Nestle is a Swiss transnational food and drink company founded in 1866. It is the largest food company in the world, with over 250,000 employees worldwide operating 500 factories across 81 countries. The company has a long history of mergers and acquisitions that have contributed to its growth. It offers over 8,000 food and beverage products globally and has a focus on nutrition, health, and wellness. The document provides an overview of Nestle's history, operations, strategies, and human resources practices. It also discusses the company's performance during the economic recession of 2008.

1. NAME :MRINAL NITURE
PRN NO:16030141051
MBA IT
PPM-IT ASSIGNMENT 2
NESTLE
INTRODUCTION
 “Nestle” is a Swiss German word which means “Little Nest” which is it’s
trademark.
 Having 250,000 shareholders world wide out of which there are one third
people from Swiss. A single shareholder has less than 3% of the stock.
 By a sponsor program US investors having 30% of the capital purchase ADR.
Nestle stands in first place providing soluble coffee, infant nutrition,
condensed and evaporated milk, bottled water, ice cream, chocolate and malt
drinks. In pet care it is a co-leader.
 Having 250,000 shareholders world wide out of which there are one third
people from Swiss. A single shareholder has less than 3% of the stock.

2.  Nestlé is a Swiss transnational food and drink company headquartered
in Switzerland.It is the largest food company in the world measured by
revenues and ranked #72 on theFortune Global 500 in 2014.
 Founded and headquartered in Vevev, Switzerland.
 Present in 81 countries having 522 factories.
 Today, Nestle is the worlds 39th largest and most diversified food company.
It has around 2,50,000 employees worldwide, operated 500 factories in
approximately 100 countrie and offers over 8,000 products to millions of
consumers universally.
HISTORY
 Nestlé was formed in 1905 by the merger of the Anglo-Swiss Milk
Company,established in 1866 by brothers George Page and Charles
Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri
Nestlé (born Heinrich Nestle).
 Merging of many small companies resulted into the big company
named Nestle.

3.  Chemist, merchant, innovator Henri Nestle made experiments with
the wheat flour, cow’s milk, sugar. Resulted product was useful to
the infants as a nutrition those who cannot be breast-fed by their
mothers and it proved to be useful by saving an infant born
prematurely. Then the production of it started and named as Farine
Lactee Nestle at Vevey.
 Developing of own brands and to achieve success in a tougher way
instead of choosing an easier way to become a private label was the
decision taken by Henri Nestle.
 Anglo-Swiss company was established by Charles and George Page,
two Americans which is a condensed milk company that competed
with Nestle products
 The company grew significantly during the First World War and again
following the Second World War, expanding its offerings beyond its
early condensed milk and infant formula products.
 After 1974, there was lot of decrease in the profits earned by the
Nestle. It was made better by the CEO Helmut Maucher in 1981,
firstly by restructuring the internal matters and divestments and
secondly by continuing with the strategic acquisitions.
 By 20th
century Nestle became the undisputed leader in food
industry. Bringing of best and most relevant products to the people is
the main aim of Nestle Company.
 Vision:
Providing high quality food to the people to meet the various needs of them by
daily marketing and selling foods
 Mission:

4. The foods which are safer having high quality and that providing optimal nutrient to
people for meeting the physiological needs is the main mission of Nestle.
 Business Objectives:
The main objective of the Company is to produce and market company products
creating value to it. Not favoring short-term profit by expensing a lot. Maintaining
consciousness of fact that professionalism reflects the corporation while recruiting
the right people.
 Core Values:
Maintaining respect and trust in people is main core value to be kept in mind. To
listen and engage with people is also one kind of communication. To cooperate and
helping others should be done willingly which is the basic for advance and promotion
of the company.
SWOT Analysis:
Strengths:
 Parent Support: Nestle India has got support from the parent company
providing successful details about each and every brand.
 Brand Strength: It has many named brands like Nescafe, Cerelac and Maggi.
 Product Innovation: Many new products are introduced continuously by
expansion of its product offerings. It became the innovative leader in the
global world and nutrition sector.
Weaknesses:
 Exports: Rs 2,571 m was the company export revenues by the end of 2003.
Volatile market for Nestle was present in Russia due t which there was a
frequent hit in the over all performance.
 Supply Chain: Traceability is the main issue to be considered as the main
issue and has chain management that is very complex. The hygiene, personnel
and quality of edible inputs is the requirement for food industry.

