Nestle Pakistan Internship Report

CHAPTER: 1 THE ORGANIZATION

Executive Summary

Nestlé has been serving for over one hundred and fifty years. It has differentiated itself through its high-quality product mix and positioned itself as health and Nutrition Company.

Nestlé is the largest food selling company. It manufactures food and beverages. It gives a briefing about all the brands of Nestlé.

Nestle Pakistan Limited (NPI.), formerly known as Nestle Milkpak Limited is a subsidiary of Nestle SA – a company of Swiss origin headquartered in Vevey, Switzerland. It is listed on Karachi and Lahore stock exchanges. The food products include dairy, confectionery and culinary products, coffee and beverage and drinking water. The major brands include Milkpak UHT, Nestle Every day, Lactogen and Nescafe.

Nestlé has set its manufacturing plants in Karachi, Lahore, Islamabad and Kabirwala. The milk processing plant at Kabirwala district is the Nestlé’s world largest milk processing plant.

This report includes about the community services by Nestle Pakistan Limited. Also, it explains the company profile and the infrastructure of the management.

Nestle running many brands and are operating separately. Each of the brand department is further categorized in different departments according to the product development and sale is described in this report.

Strengths and Weaknesses are being analyzed on the basis of internal environment and internal organizational factors. Whereas, Opportunities and Threats are being identified on the basis of external and internal environment and factors.

This report includes about the activities performed at Nestle and also some recommendations for the company and IBIT.

History of Nestle

Nestlé is the world’s leading nutrition, health and wellness company. “Good Food, Good Life” is the promise we commit to everyday, everywhere – to enhance lives, throughout life, with good food and beverages.

Nestlé is now the world’s largest food company. It is present on all five continents, has an annual turnover of 74.7 billion Swiss francs. It runs almost 509 factories in 83 countries and employs about 231,000 people.

Nestlé covers almost every food and beverage category, giving consumers tastier and healthier products. Our most popular brands include Nescafé, Milk Pak, Nesvita, Fruita Vitals, Maggi, Milo and Kitkat. Our products are available worldwide in supermarkets, grocery shops, through online retailers and also in smaller local stores.

Nestlé has set its manufacturing plants in Karachi, Lahore, Islamabad and Kabirwala. The milk processing plant at Kabirwala district is the Nestlé’s world largest milk processing plant.

Quality and safety for our consumers is Nestlé top priority. This applies to all products across the world, across all our products from food and beverages to all our system and services. To ensure the quality and safety of product we have a Quality Management System. We use this globally to guarantee food safety and compliance with quality standards. Our internal Quality Management System is audited and verified by independent certification bodies to prove conformity to internal standards, ISO norms, laws and regularity requirements.

Nestlé encourages its national operations to adapt products locally, in order to respect the local, regional and national habits and the taste, culture and the religious backgrounds of the consumers as well as their purchasing power. While all products must correspond to our quality requirements, they vary extensively in composition, recipe, packaging and branding.

Nestle Mission statement

“Nestlé is the largest food company in the world. But, more important to them is to be the world’s leading food company”

At Nestlé, we believe that research can help us make better food so that people live a better life. Good Food is the primary source of Good Health throughout life. We strive to bring consumers foods that are safe, of high quality and provide optimal nutrition to meet physiological needs. In addition to Nutrition, Health and Wellness, Nestlé products bring consumers the vital ingredients of taste and pleasure.

Nestle Vision Statement

The vision of Nestle Group is,

“Nestlé aim is to meet the various needs of the consumer every day by marketing and selling food of a consistently high quality. The confidences that consumers have in our brands is a result of our company’s many years of knowledge in marketing, research and development, as well as continuity – consumers relate to this and feel they can trust our products”.

The Nestlé global vision is to be the leading health, wellness, and Nutrition Company in the world. Nestlé Pakistan subscribes fully to this vision. In particular, we envision to:

Lead a dynamic motivated and professional workforce – proud of its heritage and bullish about the future.

Meet the nutritional needs of consumers of all age groups – from infancy to old age, from nutrition to pleasure, through an innovative portfolio of branded food and beverage products of the highest quality.

Ambition

To be the leading Nutrition, Health and Wellness Company in Pakistan.

Nestle Slogan

“Good food, Good life”

Henri Nestlé chose his own coat of arms to represent the company’s philosophy:

a bird’s nest, with a mother feeding her young.

The image represents Nestlé core values: care, family values, nutrition, healthy growth, safety and comfort. It is a guarantee of quality and a commitment to responsibilities as a food company and experts in nutrition.

Over the years Nestlé has reaffirmed its commitment to wellness, helping consumers to live longer, healthier, and more productive lives, no matter their age, gender or socioeconomic status.

Nestle Goals/Objectives

Marketing objectives are compatible with the overall corporate objectives of nestle. Company’s objective is to be the world’s largest and best branded food manufacturer while insuring that nestle name is synonymous with the products of the highest quality.

Its chief objectives are:

To achieve compatibility with international voluntary standards on environmental management systems.
To build mutual trust with consumers, governmental authorities and business partners.
To ensure continuous improvement of nestles environmental performance.
Conservation of natural resources and minimization of waste.
To establish the benchmark for good business practice.
Employing new technologies and processing.

Values

As the world’s leading nutrition, health and Wellness Company, our mission of “Good Food, Good Life” is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories. “Good Life” also refers to the way we live and work together. We believe that when we share common values, it makes our work that much better. These include:

Integrity coupled with a strong work ethic
The desire to do quality work
Friendly, open and honest communication
A spirit of cooperation and openness to other ideas and opinions
A realistic approach to business
An openness to future trends and new business opportunities
Pride in enhancing our company’s reputation and performance

From Food Technologists who bring product ideas to life to Sales Representatives who bring our products to our customers, everyone at Nestlé shares our core values and plays a key role in moving the company forward.

