This document provides an overview of Nestle Pakistan Limited, including its mission, products, departments, and financial analysis. It discusses Nestle's collection of milk from farmers and production of dairy, beverage, and infant nutrition products across Pakistan. The company aims to provide consumers with nutritious choices through its mission of "Good Food, Good Life." Key departments discussed include human resources, finance, marketing, and sales.
This presentation was presented by me on Nestle ltd. The presentation figures out the History, background, performance and SWOT analysis of the company.
This presentation was presented by me on Nestle ltd. The presentation figures out the History, background, performance and SWOT analysis of the company.
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Compare a local brand with an international brand in similar productMd.Belal Uddin
We are comparing two brand Nestle & Brac, Brands product are Nestlé‟s Powder Milk & Aarong powder milk, Nestle is an international brand its product is Nido powder milk, Brac is Bangladesh local brand its product is Aarong powder milk. We are comparing two companies Mission, vision, strategy, marketing policy, Social Statement with international brand to local brand.
Running head: organizational assessment 1
Organizational assessment 8
Student name
University affiliation
Date
Nestle organizational assessment
Nestle is globally known to be one of the largest multinational company that specializes in beverages and food. Nestlé Company has had a very successful business strategies and product expansion. Nestle company has achieved the industry leadership through embracing research and development activities and networks. Through the development and research, Nestle Company has been able to offer safe, high quality and healthier beverages and food categories.
Nestle vision
Since the time Nestle Company was incepted, it has been aware that beverages and food choices can have a great impact on the quality of life of its consumers. Therefore, the company is very much committed to ensure that the products they manufacture are healthier and tastier. They are also committed to ensure that they offer various products to the worldwide consumers. The backbone of Nestle product portfolio is the unmatched research and development capability, innovation and nutrition science and also the high food quality. Nestlé Company, therefore, employs a team of high qualified nutritionists, engineers, scientists, designers, consumer care personnel and regulatory specialists. The goal of this team of talented personnel is to nearn the trust of the consumers by ensuring creation and delivery of products that are safe and of high quality. As a result of solid trust from the stakeholders and financial health, Nestle Company is able to achieve its goal of being the global leader in health, wellness and nutrition (Lee, 2014).
Nestle mission
The main objective of Nestle Company is to become the leader in health, wellness and nutrition while promoting protection of the environment they operate their business in and common value in the provision of nutrition. Nestlé Company believes that its behavior and size is the main contributor to its leadership within the nutrition and food industry. The company acknowledges that trust from the consumers is built and developed over time via continuous promise. The conduct and the mission of Nestle Company is entrenched in the term, Good Food, Good life. This term gives the summary of the company ambitions. Nestle company is very committed to encouraging its staff to offer high-performance level in order to support the company goals.
Objectives
The objectives of Nestle Company are to become a leader in wellness, health, and nutrition and also to be trusted by the company stakeholders. Also the company objective is to become the reference for performance in finance within the food industry. The company seeks to promote leadership and achieve trust simply by satisfying all the consumer expectations. The company believes in the creation of.
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Financial Analysis of Nestle company
1. Table of Contents
01) Preface
02) About company overview
03) Acknowledgement
04) Executive summary
05) Introduction
06) Departments
07) Company mission
08) Products
09) Financial Analysis
10) Ratio Analysis
11) SWOT Analysis
12) PEST analysis
13) Suggestions & Recommendations
14) Reference
2. Preface
When it comes to investing, analyzing financial statement information (also known
as quantitative analysis), is one of, if not the most important element in the
fundamental analysis process. At the same time, the massive amount of numbers in
a company's financial statements can be bewildering and intimidating to many
investors. However, through financial ratio analysis, you will be able to work with
these numbers in an organized fashion.
The objective of this tutorial is to provide you with a guide to sources of financial
statement data, to highlight and define the most relevant ratios, to show you how to
compute them and to explain their meaning as investment evaluators.
Ratio analysis is used to evaluate relationships among financial statement items.
The ratios are used to identify trends over time for one company or to compare two
or more companies at one point in time. Financial statement ratio analysis focuses
on three key aspects of a business: liquidity, profitability, and solvency.