5. Opportunities:
 Expansion: The expansion of Company to the smaller towns is possible to it.
The inherence advantage is present in the Nestle Company.
 Product Offerings: the expansion of the products as that produced by the
parent Company is possible for it.
 Global Hub: India could be considered as an export hub due to the
manufacture of some products is cheaper. Included the Health-based products
are becoming popular in the whole world.
Threats:
 Competition: Much competition is provided to the Company from sectors that
are organized as well as unorganized. To intensify the battle the food segment
import duty was reduced for better functioning of country in globalizes
economy.
 Changing consumer trends: Customers are spending low on the FMCG
products considering the trends increased. The situation might be handled
late but the correct decision is taken i.e., to follow the monsoon for increase in
sales (Richard Girard, 2005).
 Sectored Woes: the recent markets that entered into the market are matured.
By raising the prices of fuels and raw materials, the packaging and
manufacturing costs are being increased.
SHRM at Nestle:
Nestle being a human company provides response to the individual human
needs in the complete world. There is reflection of attitude and responsibility of
sense towards people. Increase of sales and profits is considered as the main aim of
the company and also convinced that the formation of strength of company is done
by the people as nothing is achievable without the presence of their commitment,
energy. People involvement is needed in particular levels. From this it can be
conclude that:
 High Performance
 High Involvement
 High Commitment

6. Spirit of Nestle:
The top priority is being given to the slogan that “Making big investment in
people”. The key drivers to success are considered as people.
Corporate level Strategies of Nestle:
 Innovation and renovation being a part of the growth of the product.
 Long-term potential
 Business built upon sound human values, principles.
 Commitment to health and well being of people for long term.
Business Level Strategies:
 Follows fewer price – low cost for transparency.
 Differentiation- for reducing the supply chain risk of complexity and
attractiveness of people towards discounters is low.
Talent management and international HR
Talent management and international HR team: nestle employs that are focused on
potential and career developing with high level performance will become future
leaders of nestle. Developing process and framework are main tasks used to develop
potential of nestle employees. These tasks develop career development plans of
individual employees to do international assignments which are out of present
places such as international headquarters of Nestle in Switzerland, Vevey or other
market of Nestle round world.
Learning and development
Learning and development team is included in cutting edge interventions
development and change is supported by far reaching programs like Lead2Win
programs etc. From supply chain manufacturing business covering helps to
implement and create functional development program.

7. Continuous improvement and innovation and creativity are also named as Nestle
development and learning and it leads to innovation and creativity. This process is
carried in two stages:
 Core skill development strategies creation forms professional and passionate
team and it enable growth in professional and personal issues in business.
With business partners, directors and HR are help in modifying business area
strategies.
 Next stage is take vast development and learning intranet advantages which
are helpful to trainees. Available resources are designed to help trainees and
their knowledge is used in virtual environments. With leadership development
programs career and job ambition skills are improved and that creates new
leaders for tomorrow.
 Differentiation
 HR strategies are aligned and used to success in differentiation strategies of
Nestle. To support differentiation, HR strategies which are specified below are
used:
 Long term performance measures are performed. At long term business
development, nestle does not have short term profit favor.
 HR strategies are based on employees training with environment change and
latest innovations updating.
 Fair and equal pay practices are followed by Nestle. To promote rewards, pay
structure and incentives of nestle system is designed.
 Recruitment process is based on recruitment and hiring of people who have
new ideas
 In organization by employee participation and career development continuity
broad career paths are available.
Impact of recession on Nestle
In recession phase, some troubles are faced by Nestle.
 Shipment growth: From branded foods to retailers shoppers switching
slowdowns shipment growth.
 The volume of goods sold: in 2008, goods volume selling raises to 2.8% from
4.4% I 2007.

8. Increasing of inflation raises second problem and it has influence of tough
competition and weak dollar in UK. Nestle is also named as recession proof company.
In 2008 nestle has 69.4% profit. In 2008 and 2009, world faced worst recession. In
sales and services greatest downfall is presented in every company. In 2008 nestle
has record breaking profit in recession and its product sales are huge numbers.
 In 2008, Nestle net profit was 15billon US dollars.
 In 2008, net income rose from 10.65 billion francs to 18 billion Swiss francs.
 In last year profit was 69.4%.
 In last year sales rose to 109.9 billion francs, 2.2 %, in 2008 8.3% revenue was
increased to 8.3%.
 Over 2009 earnings growth is carried in Nestle although global recession is
presented by using springboard for growth.
 In 2008 Indian market, 300 Crore investment is granted by Nestle which is
doubled in 2009.
 EBIT margin growth and 5% organic growth are goals of Nestle and these can
be achieved by internal strength of company.
 In 2008 organic growth of nestle was calculated and raised its global outlook
by producing products like Nescafe coffee, Kit Kat chocolate bars and Maggi
soup and it is raised from previous target 7.4% to about 8%.
 Share bars of Nestle jumping 5.4% from 2 year low.
 In 2008 after purchasing worth of 8.7 billon stock, Nestle will buy back stock of
4 billion francs this year.
 Nestle increase share dividend 15% to 1.40 francs.
During recession nestle strong survival reasons:
Nestle fight recession because of following reasons.
 Products and brands innovation and renovation are big tasks in Nestle. In
2008, for food research and development Nestle spent 15%.
 Market conditions are capitalized by Nestle and survived recession.
 India is slowdown but not in down turn. Nestle price range of consumer
demanded goods hasn’t not been affected by liquidity. So, India is survived by
Nestle.
 Because of quality and strong growth of Nestle Company its profitable growth
is positioned and survived recession.

