SELES MANAGEMENT

PROJECT: SM of Nestle Company

Submitted to:
Ms. Haleema

Submitted by:
Fatima Farooq 091631015
Amna Masood 091631001
Sana Shafqat 091631047
Binish Rauf 091631010
Mahnoor Usman 091631024

Bachelors of Commerce, 7th Semester

Gov.t Postgraduate College (W), Samnabad LHR.

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Serial. Table of contents Page.
No No
1 Executive Summary 3

2 Introduction 4

3 Hierarchy of Department 9

4 Territory Management & Selling Approaches 10

5 Customer Categorization & Issue Handling 18

6 Hiring & Training Programs for Employee 26

7 Conclusion 28

8 Recommendation 28

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EXECUTIVE SUMMARY

This report starts with an introduction and a brief history about Nestlé. This report includes the
vision and mission of Nestlé and how Nestlé is going to achieve them. This report also includes a
brief summary of Nestlé’s Sales Managnment. It discusses the strengths and problems of the
company followed by the solutions to solve the issues. In the end, there are some suggestions
recommended by our group and a conclusion of this whole report.

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 1- INTRODUCTION

Nestle 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 Lactee Henri Nestle, founded in
1866 by Henri Nestle. It is one of the main shareholders of L'Oreal, the world's largest cosmetics
company.

Nestlé is today the world’s leading food company, with a 135-year history and operations in
virtually every country in the world. Our principal assets are not office buildings, factories, or
even brands. Rather, it is the fact that we are a global organization comprised of many
nationalities, religions, and ethnic backgrounds all working together in one single unifying
corporate culture. Our culture unifies people on all continents, with roughly half our factories
and people located in the developing world.

One of the most important parts of our business strategy and culture is the development of
human capacity in each country where we operate.

As described in The Nestlé Sustainability Review (published with our 2001 Management
Report), our business model is to establish strong national and regional companies. We begin by
offering free educational assistance and loans to dairy farmers, then building factories, educating
managers, technical staff, and factory personnel, and then maintaining long-term relationships
with them. This model, which started first in the developing world in Brazil in the 1920s, has
now been extended to scores of countries, including Mexico, Philippines, India, Pakistan, and the
People’s Republic of China.

The average number of years of service at retirement is 27 years (in the top 20 countries that
employ 80% of our people), and we believe that one of the basic reasons that our employee
turnover is so low (less than 5% per year) is that we help people grow in their personal
capabilities on an ongoing basis.

A survey carried out in 2002 covering over 180000 Nestlé employees around the world showed
that 65% received some form of training during that year. This amounted to over 354000 days of
formal training. 27% of the training was at factory production level; 61% of the training was
given by internal trainers, the rest by external providers.

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As described in the following pages, we also try to play an educational role in many
communities, to strengthen the communities where we operate, and to strengthen our ties with
them.

We do this because we believe it pays off in the long run in our business results, and that
sustainable long-term relationships with highly competent people and with the communities
where we operate enhance our ability to make consistent profits.

This is all part of our strategy for maintaining our position as the world’s leading food and
beverage. Company, through our basic business principle, which places priority on long-term
business development over short-term temporary gain.

I would like to thank all our employees who contributed to the present review in helping us
explain the kind of company that Nestlé strives to be.

Company Profile:

Nestle Ltd, one the biggest players in FMCG segment, has an existence in milk & nutrition,
beverages, prepared dishes & cooking aids & chocolate & confectionery segments. The company
is unavailable in the food business. The food business incorporate product groups, such as milk
products and nutrition, beverages, prepared dishes and cooking aids, chocolates and
confectionery. Nestle manufactures products under brand names, such as Nescafe, Maggi, and
Milky bar, Milo, Kit Kat, Bar-One, Milkmaid and Nestea.