3. Company overview
Nestle Pakistan Limited is a Pakistan-based company engaged in manufacturing,
processing and sale of food products, such as dairy, confectionery, culinary,
beverages, infant nutrition and drinking water. The Company operates in two
segments: Milk and nutrition products, which include milk based products and
cereals; and Beverages, which comprise juices and water. Nestle Pakistan operates
the biggest milk collection operation in Pakistan. The Company's products are
traded under brands, such as NESTLE MILKPAK, NESVITA, NIDO,
EVERYDAY, MILKPAK CREAM, NESTLE RAITA and NESTLE ACTIPLUS.
Nestle Pakistan collects milk from an estimated 190,000 farmers spread over
145,000 square kilometers in the province of Punjab and Sindh. Nestle Pakistan is
the 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 is...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 and eating
occasions, from morning to night.
4. Acknowledgement
I find no words at our command to express our deepest sense of gratitude to the
Almighty ALLAH , the most Gracious, the most Merciful and the most
Beneficent, who gives us the talent to complete this task success fully, He is
the one who gave us courage to do this.
We much obliged to my loving Parents whose prayers have enabled us to reach
this stage. At this occasion we can’t forget our parents for their guidance at the
crucial moments of our life.
We wish to thanks all our Friends and Classmates who really helped us by giving
suggestions and critical review of the manuscript. Obviously this achievement was
not possible without all of you.
5. Executive Summary
The purpose of the term report is to analyze the marketing plans and strategies of
MILKPAK, a brand of Nestle Pakistan Ltd. and to know how they make this brand
popular among their consumers and how they compete with their competitors in
order to survive in the market. The brand has largest market share and target all
social classes. The organization has adopted innovative ways to collect milk and
distribute it with effective distribution channels.
Nestle Milkman Ltd believes in customer based aggressive marketing. It always
looks to the changing demands of peoples and takes initiatives to fulfill those
requirements perfectly.
People of Pakistan are getting more conscious about their health and hygiene
therefore the demand of processed milk is rising gradually and showing great
potential. The industry has been growing at a robust rate of 20% during the last
five years. Therefore, many new companies / organizations are getting into this
sector engaging high investments creating a tough competition in the processed
milk industry.
6. Introduction
Nestlé S.A is a Swiss multinational food and beverage company headquartered in
Vevey, Switzerland. It is the largest food company in the world measured by
revenues .Nestlé's products include baby food, bottled water, breakfast cereals,
coffee, confectionery, dairy products, ice cream, pet foods, and snacks.
Nestle 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, runs 509 factories in 83
countries and employs about 231,000 people the world over. The Company owes
its current status to the pioneering spirits inherited from its founders which
continues to inspire it, to its concern with quality and to its constant search for new
ways of satisfying man's nutritional needs.
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.
Our history begins back in 1866, when the first European condensed milk factory
was opened in Cham, Switzerland, by the Anglo-Swiss Condensed Milk Company.
7. Departments
Human Resource
The Human Resource department is dedicated to our employees, and ensures that
we have all the right people with the right skills, in the right places at the right
time. Understanding that our people are the bedrock of all our business strategies,
it is our mandate to enhance their skills with cutting-edge training and provide
them with world-standard facilities
Our ground-breaking Management Trainee Programmed aims to develop talented
young men and women and help them achieve their potential in a dynamic and
enabling environment. Over a hundred people travel abroad every year to take
advantage of our international training and development events
Finance Department
Accounting and Finance is the heart of a business. Its functioning efficiently
directly affects the rise and fall of a business. It is possible to survive, for a while at
least, without an effective marketing plan, poor human resource management and
indeed a poorly designed business strategy finance is a very essential to smooth
running of the business No finance - no business No business, whether big,
medium or small can be started without an adequate amount of finance. Right from
the very beginning, i.e. conceiving an idea to business, finance is needed to
promote or establish the business, acquire fixed assets, make investigations such as
market surveys, etc., develop product, keep men and machine at work, encourages
8. management to make progress and create value These departments are crucial to
the financial well-being of a company and ensure that there is money for day-to-
day operations and oversee investments strategies for future growth.
Marketing Department
As marketing is a game to meet the needs and wants of the customers to satisfy
them. Customer satisfaction is the responsibility of marketing department by
developing new product, modifying existing product, placing the product at right
time at right place. The department also helps in setting prices with respect to
competitors and to satisfy customer as well. It functions to promote the product. So
in this way it creates an environment where transactions can take place.
As the function of marketing department is to satisfy the customer and to fulfill
organization objectives. These cannot be performed by a single department. These
can only be achieved when there will be coordination among all departments of the
organization. In the case of Nestle Milkpak Ltd. marketing division with its three
departments coordinates all other divisions and departments.
