Final Project for Nestle Pakistan

Contents 1. INTRODUCTION...................................................................................................... 1.1. Brief Hi History........................................................................................................ 1.2 1. 2. Loc Locati ation on of Offi Offices ces & Fact Factori ories es............................................................................ ............................................................................ Registered Regist ered & Corporate offices........................ offices ................................................... ...................................................... ............................. Factories....................... Factories .................................................. ...................................................... ...................................................... .................................... ......... Regional Regio nal Sales Offices Offices............................................................................................ ............................................................................................ 1.3. Num Number ber of of Tota Totall employ employees ees................................................................................ ................................................................................ 1.4 1. 4. Na Natur ture e of of the the Bus Busine iness ss........................................................................................ ........................................................................................ 1.5 1. 5. Key Playe Players rs or Corp Corpora orate te Gover Governes ness s................................................................... 2. MI MISS SSIO ION N & VISI VISION ON ST STATE TEME MENT NT............................................................................... ............................................................................... 2.1 .1.. Mi Miss ssio ion n State Stateme ment nt.............................................................................................. .............................................................................................. 2.2 .2.. Vis isio ion n Stat Statem emen entt................................................................................................. 3. GO GOAL ALS S & OB OBJE JEC CTI TIVE VES S............................................................................................. 4. EX EXTER TERNAL NAL (PE (PESTL STLE) E) & INT INTERN ERNAL AL ASS ASSESS ESSMEN MENT T ..................................................... 4.1 .1.. PE PEST STLE LE An Anal aly ysi sis s.................................................................................................. 4.1. 4. 1.1. 1. Po Poli liti tica call & Leg Legal al For orce ces s .................................................................................... Taxation axation Law Law.................................................................................................... ....................................................................................................  T Laws................................................... ...................................................... .................................................... .........................  Labor Laws........................ promotions........................................................................... ...........................................................................  Laws on hiring & promotions Laws........................................................................  Environmental Protection Laws........................................................................ Regulations ................................................................................  Foreign trade Regulations................................................................................ companies ...............................................................  Attitudes towards foreign companies............................................................... Politicall instability instability............................................................................................ ............................................................................................  Politica 4.1. 4. 1.2. 2. Ec Econ onom omic ic For orce ces s .............................................................................................. Rate...................................................................................................  Inflation Rate................................................................................................... rate......................................................................................  Economic growth rate...................................................................................... 4.1. 4. 1.3. 3. So Soci cial al For orce ces s & Cu Cult ltura urall ................................................................................... Consciousness......................................................................................  Health Consciousness...................................................................................... Trend..........................................................................................  Demographic Trend.......................................................................................... concerns..................................................................................  Environmental concerns.................................................................................. quality...............................................................................................  Work life quality............................................................................................... Changes.................................................. ...................................................... ........................................... ................  Lifestyle Changes....................... 4.1. 4. 1.4. 4. Tec echno hnolo logi gica call forc forces es......................................................................................... ......................................................................................... Products...................................................................................................  New Products................................................................................................... innovation...........................................................................................  Product innovation........................................................................................... automation...............................................  Productivity improvement through automation............................................... R&D.....................................................................................  Total spending on R&D..................................................................................... technology ......................................................................  New communication technology...................................................................... 4.2. SWOT Ana Anallysis.................................................................................................... 4.2.1. STREN ENG GTHS ..................................................................................................... Parent nt support support................................................................................................. .................................................................................................  Pare Image................................................... ...................................................... ............................................ .................  Company Image........................ Products......................................................................................  High Quality Products...................................................................................... Well-developed -developed strategy strategy.................................................................................. ..................................................................................  Well

