ceasing of bottling operations. Obviously, this would result to a reduction of substantial revenues, and its repercussions will affect operational costs and profit margins.
Prime locations for bottling operations are major concerns that the Company should attended to. It is a known fact that each location for building bottling plants is a perennial threat for Nestle Waters. Every location that Nestle Waters chooses always entails controversy and criticisms. Lobbyists and environmentalists are always against in every plan of building bottling operations. Nestle Waters are obliged to come up with feasibility tests in order to proceed with building bottling plants. However, this only hampers the situation due to the fact that lobbyists are always at the forefront of hindering the building of bottling plants.
Nestle Waters’ revenues only depend on its Nestle Pure Life and Aquarel products alone. Industry rivals such as PepsiCo and Groupe Danane have sports drinks that help promote their brands to other market segments in order to bolster their profit margins and gain market share as well. With this in mind, Nestle could lose significant market share as consumers look forward to sports drinks that augment their health and fitness endeavors.

Recommendation

Nestle Water products are always distributed with a guaranteed seal of freshness and quality. Its water-filtration procedures are ensured to be apt and safe in order to provide end consumers with quality drinking water. Nestle owes its market share in the bottled water industry to its charismatic packaging and apt product positioning. Its brand management makes it one of the best beverage products in the world today. However, Nestle Waters cannot afford to be complacent on their apparent market success. It should be noted that the threat of water pollution has a deliberate effect on water resources such as spring waters, which is considered the repository of Nestle Waters bottling plans worldwide. With this in mind the Company should invest in its Research and Development Division in order produce innovative filtration and remineralization processes, which will be more than helpful in providing consumers with quality and safe drinking water. Furthermore, Nestle Waters should come up with its own brand of sports drink in order to meet the demands of active people. This will augment Nestle Waters profit margins and gain a significant percent of market share. The Nestle brand suggests quality, which is why every product that Nestle launches in the market is successful on its own. There lies the primary role of positioning that any Nestle product such as the Nestle Pure Life and Nestle Aquarel, with its brand alone Nestlé’s brand management and positioning is enhanced and augmented in order to capture the attention of consumers. Brands create diversity among consumers, yet Nestle has placed a premium in brand management and positioning. Nestle has studied consumer behaviour in order to augment its positioning. The Company considered positioning requisites such as consumer information, functionality, changing lifestyles, consumer trends, market trends, and product identification in order to come up with apt positioning strategies.

References

Nestle. (2008). About Nestle Waters. Retrieved September 2, 2008, from

http://www.nestle-waters.com/en/Home.htm

Merrel,N. (2007). Nestle Waters seeks turnaround with Philippines sale. Retrieved

September 2, 2008, from http://www.ap-foodtechnology.com/Processing/Nestle-Waters-seeks-turnaround-with-Philippines-sale

Dawn.(2003). Continuous use of bottled water causes bone weakness. Retrieved
September 2, 2008, from http://www.dawn.com/2003/04/08/nat4.htm

Conlin, M. (2008). A Town Torn Apart by Nestlé. Retrieved September 2, 2008, from
http://www.businessweek.com/magazine/content/08_15/b4079042498703.htm

PR Newswire. (2008). Nestle Waters North America Contributes to Iowa Tornado

Relief Effort. Retrieved September 2, 2008, from
http://findarticles.com/p/articles/mi_m4PRN/is_2008_May_30/ai_n25470035

Danone. (2008). About Danone. Retrieved September 2, 2008,
from http://www.danone.co.uk/index.htm
PepsiCo. (2008). PepsiCo Company Overview.
 http://www.pepsico.com/

Nestle Waters

Project management with SAP at Nestle.
The SAP system incorporates the project builder function to handle all the projects at all departments at Nestle. From the manufacturing to operations to supply chain management, inventory setup, materials management and personnel and customer handling, SAP manages all processes and creates detailed plans regarding its costs, schedules, resource allocation, setting baselines and timelines for activities. This system is also integrated with the budgeting overview and procurement cycle.
The project management takes a very definite role regarding the various locations it serves. The project plan was a started at the startup of the project at the initiation stage where the scope of work was clarified with a customer and both approximate completion time and budget was clarified based on historical data of similar recent project. Project stakeholders were identified including customer representatives, maintenance representatives and project engineering team with the SAP project management software.
Te primary importance is the risk management process which is attached to every element at the SAP system. It holistically integrates the various other business modules for the purpose of determining and tracking the change for projects. The resource track and its usage are some of the various points of concern for the organization. SAP at Nestle engages the responsibility at every resource. The Work Breakdown Structure and critical path is decided and distributed at every level of the organization which not only maintains schedule but also alerts for the achievement and failure to follow the schedule and cost.

Nestle  has already accomplished noteworthy increase at ROI as the demand forecasting model serves a great principal in their growth and cutting costs.
With SAP in place at Nestle, the enterprise functional modules lead to more trustworthy demand forecasts for the various Nestlé product ranges. The supply chain improvements accounted for a major chunk of the $325 million Nestlé says it has saved from SAP (Worthen, 2002).
SAP architecture at Nestle has effectively pulled all resources of the organization to fill their objective. The enterprise architecture fetched the importance of the various business units and the various business processes that are required to be identified and made good for fetching the right objective for the purpose (Symons, 2006).
The enforcement of enterprise architecture would be to embrace change for the organization as the defined processes would be helpful to identify the need to implement change. The alignment of business units and flexibility can be largely enforced for fetching the scalability of the resources to invest fresh ideas and processes for change. Enterprise architecture has made clear all processes to be identified and collaborate with better planning and organizing ability.

Project management with SAP at Nestle