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Production & Operation
Management
Report Presentation
Presented by :
Sumbal Noureen
 Introduction
 NESTLE in Pakistan
 Offices and factories
 Organizational Chart
 Product Brands
 Mission & Vision
 Market Growth
 Competitors
 Product Life Cycle
 Manufacturing Process of Nescafe
 SWOT Analysis
 Conclusion
Contents.
• Found in 1877 by the merger of “Anglo Swiss condenced
milk company” and “Henri Nestlé”.
• A baby food mixture was the core product of Nestle
initially.
• Rose it’s production and sales during the last years of
second world war.
• Acquired a number of companies during the 1900s.
• Acquired the ice cream manufacturing company dreyer in
2005 and became the largest ice cream manufacturer of
the world.
• Today Nestle is known as the leading food and beverages
organization over the world.
• Operates in 194 countries, has 447 factories and
employees over 333000 people over the world.
• Has the major share in world’s largest cosmetics company
L’Oreal.
Getting to know Nestle
The Nestlé logo was launched by Henri Nestlé in 1868 on the basis of
the meaning of his name in German, i.e. little nest, and of his family
emblem
Nestle in Pakistan
• Arrived in Pakistan by a joint venture with Milkpak in
1988.
• Acquired the company in 1992.
• Subsidiary of Nestle SA ltd. Vevey, Switzerland.
• Operates as a public limited company in Pakistan, listed in
Karachi and Lahore stock exchanges.
• Has corporate head office in Lahore.
• Corporate resident office in Karachi.
• Regional sales offices in 9 cities.
• Employess over 3500 individuals.
• 4 production factories.
•Signed the water stewardship agreement with WWF-
Pakistan.
• Engages with 190’000 farmers.
• Won awards from Karachi stock exchange for it’s
remarkable progress and social responsibility.
Offices and Factories
Pakistan - key positions occupied by:
• Trevor Clayton, Managing Director, MD Office (Country Head of
Operations)
• Syed Yawar Ali, Chairman
• Raymond Franke, Head of Finance and Controls, Finance & Control
Division
• Haseeb Aslam, country business manager water, water division.
• Peter Wuetherich, Head of Technical, Technical Division
• Salman Nazir, Head of Supply Chain, Supply Chain Division
• Uzma Qaiser Butt, Head of Human Resources, Human Resources
Division
• Zafar Hussain, Head of Sales, Sales Division
Mission and Vision Statement
Mission Statement:
“To positively enhance the quality of life of
the people of Pakistan by all that we do
through our people, our brands and
products and our CSV activities.”
“Nestlé is the largest food company in the
world. But, more important to them is to be
the world's leading food company”.
Mission and Vision Statement
Vision Statement:
“Nestlé’s global vision is to be the
recognized leading Nutrition, Health
and Wellness Company. Nestlé
Pakistan subscribes fully to this vision
of being the number one Nutrition,
Health, and Wellness Company in
Pakistan.
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 meet the needs & requirements of the consumers,
• To capture the desired market share,
• To be the number one nutritious company of Pakistan,
• To be the leading FMCG company around the world as well
as in Pakistan,
• To be the socially responsible company & be helpful in bad
times.
Product Portfolio
Dairy
• Nestle Milkpak
• Nestle Nido
• Nestle Milkpak
Cream
• Nestle Nido
• Nestle Everyday
• Nesvita
Chilled dairy
• Nestle yogurt
• Nestle riwayati maza
• Nestle Actiplus
yogurt
• Nestle Milkpak
Yogurt
• Nestle zeera Rait
• Nestle Podina Raita
Bottled Water
• Nestle Pure life
Product Portfolio
Chocolate and
biscuits
Nestlé, Crunch,
Cailler, Galak/
Milkybar, Kitkat
Kitkat Chunky,
Smarties,
ButterFinger,
Aero, Polo
Coffee
NESCAFÉ,
TASTER’S
CHOICE,
RICORÉ,
RICOFFY,
NESPRESSO,
BONKA
Food
• Maggi
Noodles
• Maggi
Umda
MAza
Beverages
•Nestle fruita
vitals
•Nestle
Nesfruita
Competitors:
Competitors:
•Engro Foods Pakistan
Major product lines: Olpers milk, Olwell, Olper
Cream, Tarang Tea whitener, Tarkka Ghee
•Haleeb Foods
Major product lines: Bread, snacks, desserts and
meals.
•Shezan Foods Pakistan
Major product lines: Food Products, Jams Jellies &
Marmalades, Tomato Ketchup, Sauces & Pickles, Fruit
Juices Syrups & Squashes
Nestle produces wide range of food and medical items.