Sales Department
Sales department is a primary source of getting the information about the market.
They actually visit the market and find out that who are the competitors, and what
strategies they are adopting. They also collect the complaints of the customers and
make sure the availability of the product in the markets.
Nestlé cares for its consumers because its success depends on meeting their needs
and expectations. Through listening and understanding, it can make products that
they will want to use all through their lives.
9. Mission Statement
“Maintaining a global viewpoint, we are dedicated to supplying products of the
highest quality, yet at a reasonable price for worldwide customer satisfaction.”
Product Line
Following are the major products lines which are present in Pakistan as:
01) Nestle Ambient Dairy
02) Breakfast cereals
03) Nestle juices
04) Nestle beverages
05) Nestle chilled dairy
06) Nestle pure life
07) Nestle coffee
Nestle Ambient Dairy
Nestle Nido Fortified
NIDO believes that a mother’s love is unconditional and is always searching
to give her child the very best in life. That is what she is all about,
NURTURING. NIDO strives to provide a strong foundation for growth and
10. development by giving your children the very best in health and nutrition.
Children grow very quickly and so do their developmental needs. That is
exactly why Nestlé has developed NIDO that understands the nutritional
needs of your children at all stages of growth.
Nestle Nesvita
Did you know that your bodyloses a certain amount of Calcium every day?
This Calcium needs to be replenished daily since our bodycannot produceit
on its own. You must ensure that you get enough of it in your daily diet in
order to have stronger bones.
If you are all set for an active and healthy lifestyle, then you need to get the
strength your bones need & the smartness you desire with NESTLÉ
NESVITA Calcium Plus a Just two glasses of NESTLÉ NESVITA Calcium
Plus milk helps meet 80% of an adults daily requirement for Calcium
intake* and that too with less than 1% fat. s it is high in Calcium and low in
fat.
11. Nestle Milkpak
MILKPAK is a trusted brand known throughout the country for its nutritious
wholesome goodness and pure natural taste. To secure a happier and
healthier future for your family, you need the support of a strong partner like
MILKPAK, now fortified with extra strength of Iron, Vitamin C and
Vitamin A that keeps you and your family strong!
NESTLÉ MEETHAY
For Pakistani consumers with a sweet tooth, Nestlé has entered into the
indulgent desserts category. Nestlé MEETHAY is a ready to eat dairy
dessert in two delicious flavors – vanilla and strawberry. The product
can be consumed as it is or be used to make other premium desserts
like tiramisu and fondue. With its unique ready to eat format that
requires no cooking, MEETHAY range of desserts aims to make your
life delicious!
12. Nestle Everyday
Tea drinking culture is an integral part of daily Pakistani life so when
it comes to tea, it’s about NESTLÉ EVERYDAY. Strongly established
as a specialized tea creamer, today Nestlé EVERYDAY has not only
Become the heart of tea but also the heart of every tea lover across
Pakistan. A wide portfolio ranging from mainstream to sachets
Perform equally in mixed tea and separate tea.
13. Breakfast Cereals
Nestle Milo
With the new and improved MILO, children have more reasons to be active
as it gives them the energy they need for an active and healthy lifestyle. A
specific balance of Vitamins, Minerals and Antigen–E help optimize the
release of energy from Proteins, Fats and Carbohydrates. Loaded with extra
cocoa and rich malt, MILO has the irresistible chocolaty taste that kids love.
So treat your children with MILO and watch them at their active best!
Just one glass of MILO with milk provides children with 50% of their daily
iron, calcium, Vitamin B1 and Vitamin C needs.
14. Nestle corn flakes
Tear into a boxof NESTLÉ CORNFLAKES and discover the simple goodness
Within. There’s nothing quite like a bowl of tasty, crispy flakes made from whole
Grain golden corn with a splash of milk to get the day started.
Not only will NESTLÉ CORN FLAKES serve up a tasty breakfast, it also contains
Ten essential vitamins and minerals, including calcium & iron for a nutritious start
To the day.
15. Nestlé Juices
Nestle fruita vitals
Oranges are in demand not only for their divine juicy flavor but equally celebrated
For their health benefits. They are naturally low in calories, and an excellent source
Of Fiber and Vitamin C. Squeezed from the finest handpicked oranges, 100% pure
NESTLÉ FRUITA VITALS Orange Juice has no sugar and is a good source of
Vitamin C.
