Professional Documents
Culture Documents
Praise is to Allah Almighty, the one testing us all at all times and making decisions
about what we don’t know and can’t know. Writing this report appeared to be a great
experience to us. It added a lot to our knowledge while we were working on this
project. If we say that this project is one of our memorable experiences in student
We owe profound gratitude to Lt. Col. Sohail Akram (R) for stimulating our creative
abilities by assigning this report to us. We are immensely obliged to all our fellow
students who guided us in making this report, without whose considerate attention
and interest, it would be difficult for us to complete this project on time. Whatever we
have learnt from them and this project report has put indelible impression on our
mind. It is our conviction that this learning experience will always be a source of help
EXECUTIVE SUMMARY.........................................................................1
INTRODUCTION OF NESTLE................................................................2
NESTLE VISION......................................................................................3
NESTLE MISSION...................................................................................4
SWOT ANALYSIS...................................................................................7
PEST ANALYSIS....................................................................................8
PORTFOLIO............................................................................................9
RECRUITMENT PROCESS..................................................................13
PERFORMANCE APPRAISAL.............................................................15
COMPENSATION BENEFITS...............................................................15
MOTIVATIONAL STRATEGIES............................................................17
LEADERSHIP STYLE..........................................................................18
LABOR POLICIES................................................................................20
REFERENCES......................................................................................22
CONCLUSION.......................................................................................23
EXECUTIVE SUMMARY
We are analyzing the different aspects related to Managing Human Capital of Nestle
Company. Our analysis of Nestle will include the current market situation and
techniques like PEST analysis, Portfolio analysis and Porter Five Force that can be
helpful for improving their products. Nestle has been serving worldwide with its
excellence in product safety, quality and value. It provides many goods which
include Dairy products, Beverages, Bottled Water, Infant diets and confectionary.
According to their point of view they provide the best food through out the world. For
Henri Nestlé 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 Nestlé nest represents the nourishment, security and sense of family
that are so essential to life.
The first product made by Henri Nestlé, 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. People quickly recognized the value of
the new product, after Nestlé's new formula saved the child's life, and soon, Farine
Lactée Henri Nestlé was being sold in much of Europe. Nestlé has been serving
Pakistani consumers since 1988, when the parent company, the Switzerland-based
Nestlé SA, first acquired a share in Milkpak Ltd.(1)
Nestlé is committed to the following Business Principles in all countries, taking into
account local legislation, cultural and religious practices:
• Nestlé does not favor short-term profit at the expense of successful long-term
business development.
• Nestlé recognizes that its consumers have a sincere and legitimate interest in
the behavior, beliefs and actions of the Company behind brands in which they
place their trust, and that without its consumers the Company would not exist.
The consumer's voice is the key to Nestlé Pakistan's vision and working. Whether
you live in the remotest village or the city of Karachi, Nestle consumer services team
stands ready to listen to your concerns and provide answers about our products and
guidance on matters of health and wellness.(2)
Nestlé’s global vision is to be the leading health, wellness, and Nutrition Company of
the world. Nestle’ Pakistan subscribes fully to this global vision. In addition to that,
Nestle Pakistan also envisions to:
• Meet the nutritional needs of all age groups through a diversified product
range that contains an innovative portfolio of branded food and beverages of the
highest quality
• Strengthen the position as the best career destination for talented and
motivated individuals
“Nestle is dedicated to providing the best foods to people throughout their day,
throughout their lives, throughout the world. With our unique experience of
anticipating consumers' needs and creating solutions, Nestle contributes to your
well-being and enhances your quality of life.”(3)
Nestle recognizes that its consumers have a sincere and legitimate interest in the
behavior, beliefs, and actions of the Company behind brands in which they place
their trust and that without its consumers the Company would not exist.
Nestle continues to maintain its commitment to follow and respect all applicable local
laws in each of its markets.
Finance manager and marketing manager are related with each other to meet their
marketing targets. It is important because alone marketing manager can not promote
any marketing strategy without any budget.
We can easily observe that Nestle itself is taking active part in social welfare. We
see the lower prices of the product as compared to the other FMCGs Company’s
products like Unilever and Procter & Gamble. If we look at the prices, we can
observe that Nestle is also using its name for the promotional activities and pricing
strategies also. They have to maintain their level of efficiency and always provide the
best at best price. Nestle cares about the customers. As the time is of inflation,
nestle is trying to overcome the pricing problems to the extent they can do. Nestlé’s
point of view is “Only by understanding consumer needs can we serve our
consumers to the fullest”.