The company has also introduced products of daily utilization and use, such as Nestle Milk,
Nestle Slim Milk, Nestle Fresh ‘n’ Natural Dahl and Nestle Jeera Raita. The company’s brands
include milk products and nutrition, prepared dishes and cooking aids, beverages, and chocolates
and confectionery. Their milk products and nutrition includes Nestle Everyday Dairy Whitener,
Nestle Everyday Ghee, Nestle Milk, Nestle Slim Milk and Nestle Dahl. Beverages Include
Nescafe Classic, Nescafe Sunrise Premium, Nescafe Sunrise Special and Nescafe Cappuccino.

The company’s four factories were awarded the internationally predictable external certification
ISO 14001 for adherence to environmental processes and OSHAS 18001 for Health and Safety.
In the year 2008, the company launched Nestle Nesvita Pro-Heart Milk with Omega-3. Nestle

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Nesvita Pro-Heart is part of daily diet and has Omega-3 heart friendly nutrients scientifically
known to help manage cholesterol. As part of their ongoing dedication to offering best in class
nutrition products to consumers, the company launched NESTLE NAN 3, a follow-up formula
for older infants. During the year, MAGGI PICHKOO Tomato Ketchup was launched in a
unique easy to handle day pack to drive affordability, taste and convenience for a larger number
of consumers.

MISSION STATEMENT

Nestle mission statement

“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.”

Evaluation

Does it include...?

Customers Products/ Services Markets

No Yes Yes

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Technology Concern for survival Philosophy

No No No

Self-concept Concern for public Employees

image

Yes No No

Does it mention values like...? Customer or

product-oriented?

Citizenship Teamwork Customer-oriented

No No Score

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 Excellence Integrity

No No 1.5/4.5

VISION

To be a leading, competitive, Nutrition, Health and Wellness Company delivering improved

shareholder value by being a preferred corporate citizen, preferred employer, preferred supplier
selling preferred products.

LOGO

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 2- Hierarchy of Department

An organizational chart shows the internal structure of an organization or company. The

employees and positions are represented by boxes or other shapes, sometimes including photos,
contact information, email and page links, icons and illustrations. Straight or elbowed lines link
the levels together. With our organization chart software, this creates a clear visual depiction of
the hierarchy and ranks of different people, jobs, and departments that make up the organization.

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 3- Territory Management and Selling Approaches

Job Description:
A pet owner’s most trusted advisor is often their veterinarian. As a Territory Manager (Purina
Vet Consultant) for our Veterinary Sales Team, you are the face behind our brand as these
providers consider Pro Plan Veterinary Diets. Proper nutrition is key to optimal dog and cat
health. It is an idea carried throughout our entire line of veterinary pet food—specialized
nutrition that makes a difference. Pro Plan Veterinary Diets include products focused on dietary
management of dogs and cats with specific health problems. This role will provide you an
incredible portfolio of formulas to represent, each of them backed by scientific research and
Purina’s unparalleled pet expertise. Globally, Nestlé has 27 research, development and
technology centers along with over 500 scientists dedicated to ensuring top quality and creating
innovative approaches to make the lives of dogs and cats better.

As our conduit into clinics, animal hospitals and offices throughout the veterinary channel, this
role allows you to have the freedom of running your territory like your own business and
provides the opportunity to become a strategic partner in enriching the lives of pets and the
people who love them. Similar to our retail sales channels, you’ll enjoy the benefits of thought
leadership and collaboration that develops within a tight-knit sales team.

Through continuous training, Territory Managers (Veterinary Sales Team) will develop an
expertise in our diets and strategic sales plans, just as you’ll need to understand our channel
partners’ goals, so that we are simultaneously creating a healthier pet community and gaining
market share. You’ll achieve this through your high level of professionalism, entrepreneurial
spirit, advocacy and business acumen as you leverage Purina’s advancing technology and
industry-leading innovation to nurture relationships with current clients and build new client
business.

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 Primary Responsibilities:

 Promote Pro Plan Veterinary Diet® product line.

