nestle International business management slides
Transcript of nestle International business management slides
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Group Members
Maryam Khalid 2014-ag-4205
Tehreem Ashraf 2014-ag-4195
Maryam Rabia Zafar 2014-ag-4132
Aqsa Tabbasum 2014-ag-4122
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Nestle Company
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LOGO• “Nestle” is a Swiss-German
word which means “little nest”.
• The Nestlé logo was launched by Henri Nestlé in 1868 on the basis of the meaning of his name.
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SLOGAN
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INTRODUCTION:
• Headquarter in Vevey Switzerland.
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NESTLE WORLDWIDE
Swiss multinational company.
Worlds number one food company.
2000 brands ranging from global icons to local favorites.
They are present in 191 countries around the world.
Have 447 factories and 339,000 employees.
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INTRODUCTION:
Ranked 72 on the Fortune Global 500 in 2014
Ranked 33 on 2016 edition of the Forbes Global 2000 list of largest public companies.
Twenty-nine of Nestlé's brands have annual sales of over CHF1 billion (about US$1.1 billion).
Shareholders of L'Oreal.
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Nestle productsNestlé's products include
Baby food
Medical food
Bottled water
Breakfast cereals
Coffee and tea
Confectionery
Dairy products
Ice cream
Frozen food
Pet foods
Snacks.
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HISTORY:
Henri Nestle, born Heinrich Nestle on 10 August 1814 was a German who immigrated to Switzerland.
Nestle was founded in 1866 by Henri Nestle.
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HISTORY:
First productLactogen formula for infants by the name “Farine Lacteé”
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Nestle old building
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OBJECTIVE:
Combine and strengthen its position
Meet the needs of customers
Create good will
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• MISSION STATEMENT:
“…positively influence the social environment in which we operate as responsible corporate citizens, with due regard for those environmental standards and societal aspirations which improve quality of life.” — Henri Nestlé
• VISION STATEMENT:
To be a leading, competitive, Nutrition, Health and Wellness Company delivering improved shareholder value by being a preferred corporate citizen preferred employer preferred supplier selling preferred products.
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OTHER NESTLE BUSINESS:
Nestle Health Science
Health science Institute
Nestle Nespresso
Nestle Nutrition Institute
Nestle Purina Pet care
Nestle Skin Health
Nestle water
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SHARE CAPITAL DISTRIBUTION GEOGRAPHY:
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Strategy Implementation
There are several strategies
Environmental Strategy
Growth Strategy
Nestles Marketing Strategy
Nestles HRM strategy
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Strategy ImplementationO Environmental Strategy
Environmental sustainability strategy
Natural resources efficiently in order to produce environmental friendly products.
Uses in all stages of product life cycle
Renewable resources, and mark zero leftover.
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Strategy Implementation
o Growth Strategy • “Creating Shared Value”
• Investing for the future
• This includes:
Capacity.
Technologies.
Capabilities.
People.
Brands.
R&D.
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Strategy Implementation
-Purpose of growth strategy
i. Meet today’s needs without compromising the capacity of future generations to meet the needs.
ii. Do this in a way, which will guarantee profitable growth in the future.
iii. Also to provide a high level of returns for shareholders and society at large over the long-term.
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Strategy Implementation
o Nestle’s Marketing Strategy
Marketing strategy mix
‘’Product, Distribution, Promotion and Price’’
Main strategy and way of business, “innovation and renovation”
Internationally taking into consideration local legislation, cultural and religious practices
Main element of marketing,
“provide quality and cheaper priced products”
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Strategy Implementation
o Strategic HRM at Nestle
Nestle believes that:
Employees are strength of company
Success is impossible to achieve without its employees
Important assets of company
And everyone is invited to share their views and opinions
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Strategy Implementation
o Strategic HRM at Nestle
The recruitment process at Nestle is clearly defined.
People with qualities like dynamism, realism, loyalty, hard work, honesty and reliable.
Match between candidate's values & company's culture.
Recruitment for management levels takes place in the head office and all others at the branch level.