Profit earning is the core aim of every company but in case of Nestle their profit
margin is small just for the sake of customers trust and happiness. Nestle is also one
of the leader of retaining their customers. This is one reason of their success.
PROMOTIONAL STRATEGIES
Nestle launch was, perhaps one of the most aggressive as far as processed Nestle
product concerned, with TV, print ads, radio commercials, billboards and plenty of
BTL (below the line) activities including direct consumer and shop branding
activities. Due to this aggressive marketing campaign, the competition seems to be
getting tougher. So far ads focus towards the younger generation, who want to feel
free, young and excited, leading a healthy lifestyle. These ads are appealing a
specific social class.
They keep the information of the other companies what they are offering. Try to
improve their strategies from others so that they can promote their product more.
Like more companies are now coming in the market so there is more completion in
the market and they have to be up to date from the current situations.
SWOT analysis would tell us in better way about the competitive position of the
company. Following is SWOT analysis of the company.
STRENGTH
WEAKNESS
• Lack of Awareness
OPPORTUNITIES
THREAT
UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, LAHORE 7
• Segments are being shared by competitors
PEST ANALYSIS
POLITICAL FACTORS
Nestle believes that, as a general rule, legislation is the most effective safeguard of
responsible conduct, although in certain areas, additional guidance to staff in the
form of voluntary business principles is beneficial in order to ensure that the highest
standards are met throughout the organization.
ECONOMICAL FACTORS
Economical factors enhance the appearance of the company and also losing the
company. If we see economic factors than Nestlé is conscious of the fact that the
success of a corporation is a reflection of the professionalism, conduct and the
responsible attitude of its management and employees. Therefore recruitment of the
right people and ongoing training and development are crucial.
SOCIO-CULTURAL FACTOR
Nestle fulfill their social responsibility, Nestle not only to create wealth for
themselves and their shareholders, but also should consider the impact on or
influenced by the interests of Nestle behavior related to persons (including
employees, consumers, creditors, the community weak, and other social services),
interest, and social responsibility. Nestle specifically including the creation of wealth,
to obey with business ethics, protection of labor rights, environmental protection, and
save resources.
• We serve our consumers through safe, high quality products & communicate
with them responsibly. We try to benefit our consumers by spreading awareness
about healthy nutrition and lifestyles as well as constantly developing or
improving existing products for health, nutrition and wellness.
TECHNOLOGICAL FACTORS
They have certain goals and objectives which they want to achieve. They want to
create and promote their products to create value for their product. They have the
resources for increasing their product’s quality and compete it with the other
companies so Nestle focus on technology to create core-competences. They
conduct researches for that and try to get their objective which they have decided.
They are promoting their product by creating customer awareness. For example
they are giving the option to be called by them, by simply enter the phone number on
their website to discuss and give the feed back regarding the product and services
they are providing to the society.
PORTFOLIO
BRANDS
BUYER POWER
Nestle and other consumer product companies face weak buyer power because
here customers are fragmented and have little influence on prices or may be
product. But buyers in form of retailers influence and company face very strong
UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, LAHORE 10
buyer power for like Makro, Metro, Hyper star etc. they are able to negotiate for
pricing with Nestle and other companies like Unilever, PnG, Coca-Cola etc because
they purchase and sell so much products of these rivalries.
SUPPLIER POWER
We know that companies always face some amount of supplier power simply
because of the costs they incur when switching suppliers. On the other hand
suppliers like Farmers, milk-men, Packages Limited etc. they do a great involvement
to do trade with Nestle. In case Nestlé becomes aware of any actions or conditions
not in compliance with the Code, Nestlé reserves the right to demand corrective
measures. Nevertheless bargaining power for both the firms and their suppliers is
probably narrow.
THREATS OF SUBSTITUTES
As we know the switching cost from one brand to other in this industry is very low.