 Grow the Purina Veterinary business by using innovative sales and marketing concepts to
achieve assigned goals in all key measures.
 Call on existing and potential clients to create targeted, brand-building sales and marketing
programs to drive volume and hit quantitative and qualitative sales goals
 Develop and implement strategic business plans within assigned geography to allow Purina to
advance in the marketplace
 Create a positive Purina experience by providing top-tier customer services to clients through a
consultative selling approach
 Work cross-functionally with regional team, distributor channel and counterparts across the
country to consistently exceed sales expectations
 Influence with integrity by identifying each clinic’s business needs, and then leveraging
consumer insights and trends to support your recommendations
 Develop and foster business relationships with key decision makers to gain active
recommendations of Purina to veterinary clients.
 Provide Nutritional Pet Food Diet expertise to Veterinarians and their staff through clinic calls,
product detailing/comparisons, In-Hospital Trainings and Special Events.

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PESTLE ANALYSIS:
A PESTLE analysis is used as a strategic tool to measure industry dynamics through recognition
of the core political, economic, social, technological, legal and environmental forces/changes
having influence on the industry. Table two below presents a PESTLE analysis for the industry.

Nestlé are present within and this information is then used to form a critical discussion for the
future strategic options available to the firm.

The PESTLE analysis below identifies a number of forces, which have an influence on industry
dynamics. Of these forces, perhaps the most prominent are social forces, which relate to
differences in consumer behavior. As an international firm, Nestlé have to be able to ensure a
level of adaptation, which is appropriate to different markets driven by different cultures and
consumer preferences.

Political Economic

1. Changing regulation surrounding food 1. Awareness and knowledge of

standards and marketing actions.
2. Government stability in new
emerging economies – question of
risk as part of the internationalization
process.
3. Changing global regulations –
standardized practice yet adaptation to
different political forces.
changing inflation, economic growth
rates and income levels.
2. Changing consumer budgets, rise of
the cost conscious consumer.
3. Rising price of raw material goods in
relation to the need to source from
sustainable suppliers.

Social Technological

1. Changing consumer attitudes – move 1. Rise of social media, consumers

towards healthier products in line with interacting with firms and being able
government initiatives supporting to do so across a range of platforms.

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 balanced diets and the dangers of 2. Innovation fuelled by technological
sugar. developments.
2. Changing lifestyle – return back to 3. E-commerce as a platform for
home cooking and the promotion of development.
family time in a world of
convenience.
3. The need to adapt to different cultural
settings i.e. language, religious beliefs
and family settings.
4. Understanding of consumer behavior
is crucial to ensuring a personal
approach to marketing.
5. Consumers viewing the firm as an
agency for power in the wider external
environment.

Legal Environmental

1. Changing nature of regulation. 1. Increased attention directed towards

2. Need to adhere to global regulations corporate social responsibility.
and changes across different 2. Environmental concerns from
international markets consumers including concerns over
packaging/recycling.

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Corporate Objectives:

It is important that an alignment exists between corporate objectives, brand image and firm
activities. Commonly used as a strategic tool to support this analysis, Ansoff’s matrix can be
applied to Nestlé to review the different strategic options available to the firm. The overall
corporate objective of Nestlé is to be one of the world’s best and largest brands in the food
industry.

Marketing Objectives:

Marketing objectives identify a target market and market need and apply this to the brands they
are offering. With regards to the baby milk products Nestlé offers, one of their core marketing
objectives should relate to improving sales through the use of social media outlets. Aligned to the
rise of relationship marketing and the need to develop a deeper, emotional connection with
consumers it is argued that one of the marketing objectives for increasing sales of this product
needs to be related to understanding the consumer base.