Strategy

Creating awareness about the Nestlé’s products to at least 50% of the target market within three months of launch.

The objectives are achieved through intense promotional activities, developed to get to the target market in the best possible manner.

Creating 60% of target market within one year.

The promotional activities of company will develop interest for the people thus compelling them to approach it and in return good relations with customers will be created, so they create good word of mouth for Nestle and strive to approach it again and refer others.

Launching the product in summers

Nestlé will be launching the product in summers to capture most of the target customers and as well as market share.

Opening different outlets
Nestle will be opening different outlets initially in major two cities and after gaining primarily success it will be available in all big and small cites of Pakistan.

Performance Culture of Nestle

People are the essence of Nestlé. Our work environment is energetic and collaborative. Our people are empowered to impact the business while advancing their skills and building their knowledge. Nestle asks its employees to bring their dedication, determination and great ideas to the table. At Nestlé, you’ll find an enthusiastic team behind you, ready to hear your ideas and share in the challenges and successes.

A high performance culture supported by differentiated rewards and development is key to the delivery of individual and business objectives. This is driven by the alignment of clear and challenging responsibilities and priorities and ensuring that employees are aware of how their work impacts Nestlé. Your performance is the most important factor in determining your opportunities within Nestlé. If you’re keen to take on new and bigger responsibilities, you have to show that you’re able to do so. You have to demonstrate through our performance evaluation process that you have performed strongly and consistently over a number of years. This doesn’t just mean hitting your results; you have to show that you have achieved them in the right way. How you achieve is as important as what you achieve. We should stress the words ‘strongly’ and ‘consistently’. It is important that you’re able to make a significant impact by what you do. You need to point to great results – not once, but again and again. And to do that you need to stick with a role and show that the results you’ve achieved in it can be sustained. At Nestlé, the end and means are equally important. We value people who achieve results in the Nestlé way.

History & Background of Nestlé

1866-1905: The pioneer years

Our history begins in 1866, with the foundation of the Anglo-Swiss Condensed Milk Company. Henri Nestlé develops a breakthrough infant food in 1867, and in 1905 the company he founded merges with Anglo-Swiss, to form what is now known as the Nestlé Group. During this period cities grow and railways and steamships bring down commodity costs, spurring international trade in consumer goods.

1905-1913: The Belle Époque

In 1905, Nestlé & Anglo Swiss has more than 20 factories, and starts using overseas subsidiaries to establish a sales network that spans Africa, Asia, Latin America and Australia. As World War One approaches, the firm benefits from the period of prosperity known as the Belle Époque or ‘Beautiful Age’, and becomes a global dairy company.

1914-1918: Survival during wartime

The outbreak of war in 1914 leads to increased demand for condensed milk and chocolate, but a shortage of raw materials and limits on cross-border trade hamper production for Nestlé &Anglo-Swiss. To solve this problem, the company acquires processing facilities in the US and Australia, and by the end of the war it has 40 factories.

1919-1938: Crisis and opportunity

After the war military demand for canned milk declines, causing a major crisis for Nestlé & Anglo-Swiss in 1921. The company recovers, but is rocked again by the Wall Street Crash in 1929, which reduces consumer purchasing power. However, the era carries many positives: the company’s management corps is professionalized, research is centralized and pioneering products such as Nescafé coffee are launched.

1939-1947: Riding out the storm

The outbreak of World War Two in 1939 affects virtually every market, but Nestlé & Anglo-Swiss continues to operate in difficult circumstances, supplying both civilians and armed forces. In 1947, the company adds Maggi soups and seasonings to its product range, and adopts the name Nestlé Alimentana.

1948-1959: Greater consumer convenience

The post-war period is marked by growing prosperity, and people in the US and Europe spend money on machines that make life easier, such as refrigerators and freezers. They also favor convenience foods, and Nestlé Alimentana meets this need with new products including Nesquikand Maggi ready meals.

1960-1980: Frozen foods to pharmaceuticals

Acquisitions enable Nestlé to enter fast-growing new areas such as frozen foods, and to expand its traditional businesses in milk, coffee and canned foods. In the 1970s the company diversifies into pharmaceuticals and cosmetics. It starts to attract criticism from activist groups that allege its marketing of infant food is unethical. Nestlé later becomes one the first companies to apply the WHO code on breast-milk substitutes across its business.

1981-2005: Towards Nutrition, Health and Wellness

Following years of growth, Nestlé disposes of unprofitable brands and promotes those that satisfy increasingly health conscious consumers, in line with its new ‘Nutrition, Health and Wellness’ ambition. The company expands in the US, Eastern Europe and Asia, and targets for global leadership in water, ice cream and animal food.

2006-Today: Creating Shared Value

Nestlé articulates its Creating Shared Value approach to business for the first time, and launches its Nestlé Cocoa Plan and Nescafé Plan to further develop sustainable supply chains in cocoa and coffee. While strengthening its position in traditional segments, infant formula and frozen foods, Nestlé strengthens its focus on medical nutrition.

Nestle Pakistan

Nestle Pakistan is a subsidiary of Nestle S.A- a company of Swiss origin headquartered in Vevey, Switzerland. Nestlé begins its long relationship with South Asia when the Nestlé Angle-Swiss Condensed Milk Company starts importing and selling finished products in the Indian market. Production of long shelf-life UHT milk begins at MILKPAK Ltd. Sheikhupura factory, Pakistan. Along with the milk the Sheikhupura factory starts the production of NESTLÉ NIDO milk powder and cereals so, a new plant is acquired at Kabirwala in the Punjab. The milk processing plant at Kabirwala district is the Nestlé’s world largest milk processing plant. Nestlé takes over the running of the company and begins to develop its milk collection network. Later, MILKPAK Ltd. is renamed Nestlé Milkpak Ltd.