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Market Share......................... Share.................................................... ...................................................... ................................................ ..................... services ..................................................................  Good marketing skills and services.................................................................. strength.................................................................................................  Brand strength................................................................................................. Team.......................................................................  Research & Development Team....................................................................... innovation...........................................................................................  Product innovation........................................................................................... department................................................................................................  HR department................................................................................................ 4.2.2. WEA EAK KNESSES................................................................................................... Proactive..................................................................................................  Less Proactive.................................................................................................. Channel..................................................... .................................................. .......................  Limited Distribution Channel.......................... Pakistan...................................................................................... ......................................................................................  No outlets in Pakistan profit............................................................................  More concerned about profit............................................................................ 4.2 .2..3. OP OPP POR ORT TUN UNIT ITES ES................................................................................................ ................................................................................................ Investors ........................................................................  Support from Foreign Investors........................................................................ Channel..........................................................................  Enhance Distribution Channel.......................................................................... Trend..................................................... ...................................................... ................................. ......  Changing Social Trend.......................... conscious..............................................................................................  Health conscious.............................................................................................. growth.................................................................................................. ..................................................................................................  Market growth 4.2.4. THREATS.......................................................................................................... Regulation n...................................................................................  Government Regulatio Competitor..................................................... .....................................................  Increase in Competition among Competitor Barrier...............................................................................................  No Entry Barrier............................................................................................... rate....................................................................................................  Inflation rate.................................................................................................... Demand...................................................  Unfavorable Changes in Consumer Demand................................................... Share........................................................................................  Loss of Market Share........................................................................................ 4.3.. Po 4.3 Porte rterr’s five five forc forces es Analy Analysis sis................................................................................ ................................................................................ 4.3. 4. 3.1. 1. Th Thre reat at of of New New Entr Entran ants ts.................................................................................... .................................................................................... 4.3. 4. 3.2. 2. Ba Barg rgai aini ning ng Pow Power er of Sup Suppl plie iers rs......................................................................... ......................................................................... 4.3. 4. 3.3. 3. Ba Barg rgai aini ning ng Pow Power er of of Buy Buyers ers............................................................................. ............................................................................. 4.3. 4. 3.4. 4. Th Thre reat ats s fro from m Sub Subst stit itut utes es........................ ................................................... ...................................................... ............................... .... 4.3. 4. 3.5. 5. Co Comp mpet etit itiv ive e Riva Rivalr lry y .................................................... ............................................................................... ...................................... ........... 5. Competitive Analysis or Competitors Analysis......................................................... Analysis ......................................................... 6. PR PROB OBLE LEM M SEC SECTI TION ON FO FOR R NES NESTL TLE E............................................................................ 7. STR STRA ATEG TEGIC IC SOL SOLUTI UTION ON TO PRO PROBLEM BLEMS S ..................................................................... 8. FUT FUTURE URE PRED PREDICT ICTION ION & IMPL IMPLEMEN EMENT TATIO TION N PLAN PLAN 















GROUP MEMBERS

Khalique Ahmad Ansari Shehroze Ali Muhammad Umer Dogar Shehzad Shafique Samraan Bukhari















“ACKNOWLEDGEMENT” “In the Name ame of Alla llah most Mercifu cifull and most Beneficent ’’

We are very thankful to Almighty Allah who gave us the opportunity, courage and insight to explore more knowledge to complete this whole and for his blessings that have brightened in all parts of our lives and our parents whose prayers always supported us in every task. In scripting this project, we were were guide guided d by our our expe experie rience nce,, knowle knowledg dge e and and inter interest est in the subjec subjectt “Introduc “Introduction tion to Ideas” Ideas”. Beyo Beyond nd of all all the the mate materi rial al avai availa labl ble e we are are

thankful to our respected resource person “Sir.Tariq Jasim’’ for giving us such a deep knowledge about the subject, which made “Business Policy” very interesting subject. That is possible due to his unique and natural style of teachi teaching ng we ever ever expe experie rience nced d durin during g our our acade academic mics s and throu through gh his motivational behavior we’re able to complete this difficult task.















NESTLE PAKISTAN INTRODUCTION

Nestle is the world's leading nutrition, health and wellness company today and was founded in 1866 by Henri Nestlé. It has employed around 250,000 people and has factories or operations in almost every country in the world. Nestle is the world's leading nutrition, health and wellness company today. Bein Being g the the worl world' d's s lead leadin ing g bott bottle led d wate waterr comp compan any y is base based d on a firm firm econo economic mic model model:: stron strong g brand brands, s, global global prese presence nce,, innov innovati ation on capac capacity ity,, environmental stewardship and passionate people.

Brief History

Henri Nestlé, a pharmacist, developed a food for babies who were unable to breastfeed. His first success was a premature infant who could not tolerate his mother's milk or any of the usual substitutes which eventually became the first Nestle’s customer. After Nestlé's new formula saved the child's life and soon, Farine Lactée was being sold in much of Europe. After the major invention in 1874, Jules Monnerat purchased Nestle and collectively they launched the condensed milk. In 1905 Nestle merged with















production function all over the world to increase the customer demand and meet or capture more markets. Decision to go multinational was a fruitful idea, so as now nestle has operations in America, India, England, Brazil, Australia, Pakistan, Hungary, France, Belgium, Italy, Spain and various other countries around the globe. Nestle are now in all seven continents & having more than 522 factories in 83 countries.

Location of Offices & Factories Registered & Corporate offices

Nestle Pakistan Ltd. 308 – Upper Mall, Lahore 54000, Pakistan Factories Sheikupura

29th kilometer, Lahore-sheikupura Road, Sheikupura Punjab. Kabirwala

















Islamabad

Plot No. 32, sector (1-10/3), Industrial Area, Islamabad Karachi

Plot No. A-23, Northwestern, Industrial Zone, Port Qasim, Karachi

Regional Sales Offices

North Zone:















Number of Total employees

Nestle Nestle have more than 231,000 employees employees worldwi worldwide de but however however have more than 2500 employees in Nestle Pakistan. Nestle’s Pakistan is the best in its HR systems and which has approximately 2435 employees. Nest Nestle le’s ’s perf perfor orma manc nce e

is the the

resul esultt

of prof profes essi sion onal ally ly inte integr grat ated ed

management, investment & technology & mostly the commitment of our workforce & employees, bonded together with trust & integrity.