The following marketing objectives are proposed in relation to the:

Market Penetration:

Market penetration is a strategy, which sees growth underpinned by pushing existing products to
existing markets. Through a focus on market penetration the firm would be able to maintain
current product lines and focus upon increasing sales in this area through promotional activities
and advertising. Market penetration is a strategy, which would secure growth in the market and
would allow the firm to draw on their knowledge of the market to expand sales in this area.

Market Development:

The second strategic option refers to the use of selling existing products to new markets. A new
market in this case could be a new consumer base or a new geographical base. Reflecting upon
the nature of the product, it is unlikely Nestlé would be able to target a new customer base and
thus it is advised that if this strategic option were to be followed emphasis would be placed on
opening up to new emerging markets with existing products.

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Product Development:

Moving away from a focus on the market, the third strategic option offered by Ansoff places
emphasis on the importance of product development. This strategic option would require the firm
to develop new competencies, which would appeal to existing markets. Under this strategic
option, Nestlé could focus on the development of a new extension of products in the baby market
to offer to the consumer base.

Diversification:

The final option outlined is that of diversification. Diversification is a strategy, which refers to
growth achieved by offering new products to new markets. This type of strategy would require a
need for the firm to draw on their inherent strengths and capabilities to offer something new to
the market. Underpinned by high levels of innovation, this strategy would require both
investment and an appreciation of risk. As such, before the adoption of this strategy it would be
necessary for the firm to have a clear vision of outcome.

Which growth strategy to follow?

Based on a discussion of the various growth options above, this report argues that Nestlé should
focus upon market penetration through the use of promotional activities and relationship
marketing activities. This strategy would see Nestlé focus upon an existing product and market
yet achieve growth through marketing campaigns and a greater utilization of social media.
Through the use of social media and relationship marketing it would be hoped that Nestlé would
be able to develop a stronger connection with their consumers.

Competitive Strategies:

In support of an identification of growth strategies, there is a need to recognize the importance of

competitive strategies. Three core competitive strategies are identified within the literature: Cost
leadership, differentiation and focus. Despite a traditional view that different competitive
strategies couldn’t be mixed, recent literature has supported the use of a hybrid competitive

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strategy, which combines cost leadership and differentiation to support a competitive strategy,
which balances the actions of each strategy.

Cost leadership is a strategy, which places emphasis on lowest cost and thus sees the firm
seeking to compete with their competition on the basis of price.

Cost leadership strategies therefore require an efficient approach to the supply chain to ensure
that raw material costs are kept to a minimum. Emphasis within this strategy is placed on the
need to focus upon gaining economies of scale and thus low costs.

Differentiation involves firms seeking to distinguish themselves from their competitors. For this
to be the case, emphasis is placed on the development of a competitive advantage through
something others cannot imitate.

The final competitive strategy is a focus strategy where a segmentation approach is followed. A
firm following a focus strategy would firm to choose a niche market and therefore have specific
offerings to a specific target market.

In light of the identification of the competitive strategies and the discussion above, it is advised
that the firm should follow a hybrid strategy reflecting on both cost leadership and differentiation
to ensure growth. A hybrid strategy would require Nestlé to seek lowest cost where possible
through economies of scale and efficiency in their supply chain whilst also seeing the firm
differentiating through the culture of the firm and the relationships developed with consumers.

7p’s of marketing:

A final consideration for Nestlé is an identification of the 7p’s of marketing and in particular an
understanding of what their product offers to the market. The 7p’s of marketing is an important
marketing tool outlining a focus on a clear understanding of each factor:

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Product: Baby formula, nutrients to enable a progression from breast milk to formula or formula
for those mothers choosing not to breastfeed.

Price: Price relatively low to competitors. It is important to balance the need here between low
cost and the influence this has on trust.

Place: Supermarkets, place of convincing.

Promotion: Relationship marketing principles used to engage the consumer. Nestlé will interact
with consumers during a shopping mall road show to showcase their product offerings and the
value of their products.

People: Employees within the firm used to support the growth strategy of particular products.
Company objectives and marketing objective translates into performance goals for teams within
the firm.