NESTLÉ PURE LIFE bottled water is premiered in Pakistan. Within a few years it becomes one of the world’s leading brands of bottled water. Nestlé Pakistan acquires the Fontalia and AVA water companies which specialize in supplying water to homes and offices. Meanwhile, Nestlé milk collection system in the Punjab matures and the company is able to buy all its milk from farmers instead of relying on contractors.

Nestlé Pakistan today is the leading Food & Beverages Company in Pakistan with key focus on Nutrition, Health and Wellness and reaching the remotest of locations throughout Pakistan to serve the consumers. Nestlé Pakistan also prides itself in being the leaders in Nutrition, Health & Wellness. Ever since 1867, when Henri Nestlé invented the first infant food, nutrition has been in our DNA. Today more and more consumers mirror our emphasis on nutrition, as they realize that food choices affect their health and quality of life.

Nestlé Pakistan operates in many ways but people, products and brands are the main flag bearers of the Company’s image, and we continue to enhance the quality of life of Pakistanis.

Global Brands of Nestlé

Following are the categories in which Nestlé global is manufacturing its products.

Baby Food
Drinks
Bottled Water
Food Service
Cereals
Chocolate & confectionary
Coffee
Culinary, chilled & frozen food
Dairy
Food Service
Health care nutrition
Ice-cream
Pet care
Food Management

Brands in Pakistan

Nestle product line is divided into following major categories:

1-Ambient Dairy

NESTLÉ MILKPAK
NESTLÉ MILKPAK Cream
NESTLÉ BUNYAD
NESTLÉ MILO
NESTLÉ EVERYDAY
NESTLÉ NESVITA Calcium Plus
NESTLÉ NIDO FORTIGROW

2-Chilled Dairy

NESTLÉ Yogurt Sweet ‘N’ Tasty
NESTLÉ RIWAYATI MAZAA YOGURT
NESTLÉ ACTIPLUS Yogurt
NESTLÉ MILKPAK YOGURT
NESTLÉ ZEERA RAITA
NESTLÉ PODINA RAITA

3-Juices

NESTLÉ FRUITA VITALA
NESTLÉ NESFRUTA

4-Bottled Water

NESTLÉ PURE LIFE

5-Culinary & Food

NESTLÉ MAGGI NOODLES
MAGGI CHOTOO

6-Baby Food

NESTLÉ CERELAC

7-Breakfast Cereals

NESTLÉ KOKO KRUNCH
NESTLÉ MILO CEREAL
NESTLÉ CORN FLAKES

8-Coffee

NESCAFÉ CLASSIC
NESCAFÉ GOLD

9-Confectionery

KITKAT

NESTLE FRUITA VITALS:

As we already know that Health. Fitness and nutrition is the basic plan of Nestle. And Nestle Fruita Vitals fulfills the needs of its consumers with vitamin, calcium and minerals, all the necessary Vitamins. Calcium and minerals are filled in fruit juices. Nestle Fruita Vitals includes Apple Nectar, Red Grapes, Pineapple Nectar, Guave Nectar, Orange Nectar and Peach Nectar.

Nestle Nescafe:

Nescafe is the instant coffee. It Keep you fresh, awake your soul and keep you active is the ultimate goal of Nescafe, what I think. Nescafe Classic, Nescafe Gold and Nescafe Cold Coffee are here to keep you fresh with its taste.

Nestle Cereals:

A delicious breakfast cereal made with whole grain with a rich chocolate taste that kids love. Plus it includes important vitamins, iron and calcium. The whole grain tick on our breakfast cereals with the green banner – this is your guarantee that they contain at least 8g of whole grain in every delicious serving. Our breakfast cereals also typically provide 25% of the recommended daily allowance (RDA) of vitamins and minerals per serving.

Nestle Bottle Water:

Due to its brand name Nestle Pure Life is the most favorite of Pakistani people. Every bottle of Nestle is very safe & secure to keep you healthy and the important thing is that Nestle Bottle Water is processed under safety Security System (SSS).

Pakistan is the proud birth place of the NESTLÉ PURE LIFE brand ,it was first launched in 1998.
Today, NESTLÉ PURE LIFE takes pride in being the world’s most popular bottled water brand.
The NESTLÉ PURE LIFE brand is now one of NESTLÉ’s billionaire global brands, Present in 30 countries spanning 5 continents.

NESTLE BABY FOOD

Nestle Cerelac

As we know From the initial stage of child its safe food is vital and from innate to 3 years old child Nestle is providing Cerelac for your baby, A perfect food for your baby. It is in different stages/levels.

Nestle Culinary Products

Nestlé’s commitment to healthier eating includes helping to address issues such as micronutrient deficiencies and improving nutritional understanding. For example Maggi is very popular in Pakistan and India, Child and under teenagers like Maggi Very much. Maggi is very good for health as well.

Nestle Confectionery:

Nestle also gives their customer’s sweet foods/product like POLO and KITKAT are here to fresh your mouth and keep your moments lively, through these sweet products you can enjoy your special moments of like whether you are in sport, or party, it is there to keep you and your child lively. Apart from all things Kitkat is favorite of all ages around the globe, especially in our country Pakistan.

GENERAL PROFILE OF THE COMPANY

Nestlé Pakistan is proud of its commitment to excellence in product safety and quality and to providing value and aims to be the leading Nutrition, Health and Wellness Company. As a socially responsible corporate, we always focus on environment friendly operations, ethical business practices and our responsibility towards the communities. Nestlé in Pakistan is operating since 1988 under a joint venture with Milk Pak ltd and took over management in 1992. The company’s strategy is guided by Nestlé’s Corporate Business Principles which are in line with internationally accepted best practices and ethical performance culture. Nestlé’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 are, and for all age groups.