Nature of the Business

Nestle Pakistan Pakistan is the FMCG company which has major industry to cater food & beverages. Which has sub industry of Diversified goods for food and its major industry is FMCG industry. Major Industry: Food & Beverages Sub Sub Ind Indust ustry ry::

Divers Diversifi ified ed food food















Ian J. Donald

(Managing director)

Syed Babr Ali

(Director)

Syed Hyder Ali

(Director)

Management Committee: Khurram Zia

(Business Executive Manager “Ambient Dairy”)

Uzma Qaiser Butt

(Head of Human Resource)

Khurram Javed Maqbool Zafar Hussain

(Business Manager “Chilled Dairy”)

(Head of Sales)

Due to this highly committed management personnel Nestle Pakistan achieved high standards of quality & wellness.

MISSION & VISION ST STA ATEMENT















“The Nestlé global vision is to be the leading health, wellness, and Nutri Nutritio tion n Compan Company y in the world world.. Nestlé Nestlé Pakis Pakistan tan subscr subscribe ibes s fully fully to this this vision. In particular, we envision to: Lead a dynamic motivated and professional workforce workforce – proud of its heritage and bullish about the future. Deliver Deliver sharehol shareholder der value value through through profitab profitable le long-te long-term rm growth, growth, while continuing to play a significant and responsible role in the social, economic and environmental sectors of the country.”

GOALS & OBJECTIVES

Goals & Objective of Nestle Pakistan is Simple & well designed with the core strategy to meet the demand of the consumers & to fulfill the needs of the customers. The goals & objectives are; To be the best & quality brand in Pakistan















To be the socially responsible company & be helpful in bad times. Nestle aims to be proactive innovation and renovation culture, which is the key to Nestle’s success in the marketplace. Nestle aims to have fully integrated systems with suppliers & retailers so that every single market can be tapped & focused.

















EXTERNAL (PESTLE) & INTERNAL ASSESSMENT

PESTLE Analysis















your business. So for understanding Nestle’s position in the market & to visualize the Nestle’s position among its competitor Pestle analysis is the best technique to understand the external forces.

Political & Legal Forces Taxation Law

If gover governm nment ent impose imposes s heavy heavy taxes taxes on the the indu industr stry y then then it badly badly effects the industry growth. The taxes impose is from government side and it varies from industry to industry. FMCG’s have to pay heavy taxation, changes in any any taxa taxati tion on syst system em can can badl badly y effe effect ct Nest Nestle le’s ’s prod produc ucti tivi vity ty & sale sales s















Laws on hiring & promotions

Hiring & promotion is followed by law. People with better capabilities are privil vilege eged beca ecause they deser serve it, it, for for the the bette etterrment ent of the organization. As well as a well educated& skilled experienced person is a prec precio ious us asse assett for for the the comp compan any y suit suit shou should ld be hir hired on bett better er term term & conditions and be promoted on the basis of it capabilities.

Environmental Protection Laws















Political instability

The government stability also plays a great role for any industry. In Pakistan government face lot of difficulty from the side of terrorism and also its activity that badly effect environment of the country which is totally very upset. Recently in Punjab instability of government creates lot of problem for the the indu indust stry ry lik like shor shorta tage ge of elec electr tric icit ity y that that badl badly y affe affect cts s the the indu indust stry ry operational process. Nestle have not much affect this condition but in future it may be face some difficulty for operating.















Social Forces & Cultural Health Consciousness

Today oday peop people le are are mor more heal health th cons consci ciou ous s so Nest Nestle le prod produc ucts ts by identifying this need of the people they are also producing health conscious products with more elements of pure & quality, which create the market for Nestle & trend of its products in the market. However when launches it Milk in 1988 back then it was not so much popular but now a day’s people are more health conscious.

















Technological forces















maintain the efficient scale of production which normally called economies of scale.

Total spending on R&D















4.2.

SWOT Analysis

4.2.1.

STRENGTHS



Parent support















High Quality Products

Nestle produce a good quality products. Nestle cannot compromise on quality because people are more quality conscious now a days, with the best alit alit

th

atta attain in

st

lo

lt

Nest Nestle le bein bein

th

rldw rldwid id















categ categor ories ies.. So when when a brand brand becom becomes es gener generic ic then then it creat creates es the feel of strong brand in the eyes of customers. Such as Google.com etc. Research & Development Team

Resear Research ch and develop developmen mentt departm department ent keeps keeps Nestle Nestle in continuo continuous us

























































































































































































Final Project for Nestle Pakistan

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