The existing employees are promoted to higher posts as per the requirements.
Another source of recruitment is campus placements and human resource consultancies.
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Other StrategiesNestle maintain its mission and goals through three different strategies (Operational Pillars, Growth drivers, and Competitive advantage).
• Operational Pillars
-Innovation and renovation
-Operational Efficiency
-Whenever, Wherever, However
-Consumer communication
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Other Strategies
• Growth Drivers:
Nutrition, Health, and Wellness
Emerging markets and popularity positioned products
Out-of-home consumption
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Other Strategies
• Competitive Advantage:
Unmatched Product and Brand
Unmatched Research and Development
capability
Unmatched geographic presence
People, culture, values and attitude
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Paurpose of StrategiesaTo ensure the success in market
Strong brands to create competitive barriers
Partnered with other large companies, for example: Coca Cola
Purchases local companies
Each brand of Nestle business has the same strategy since Nestle is a food organization
Create low-cost, highly efficient operations
Creating value over a long period of time for stakeholders, employees, consumers and business partners
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Organizational Structure of Nestle
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Improved Organizational Structure
Perhaps an improved version of the organizational structure could be
Departments divided according to genre of the product
Individual unit
Operation under each location’s requirement as working worldwide
Maintaining the values of original company
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1990–2011: Growth internationally
1990s: Favorable , barriers smashed, world market developed
Spillers Pet foods (1998), and Ralston Purina (2002)
2002: Ralston Purina, in June, Nestlé merged its US ice cream business into Dreyer's, and in August, a US$2.6 billion acquisition was announced of Chef America, the creator of Hot Pockets
In the same time-frame, Nestlé entered in a joint bid with Cadbury
2005: Nestlé bought the Greek company Delta Ice Cream for €240 million
2006: it took full ownership of Dreyer's, thus becoming the world's largest ice cream maker, with a 17.5% market share
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1990–2011: Growth internationally
2007:Nestle developed the Medical Nutrition division of Novartis Pharmaceutical for US$2.5 billion, Nestlé bought US baby-food manufacturer Gerber for US$5.5 billion
2010: Purchase of Kraft Foods's North American frozen pizza business for US$3.7 billion
2012: Nestle agreed to acquire infant-nutrition, formerly Wyeth Nutrition, unit for US$11.9 billion
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Nestle in Pakistan
Nestle in Pakistan is operating since 1988 under a joint venture with Milk Pak ltd and took over management in 1992.
Butter, cream, desighee under brand name MILK PAK
Juice drink under brand name FROST
1990 it start producing NIDO, Everyday, CERELAC
1991 LACTOGEN 1 & 2
1994 MILO and NESCAFE 3 in 1
1998 sweet treats (POLO)
1999 fruit drops, NESTLE PURE LIFE
NESTLE fruita vitals
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STRENGTH
o Strong brand name. o Socially responsible company. o Innovative. o Multinational.o Quality products. o The world’s largest processed food and Beverage Company. o Presence in almost every country. o Strong brands like Nescafe, Maggi and Cereal. o High quality and strong R&D team. o Dedicated and focused company.
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WEAKNESS
o Selective investment due to uncertain economic and political conditions.
o Lack of awareness among the target market.
o Complex supply chain management.
o Subsidiaries difficult to manage.
o Too much product distracts from core business
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OPPORTUNITIES
o Pakistan is the 7th largest producer of milk in the world.
o Credit policy can be adopted to increase sale.
o Potential to expand to smaller towns and other geographies.
o Expansion of product folio.
o Further development of global brand.
o Emerging market penetration.
o More health based products.
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THREATS
o Global image may harm all brands if one brand fails.
o New diet trends.
oThere is no entry barrier for new entrants.
o Taste of consumer is difficult to change.
o Inflation is getting higher and purchasing power of people is decreasing.