16. Nestle chilled dairy
Nestle rivayatti mazaa
NESTLÉ Rivayatti Mazaa is the ideal delicious and hygienic kitchen solution for
homemakers to provide for all her family’s distinct yogurt needs, whether it be
cooking, making lassi, preparing raita or having it with a spoon.
Nestle Raita
NESTLÉ Zeera Raita was launched in 2004, becoming an instant favorite of the
Pakistani cuisine lovers. This was followed by the launch of NESTLÉ Podina Raita
in 2006, which further strengthened NESTLÉ Raita’s position as the fastest
Growing brand within our Chilled Dairy portfolio. With its unique mouth-watering
taste, simple convenience and guaranteed hygiene, NESTLÉ Raita transforms
17. meals into culinary delights, making meals special and gaining appreciation for
homemakers.
Nestlé Pure Life
Every bottle of NESTLÉ PURE LIFE is produced with the Nestlé Safety System
and is carefully sealed with a proprietary seal. Purity of the highest standards is
matched by an optimal balance of essential minerals, enhancing the health and
well-being of your family.
18. Nestle Coffee
The world’s most trusted and enjoyed coffee - rich in natural goodness, flavor and
convenience.
With fine roasting, coffee beans release wonderful aromas and flavors. We capture
this natural goodness so you can enjoy the rich aroma and delicious taste of
Nescafe - anywhere, any time. More on Enjoying quality moments every day.
19. Ratio Analysis
A financial ratio (or accounting ratio) is a relative magnitude of two selected
numerical values taken from an enterprise's financial statements. Often used
in accounting, there are many standard ratios used to try to evaluate the overall
financial condition of a corporation or other organization. Financial ratios may be
used by managers within a firm, by current and potential shareholders (owners) of
a firm, and by a firm's creditors. Financial analysts use financial ratios to compare
the strengths and weaknesses in various companies. If shares in a company are
traded in a financial market, the market price of the shares is used in certain
financial ratios. The ratios are shown on the pages ahead.
Current ratio ;( 000)
(2012)
Current Assets/ current liabilities= 16905484/20003413
=0.84 = 84%
Current ratio (000)
(2011)
20. Current assets/ current liabilities= 13395017/16788455
=0.8 =80%
Interpretation;
The current ratio of 2012 is 0.84 it means that the firm current liabilities are higher
than of current assets .It measures the ability to meet the current debts with current
assets. Nestle Pakistan can meet the debts at 84% in 2012 and 80% in 2011.
Current ratio increases by 4% in 2012 it is a good sign for company.
Change;
The change is + 4% in 2012
Acid test Ratio; (000)
(2012)
0.78
0.8
0.82
0.84
0.86
2011 2012
c/r 2011
c/r 2012
21. Current Assets- inventories/ current liabilities
= 16905484 - 8025653 / 20003413
= 0.45 = 45%
Acid test ratio
(2011)
= Current Assets-inventories/ current liabilities
= 13395017 - 7064170 / 16788455
= 0.37 = 37%
0
0.1
0.2
0.3
0.4
0.5
2011 2012
atr/2011
atr/2012
22. Interpretation;
Inventory means that the stock that is in the industry at present. Measures the
ability to meet the current debts with most liquid assets. IN 2012 the acid test ratio
is 45% and in 2011 it was 37 %. 45% means the inventory is high lower the
inventory lower it indicates the acid test ratio.
Change; The change is +0.8%
Debt to equity ratio; (000)
(2012)
= Total debt / stockholder equity
= 39312453 / 11560264
= 3.40
Debt to equity ratio
(2011)
23. =Total debt / stockholder equity
= 27567443/ 7612416
=3.62
Interpretation;
Indicates the extent to which debt financing is used relatively to equity financing.
It means that the debts are very high. In 2012 the debts the debts are 3.40 0f
stockholder equity but in 2011 the ratio was a bit high 3.64. It shows that the firm
ability to meet the debts relatively to the stockholder equity is very low. The debts
are very high. The change is positive +0.22 times because the debts are low.
