Nestle Company Project

NESTLE COMPANY PROJECT
A Minor Project
On
NESTLE
POST GRADUATE DIPLOMA IN MANAGEMENT
By
RIYA RAHA
Roll No. GM19151
Under the guidance of
Dr. Terjani Goyal

(ASSOCIATE PROFESSOR)
GL BAJAJ INSTITUTE OF MANAGEMENT AND RESEARCH

GREATER NOIDA
2019-21
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ACKNOWLEDGEMENT
I owe my gratitude to many people who helped and supported me during the preparation of
the minor project.
My sincere thanks to Dr. Terjani Goyal, the Faculty Guide of the project, for initiating and
guiding the project with attention and care. She has always been available for me to put me
on track from time to time to bring the project at its present form.
I am highly thankful to the Director General of the Institute for his support, motivation and
continuous efforts in providing us the better learning environment and opportunities to
groom ourselves as per the expectations of the corporate world. Without his support, it
would not be possible for us to successfully complete our projects.
I also thank all faculty members without whom this project would have been a distant
reality.
Signature
(Name of the Student)- RIYA RAHA
Place: ALPHA 2, GREATER NOIDA (UP)
Date:
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FACULTY GUIDE CERTIFICATE
This is to certify that the work reported in the Minor Project titled on “NESTLE”,
submitted by RIYA RAHA at G L Bajaj Institute of Management and Research, Greater
Noida, India, is a bonafide record of her/ his original work carried out under my
supervision. This work has not been submitted elsewhere for any other degree or diploma.
(Signature of Faculty Guide)
Name: DR. TERJANI GOYAL
Date:
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ABSTRACT
This particular project has been based on secondary data collected from secondary sources,
there is an introduction of NESTLE company profile and products of NESTLE are given.
After that the data collected from the secondary sources were analyzed to derive the
strength, weaknesses, opportunities and threats of the company, the competitors are also
analyzed in the report. The report also focuses on the external factors which affects the
business.
The main objective of the research is to know to have detail knowledge of the company, its
strengths, opportunities, weaknesses and other factors which affect the firm. It helps us to
know the USP of the company and also to analysis the competitors of the company. It
provides a detail study of the strategies that the company uses. This also provides future
strategies for the company to excel in the market.
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INDEX
CHAPTER HEADINGS PAGE NO.
INTRODUCTION OF NESTLE COMPANY
i. HISTORY OF NESTLE COMPANY

ii. HIGHLIGHTS OF HISTORY
iii. PROFILE OF NESTLE COMPANY
iv. PRESENCE ACROSS INDIA
CHAPTER-1
v. THE PURPOSE OF NESTLE
vi. GLOBAL AMBITIONS OF NESTLE
vii. VISION AND MISION OF NESTLE COMPANY
viii. PRODUCT RANGE OF NESTLE COMPANY
ix. NESTLE SYSTEM AND ORGANISATION
STRUCTURE
MARKET SHARE AND POSITION OF THE COMPANY
CHAPTER-2 i. NESTLE MARKET SHARE