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CHANELS OF COMMUNICATION
-INTERNAL COMMUNICATION
PERFORMANCE AWARD
PROMOTION
INCREASES
EID BOUNS
FREE RITURN TICKETS
INCREASES IN SALARIS OF EMPLOYESS
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CHANELS OF COMMUNICATION
-EXTERNAL COMMUNICATION
INTERNET
ADVERTISEMENT
T.V.ADDS
RADIO
SIGNS BOARDS
NEWS PAPER
PUMPHLETS
BROUCHERS etc.
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BRANCHES IN PAKISTAN
Nestle in Pakistan has its branches in fallowing major cities.
LAHORE
ISLAMABAD
FAISALABAD
SHEIKHUPURA (factory)
KARACHI
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Strategies in Pakistan
Internationally accepted best practices and ethical performance culture
Nestles existing products raise 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 are, and
for all age groups.
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Controversy and criticisms
Status of Potable WaterEthiopian debt (2002)Child laborChocolate price fixingFood safetyMilk products and baby foodCookie doughMaggi noodles
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Controversy and criticisms
• Status of Potable Water
“Right" to a "need.“, Nestle chairman and former CEO Peter Brabeck-Letmathe stated that "access to water should not be a public right. PeterBrabeck-Letmathe later changed his statement.
• Ethiopian debt (2002)
In 2002, Nestle demanded that the nation of Ethiopia repay US $6million of debt to the company at a time when Ethiopia was suffering asevere famine.
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Controversy and criticisms
Child labor
The International Labor Rights Fund filed a claim in 2005 under the Alien Tort
Claims Act against Nestle and others on behalf of three Malian children. Children
were worked to Ivory Coast, forced into slavery, and experienced frequent
beatings on a cocoa plantation. In September 2001, Bradley Alford, Chairman and
CEO of Nestle USA, signed the Harkin–Engel Protocol (commonly called the Cocoa
Protocol), an international agreement aimed at ending child labor in the
production of cocoa.
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Controversy and criticisms
Chocolate price fixing
The Bureau alleged that competitors' executives met in restaurants, coffee shops
and at conventions, and that Nestle Canada CEO, Robert Leonidas once handed a
competitor an envelope containing his company’s pricing information, saying: "I
want you to hear it from the top – I take my pricing seriously.“ Former Nestle
Canada CEO Robert Leonidas is under threat of a criminal charge for his role in
the price fixing of chocolates in Canada when he was at the helm of Nestle
Canada from 2006 to 2010.
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Controversy and criticisms
Food safety Milk products and baby food
In late September 2008, the Hong Kong government found melamine in a
Chinese-made Nestle milk product. Six infants died from kidney damage, and a
further 860 babies were hospitalized. As of 2013, Nestle has implemented
initiatives to prevent corruption and farmers bring milk directly to a network of
Nestle-owned collection centers, where a computerized system samples, tests,
and tags each batch of milk. In 2014, the company opened the Nestle Food Safety
Institute (NFSI) in Beijing that will help meet China's growing demand for healthy
and safe food, one of the top three concerns among Chinese consumers
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Controversy and criticisms
• Cookie Dough
In June 2009, an outbreak of E. coli O157:H7 was linked to nestle refrigerated
cookie dough originating in a plant in Danville, Virginia. In the US, it caused sickness
in more than 50 people in 30 states, half of whom required hospitalization.
Following the outbreak, Nestle voluntarily recalled 30,000 cases of the cookie
dough. The cause was strong-minded to be polluted flour obtained from a raw
material supplier. When operations resumed, the flour used was heat-treated to kill
bacteria.
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Controversy and criticisms
Maggi Noodles
• On 3 June 2015, New Delhi Government banned the sale of Maggi in New Delhi
stores for 15 days because it found lead and monosodium glutamate in the
eatable beyond permissible limit. In June 2015, nestles share fell down by 11%
and then 3%. On 5 June 2015, Food Safety and Standards Authority of India
(FSSAI) orders banned all nine approved variants of Maggi instant noodles from
India, terming them "unsafe and hazardous" for human consumption. Nestle
has already destroyed 400 million packets of Maggi products.
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Recommendations:
Use of organic products
Use of science technology
Forbid the unhealthy products
Diversify product range
Should increase the distribution Network
Diversified their portfolio.
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