Debt to total Assets Ratio (000)
(2012)
=Total debts / Total Assets
3.25
3.3
3.35
3.4
3.45
3.5
3.55
3.6
3.65
2011 2012
d/r 2011
d/r 2012
24. = 39312453/ 50872717
=0.77=77%
Debt to total Assets
(2011)
= Total debts/ Total assets
= 27567443/35179859
=0.78=78%
0.764
0.766
0.768
0.77
0.772
0.774
0.776
0.778
0.78
2011 2012
dr/2011
dr/2012
25. Interpretation;
This ratio is showing two things that the assets are increased by 13% in 2012. This
ratio is also showing that the firm’s ability to meet the debts with total assets is
good because the total debts are 78% of total assets in 2011 and 77% in 2011.
Change;
The change is +1% in 2012
Turnover ratio
Receivables turnover (000)
(2012)
= Annual credit sales/ receivables
= 79088000/6208184
26. = 12.73 times
Receivable turnover in days
(2012)
= 365/RTO
=365/12.73
=28.7 days
Receivable turnover
(2011)
=Annual credit sales / receivables
=64824000/4042634
=16.1 times
Receivable turnover in days
(2011)
27. =365/RTO
=365/16.1
=22.67 days
Interpretation;
Receivable turnover in 2012 is 12.73 it means that Receivables are turning 12.73
times into cash in a year. If this ratio will high shows the efficiency of the firm
because they are recovering there receivables in time. 12.73 time means that the
firm average collection period is 28.7 approximately a month. In 2011 the RTO is
16.1 which are good than the previous year the firm is able to convert receivables
into cash 16.1 times a year. In 2011 the average collection period is 22.7 which is
relatively good than of 2012. This is based on the credit therefore this ratio is good.
Change;
In 2012 the change is - 0.21
0
5
10
15
20
2011 2012
rto/2011
rto/2012
28. Inventory turnover ratio (000)
(2012)
= cost of goods sold/ inventory
=57564265/8025653
=7.17
Inventory turnover in days
(2012)
=365/ITO
=365/7.17
=50.90=51 days
Inventory turnover
(2011)
29. =cost of goods sold / inventory
=48099046/7064170
=6.80
Inventory turnover in days
(2011)
=365/ITO
=365/6.8
=53.6=54
6.6
6.7
6.8
6.9
7
7.1
7.2
2011 2012
ito/2011
ito/2012
30. Interpretation;
Inventory turnover means how much the inventory is in hand and easily
convertible into cash. In 2012 the inventory turnover is 7.17 a year and after 51
days. In 2011 the ITO is 6.80 times a year and after 54 days. The turnover ratio in
2012 is somehow good but not exactly because the inventory sell out after 51 days
it is a beverage company the product life is less.
Change;
The change in 2012 is + 0.37 time
Total asset turnover (000)
(2012)
=Net sales / total assets
=79088000/50872717
=1.6
Total asset turnover
(2011)
31. =Net sales/ Total Assets
=64824000/35179859
=1.842
Interpretation;
Total asset turnover means the assets are how much efficient to generate the sales.
In 2012 the total asset turnover ratio is 1.6 of the total asset which is a good sign.
In 2011 the turnover is almost double 1.84. The firm is efficient
Change;
The change is -0.24% in 2012
Return on Assets ;( 000)
(2012)
1.4
1.5
1.6
1.7
1.8
1.9
2011 2012
East
West
32. =net profit after taxes/ total assets
=5865000/50872717
= 11.53% = 0.1153
Return on Assets
(2011)
=net profit after taxes/ total assets
=4668000/35179859
=13.27%= 0.1327
10.50%
11.00%
11.50%
12.00%
12.50%
13.00%
13.50%
2011 2012
roa/2011
roa/2012
33. Interpretation;
The total return on assets in 2011 was 7.2% and 7.4% in 2012. It means that the
return on assets is good. Measures overall effectiveness in generating profit with
available assets. Earning power of invested capital.
Change;
The change in 2012 -1.74%
Net profit margin (000)
(2012)
= net profit after tax / net sales
=5865000/ 79088000
=0.074=7.4%
Net profit margin
(2011)
=net profit after taxes/ net sales
34. = 4668000/64824000
= 0.072=7.2%
Interpretation;
Net profit margin measures how much net profit is generated with respect to the
sales. IN 2012 the net profit margin is 7.4% and in 2011 the net profit margin was
7.2% it means that the profit is increased by 0.2 % in 2012.
Change;
The change in 2012 is +0.2 %
7.10%
7.15%
7.20%
7.25%
7.30%
7.35%
7.40%
2011 2012
npm/2011
npm/2012
36. Interpretation;
Gross profit margin measures how much gross profit is generated by the sales.
Gross profit is basically the profit which does not include expenses, taxes, interest .