Nestlé Pakistan operates in many ways but people, products and brands are the main flag bearers of the Company’s image, and we continue to enhance the quality of life of Pakistanis.

Regional Offices

Company has ten regional sales offices in following cities of Pakistan:

1-Karachi

2-Hyderabad

3-Sukkar

4-Lahore

5-Multan

6-Faisalabad

7-Gujranwala

8-Quetta

9-Islamabad

10-Peshawar

Our Community

In Nestlé’s view, it must be fully integrated in the social, cultural and economic fabric of the countries in which it operates. Thus no matter which country it operates in, it is committed to strengthening local communities.

At Nestlé Pakistan we are wholeheartedly committed to meet our obligations to Pakistani society and be a good corporate citizen of the country.

We follow the code of corporate governance strictly, and try to deal fairly with all stakeholders, no matter their age, background or geographical location.

We take our responsibility to our consumers very seriously.

Community Service (Nestlé Pakistan Limited)

Our vision of Corporate Social Responsibility guides all our operations. We feel that businesses and society are partners: if one flourishes, so does the other. We are deeply involved in philanthropic initiatives, from humanitarian relief to sponsoring schools and donating to hospitals and welfare programs.

At the same time, we try to make sure that our own business practices are good for our society. Our Milk Collection System is a glowing example of our dedication both to our community and our consumers.

In the years since we began operations in the Punjab’s milk-farming region, local farmers have seen their lives improve, while consumers get safe, high quality milk products.

From spreading awareness about nutrition and wellness to digging wells in the Thar Desert we are committed to serving our country and its people.

The consumer’s voice is key to Nestlé Pakistan’s vision and working. Whether you live in the remotest village or the metropolis of Karachi, our consumer services team stands ready to listen to concerns of people and provide answers about our products and guidance on matters of health and wellness.

Our Consumers

The countless Pakistanis who choose Nestlé know that they can rely on us. We provide the finest quality, while constantly reinventing our self and our products to suit consumer needs better.

We try to make our products accessible to every consumer. Whether you need just a drink of water on a cricket field, or a week’s pure water for your workplace, NESTLÉ PURE LIFE is available in a size to suit your needs.

To help you lead a more fulfilling life, our research centers around the world are constantly developing new ways to make the food you eat and the beverages you drink healthier and reinforced with vital nutrients.

This concern for your wellness extends beyond our in-house brands – our Wellness team is always there to help guide you to a healthier lifestyle for you and your loved ones.

Your views and needs are central to Nestlé Pakistan’s operations. That’s why we have a dedicated Consumer Services team ready to answer questions, advise you about your family’s nutritional requirements, or simply help you whip up a quick, delicious meal.

Nestle Certifications

Certifications of nestle Pakistan Ltd. are as under

ISO 14001(safety)
OSHAS 18001(safety)
HACCP (operation pre- requisite, critical control point, pre-requisite programmed)
Integrated pest management (IPM)
ISO 2200 granting

(Combination of HACCP related to safety and ISO 9000 related to quality and many more things)

A successful GLOBE system that works for Nestle around the world in order to communicate confidential data
As a result of management commitment and dedicated effort and hard work Of Kabirwala factory staff at all levels KBF got the high status in milk powders category amongst all the

Nestle factories around the world in 2001. It was achieved because of continuous improvement drive and passion to become best in the World.

Nestlé Continuous Excellence

Nestlé’s success depends on its people. They make the difference by delivering the Nestlé Model in an increasingly challenging context.

Nestlé Continuous Excellence (NCE) is a key enabler for our people and company to win in the New Reality. It aims to transform Nestlé into a “Lean Enterprise” i.e. an organisation that is agile enough to identify and capture opportunities in this fast changing world.

Strengthening Foundations

We strengthened our foundations of alignment & leadership development best practices by not only sustaining them in operations but also building on them beyond operations. These foundations set the conditions for agility, creativity and entrepreneurship at all levels within a function.

Discipline in Execution

A key priority in 2013 was to foster greater focus on retailing and tighter discipline on execution. The organisation made a strong come back in the second half of the year by making tough choices, rigorous tracking through daily & weekly operational reviews and improvement in problem solving abilities.

Improvement Projects

Overall, twice as many White Belt projects were completed, with savings three times greater than those of the proceeding year (2012). Many other projects that focused on improved productivity were also initiated and successfully completed to increase operational efficiencies in a tough business environment.

Operational Excellence through Consumer & Customer Centricity

During the year, Juices Business, led an operational excellence initiative by understanding the consumer & customer needs and aligning their activities, as a value stream, to deliver on what their consumers & customers really valued.

Also see: Nestle Operations Management Project Report

The Juices Business derived financial benefits in the form of improved operational efficiencies as well as non financial ones through gains in product quality and cross functional synergies. Dairy Business followed suit by undertaking a study to understand its consumer and customer better. These are the first of a series of similar initiatives that we will embark on in 2014 to eliminate waste and drive efficiencies across our Value Chain.

Nestle Company Management

Nestlé has a Board of Directors, led by our Chairman Peter Brabeck-Letmathe, who was the former Nestlé CEO. 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 Nestlé business is taken care of by our Executive Board. The 14 designated Board Members manage diverse parts of the global business. A full curriculum vitae of each member can be found in the Executive Board section.

The Nestlé Group is managed by geographies – Zones EMENA (Europe, Middle East and North Africa), Americas and Asia/Oceania/sub-Saharan Africa – for most of the food and beverage business, with the exceptions of our globally managed businesses, which include Nestlé Waters, Nestlé Nutrition, Nespresso, Nestlé Professional, Nestlé Health Science and Nestlé Skin Health. We also have joint ventures such as Cereal Partners Worldwide and Beverage Partners Worldwide

Infrastructure of management

The infrastructure of management of Nestlé includes two units. That include business and supply chain units and are explained blew.