ii. MAJOR COMPETITORS
iii. MAJOR STRATEGIES OF NESTLE COMPANY
CHAPTER-3 PESTLE ANALYSIS OF NESTLE COMPANY
CHAPTER-4 SWOT ANALYSIS OF NESTLE COMPANY
CHAPTER-5 FINDINGS OF NESTLE COMPANY
CHAPTER-6 RECOMMENDATIONS FOR NESTLE COMPANY
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CHAPTER-7 REFRENCES FOR THE STUDY
CHAPTER-1
INTRODUCTION OF NESTLE COMPANY
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HISTORY OF NESTLE
The pioneer years-
The history begins in 1866, with the foundation of the Anglo-Swiss Condensed Milk
Company. Henri Nestlé develops a breakthrough infant food in 1867, and in 1905 the
company he founded merges with Anglo-Swiss, to form what is now known as the Nestlé
Group. During this period cities grow and railways and steamships bring down commodity
costs, spurring international trade in consumer goods.
Highlights
 1866
US brothers Charles and George Page help establish Anglo-Swiss Condensed Milk
Company. Using abundant supplies of fresh milk in Switzerland, they apply knowledge
gained in their homeland to establish Europe’s first production facility for condensed milk
in Cham. They start supplying Europe’s industrial towns with the product under
the Milkmaid brand, marketing it as a safe, long-life alternative to fresh milk.
 1867
Nestlé’s founder, German-born pharmacist Henri Nestlé, launches his ‘farine lactée’ (‘flour
with milk’) in Vevey, Switzerland. It combines cow’s milk, wheat flour and sugar, and
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Nestlé develops it for consumption by infants who cannot be breastfed, to tackle high
mortality rates. Around this time he starts using the now iconic ‘Nest’ logo.
 1875
Henri Nestlé sells his company and factory in Vevey to three local businessmen. They
employ chemists and skilled workers to help expand production and sales.
 1878
Fierce competition develops between Nestlé and Anglo-Swiss, when both companies start
selling rival versions of the other’s original products: condensed milk and infant cereal.
Both firms expand sales and production abroad.
 1882-1902
In 1882 Anglo-Swiss expands into the US, but the death of George Page frustrates its
plans. In 1902 it sells its US-based operations, which paves the way for an eventual merger
with Nestlé.
 1904
Nestlé begins selling chocolate for the first time when it takes over export sales for Peter &
Kohler. The Nestlé company also plays a role in the development of milk chocolate from
1875, when it supplies his Vevey neighbor Daniel Peter with condensed milk, which Peter
uses to develop the first such commercial product in the 1880s.
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PROFILE OF NESTLE
Nestlé India Head Office, Gurgaon, Haryana

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's 'Most
Respected Companies' and amongst the 'Top Wealth Creators of India'.
The NESTLÉ Corporate Business Principles are at the basis of the Company’s culture,
developed over 150 years, which reflects the ideas of fairness, honesty and long-term
thinking.
Nestlé is the world’s largest food and beverage company. There are more than 2000 brands
ranging from global icons to local favorites, and Nestle is present in 191 countries around
the world.
Presence Across India-
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After more than a century-old association with the country, today, NESTLÉ India has
presence across India with 8 manufacturing facilities and 4 branch offices.
NESTLÉ India set up its first manufacturing facility at Moga (Punjab) in 1961 followed by
its manufacturing facilities at Choladi (Tamil Nadu), in 1967; Nanjangud (Karnataka), in
1989; Samalkha (Haryana), in 1992; Ponda and Bicholim (Goa), in 1995 and 1997,
respectively; and Pantnagar (Uttarakhand), in 2006.
In 2012, Nestlé India set up its 8th manufacturing facility at Tahliwal (HimachalPradesh)
The 4 Branch Offices located at Delhi, Mumbai, Chennai and Kolkata help facilitate the
sales and marketing activities. The NESTLÉ India’s Head Office is located in Gurgaon,
Haryana.
THE PURPOSE OF NESTLE-

Nestlé's purpose is enhancing quality of life and contributing to a healthier future. The
company wants to help shape a better and healthier world. They also want to inspire people
to live healthier lives. This is how they contribute to society while ensuring the long-term
success of the company.
GLOBAL AMBITIONS OF NESTLE COMPANY-
Nestle have defined three overarching ambitions for 2030 which guide their work and
support the achievement of the UN Sustainable Development Goals.
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 Help 50 million children live healthier lives.