The main competitors of Pakistan are
•Unilever and Proctor &Gamble
(Market Shares in Percentage)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Milkpak Nestle
Pure life
Juices Noodles
Nestle
Competitors
Product Life Cycle (PLC)
Introduction Growth Maturity Decline
Chilled coffee
NesFruita
Nestle Milo Cereals
Nestle Fitness
Nestle coco crunch-
Cereals
Nestle Crunch
Nestle Milkpak
Nestle Nido
Nestle Everyday
Nestle Fruita Vitals
Nestle Pure Life
Maggi Noodles
Nestle Cerelac
Lactogen and NAN
Nestle Corn flakes
Nescafe
Nestle Kitkat
Yogurt
Maggi Umda Maza
Nestle Meethay
Product Life Cycle (PLC)
0
2
4
6
8
10
12
Introduction Growth Maturity Decline
Product Life Cycle of Nestle Pakistan
Manufacturing Process
of Nestle Coffee
Process Flow
Planting
Harvesting
Processing the Cherries
Industrial Processing
Quality Insurance
 Selectively Picked - only the ripe cherries are harvested and they are
picked individually by hand.
 Strip Picked - the entire crop is harvested at one time.
 Fermentation Drying Initial drying done on trees
 Washed Spread on concrete, tile or matted surface
 Dried 3-15 days until specific moisture
 Best quality Sorted
Corporate Social Responsibility
The key focus areas for Nestlé
Pakistan’s Creating Shared Value
(CSV) programmes are as follows:
• Nutrition
• Water
• Environmental Sustainability
• Rural Development
• Our People
SWOT Analysis
Strengths
•Brand Image
•Growing sales and profits
•Marketing expertise
•Trusted quality
•Product availability (Distribution Channel)
•Strong Research and development
•Socially responsible image
Weaknesses
•Higher prices
•External sources of raw material
Opportunities
•Increasing demand for healthier food
•Market ready to adapt new trends
•Absense of matching competition
•Possibility to introduce area specific stuff
Threats
•Uncertain economic conditions
•Increasing competition
•Food contamination
•Raising prices of raw material
•Unsure law and order situation
Conclusions
 Nestle has been earning well for itself and offering
ample returns to the society for over two decades now.
 Still growing it’s business and product portfolio as no
competitor has given matching competition yet.
 Positioned as the provider of healthiest and nutriest
food in the market.
 Has major products in good market strength.
 Nestle should focus on developing more new products
and exploring more new markets to retain it’s leading
position in the food industry of Pakistan.
POM, Project on Nestle

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POM, Project on Nestle

  • 1. Production & Operation Management Report Presentation Presented by : Sumbal Noureen
  • 2.  Introduction  NESTLE in Pakistan  Offices and factories  Organizational Chart  Product Brands  Mission & Vision  Market Growth  Competitors  Product Life Cycle  Manufacturing Process of Nescafe  SWOT Analysis  Conclusion Contents.
  • 3. • Found in 1877 by the merger of “Anglo Swiss condenced milk company” and “Henri Nestlé”. • A baby food mixture was the core product of Nestle initially. • Rose it’s production and sales during the last years of second world war. • Acquired a number of companies during the 1900s. • Acquired the ice cream manufacturing company dreyer in 2005 and became the largest ice cream manufacturer of the world. • Today Nestle is known as the leading food and beverages organization over the world. • Operates in 194 countries, has 447 factories and employees over 333000 people over the world. • Has the major share in world’s largest cosmetics company L’Oreal. Getting to know Nestle
  • 4. The Nestlé logo was launched by Henri Nestlé in 1868 on the basis of the meaning of his name in German, i.e. little nest, and of his family emblem
  • 5. Nestle in Pakistan • Arrived in Pakistan by a joint venture with Milkpak in 1988. • Acquired the company in 1992. • Subsidiary of Nestle SA ltd. Vevey, Switzerland. • Operates as a public limited company in Pakistan, listed in Karachi and Lahore stock exchanges. • Has corporate head office in Lahore. • Corporate resident office in Karachi. • Regional sales offices in 9 cities. • Employess over 3500 individuals. • 4 production factories. •Signed the water stewardship agreement with WWF- Pakistan. • Engages with 190’000 farmers. • Won awards from Karachi stock exchange for it’s remarkable progress and social responsibility.
  • 7.