Process: Customer service is important and a key determinant of trust. As a result of this,
emphasis should be placed on the role of employees in educating the consumer and therefore
translating the core elements of the brand.

Physical evidence: Physical evidence in the form of packaging and promotional tools will be
used to support the development of the growth strategy employed.

Monitoring and controlling:

As a closing point, there is a need to consider the importance of the ongoing monitoring of any
marketing plan. Long after the implementation, emphasis should still be placed on monitoring to
ensure that controls are put in place to review the success of a given marketing campaign.

For example, in relation to the use of social media, particular controls can be put in place to
monitor the success and thus levels of integration taking place.

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 4- Customer Categorization and Issue Handling

Michel Porter’s Five Force Model

 Threat of new entrants:

The threat of entry depends on the existence of entry barriers and the attendance of new entrants
to a food processing industry naturally bring to it new competence and the want to increase
market share. The threat of substitutes exists most acutely when the price of a similar product in
the marketplace go losing. As more substitutes become available, both the order for and the price
of the products becomes more expandable. As the price for substitutes goes down, the
manufacturer of the original product is prohibited from rising or required to lower its price.

Smaller food processing companies often have difficulty obtain supermarket step autonomy for
their products as large retailer charge for hole on their shelf and give precedence to the
established companies who can pay for the advertising needed to produce high buyer command
The nation is a major factor as if the company requirements to be a part in this food processing
industry. It must be clever to face high costs for strapping competition. Moreover, the slow
market growth rate for the food processing industry cause gaining between companies, resulted
the barriers to entry are high with so many food processing companies and little to zero
capability remaining for any more companies.

The barriers to entry are obstacle on the way of possible new entrant to enter the market and
complete with the incumbent. The difficulty of entering a market cans protection the incumbent
alongside new entrants. Current profits are potentially higher than in a truly aggressive market, at
the operating expense of their suppliers and buyers. The higher the barriers to entry, the more
power in the hand of serving.

Most important barriers:

 Capital requirements
 Government policy and regulations
 Customer channels

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  Bargaining power of customers:

Buyers are the people or organizations who generate demand in the food processing industry.
Bargain power is capacity to pressure the setting of prices. Monopolistic buyer will use their
supremacy to remove better terms higher profit margin at the expense of the sell. In a truly
competitive market, no one buyer can set the prices. Instead they are set by supply and demand.
Prices are set by supply and demand and the market reach the pareto-optimal point where the
highest probable number of customers are content at a price that still allow for the supplier to be
beneficial.

The bargaining power of buyer is greater than:

 There are leading buyers and many sellers in food processing industry
 Product are consistent
 Buyers pressure to integrate backward into the food processing industry.
 Suppliers do not threaten to combine forward into the buyers industry.
 The industry is not a key supplying group for buyers, consumers affect the food
processing industry through their ability to strength down prices, bargain for higher
products quality and services, and play competitors alongside each other. The bargaining
power of buyers is high as there are huge tendency of new entry with new and diversity
of products. Besides, consumers prefer choose products which offer lower prices. For
example, Campbell’s soup products price is relatively 20 to 25% higher than generic
brands in grocery stores, hence some consumers would choose generic brand products in
the market rather than Campbell’s. Besides, the profitability obtained by the company is
also determined by consumers.
 Food processing companies would be forced to lower prices if consumers believe that the
prices are too luxurious as consumers be inclined to stop buying their products or button
to supplements.

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  Bargaining power of suppliers:

Suppliers are the businesses that supply materials & other products into the food processing
industry. The cost of items buy from suppliers (e.g. raw materials, components) can have a major
impact on an industry productivity. Suppliers may decline to work with the firm. Analysis of the
determinants of qualified power between the manufacturer in food processing industry and their
supplier is accurately parallel to analysis of the relationship between manufacturer and their
buyer. The firms in the food processing industry that are the buyers and the producers of inputs
that are the suppliers. The key issue is the case with which the firms in the food processing
industry can control between different contribution suppliers and the comparative bargaining
power of each party.