 Help to improve 30 million livelihoods in communities directly connected to the
business activities.
 Strive for zero environmental impact in the operations.
VALUES OF NESTLE COMPANY-
The values are reflected in the way they do business, always acting legally and honestly
with respect both for their own people and those they do business with.
VISION AND MISSION OF NESTLE COMPANY-
VISION: Nestlé is the world's leading nutrition, health and wellness company. The
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.”
MISSION: 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.
PRODUCT RANGE OF NESTLE COPANY -
Milk Products & Nutrition-
 NESTLÉ EVERYDAY Dairy Whitener-

It is a replacement of milk which is mainly used for tea.
 NESTLÉ a+ Nourish Milk and a+ Nourish Dahi –
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A+ Nourish Dahi or curd is a dairy product that comes packed with goodness of
Protein and Calcium. Dahi can help supplement your daily diet with a good source
of quality Protein and Calcium both of which are needed for growth and
maintenance of the body. One serving (200g) of a+ Nourish Dahi provides 5.8g of
Protein and 164mg of Calcium.
 NESTLÉ Bhuna Jeera Raita-

It is a unique proprietary product from Nestlé, currently available in Delhi NCR. It
offers all the innate goodness of Dahi with real Jeera – a delicious meal
accompaniment which tastes exactly like home-made Raita. It aids in digestion and
is low in Fat (only 1.5% fat).
 NESTLÉ MILKMAID –
It is a delicious desserts has been delighting generations of Indian consumers over
the past 100 years. In fact, MILKMAID defined Nestlé’s ‘sweet’ entry into India –
It was the first brand to be traded by the company in India.
 NESTLÉ EVERYDAY Ghee -
Nestle Ghee is 100% Shudh [pure] Ghee which is untouched by hand and
hygienically packed.
Beverages
 Nestle Coffee Range-

Nestle have introduced a wide range of coffee products which are-
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o Nescafe
o Nescafe classic
o Nescafe sunrise
 NESTEA ICED TEA-

It is a ice tea which has a flavor of lemon as well.
 NESCAFÉ CAPPUCCINO-
It is instant coffee which just need hot water to get ready.
Prepared Dishes And Cooking Aids
 MAGGI 2-MINUTE NOODLES-
MAGGI 2-MINUTE Noodles is one of the most popular brands of instant noodles
in India. It is a delicious any-time snack that’s ready in just 2 minutes.
 MAGGI VEGETABLE ATTA NOODLES-
MAGGI Vegetable Atta Noodles is a unique innovative product with the goodness
of whole wheat and real vegetables available in the popular Masala flavor.
 MAGGI CUPPA MANIA-

MAGGI Cuppa Mania offers you the delicious taste of MAGGI combined with the
convenience of cup noodles It is an ideal offering for the new generation pressed
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hard for time trying to juggle multiple roles all at once and can be enjoyed any time
on the go.
 MAGGI SAUCES-
MAGGI offers a wide range of specialty Indian Sauces which are relished for their
unique taste. Available in the following delightful variants: Tomato Ketchup,
Tomato Sauce, Tomato Chili, Masala Chili, Tamarind and the all-time favorite
MAGGI Hot & Sweet Sauce.
 MAGGI MASALA-AE-MAGIC –
The first ever fortified taste enhancer that can be used across different cuisines in
India. It is not a simple masala, but is unique in that it efficiently enhances the taste
inherent in the food ingredients already present.
 MAGGI BHUNA MASALA –

It is a readymade mix of various kinds of spices and basic vegetables like onion,
garlic and ginger etc which is used to cook Indian recipes.
Chocolate And confectionery
 Kitkat Dessert Delight

 Nestle Munch Nuts
 Nestle Kitkat Senses
 Nestle Alpino
 Nestle Kitkat
 Barone
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 Nestle Classic
 Nestle Milkybar
 Nestle Classic
 Nestle Milkybar Choo
 Eclairs
 Polo
NESTLE SYSTEM AND ORGANISATION STRUCTURE
A company’s organizational chart typically demonstrates relations between people within

an organization. Such relations might include managers to sub-workers, directors to
managing directors, chief executive officer to various departments, and so forth. When an
organization chart grows too large it can be split into smaller charts for separate
departments within the organization.
The different types of organization charts include:

1. Hierarchal
2. Matrix
3. Flat
Nestle Company is a decentralized organization that is organized according to the matrix

structure. Nestle as a decentralized organization permits to subordinate branches to enjoy a
proportionately high-level of independence. Although it still makes major strategy
decisions at the headquarter level, daily operations are left up to subordinate branches to
derive and perform. The responsibility for operating decisions is push down to local units.
In organization structure, Complex system is a system that is comprises a large number of

entities that display a high level of nonlinear interactivity. There are number of basic
observations that have been made through the examination of complex systems, mainly
using computer simulation and the mathematic of non-linearity.
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Complex systems are usually open systems. Nestle, over its long historical development
from a small village operation to the world’s leading food Company, has illustrate an
excellent capability to adjust to an ever-changing external environment, without losing its
basic beliefs and core values, so important for long-term success. Over the years to come,
this capability will continue to be challenge even more as Nestle is growing in size and
complexity up to a dimension, which demands a continuous development of its
organization and of the way in which it run.
Nestle Organization Chart :
In Organization chart, we can see that the management of Nestle is also divided into 3
types’ top-level management, middle level of management and low-level management.
 Top Level of Management-
It contains of board of directors, chief executive or managing director. The top

management is the final source of authority and it manages aims and policies for an
initiative. It dedicates more time on planning and coordinating functions.
The role of the top management can be summarized as follows:
i. Top management broad policies of the enterprise and lays down the objectives.
ii. It issues necessary instructions for preparation of subdivision procedures,
schedules, budgets, etc.
iii. It prepares strategic policies & plans for the initiative.
iv. It appoints the executive for middle level for instance departmental managers.
v. It coordinates & controls the activities of all the departments etc.
 Middle Level of Management-
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The branch managers and departmental managers constitute middle level. They are
responsible to the top management for the operative of their department. They devote
more time to directional and organizational functions.
Their role can be highlighted as:

i. They execute the plans of the organization in accordance with the policies and
directives of the top management.
ii. They make plans for the sub-units of the organization.
iii. They participate in training & employment of lower level management.
iv. They understand and explain policies from top-level management to lower
level.
v. They are also responsible for inspiring lower level managers towards better
performance.
 Lower Level of Management-
Lower level is also known as operative/supervisory level of management. It contains of

supervisors, superintendent section, officers etc.
Their activities include –
i. Assigning of jobs and tasks to various workers.

ii. They instruct and guide workers for day-to-day activities.
iii. They are responsible for the quality as well as quantity of production.
iv. They are also entrusted with the responsibility of maintaining good relation in
the organization.
v. They communicate workers problems, suggestions, and recommendatory
appeals etc to the higher level and higher-level goals and objectives to the
workers.
vi. They help to solve the complaints of the workers.
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CHAPTER-2
MARKET SHARE AND POSITION
OF THE COMPANY IN THE
INDUSTRY
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Nestle Market Share
 Current Position Of Nestle India In Market-
Nestle India gained 4 per cent to Rs 12,397, and surpassed its previous high of Rs
12,266, recorded on August 9 2019. Since August 5 2019, the stock has outpaced the
market by gaining 8 per cent after the fast moving consumer goods (FMCG) company
delivered strong volume and mix-led growth in the April-June quarter and announced
that its ninth factory in India would come up in Gujarat. In comparison, the S&P BSE
Sensex has remained flat during the same period.
The company had also declared a dividend of Rs 203 per share, including a special
dividend of Rs 180 per share out of the accumulated profits of previous years. The
management said this cash payout will reduce the future generation of 'other income'
and will improve the overall capital efficiency.
Analysts at JP Morgan are ‘overweight’ on Nestle India with June 20 target price of Rs