  • 8. Pakistan - key positions occupied by: • Trevor Clayton, Managing Director, MD Office (Country Head of Operations) • Syed Yawar Ali, Chairman • Raymond Franke, Head of Finance and Controls, Finance & Control Division • Haseeb Aslam, country business manager water, water division. • Peter Wuetherich, Head of Technical, Technical Division • Salman Nazir, Head of Supply Chain, Supply Chain Division • Uzma Qaiser Butt, Head of Human Resources, Human Resources Division • Zafar Hussain, Head of Sales, Sales Division
  • 9. Mission and Vision Statement Mission Statement: “To positively enhance the quality of life of the people of Pakistan by all that we do through our people, our brands and products and our CSV activities.” “Nestlé is the largest food company in the world. But, more important to them is to be the world's leading food company”.
  • 10. Mission and Vision Statement Vision Statement: “Nestlé’s global vision is to be the recognized leading Nutrition, Health and Wellness Company. Nestlé Pakistan subscribes fully to this vision of being the number one Nutrition, Health, and Wellness Company in Pakistan.
  • 11. 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 meet the needs & requirements of the consumers, • To capture the desired market share, • To be the number one nutritious company of Pakistan, • To be the leading FMCG company around the world as well as in Pakistan, • To be the socially responsible company & be helpful in bad times.
  • 12. Product Portfolio Dairy • Nestle Milkpak • Nestle Nido • Nestle Milkpak Cream • Nestle Nido • Nestle Everyday • Nesvita Chilled dairy • Nestle yogurt • Nestle riwayati maza • Nestle Actiplus yogurt • Nestle Milkpak Yogurt • Nestle zeera Rait • Nestle Podina Raita Bottled Water • Nestle Pure life
  • 13. Product Portfolio Chocolate and biscuits Nestlé, Crunch, Cailler, Galak/ Milkybar, Kitkat Kitkat Chunky, Smarties, ButterFinger, Aero, Polo Coffee NESCAFÉ, TASTER’S CHOICE, RICORÉ, RICOFFY, NESPRESSO, BONKA Food • Maggi Noodles • Maggi Umda MAza Beverages •Nestle fruita vitals •Nestle Nesfruita
  • 14.
  • 15. Competitors: Competitors: •Engro Foods Pakistan Major product lines: Olpers milk, Olwell, Olper Cream, Tarang Tea whitener, Tarkka Ghee •Haleeb Foods Major product lines: Bread, snacks, desserts and meals. •Shezan Foods Pakistan Major product lines: Food Products, Jams Jellies & Marmalades, Tomato Ketchup, Sauces & Pickles, Fruit Juices Syrups & Squashes Nestle produces wide range of food and medical items. The main competitors of Pakistan are •Unilever and Proctor &Gamble
  • 16. (Market Shares in Percentage) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Milkpak Nestle Pure life Juices Noodles Nestle Competitors
  • 17. Product Life Cycle (PLC) Introduction Growth Maturity Decline Chilled coffee NesFruita Nestle Milo Cereals Nestle Fitness Nestle coco crunch- Cereals Nestle Crunch Nestle Milkpak Nestle Nido Nestle Everyday Nestle Fruita Vitals Nestle Pure Life Maggi Noodles Nestle Cerelac Lactogen and NAN Nestle Corn flakes Nescafe Nestle Kitkat Yogurt Maggi Umda Maza Nestle Meethay
  • 18. Product Life Cycle (PLC) 0 2 4 6 8 10 12 Introduction Growth Maturity Decline Product Life Cycle of Nestle Pakistan
  • 20. Process Flow Planting Harvesting Processing the Cherries Industrial Processing Quality Insurance
  • 21.  Selectively Picked - only the ripe cherries are harvested and they are picked individually by hand.  Strip Picked - the entire crop is harvested at one time.  Fermentation Drying Initial drying done on trees  Washed Spread on concrete, tile or matted surface  Dried 3-15 days until specific moisture  Best quality Sorted
  • 22. Corporate Social Responsibility The key focus areas for Nestlé Pakistan’s Creating Shared Value (CSV) programmes are as follows: • Nutrition • Water • Environmental Sustainability • Rural Development • Our People
  • 23. SWOT Analysis Strengths •Brand Image •Growing sales and profits •Marketing expertise •Trusted quality •Product availability (Distribution Channel) •Strong Research and development •Socially responsible image Weaknesses •Higher prices •External sources of raw material Opportunities •Increasing demand for healthier food •Market ready to adapt new trends •Absense of matching competition •Possibility to introduce area specific stuff Threats •Uncertain economic conditions •Increasing competition •Food contamination •Raising prices of raw material •Unsure law and order situation
  • 24. Conclusions  Nestle has been earning well for itself and offering ample returns to the society for over two decades now.  Still growing it’s business and product portfolio as no competitor has given matching competition yet.  Positioned as the provider of healthiest and nutriest food in the market.  Has major products in good market strength.  Nestle should focus on developing more new products and exploring more new markets to retain it’s leading position in the food industry of Pakistan.