Business Unit:

There exist Business unit in every product department of Nestlé that forecast demand and general value chain.

Supply Chain:

There is a department of supply chain in nestle which performs the following functions:

Purchase raw material
Procurement
Selling/Distribution

After performing all these functions supply chain sends the products to technical department which further performs the following functions:

Production on ground
Operations
Processing

Then after this process technical department forward the products to the finance department which estimates:

Budgeting
Costing

After that human resource department appoint members who would be required for this complete process of supply chain.

Technical department, finance department shared services. Supply chain sends the complete product to the distribution center and there are different departments in distribution center.

Basically distribution center work for distribution to customer and the person who perform this function called distributor/customer. This process is clear from this diagram

Nestle Corporate Business Principles

The ten principles of business operations in Nestle are:

1-Consumers

Nutrition, Health and Wellness
Quality assurance and product safety
Consumer communication

2-Human rights and labor practices

Human rights in our business activities

3-Our people

Leadership and personal responsibility
Safety and health at work

4-Suppliers and customers

Supplier and customer relations
Agriculture and rural development

5-The environment

Environmental sustainability
Water

1-Consumers

Nutrition, Health and Wellness:

Our core aim is to enhance the quality of consumers’ lives every day, everywhere by offering tastier and healthier food and beverage choices and encouraging a healthy lifestyle. We express this via our corporate proposition Good Food, Good Life.

Quality assurance and product safety:

Everywhere in the world, the Nestlé name represents a promise to the consumer that the product is safe and of high standard.

Consumer communication:

We are committed to responsible, reliable consumer communication that empowers consumers to exercise their right to informed choice and promotes healthier diets. We respect consumer privacy.

2-Human rights and labor practices

Human rights in our business activities:

We fully support the United Nations Global Compact’s (UNGC) guiding principles on human rights and labor and aim to provide an example of good human rights and labor practices throughout our business activities.

3-Our people

Leadership and personal responsibility:

Our success is based on our people. We treat each other with respect and dignity and expect everyone to promote a sense of personal responsibility. We recruit competent and motivated people who respect our values, provide equal opportunities for their development and advancement, protect their privacy and do not tolerate any form of harassment or discrimination.

Safety and health at work:

We are committed to preventing accidents, injuries and illness related to work, and to protect employees, contractors and others involved along the value chain.

4-Suppliers and customers

Supplier and customer relations:

We require our suppliers, agents, subcontractors and their employees to demonstrate honesty, integrity and fairness, and to adhere to our non-negotiable standards. In the same way, we are committed to our own customers.

Agriculture and rural development:

We contribute to improvements in agricultural production, the social and economic status of farmers, rural communities and in production systems to make them more environmentally sustainable.

5-The environment

Environmental sustainability

We commit ourselves to environmentally sustainable business practices. At all stages of the product life cycle we strive to use natural resources efficiently, favor the use of sustainably-managed renewable resources, and target zero waste.

ORGANIZATIONAL STRUCTURE OF NESTLE

We are committed to the sustainable use of water and continuous improvement in water management. We recognize that the world faces a growing water challenge and that responsible management of the world’s resources by all water users is an absolute necessity.

Explanation:

Above structure shows that there are thirteen directors and a chairman are working under a CEO who report directly to CEO. CEO has the authority to change the directors who further direct their subordinates for every task.

Centralized/Decentralized:

Nestle federation is an extremely centralized organization. Nestlé community as a centralized organization allows its subordinates to enjoy a relatively high-altitude of autonomy. Although it still makes major strategy decisions at the headquarter level. There is a business with the matrix structure in Nestle. A director located indoors a division has cardinal variants of reporting, informants. A kickoff line manager reports to the collective increase manager and to the corporate useful manager. As an international organization, the ability to organize about geographical markets and also near productions is an advantage for nestle. Thus, the matrix structure serves Nestlé Company well. It has a manager in charge of a product line, but each product line is also duplicate with a manager in charge of a specific geographical area. To work out the job of matrix structure, Nestlé Company designs its own leadership building programs.

Span of management

In nestle top level management, leadership teams are made and assign them tasks and then teams have to manage their own tasks as much as possible with their leaders.

Formalization

As nestle follow its policies strictly and there is complete security system that’s why it is highly formalized.

Work Specialization

As nestle launches many categories of products and every product category has its own infrastructure of management and there are relevant specialized people are working in the relevant department so, there is also exist the principle of work specialization.

Departments of Nestle:

There are many brands in Nestle (juices, dairy, chilled) and are operating separately. Each of the brand department is further categorized in different departments according to the product development and sale.

Milk Collection & Dairy Development (MCDD)

There are the following functions that are operating in MCDD. There occurs a whole process of the collection of the milk from different areas of Pakistan.

Accounts Department
Safety, health and environment department
Quality Assurance Department
Research & Development
Marketing Department
Finance Department
Information Technology Department
Agriculture department
Human Resource Department

Accounts Department

Accounts department at MCDD prepares financial statements such as Balance sheets, Income Statements, Cash Flow Statements on daily basis. As, the milk purchase is done along with purchase of milk all the entries has to be prepared.

Safety, health and environment department

This department has to ensure that the hygiene, the environment in which the milk is being collected and to ensure the safety measures. This department ensures all employees are covered by a certified safety and health management system.

Quality Assurance Department

QA department has to ensure about the quality of the milk. Milk is being collected from different areas so there are specific standards made by the QA team, that the milk that is being collected must meet those standards. Many new techniques are being developed by the team to make is more productive.

Research & Development

Many developments are being happening so make things more productive. The expert of this department fully coordinate with the marketing department and very efficiently and effectively interprets their findings for collecting milk in more appropriate way.