In 2012 the gross profit is 27.2% and in 2011 the gross profit was 25.8%.
Change;
The change in 2012 was 1.4%
Earning per share
(2012)
=129.2
Earning per share
(2011)
=102.9
25.00%
25.50%
26.00%
26.50%
27.00%
27.50%
2011 2012
gpm/2011
gpm/2012
37. SWOT Analysis
1: Strengths:
The biggest strength of nestle is it includes team focused and good policy. Nestle
looks on collective and oriented employees to work hard. And second thing is
Nestle has a big brand name because of their high level of market share and the
trust of the people from all over the world. Nestle is trying all the time to achieve
bigger volumes by renovating existing products and innovating new products.
Because of low cost operators by which Nestle not only compete with others but
also taking ahead.
Strengths are internal factors. For example, strength could be your marketing
expertise.
2: Weaknesses:
One of the major weaknesses of Nestle is Nestle Baby Milk because those babies
who fed on baby milk are become sick. And so many babies were died because of
nestle baby milk and then people boycott to buy nestle.
Weaknesses are internal factors. For example, a weakness could be the lake of new
product.
3: Opportunities:
Opportunities are external factors, for example developing a distribution channel
such as Internet; change in the lifestyle of consumer is possible to increase the
demand for company’s products.
0
20
40
60
80
100
120
140
2011 2012
eps/2011
eps/2012
38. 4: Threats:
A threat could be a new competitor in an existing market or a technological change
that makes existing products possible out of date.
PEST Analysis
The main theme of PEST analysis is to measure market potential and situation, by
indicating growth or decline. PEST analysis can be used for marketing and
business development assessment and decision-making, and the PEST analysis
encourages proactive thinking, rather than relying on habitual or instinctive
reactions.
1: Political analysis:
Nestlé’s baby milk can be affected by political change in several different ways i.e.
political change can influence public priorities and funding arrangements. Nestle
has to operate within the framework of laws set by Parliament, and that’s why it
depends on political considerations.
Government plays vital role by imposing the law and regulation on the companies.
Government set standard laws for companies that has to met otherwise they have to
pay fines.
Nestle is trying to met all the standard laws which are set by the government. For
example Health and Safety Act, Disability Act but unfortunately Nestle break the
law. Government laws and regulation in accounting standards, taxation
requirements, including tax rate changes, new tax laws and revised tax law
interpretations are highly influenced on Nestle business.
39. 2: Economical Environment:
Nestle needs to have enough information about the country inflation rate,
economic growth rate, and national per person capital income, in which they are
willing to start their business. Economic condition varies from country to country.
Before starting the baby milk has focus on the above factors. These are the factors
that Nestle has to consider before setting corporate objectives. Global economic
turmoil has major influence on Nestle business because customers are spending
less and they have to adopt different strategies in order to run business smoothly.
3: Social analysis:
Social or cultural environment had great impact on Nestle. The main focus of
social/ cultural includes the Social change involves changing attitudes and
lifestyles. The social and cultural environment is constantly changing. Different
countries had different culture (language, religious beliefs, food, family, clothing
and their lifestyle). Nestle has to developed strategies which are according to belief
and culture in multicultural country like UK. Every country has different consumer
taste and lifestyle and Nestle has to develop effective strategies in order to met
different lifestyle consumer behavior. Company is totally dependent on the
consumer lifestyle and their attitude. Product or services cannot be successful until
company has enough information about the consumer lifestyle. Nestle has to take
social and cultural factors under consideration in order to achieve their strategic
objectives.
4: Technological:
Technological change has the most rapid, persistent and profound effect. It creates
opportunities for new products and product improvements and of course new
marketing techniques- the Internet, e-commerce. Technology creates opportunities
for new product or product improvements and new techniques of marketing such
as internet and e-commerce.
40. Suggestions
After the visit of the Nestle Company and check the complete management
functions we suggested to the Nestle Company
They should advertise throughout the year so people should remember them
and will be more brand loyal and new customers will be attracted. They
should use all the medium of advertising to be more successful in attracting
customers.
Company should avail the opportunities. Produce low emission products and
alternative power sources. Also it cans manufacturemid segment economical
products. This will bring the company forward in the race of producing
products. Hence will increase its market share.
Company’s current assets are decreasing each year, it should take effective
measures to try to increase the current assets, especially cash and bank
balances. Cash can be gained if the net income is sufficient.