12,800 per share. The brokerage firm remains optimistic about Nestlé’s long-term
growth potential, given low penetration levels and the dominance of unorganized
players in the Indian processed foods industry. The brokerage firm has also welcomed
the management’s renewed focus on volume/innovation.
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 Nestle India Main Recognitions-
Nestle India is a subsidiary of NESTLÉ S.A. of Switzerland. With eight factories, 4

branch offices and a large number of co-packers, it provides consumers in India with
products of global standards and is committed to long-term sustainable growth and
shareholder satisfaction. The products offered by Nestlè in India range across
categories such as milk and nutrition, chocolates and confectionary, beverages and
prepared dishes and cooking aids.
Some of the famous brands of the company are Nescafe, Nestlé Everyday, Sunrise,
Maggi, Kitkat, Milkybar, Milkmaid, Nestea, Munch, Bar one, Polo and many more.
It has focused on Taste, Nutrition, Health and Wellness and well-being of the
customers and its tagline ‘Good Food, Good life’ resonates with that. It aims to create
value to the customers by offering a wide variety of safe, high quality food products at
prices that are affordable.
It constantly develops its product range so as to meet the changing needs and demands
of the customers. The company with its product offerings has also given a major push
to the dairy sector of the country and has helped develop the milk economy. Nestle is
the market leader in various categories such as Infant Cereals (96.5%), Instant
Pasta(65.2%), Instant Noodles (59.5%), White Chocolates and wafers (62.6%).
2013-
o MAGGI ranked almost top most trusted brands and no.1 food brand at ET Brand
Equity Survey.
2014-
 NESTLÉ KITKAT and NESTLÉ EVERYDAY win Gold and Bronze at Goa Fest
2014.
 Nanjangud factory receives Karnataka State Export Excellence Award for the FY
2013-14.
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 MAGGI amongst the Top 5 in Brand Equity’s ‘Most Trusted Brands’.
2016-
 Recognized as ‘The Most Valuable Food Brand’ in India.

 KITKAT India won the first edition of the Twitter Aviator Awards in 2016.
Major Competitors
Nestle is an eminent food and drink company located in Switzerland. The company is one
of the largest food companies in the world. The business operations include producing
about 2000 brands where their main products fall into categories of tea, coffee, bottled
water, medical and baby food, breakfast cereals, confectionery products, and lots more.
The company is seen in about 189 countries worldwide. One of the famous products of
Nestle is the Nestle milk chocolate which is a chocolate bar. It is liked by many people and
also sold in many countries. The company focuses on the fact to produce and supply great
quality and healthy food products. Nestle has a huge portfolio of products and sees an
enormous competitor across the food industries.
TOP COPETITORS OF NESTLE
1- Hershey’s- Hershey’s, one of the largest chocolate makers in the world, is betting
on India to increase its business in the future. Hershey India is present across
multiple food and beverage categories with its iconic brands.
2- Unilever- Unilever is a British-Dutch company that is formed during the year 1930
and headquartered in the United Kingdom and Netherland. It is a consumer goods
producer company and their products include food and beverage. It is also into the
production of cleaning and personal care products. It is the world’s largest
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consumer foods company. Due to its many years of existence, the brand is popular
and is a brand image of the customers which is the main strength of this brand.The
company is also updated with regards to products and has a huge fund in research.
Due to its extensive distribution channel, Unilever is a top Nestle competitor.
3- Amul- A famous Dairy industry of India, Amul is based out in Anand, Gujarat. The
company was formed during the year 1948. The company is also the largest
producer of ice cream and many other dairy products. Amul follows a three-tier
model in their development process. At the village level, it has a dairy cooperative
society, at the district level, it has the milk union, and finally, at the state level, it
has the federation.
The company has established a direct connection among the milk producers and the
consumers to eliminate distributors.The company has multiple products and its
products have a unique taste and are of good quality. Due to their strong
distribution and supply chain, Amul is considered as a top Nestle competitor.
4- Starbucks- A famous American company, Starbucks is a company that was formed
during the year 1971. The company is headquartered in Washington, United States.
It represents the biggest coffee business in the world. The brand’s dark roasted
coffee is famous for the coffee lover. The company has a global network. Due to
their huge business by means of subsidiaries, Starbucks is considered as one of the
top Nestle competitors.
5- Parle- Parle Products company was founded in 1929 in British India by the
Chauhan family of Vile Parle, Mumbai. Parle began manufacturing biscuits in
1939. In India Parle is a very old and trusted brand as mostly Indian families are
emotionally attached with the brand.
6- Cadbury- Cadbury India Ltd is a subsidiary of the Krafts Group. Chocolate
confectionary, Beverages, Biscuits, Gum and Candy are the different categories the
company operates. The operations of Cadbury India initiated in 1948. It has five
manufacturing units all over India . Cadbury India’s one of the most popular
brands, Cadbury Dairy Milk is a benchmark for other chocolates in India and is
regarded as the “gold standard”. Some of the other popular brands are 5 Star, Perk,
Bournville, Celebrations, Halls, Éclairs, Tang and Oreo. The main brand in the
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Milk Food drinks segment is Bournvita, which is known as the leading Malted Food
Drink (MFD) in the country.
Major Strategies Of Nestle Company
 The Company’s objective is to provide consumers with the best tasting, most nutritious
choices in a wide range of food and beverage categories and eating occasions and help
consumers maintain optimum Nutrition, Health and Wellness. Nestle Company has
access to the extensive global network of Nestlé R&D. This is a competitive advantage
in the rapidly emerging areas of technology and scientific research and enables your
Company to provide safe and nutritious products of very high quality.
 The ‘Chocolate and Confectionery’ business worked on improving consumer insights
and has been working with Nestlé R&D to innovate and renovate products that will
strengthen its portfolio. The focus was also on portfolio optimization for long term
benefit, though it impacted short term growth. Towards the end of the year it launched
MUNCH NUTS, a new extension of the ever popular MUNCH.
 Nestlé ‘Start Healthy Stay Healthy’ reached out to the supporting eco system of
mothers to emphasize the importance of their role in continued breastfeeding with the
objective to build greater awareness and advocacy. The key message was
‘Breastfeeding Is Not Just A Mothers Responsibility’. The campaign received 1.9
million views outperforming industry’s benchmark.
 During the year Nestle Company enhanced labeling of products with QR codes. This
enables consumers to use their mobile phones to scan the QR code on the label for
information on Nutrition, Environment and Community as relevant to the product.
During the year the Company also created ‘The Design Lab’ to inspire a strategic shift
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in packaging design keeping the consumer experience in mind and to achieve