Marketing Department

This Marketing department has un-beatable marketing forces that on regular basis conduct market surveys in order to look into Competitors position and customer’s taste. At time when the forces feel a change in customer preferences they immediately undertake distinctive steps and make new sales plans.

Finance Department

Finance department at MCDD performs various functions. The payment have to be given to all the milkman and they also make recommendation letters for loan to banks by the farmers who are supplying good quality milk. Also all the expense of the department is handled by finance department.

Information Technology Department

IT department at Nestle has a check to all systems and to the entire network of the systems at MCDD, they check the bugs and ensures the safely transactions throughout the network.

Agriculture Department

The people of this department facilitate the farmers of the dairy farms establishment and manage the locations from where milk is being collected. They also give trainings to the farmers to make their work more efficient.

Human Resource Department

HR department is handling the personnel of both power and appliances division. Whenever it gets any new plan either from power or from appliances it starts searching the best talent to be hired for the respective need and prepares salaries estimates statement. In MCDD, the HR works for hiring employees and settling down all issues related with employee’s needs, wants and hurdles. The employees of the HR department also visits the fields to interact with the farmers. They also arrange some meetings and also the other events.

Nestle Factories

Nestle is operating a total of 436 factories in 85 countries worldwide. Nestlé is selling its products in 189 countries. A total of about 335,000 employees are working with Nestlé.

Nestle Factories in Pakistan

Today, Nestlé collects milk from 140,000 farmers and working with 1154 suppliers, operating 4 factories with the help of 4000+ employees managing 25+ brands and dealing with 250,000 retailers which complete their supply chain for all the consumer end products like Milk Pack, Fruita Vitals, and Nestlé Water. The company estimates that a million people earn their living with Nestlé in Pakistan, from employees, farmers and distributors to suppliers, transport companies and retailers.

1-Sheikhupura Factory
2-Khanewal Factory

3-Port Qasim Water Factory

4-Islamabad water factory

Nestle Marketing Strategy:

The products include features that contain the combination of both health and hygiene keeping in mind the individuals requirements in terms of taste. However the marketing will be done considering the concept of mass percentage.

Products will be tailored to individual needs (desired taste) but promotion will attract all of them collectively. Furthermore Nestlé will be following pull strategy and approach its end users itself with the help of various promotional activities. For the distribution of products, no intermediary (whole sellers) is involved. The distribution channel is direct.

Target Market:

Knowing the fact that Nestle cannot be everything for everyone, it will be targeting only those segments that can provide best possible returns so that it may reach its goals effectively and efficiently.

The target market collectively consists of males and females in Lahore and Karachi of age group less than 18-30 belonging to middle class, not finding any other provider on terms of quality, hygiene and taste.

Market Segmentation:-

Nestle has divided its market into geographic, demographic, psychographic and behavioral segments. These segments will help to understand the market better and in implementation of marketing strategies.

Geographic Segmentation:

The geographic segmentation is based on the weather conditions as enjoying ice cream is popular mostly all over the Pakistan but keeping in mind the market conditions and secondly to reduce the initial expenses (not to over load the business).

Demographic Segmentation:

Nestlé has demographic segmentation for its products that comprises of following variables:

Age: Below 18. 18-30, 30+

Gender: Male, female

Psychographic Segmentation:

The psychographic segmentation of Nestle is based on the classes such as lower class, middle class and upper class.

Behavioral Segmentation:

Firstly, the segment includes people who are interested and like enjoying Nestlé products.

Secondly, it includes people who are willing to buy but not finding any other in the region up to the level they desire with respect to quality, hygiene and taste.

Thirdly, there are people who are not interested in the concept at all.

Nestle MARKETING MIX

Marketing Mix is defined as a set of controllable tactical marketing tools that firm blends to produce the response it wants in the target market. The marketing mix consists of every thing the firm can do to influence the demand for its products. The many possibilities can be collected into four groups of variables known as the four P’s that are as follows:

Product
Price
Place
Promotion

1.Product:

Product stands for goods and services that the company offers to target market.

Nestlé kit Kat is in four sizes including K.K Chunky, while Polo is in three sizes. The shape and the color of the Kit Kat and Polo are quite attractive for the customers. The labeling, packaging of the Kit Kat and Polo includes the Nestlé brand and logo. The packaging includes an expiry date and time along with a manufacture date. Second part of labeling includes the quantity of product in grams along with ingredients and contents of chocolates and candies.

2- PRICE

The amount of money charged for a product or service, or sums of the values that consumers exchange for the benefits of having or using the product or services.

The price of Nestlé Kit Kat and Polo varies increases with the increase in its size.

3- PLACING

Placing stands for company’s activities that make the product available to the target consumer.

Nestlé’ distribution is using the direct distribution channel to supply confectionery products weekly to the retailers.

4- PROMOTION

Producing a quality product, pricing it attractively and making it available for the target consumer is not the only problem companies need to solve. Modern era is the era of communication with customer, assuring customer satisfaction, demands for personal and non-personal communication with the target customer to build a relationship with them. In an area-storming activity, giving out products free, gift hampers, attracts new customers; kites depending on the season (for existing and potential customers) are given. The basic purpose is to explore the area that is being unexposed and to bring awareness in the people.

SWOT ANALYSIS OF NESTLE:

Strengths:

Nestle has following strengths:

Strong brand image

Having strong brands like NESCAFE, MAGGIE, CERELAC etc. had given Nestle a strong position in the industry. Nestle is world reputed and recognized organization which has positive impact on people perception about it.

Loyalty from customers

Loyalty from customers is also the major strength for the company.

Decentralized culture

Employees are also loyal due to the decentralized culture of the company.

Strong financial position

Nestle has strong financial position which enable it to attract more new investors and help it to raise funds from banks.

Strong core competencies

Nestle has strong core competencies i.e. highly expert human resources which enable it to produce new high quality innovative products.
Company has the ability to compete in a dynamic environment.