Consumers in this category enjoy a multitude of choices for everything from
beverages to confectionaries. But as we already discussed many consumers prefer
certain brand and they don’t shift so easily. For example it does not cost anything for
a consumer to buy one brand of Milk instead of another like Milk-Pak to Haleeb or
Olpers. It makes the industry quite competitive and manufacturer try to adopt the
Strengths and expose the weaknesses of others.
Planning encompasses those guidelines which constitute a sound basis for efficient
and effective HR Management in the Nestlé Group around the world. They are in
essence flexible and dynamic and may require adjustment to a variety of
circumstances. Therefore its implementation will be inspired by sound judgment,
fulfillment with local market laws and common sense, taking into accounts the
specific context. Its spirit should be respected under all circumstances. As Nestlé is
operating all over Pakistan, it is essential that legislation and practices be respected
everywhere. Also to be considered is the degree of development of each market and
its capacity to advance in the management of their human resources.
Should any HR policy conflict with local legislation, local legislation will succeed.
These policies are addressed to all those who have a responsibility in managing
people as well as to HR professionals. The Nestlé Management and Leadership
Principles include the guidelines inspiring all the Nestlé employees in their action
and in their dealings with others. The Corporate Business Principles refer to all the
basic principles which Nestlé endorses and subscribes to on a worldwide basis. Both
these documents are the pillars on which the present policy has been built. (5)
HR managers and their staff are there to provide professional support in handling
people matters but should not substitute themselves to the responsible manager.
Their major responsibility is to contribute actively to the quality of HR management
throughout the organization by proposing adequate policies, ensuring their
consistent application and coherent implementation with fairness.
UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, LAHORE 12
The communication skills of the HR staff must be appropriate to deal with all delicate
matters as they occur frequently in human relations issues. They gain their credibility
not only from their professional contribution but also through the care and the
excellence of their communication skills. (5)
RECRUITMENT PROCESS
REPLACEMENT
Filling of a near position. Additions to the existing workforce
• Date of initiation
• Job description
MANAGEMENT TRAINEES
UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, LAHORE 13
The procedure for selecting fresh graduates at Nestlé is bit different as the trainees
cannot be short listed through their CV's. Management trainees are fresh graduates
or they have one year experience at the most. Management trainees are not called
directly. They are contacted through their placement officers. Salaries or benefits of
the management trainees do not vary with their specialization. Similarly the training
period is the same, whether they are selected for marketing or finance.
SUCCESSION PLAN
The succession plan at Nestlé is made by the department head. He chooses his own
successor. It is the duty of the departmental head to train someone for his work, so
that there is a person to takeover in case he is transferred.
JOB ASSESSMENT
We know “Learning” is part of the Company culture. Each employee, at all levels,
either a fresh or old, 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 Nestlé. Training and Development 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 as Nestle does. Therefore they are proposed in the framework of
individual development programs. As a consequence, attending a program should
never be considered as a reward. Role of each manager at Nestle is to assess
progress, achieved as a result of training programs. The objective is to retain and
PERFORMANCE APPRAISAL
Nestle give importance to their employees at their work place because Nestle totally
depend on their quality, so quality achieved by the Nestle on the bases their
employees performance. So if employees are on right track so company gives
incentives to their employees.
COMPENSATION BENEFITS
Compensation is a key part of Nestlé Real Rewards package and helps to attract,
motivate, and retain a workforce of top performers. Our philosophy is to provide and
maintain disciplined compensation programs which value long-term relationships
with employees while recognizing individual performance. Nestlé is also committed
to offering compensation packages, including base pay, short and long-term
incentives and benefits, that are competitive in today’s market.
BASE PAY
Your base salary is the fixed portion of your pay. Base salaries are designed to be
competitive, based on data specific to each position as measured in the
SHORT-TERM INCENTIVES
LONG-TERM INCENTIVES
Long-term Incentive plans, such as Nestlé are designed to motivate and reward
those in eligible leadership positions for the Company’s sustained success over a
longer period, often three years or more. LTIP target award opportunities are set to
be competitive within the market and are calculated as a percentage of pay
The health and wellness of our employees and their families are important to the
Company as they are to you. That’s why Nestlé offers a range of healthcare options
through benefits program called NesCARE.