Suppliers can involve the food processing industry during their skill to raise prices or decrease
the quality of purchased goods and services. In case quality products the suppliers features an
important factor. Due to the increase rate overall price of material has been significantly
increased. Suppliers can also exercise authority on the players in a food processing industry.
Supplier can grow bargaining power and can be possible threat to industry players in terms of
food processing industry profits. They have the aptitude to increase or decrease the quality of
products in a particular food processing industry.

Supplier powerful:

 It is subject by a few companies and is more focus than the industry is selling to.
 Its product is exceptional or at least differentiates or if it has built up switching costs.
 The food processing industry is not an important customer for the supplier group.
 Threat of Substitutes Products:
 Those products that come from other industries and can create as an exchange for product
in the fundamental food processing industry. In the area of expertise coffee industry,
substitute products can be those non – strong beverages such as tea, soft drinks, fruit
juices and energy drinks and other caffeinated drinks. These are sources of substitute
products which the customer can purchase in place of coffee. However, the only true
straight substitute for specialty coffee is the basic coffee, but the basic coffee is careful to

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 be a considerably minor quality than field and as such does not near threat to specialty
coffee.
 The rivalry from firms of other industries which offer substitute products is strong as they
are produce, supplying and serving the same food products that the food processing
companies are. For example, Dunkin’ Donuts is in the foodservice industry and Campbell
Soup Company is in the food processing industry.

On the other hand, there are several possible substitutes; a cup of specialty coffee is still what
consumer prefers to purchase. Product segregation and trademark icon plays an important role in
this food processing industry. The field coffee product are different in many aspect from the
substitute. Coffeehouses offer not only a cup of coffee but the incident of sipping the specialty
coffee on a deluxe hotel. Soft drink companies and non – alcoholic beverages producer are on
bunch marketing, selling their product in sell stores, supermarket and departmental stores.
Hence, the substitute products is not significant or is not careful a major force in the specialty
coffee business.

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SWOT analysis
Strength
 Brand image
 Marketing strategies established by the innovative financial, marketing and sales
strategies are formulated by gauge the interrupted research approved out of moderator
market trend.
 It is a large scale organization, with plentiful funds and has the ability of acquire weaker
firms by throw out of competition. E.g. growing sales and profits, quality products,
skilled Labor, educated staff, solid financial position.
 Capability to control strong product name to generate sales talent to modify product to
the local market situation.
 Physically powerful worldwide operation with diversify income base in vestigate and
expansion capability
 The world biggest processed foods and beverages company constantly introduce new
products for its customers on a numerous basis, thus growing its product offering.

Parent support:
Nestle has a strapping maintain from its parent company, which is the world’s largest process
food and beverage company, with an attendance in almost every country. The company has
entree to the parent’s enormously victorious international piece of paper of products and brand.

Brand strength:
Nestle has some very strapping brands like Nescafe, Maggi and Cerelac. These brands are
almost standard to their product category.

Product innovation:

The Nestle Company has been always introduce new products for its Indian consumers on a
common basis, thus increasing its product contributions.

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Weaknesses:
 Escalating instance of product recall obstruct brand equity
 The target market of nestle milk pack is upper middle and high class because lower
middle and
 Reduced class cannot pay for to buy milk due to its best value
 Main weakness is milk pack that there are special companies of milk but the name of
nestle
 Milk pack is forever position in the last because of low advertising and marketing of the
Product.

Supply chain:
The company has a compound supply chain management and the main matter for Nestle India is
traceability. The food processing industry requires high standards of cleanliness, quality of safe
to eat input and workers.