9.  In Middle East war will be despite if world is hold by recession. So, food is
necessary for everyone. Nestle infant formula, Stouffer frozen foods and
taster’s choice coffee included products are bought by millions of people.
 Market which want to be in safe position has key for short term performance
of Nestle.
Changing role of HR
In global competition HR function has importance. Employment stability and intense
competition are impacted by corporate planning managers and hard and real issues
are addressed by them. By regarding employees costs saving policies are
implemented (Phil Kelly, 2009).
Maintaining and recruiting efficient work force is more proactive by HR managers.
Dynamic, flexible employees are selected, trained and motivated by mapping HR
strategies for more productive.
HR are implementers not administrators and they are identified as strategic partners.
In economic uncertainty climate HR helps top management and function well.
In economy ups and downs are formed by globalization, business partner’s change
and Nestle business diverse. With practical experiences, result focus and
professional skills nestle managers performs following qualities:
 HR must have people motivation and development skills to develop their
capabilities and progress in their work.
 HR people must have high level of interest, open minded and inhibit curiosity
in life styles. This process increase learning and sharing knowledge and ideas
improvement.
 HR professional have responsibility to innovation creation and outside box
thinking. This process have chance to make mistake and mistake correction
can also provided.
 HR mangers have capability to accept and manage changes.
 Employees must have knowledge about International experiences and culture
understanding by that they can face global market challenges.
VRIO and 5P’s Analysis

10. VRIO ANALYSIS
Internal analysis is performed by VRIO frame work and competitive advantage is
leaded by valuable, inimitable, rare and organized resources (Timon Waugh, 2003).
Valuable
If external threats of organization are handled then resources will be valuable.
Valuable resources have any one of following things. Those are customer
responsiveness, innovation, quality and efficiency. Nestle valuable resources are
human resources, research and development processes and brand name.
Rare
If other competitors are not possessed resources then resources will be considered
as rare and uniqueness should be presented in food products.
Inimitable
If resources substitution and replacing have difficulty then resources will be
imitable. In nestle inimitable resources are nestle followed values, culture of
corporation and reputation.
Organized
If resources are used in organization then those will be organized. Organization deals
with firm management inner working.
5p’s at Nestle
Philosophy
On code of governance Nestlé’s philosophy
Company’s products must be sub stained consumers, employees, national economy
and business partners value creation. Management ethical values and
professionalism are based on success of product.
Policy

11. With professional skills and personal attitudes hire staff is recruited in company for
company long term leadership. So, professional development is important in
recruitment standards. Organization commitment and improvement imply quality
and culture.
Processes
 Training
 Recruiting
 Administrative
 Labor relations
 Compensation
 Development
Programs
Campus recruitment, internship and professional development programs are
organized by company. For MBA student’s internship program is available in Nestle.
Training program is provided to develop employee learning skills. By sharing and
developing best practices group discipline is maintained. For substitution and
complementation for training programs e learning programs are conducted.
Practices
In nestle following HR practices are performed:
 Performance management
 Benefits
 Incentives and rewards
 Recruitment and training
 Change management
 Employee relations
 Health and safety
For healthy and safe work environment nestle is dedicated.
HR strategies followed by nestle
1. Communication strategy: This strategy is maintained by company to educate
and train people about dynamically changed scenarios in organization.

12. 2. Effective training and development: most training programs are conducted by
in house trainers and by external trainers specialized programs are
implemented. Employee has opportunity to attend training programs
conducted at abroad.
3. Entrepreneurship strategy: independent entrepreneurs are generated in
company by implementing their ideas in reality by organization support with
existing resources.
4. By cutting high operation cost.
5. For HR decisions leverage real time decisions and decision making process is
enhanced.
BUSINESS FUNCTION OF NESTLE
Nestlé – The World Food Company
Our Business Vision “Respected, Trustworthy Food, Nutrition, Health and
Wellness Company

13. HEADS OF BUSINESS FUNCTIONS
 Mr. Patrice Bula
 Executive Vice President Nestlé S.A., responsible for the Strategic
Business Units,Marketing, Sales and Nespresso
 Mr. Magdi Batato
 Executive Vice President Nestlé S.A., Head of Operations
 Mr. François-Xavier Roger
 Chief Financial Officer
 Mr. Stefan Catsicas