Healthcare plans include preventive care, prescription drug benefits, and may cover
certain alternative medical services. You are given the flexibility to choose the
benefits that are right for you (and your family), including medical, dental and vision
coverage
SPENDING ACCOUNTS
Flexible spending accounts are a great way to save on taxes. These plans allow you
to put aside your pre-tax rupees to reimburse yourself for eligible out-of-pocket
healthcare and dependent daycare expenses incurred during the year.
DISABILITY
There may be a time when you are unable to work due to an illness or injury that
occurred outside of work. Nestlé short-term and long-term disability plans offer
MOTIVATIONAL STRATEGIES
Adoption Assistance
Family is an important part of who we are, which is why Tetra pak offers a valuable
support for the families through various programs.
Employee Discounts
Tetra Pak offers discounts on a broad range of products to their employees also
provide travel and quarters, electronics, gifts, financial services, clothing and more.
Voluntary Benefits
Tetra Pak makes a number of voluntary benefits available to you through an outside
service provider, including auto and home insurance, prepaid legal services and pet
insurance.
Scholarship Program
Long-Term Care
Nestle provide their employee pick and drop facility, the timing of employee come in
to the workplace is also not disturb. All employees are relatively on the time in their
workplace.
Games
LEADERSHIP STYLE
The Nestlé Management and Leadership Principles describe the management style
and the corporate values of the Nestlé Group, specifically in the area of
interpersonal relations. Their respect calls for specific attitudes which deserve to be
outlined in the present policy:
A prerequisite for dealing with people is respect and trust. There can be no room for
intolerance, harassment or discrimination of any kind as they are the expression of
an elementary lack of respect. This principle suffers no exception and is to be
applied at all levels and under all circumstances.
Nestle has Democratic Leadership Style because they take advise from their
employees and review it and then take decision. The long-term success of the
Company depends on its capacity to attract, retain and develop employees able to
ensure its growth on a continuing basis. This is a primary responsibility for all
UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, LAHORE 18
managers. The Nestlé policy is to hire staff with personal attitudes and professional
skills enabling them to develop a long-term relationship with the Company.
Hence, a clear communication of these principles and values from the very
beginning of the recruitment process is required. (9)
• In Nestle, management dealing with people is respect and trust. There can be
no room for intolerance, harassment or discrimination of any kind as they are the
expression of an elementary lack of respect. This principle suffers no exception
and is to be applied at all levels and under all circumstances.
• Nestle management has work simplicity and honest in dealing with people for
efficient communication. Based on facts and on a sincere dialogue, such
transparency is the only solid basis for boosting continuous improvement.
Nestlé regards its people as its most valuable asset and places the highest priority
on protecting them. In every country where we operate, our company emphasizes
the need for safe working environments, which must meet our strict global
corporate standards.
• Identifying, assessing and reducing risk and preventing injury or illness to our
employees, contractors and visitors.
• Encouraging a similar Health and Safety commitment from our suppliers and
contractors.
1. http://www.nestle.com/AllAbout/AllAboutNestle.htm
2. http://www.scribd.com/doc/10552265/Nestle
3. http://www.scribd.com/doc/10552265/Nestle
4. http://www.nestle.pk/brands/our-brands.aspx
5. http://www.careers.nestle.com/NR/rdonlyres/09DFA44E-2206-406A-BF23-
8EB09D5DE44E/81594/HumanResourcesPolicy.pdf
6. http://www.careers.nestle.com/life/career_training.htm
7. http://www.nestleusa.com/nirf/cm2/upload/81C7DAEC-D955-4170-83F2-
1E97F0FB8AFE/RealRewardsBroch_FINAL.pdf
8. http://www.nestleusa.com/nirf/cm2/upload/81C7DAEC-D955-4170-83F2-
1E97F0FB8AFE/RealRewardsBroch_FINAL.pdf
9. http://www.careers.nestle.com/NR/rdonlyres/09DFA44E-2206-406A-BF23-
8EB09D5DE44E/81594/HumanResourcesPolicy.pdf
10. http://www.nestle.pk/community/she-policy.aspx
www.nestle.pk
www.nestle.com
www.wekipdia.com
BOOKS CONCERNED
Nestle is the world leader in FMCG industry. People trust on the products launched
Nestle today move for new strategies to retain their customer and also want to get
new customer. Nestle enhance their internal and external policies to satisfy their
customers and also their employees. HR plays a major role to maintain Nestle status
in the market.