Exports:
The domestic business posted a 13.7% growth in net sales to Rs. 1866 cr. However, exports
register a 1.1%decline to Rs. 118 although a strong 56% increase in exports to third parties due
to 24.5% decline in exports in affiliate. This constitutes a big portion of the total exports to a
single location. Historically, India has been a very unbalanced market for Nestle, and its overall
performance takes a hit often due to this factor.

Mature markets:
Nestle is incoming to markets that are already mature and can give a rough struggle to new
entrants in the market.

Plain yogurt:
Nestle plain yogurt has proved to be a nestle weakness because it has been unable to make its
market place in India, but nestle by analyze the responsive areas can rise above its weaknesses.
Less consumer research in few areas.

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Opportunity:

 Conversion to a nourishment and well-being company

 Focus on rising and budding saving
 booming out at home company
 possible to enlarge to minor towns and geographic product
 recognition rule can be adopt to increase sales
 Expand by modification the taste of the sufficient towards product.
 Healthy food market
 Asian market

Expansion:

The company has the possible to expand to smaller towns and other geographies. Existing
markets are not fully tap and the company can increase occurrence by stabbing further. With
India’s demographic profile shifting in favor of the uncontrollable class, the per capita utilization
of most FMCG products is likely to grow. Nestle will have the intrinsic advantage of this trend.

Product offerings:

The company has the option to expand its product sheet by introducing more brands which its
parents are famous for like breakfast cereals, Smarties Chocolates etc.

Global hub:

Since manufacturing of some products is cheaper in India than in other South East Asian
countries, Nestle India could become an export center for the parent in convinced product
category.

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Threats:

 reduce chocolate interest

 Water
 fulfillment issue consequential in penalty payments
 Macro economic factors
 allegation of unprincipled trade
 Market section growth could draw new entrant
 Taste of consumer has already developed which is hard to change.
 Inflation is getting higher and higher so the purchase power of the people is decreasing
day to day basis.

Competition:

The company faces huge struggle from the organized as well as the unorganized sectors. Off late,
to loosen its trade and investment policies to facilitate the country to better function in the
globalized wealth, the Indian Government has condensed the import duty of food segments thus
increasing the fight.

Changing consumer trends:

Movement of enlarged consumer spends on consumer durables resulting in lower expenses on

FMCG products. In the past 2-3 years, the performance of the FMCG sector has been uninspiring
despite the economy growing at a straight speed .Although, off late the state has been improving,
the confidence on monsoon is very high.

Sectorial woes:

Rising prices of raw materials and fuels, and sequentially, increasing wrapping and
manufacturing costs. But the companies’ may not be able to pass on the full encumber of these
onto the customers.

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 5- Hiring and training programs for employee

At Nestlé we believe that it is important to give people the opportunities for life-long learning.
All our employees are called upon to upgrade their skills in a fast-changing world. We believe
that by offering opportunities to develop, we not only enrich ourselves as a company, we also
make ourselves individually more autonomous, confident, and, in turn, more employable and
open to new positions within the company. Enhancing this virtuous circle is the ultimate goal of
our training efforts at many different levels through the thousands of training programs we run
each year.

Literacy Training:

Most of Nestlé’s people development programs assume a good basic education on the part of our
employees. However, in a number of countries, we have decided to offer employees the
opportunity to upgrade their essential literacy skills. A number of Nestlé companies have
therefore set up special programs for those who, for one reason or another, missed a large part of
their elementary schooling.

In Mexico 83 employees are currently involved in the basic education program. This effort was
started some 15 years ago and has now expanded to include Primary and High School courses in
several factories.

Similar programs are in operation in Brazil, Thailand and Côte d’Ivoire. In Turkey, a basic
literacy course that is given in preparation for apprentice training also includes hygiene, safety
orientation and administrative regulations.

