This document provides an overview of Nestle, including its history, organizational structure, brands and products, and financial analysis. It discusses that Nestle is a multinational food and beverage company founded in 1866, with over 2000 brands across 150 countries. The document outlines Nestle's mission to positively influence social environments as responsible corporate citizens. It also describes Nestle's matrix organizational structure with top, middle and lower level management, and key departments like sales, R&D, and human resources. Finally, it summarizes Nestle's financial performance in 2018, including metrics like sales growth, gross profit ratio, and earnings per share.
3. CONTENTS
History and Introduction
Hierarchy and Organizational Structure
Brands and Products
Financial Analysis
SWOT Analysis
Marketing and Advertisement
Conclusion
References
4.
5. What is Nestle?
Multinational food and beverage company
Nestle product include baby food, breakfast
cereals, coffee, tea, Ice cream, dairy product
etc.
It is the largest food company in the world
Nestle Pakistan started in 1988 under a joint
venture and took over management in 1992
7. Nestle Mission Statement
Nestle mission ,in the words of
the founder Henri Nestle, is to:
“… positively influence the social environment
in which we operate as responsible corporate
citizens ,which due regard for those
environment standards and societal aspirations
which improve quality of life.’’
Henri Nestle,1857.
8. Nestles Vision
“ The Nestle global vision is to be the
leading health ,wellness, and nutrition
Company in the world.”
9. 9
Nestle –A very brief history
1866: The Nestle was Henri Nestle search
1905: Nestle merge with Anglo-Swiss Milk
1938-1944: World War 1 brought crisis
Nestle
1944-1975: End World War 2 dynamics
phase of Nestle history
1981: Nestle approached the 1980s with
renewed flexibility and determination
2005: Chairman recognized that the habit of
World were changing and hence it began
own transformation
11. Nestle –A very brief history
2009: Held the first Creating Shared Value Forum in
New York, with leading experts in the areas of
nutrition ,water and rural development coming
together to discuss serious global challenges
12. 12
Head Quarter of Nestle
Head quarter in VEVEY Switzerland
Total factories = 487 in 86 countries
Total employees = more than 283000
13.
14. SYSTEM AND ORGANIZATION
STRUCTURE OF NESTLE
Organization charts include:
Matrix
Flat (known as Horizontal)
Decentralized
Permits Subordinates high level of
independence
19. ROLE OF TOP LEVEL
MANAGEMENT
Lays down the objectives
Issue necessary instructions for
preparation of subdivision
procedures, schedule, budgets, etc.
Prepares strategic policies & plan for
the initiative.
Coordinate & controls the activities of
all the departments.
20. Appoint Executive for middle level for
instance departmental managers.
Provides direction and guidance.
Responsible for maintaining a contact
with the outside world.
Responsible towards the stakeholders for
the performance of the initiative.
22. ROLE OF MIDDLE
MANAGEMENT
Execute the plans of the organization.
Participate in employment and
training of lower level management.
Interpret and explain policies from
top level management to lower level.
23. Evaluate performance of junior
managers.
Sends important data and reports to top
level management.
Make plans for the sub-units of the
organization
Responsible for inspiration of the lower
level management.
25. ROLE OF LOWER
MANAGEMENT
Assigning of jobs and tasks to various
workers.
Instruct and guide workers for day-to-
day activities.
Responsible for quality as well as
quantity of production.
26. Responsible for maintaining good
relation in the organization.
Communicate workers’ problems,
suggestions and recommendatory
appeals to the higher level.
28. SALES DEPARTMENT
Primary source of information about
market.
Workers visit the market to find out
competitors.
Workers are collect the complaints of
the customers. t the market and find
out who are
Make sure the availability of product
in the market.
29. CUSTOMER SERVICE
DEPARTMENT
Head office based department.
Customer’s complaints are collected and
moved in to the Quality Assurance
Department.
Nestle believe in maintaining regular
contact with their customers.
‘‘Talk to Nestle’’
30. RESEARCH &
DEVELOPMENT
DEPARTMENT
R&D are localized.
Head office in Switzerland.
Nestle divided the whole world into 3
zones each has its own R&D.
1) America
2) Europe
3) Asia Oceania Africa
31. BRANDS DEPARTMENT
Subdivided into departments for each
product line.
Product line comes under a Business
Manager.
Business manager has two Brand
Managers.
Brand manager is responsible for
specified product.
33. The 10 principles of
Nestle Business
Operations
For Consumers:
1) Nutrition, health and wellness.