Modern operation facilities

They have highly developed websites. They are always ready to answer any query online. Nestle modern operation facilities are also important strength which enable it to produce high standardized quality products.

Own distribution network

Nestle has its distribution network which make it easy to provide Nestle products at all possible places on time.

Parent company support

Nestle has strong support from its parent company (Situated in Switzerland). So, this support helps the company to flourish.

Good quality products

The world largest processed food and beverages Company. And the good quality of the products has given it a strong position.

Worldwide existence

A presence in almost every country. This worldwide existence (Africa, America, Asia, Europe, and Oceania) is a key strength of Nestle.

Introducing new products

Continuously introducing new products on frequent basis thus expanded its products offering.Example, coffee capsules of different flavors.

Weaknesses:

Dependent on the outside Milkmen

Raw material is basic input for every organization and milk is core raw material of Nestle for which it is dependent on the outside Milkmen. Nestle has no single its own dairy form which provide high quality milk to the firm.

Packaging dependence

Another weakness of Nestle Milkpak Ltd. is that its total packaging depends upon Packages (Pvt.) limited.

Complex supply chain

Having complex supply chain management.

Company mostly advertises its milk products, advertisement of confectionary products is not so better

Opportunities:

Following are some opportunities for Nestle Pakistan Limited:

Can establish its own diary forms

Nestle can go for “Backward integration” and establish its own diary forms. Currently, Nestle is dependent on the outside Milkmen. Nestle should open its own diary forms because Nestle has strong financial position.

Potential to expand to smaller towns

Potential to expand to smaller towns and other geographies. The company has the option to expand its product folio by introducing more brands.

Open stores

Company is trying to open new stores in universities. Company can enter in ice cream products and snacks.

Threats:

Followings are the major threats for Nestle Milk Pakistan Ltd.

High Price

Purchasing power of people in Pakistan is decreasing day by day and prices of Nestle products are comparatively high. So in long run, Nestle may face problem if such trend continues.

Fierce competition

In some products Nestle is facing fierce competition. For example, in Milkpak Nestle is facing competition from Chaudhary Dairies Limited who has launched “Dairy Queen” at lower prices which has decreased market share of Milkpak. CDL has also launched “N’rish” milk powder at lower prices, it also has capability to decrease the market share of “NIDO”. So in long run, if Nestle do not respond to such competitors, they may create a lot of problems in other products also.

Instability of Government

Pakistan politics structure is very instable and is depressing economic activities and volatile business environment in the state. Such instable environment may influence the performance of all industries operating in state and Nestle may also be influenced from such trends of instability.

CHAPTER: 2 INTERNSHIP ACTIVITIES

Activities Performed

During my time of internship at Nestle Pakistan Limited I performed many activities that were assigned to me. I was supposed to understand the rules, culture, values and norms of the company and the whole procedure by which the milk is collected from different regions of Pakistan.

On my very first day I was welcomed so well and I got a proper introduction of the people working there and also I introduced myself in the first meeting. I was appointed as agreement management for legal assist in department of MCDD (Milk Collection & Dairy Development) at Nestle head office. I was appointed in the finance department where I came to work under the supervision Operations Controller

I signed a Non-Disclosure Agreement according to which I will have access to confidential information of the company that bounded me to strictly follow the rules and regulations of the company and not to disclose any data neither to employees within Nestlé Pakistan or to any other external party outside Nestlé Pakistan.

First Week

Finding non compliance in attendance

In the first week, the task given to me was finding non compliance in attendance of employees from different regions. I selected the employees from the management directory of the employees of Nestle. I enlisted the data of all employees of different regions in a separate excel sheet and enter time in and time out of the employees and calculate the working hours. This is ongoing project for three months. This is company policy that no employee can work more than 12 hours in a day, no more than 60 hours in a week. And cannot work consecutive 7 days. One has to take rest after 6 days of working.

Reconciliation of G.L 1048190 (Other receivable)

The task given to me was reconciliation of general ledger 1048190 other receivable in the guidance of financial specialist. Advances given to the suppliers for the farm development, molasses, vaccination, seed and chiller expenses. And give incentives to them on the basis of quantity and quality of the milk provided. Amounts of in or out payments are entered in general ledger. And G.L use for the amount recovery. 90% of the amount is recover from the molasses, seed, vaccination and chiller sale. We have to check the balance of recovery and recoverable amounts of the months of Jan 2014 to June 2017. And make a decision that difference of the balance has to shift from milk advances to the RMPS (raw milk procurement system).

Second Week

Certificate of Collection or Deduction of Income Tax

The task given to me was to make tax certificates for rent payments 2017 in the guidance of financial specialist. Format of the tax certificate was given to me and also the details of the suppliers which include the information about

Amount of tax collected/deducted
Address of the person from whom tax collected/deducted
CNIC of the supplier
Period of collection/deduction
Gross amount on which tax deducted/collected in figures

I have to enter these details in the tax certificate format. At the end I made the certificates and took it to the account payable Manager Mr. Hassan Abbas for the approval. Then I place region wise hard copies of the certificates in envelope and stamped it.

WHT Consolidation on fresh milk 2016 & 2017

I made an excel sheet of Supplier wise withholding tax of 2016 and 2017 from the data which include week wise information of supplier name, region and tax amount. And I have to consolidate the data of WHT on fresh milk.

Third Week

Agreement of advance of milk supply

In the third week, the task given to me was of agreement of advance of milk supply. I had to check the milk advance applications to insure compliance of documents in the guidance. It is the interest free loan for the time period of three months. The purpose of fresh milk advances to milk suppliers is to compete the competitors, development, feed management, milk sustainability.

Management of SOP’s and keeping record

In this week I got a task from Mr. for management of SOP’s and maintain all the record of SOP’s. I read the standard operating procedures and made a soft copy of Fuel Card Usage- for issuance of fuel for generators/loading pumps/motor cycles. I made calls to whom send this SOP for the feedback.