14.  Chief Technology Officer, Head of Innovation, Technology, Research
and Development
 Mr. Peter R. Vogt
 Deputy Executive Vice President Nestlé S.A., Head of Human
Resources and Centre Administration
NESTLE INDIA
NESTLÉ India is a subsidiary of NESTLÉ S.A. of Switzerland. With eight factories
and a large number of co-packers, Nestlé India is a vibrant Company that provides
consumers in India with products of global standards and is committed to long-
term sustainable growth and shareholder satisfaction.
 Nestle’s relationship with India dates back to 1912, when it began
trading as The Nestle
 Anglo-Swiss Condensed Milk Company (Export) Limited, importing and
selling finished
 products in the Indian market.
 Nestle India manufactures products of truly international quality under
internationally
 famous brand names such as :

15.  Nescafe
 Maggi
 Milky Bar
 Kit Kat
 Millkmaid
 Nestea
 Nestle India is a responsible organization and facilitates initiatives that help
to improve
the quality of life in the communities where it operates.
The Company insists on honesty, integrity and fairness in all aspects of its
business and expects the same in its relationships. This has earned it the trust and
respect of every strata of society that it comes in contact with and is
acknowledged amongst India's 'Most Respected Companies' and amongst the
'Top Wealth Creators of India'.
The NESTLÉ Corporate are at the basis of our Company’s culture, developed over
140 years, which reflects the ideas of fairness, honesty and long-term thinking.

16. HISTORY
After independence, in response to the then economic policies, which
emphasized local production, Nestle formed a company in India, namely
Nestle India Ltd, and set up its first factory in 1961 at Moga, Punjab, where
the Government wanted Nestle to develop the milk economy.
 In Moga, Nestle educated and advised farmers regarding basic
farming and animal husbandry practices such as increasing the milk
yield of the cows through improved dairy farming methods,
irrigation, scientific crop management practices etc. Nestle set up
milk collection centres that ensured prompt collection and paid fair
prices. Thus, Nestle transformed Moga into a prosperous and vibrant
milk district.
 In 1967, Nestle set up its next factory at Choladi (Tamil Nadu) as a
pilot plant to process the tea grown in the area into soluble tea.
Nestle opened its third factor in Nanjangud (Karnataka) in 1989.
The India Business Vision
To rapidly build Nestlé India as the Respected and Trustworthy leading Food,
Nutrition, Health and Wellness Company ensuring long term sustainable and
profitable growth
Nestlé’s processing units in India
 Bicholim (Goa) 1997
 Pantnagar (Uttaranchal) 2006
 Moga (Punjab) 1961
 Choladi (Tamilnadu) 1967
 Nanjangud (Karnataka) 1989
 Samalkha (Haryana) 1993
 Ponda (Goa) 1995

17.  Bicholim (Goa) 1997
 Pantnagar (Uttaranchal) 2006
VISION
To rapidly build Nestle India as the respected and trustworthy leading food,
nutrition, health, and wellness company ensuring long term sustainable and
profitable growth. Nestle India manufactures a variety of food products such as
infant food, milk products,beverages, prepared dishes & cooking aids, and
chocolates & confectionary.
BUSINESS FUNCTIONS AT NESTLE INDIA
 Marketing
 Sales &Customer Development
 Human Resource
 Supply Chain Management Finance & Control
 HEADS OF BUSINESS FUNCTIONS
 Mr. Suresh Narayanan

18.  Chairman and Managing Director – Nestlé India Limited
 Mr. Shobinder Duggal
 Director - Finance & Control and CFO of Nestlé India Limited.
 Mr. Aristides Protonotarios
 Director-Technical of Nestlé India Limited
 Mr. Rajya Vardhan Kanoria
Independent Non-Executive Director
 Mr. B. Murli
 SVP - Legal & Company Secretary
 Mr. Ravi Ramachandran
 Managing Committee -Sales of Nestlé India Limited
 Mr. Amit Narain
Managing Committee-Human Resource of
Nestlé India Limited
 Mr. Ashish Pande

19. Relation of Nestle Global with Nestle India
NESTLÉ India is a subsidiary of NESTLÉ S.A. of Switzerland. With eight factories
and a large number of co-packers, Nestlé India is a vibrant Company that provides
consumers in India with products of global standards and is committed to long-
term sustainable growth and shareholder satisfaction.The Company insists on
honesty, integrity and fairness in all aspects of its business and expects the same
in its relationships. This has earned it the trust and respect of every strata of
society that it comes in contact with and is acknowledged amongst India Most
Respected Companies and amongst the Top Wealth Creators of India