2) Quality assurance and product safety.
3) Consumer communication.
4) Human rights in our business activities.
34. The 10 principles of
Nestle Business
Operations
For People of NESTLE:
5) Leadership and personal
responsibility.
6) Safety and health at work
35. The 10 principles of
Nestle Business
Operations
For suppliers and customers:
7) Relation based on honesty, integrity
and fairness.
8) Agriculture and rural development
36. The 10 principles of
Nestle Business
Operations
For the Environment:
9) Environmental sustainability.
10) Target zero waste.
37.
38. Brands & Products
Owns over 2000 brands across 150
..countries
Best known for Fast Moving Consumer
..Goods
Respects the cultures of countries and
..people
Working hard to deliver the best quality
Keeps customers satisfied with the
quality ..of products
43. Bottled Water
More than 100 controls are carried
out daily, from water source to
packaging, in order to ensure the
perfect quality of the final product.
46. Confectionery
• `
No.1 Asset in our
Confectionery
portfolio.
Unbeatable
combination of
consistently high
product quality
Have a break, have a KitKat
47. Baby Food
Each Stage of your child’s life is
unique.
Cerelac provides nutrition
according to their age
Comes in 4 stages
53. Bankers
Standard Chartered Bank
Habib Bank Limited
MCB Bank Limited
Citibank, N.A.
United Bank Limited
National Bank of Pakistan Limited
Meezan Bank Limited
Telenor Microfinance Bank
Limited
57. 57
Ratio Analysis
Sales
Gross Profit Ratio
Inventory Turnover Ratio
Current Ratio
Interest Cover Ratio
Dividend Payout
Earnings per Share
Return on Equity
59. 59
Sales
Sales grew by PKR 2.4 billion, a growth of 2.0%
largely driven by pricing
Increase in selling price
Reduction in cost of sales
60. Gross Profit Ratio
30%
32%
34%
36%
38%
2017 2018
GP Ratio
GP Ratio
Delivered a Gross Margin of 33.2%.
The major factors behind the decline was due to
significant Rupee devaluation and increased
commodity prices, which could not be fully
compensated with pricing and cost saving initiatives.
61. Inventory Turnover Ratio
0
1
2
3
4
5
6
7
2017 2018
Inventory Period
Inventory
Period
4.7
5.8
It measures the period for
which goods remain in stock
before getting sold.
Efficient inventory
management
Higher sales
62. Current Ratio
0.55
0.6
0.65
0.7
0.75
2017 2018
Current Ratio
Current Ratio
It represents margin of safety or cushion available to the creditors
Lower ratio as compared to previous year represents:
Financial difficulty
Lower inventories
Longer creditors credit period
63. Interest Cover Ratio
0
5
10
15
20
25
2017 2018
Interest cover
Interest cover
It indicates whether the business earned sufficient profits to
pay periodically the interest charges
Decrease indicates :
Lower profitability
More use of debts
Less credit worthiness
64. Return on Equity
It measures overall efficiency of a company
This ratio is of great importance to present and prospective
shareholders
This shows efficient management
Higher profitability
65. 65
Dividend Payout
The Board of Directors has recommended to pay final cash
dividend of PKR 63 per share
In addition to the interim cash dividend already paid of PKR185 per
share
Which brings the total dividend for the year to PKR 248 per share
for 2018 as compared to 320 per share in 2017.
74. Advertisement
• In the advertisement of NPL the
message is given that :
“ There is one water, which gives
you hope, happiness and trust and that
water is Nestle pure life. It is pure safe
and healthy water. ”
• Slogan of NPL :
JIYO! Kay yehi ha zindagi
75.
76. Conclusion
Nestle is the largest food manufacturing company
in the world.
Nestle has almost tried all the strategies to expand
internationally, and now they help economies to
grow.
Nestle created joint ventures with other
companies which enhanced Nestles and there
companies’ performance positively.
77. Nestle is flexible and highly adaptive to the
competitive external environment and also
decentralized decision authority.
The main purpose of nestle working together is
that the communities which are serving Nestle
should prosper in long term.
Conclusion
Nestle have developed a new process for malt extraction for MILO tghat means less sucrose and more complex carbohydrrates in the product. Launched in 2006. STRAW thing
NESTLÉ FRUITA VITALS Premium range is currently available in Chaunsa, Red Grape, Apple, Kinnow, Pineapple, Guava, and Peach. While NESTLÉ FRUITA VITALS Super Premium range is available in Red Anaar that offers the perfect blend of super fruit.