These programs are especially important as we introduce increasingly sophisticated production

techniques into each country where we operate. As the level of technology in Nestlé factories has
steadily risen, the need for training has increased at all levels. Much of this is on-the-job training
to develop the specific skills to operate more advanced equipment. But it’s not only new
technical abilities that are required. It’s sometimes new working practices. For example, more
flexibility and more independence among work teams are sometimes needed if equipment is to
operate at maximum efficiency

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In several Nestlé companies it has required a fresh mindset among supervisory staff to involve
production-line workers in setting objectives and streamlining procedures. And in certain
countries some employees lack the basic education to participate properly in this process.

Training programs:

Two-thirds of all Nestlé employees work in factories, most of which organization continuous
training to meet their specific needs. In addition, a number of Nestlé operating companies run
their own residential training centers. The result is that local training is the largest component of
Nestlé’s people development activities worldwide and a substantial majority of the company’s
240 000 employees receive training every year.

Ensuring appropriate and continuous training is an official part of every manager’s

responsibilities and, in many cases, the manager is personally involved in the teaching. For this
reason, part of the training structure in every company is focused on developing managers’ own
coaching skills. Additional courses are held outside the factory when required, generally in
connection with the operation of new technology.

A broad range:

The variety of programs is very extensive. They start with continuation training for ex-
apprentices who have the potential to become supervisors or section leaders, and continue
through several levels of mechanical, electrical and maintenance engineering as well as IT
management. The degree to which factories develop “home-grown” specialists varies
considerably, reflecting the availability of trained people on the job market in each country.
Outside of the factories, on-the-job training is also a key element of career development in
commercial and administrative positions. Here too, most courses are delivered in-house by
Nestlé trainers but, as the level rises, collaboration with external institutes increases.

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 6- CONCLUSION

Nestlé exerts great efforts to achieve its visions to be the leader in Nutrition, Health, and
Wellness Company by producing better quality of products to the consumers. Nestlé also study
about the consumer’s needs from time to time and satisfy the consumers as much as possible.
Nestlé’s strengths such as high financial capability, effective strategic marketing capability,
strong research and development, as well as great leaderships have helped them through the
obstacles. Above all, Nestlé focuses on its missions and ensures consistency by making the right
decisions to manage and build its business to deliver the promise of Good Food, Good Life all
over the world.

7-RECOMMENDATIONS

After the reviews stated above, those were not the only solutions that are available. Few
recommended and suggestions that may work or solve the problems that were encountered by
Nestlé. Instead of just finding or having multiple suppliers, Nestlé could acquire the inventories
from the other outlets from the other region. Because some regions have different demographics,
for instance, race. However, if there is a surplus, and unable to clear the inventories at a short
time, Nestlé could consider donation for short-run purpose, this could help to clear the old
stocks, as well as to help the donation receivers and build better goodwill and name of Nestlé.

Secondly, Nestlé is a multinational company; it definitely has the capability in owning a

transportation logistics department. Because of the hundreds variety of Nestlé’s products, as well
as thousands of customers such as retailers, wholesalers, distributors and so on, Nestlé could
handle its own transportation service. Nestlé could gain the whole power in such as mode
selections, routing, and others. They could do almost anything such as consolidating different
type of products but to the same outlet. Besides, they could save every penny they use in
transportation cost compare to third-party logistics (3PL) because 3PL charges according to the
quantity, inventory storage space, value added processes such as special handling, and more. It
may benefit in the short run, but definitely not in the long run, as Nestlé centered in the long-
term business and strives to achieve effectiveness and efficiency.

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Lastly, Nestlé could use both manual and automation system in managing sales, services, and
others. This is because one cannot trust wholly to a machine, as it may not be documenting the
steps in its own processor. Because some steps can’t be automated and may require operator
intervention to prevent the escapement processing steps, even though adapting advanced
technologies could help saving cost as labor cost is reduced, but if there are still problems occur,
it will affect the business such as loss of customers because of the mistake. Therefore, Nestlé
must update the system software regularly and full utilization of available technology as well as
the manual operators, which will effectively increase the efficiency and dependability of the
supply chain systems.

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