Fourth and fifth week

Nestle milk management system

This project is still under process. Each supplier has mobile tester in which this app is installed. When milk supplier agent start the journey he enter the location code, route code, vehicle code and milk volume. After completing the required kilometers he end the journey and update it. These entries also show in the system ( NMMS ). I made an excel sheet containing the entries enter by the MSA (Milk supply agent) of different region for example kabirwala, Minchinabad, Shorkot, Renala, KotAddu , BasirPur etc. For reconciliation, taking the data from the tally sheet and enter the tally sheet milk volume, fat percentage, SNF percentage, kilometers and location code from the tally sheet images in the excel sheet. And then calculate the difference and average percentage.

The task that I had to perform for two weeks under the supervision of Mr. and testing team that made the changes at back end and figure out the problems.

Six Week

Imported cow subsidy payments

I had to check the applications of imported cow subsidy payments in the guidance of Mr. I was supposed to check farmer name, total cow entitle, no of animals, subsidy amount and subsidy installment payments. The objective of cow purchase support scheme is to establish long term partnership with the farmers and to support the dairy form expansion and to encourage growth of farms. The scheme will entertain up till 100 cows per farm.

The farmer can purchase imported cows on his own or through bank finance. Nestle will contribute up to PKR 40,000 to support imported cow purchase.

Nestle Sarsabz Farm Visit

Visit of sarsabz dairy farm was arranged for all the internees. Mr. is appoint to guide us and give the brief introduction about the farm. There is a training center, bio gas plant and different sheds for the imported cows. Nestlé has planned to train 30,000 dairy farmers in next five years through its training centers established at Nestle Farmhouses with a view to improve milk quality and quantity as well as production. Training Manager of Milk Collection & Dairy Development expressed that the course was designed specifically to cover farm management, milk production, cattle health, nutrition and breeding. This was a very good experience.

Experience Specifications

Following are some of the new things that I experienced in Nestlé.

Meeting with head of MCDD

Head of Milk Collection & Dairy Development called a meeting with the internees. He told us about the Nestlé products and how it’s progressing day by day.

Discussion about quality and standards for milk collection process

In a meeting that I attended there was discussion on this topic and all the standards were discussed for milk collection. The new standards that can be helpful in future were also discussed.

Communicating with employees on telephone

As I was placed in head office of Nestlé, so I communicated with many employees working in other departments and factories.

Visit of other departments

I was working in Milk Collection & Dairy Development department. But I visited other departments for delivery of different documents & for signing the certificates.

Appreciation Card

On my last day at Nestlé I got two Thank You card. They admired my dedication towards work and wished me good luck in future.

Weekly Meetings

There occurs weekly meetings, where recognition were given to people and a little talk about the weekly updates. All the employees and internees had to attend that meeting. This was really nice practice where everybody come to know about their efforts.

New things learned at Nestle

That was a great experience working in Nestle Pakistan Limited and I learned many new things there. This give me a wonderful experience of practical work. The days that I spend there as an Internee are probably one of the most learning days of my life. Furthermore, the learning in a Corporate Environment has its own perks. Following are the new things that I learned in Nestle.

I get to know about the professional working.
I learned working as a team is the key to success.
How to communicate with people from different backgrounds.
How to think logical. How to see things from different perspectives.
I learned that appreciation to somebody working with you is how much important.
How to work within the groups and how to coordinate with each and every person.
How to handle stress while working alone, when you get more than one task at the same time.
I learned how to get the required information from people on telephone in minimum time from different departments.
During Internship I understood that how to make a good Report on any project as well as how to present it

CHAPTER: 3 SUMMARY & RECOMMENDATIONS

Summary

Internship at Nestlé was really a wonderful experience for me. It was a short journey full of commitment, passion, encouragement and hard work. I was very lucky that was I worked in Milk Collection & Dairy Development (MCDD) department. I came across in the company of amazing people who taught me many things that would be a great help in professional and daily life. They took care of each and every intern so well and they helped me with each and every query I had and helped me to understand the various issues.

In MCDD, everybody makes sure that the internes are doing well, I was given tasks clearly and sometimes with a deadline to submit an assignment. That thing helped me to do my work in time. Also, they make sure the punctuality of the employees as well as of the internees.

Working in such a great environment with a lot of people have made me much more confident. They made me believe in myself. Reading of scenarios and generating various answers have given me a good edge to think from different perspectives. I always got encouraged with my work.

I was free to ask questions at any time. They found it good when I ask questions regarding any task. So, I worked without any fear of being discouraged.

In Nestlé, I have seen the practical implementation of the theoretical knowledge in real life. That was a great opportunity for me to groom my professional attitude. Nestlé has taught me how to act professionally in thick and thin.

It was a great opportunity to learn the professional working with some amazing people who helped me throughout my time there. I learned many things from them. During my time of Internship, I grasp many new things that are really going to help in in future.

Recommendations for Nestlé

Following are some of the recommendations for Nestlé:

Strict rules and regulations

Staff should be made more responsible by implementing strict rules and regulations and taking disciplinary actions against any un-professional behavior.

Enhance security system

Skilled workers of the company should join the security department to enhance the system. Security holes always lead to bigger problems.

Long term agreements

Long term agreements to be signed with governmental departments. So, that would be better for the company.

Gift Vouchers

Nestlé can start some schemes that can help to boost sales like free gift vouchers at different events throughout ear.

Management of the office

A small part of the budget should be spent for the management of the office. This is because there is too much data that must be organized. So, a little expense on that can make it better.

Check & Balance System

In order to minimize the miss-utilization of the resources Nestlé should also tighten up its monitoring and inspection Networks by the employees and verify the data accuracy.