operational excellence.
 During the year, 54 Energy reduction projects and 40 water reduction projects were
completed in factories. In 2015 the Company consolidated and further accelerated the
current improvement programs. It continued to upgrade its warehousing infrastructure
with key distribution centers ready to operate in the future with proper infrastructures,
systems, processes and a sound safety.
 The Company has successfully piloted a new demand forecasting system based on
analytics and also automated the replenishment to the distribution centres in all
factories, improving accuracy and people productivity. The roll out of the ware house
management systems (WMS) with Radio Frequency (RF) technology has been
extended to additional factories. During the year the Company focused on further
improving freshness of products ‘on shelf’ for consumers and reduce waste.
 Nestlé’s approach to business is Creating Shared Value or ‘Saanjhapan’ as used by the
Company and it is about the impact of the business and engagement through it. The
Company has been conducting business in a way that both deliver long-term
shareholder value and benefit society under approach of “Creating Shared Value”.
 In 2013 Nestle focused on Nutrition, product development 2014 Renovation and
innovation, market development, product development 2015 Renovation and
innovation, market development, product development Continually development in
supply chain.
THE MAJOR STRATEGY OF NESTLE
I. Fixing underperforming businesses.

II. Constant innovation in products and business model
III. Investments in high growth categories and regions
IV. Embracing digital opportunities
V. Improving operational efficiency
VI. Reducing cost
VII. Freeing up resources
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VIII. Creating shared value

IX. Investments in organic growth
CHAPTER-3
PESTLE ANALYSIS OF NESTLE
COMPANY
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PESTLE ANALYSIS
Nestle is a swiss based corporation emerged as food and drink enterprise. It’s headquarter
are in vevey, vaud ,Switzerland. Nestle has been one of the biggest companies in the world
in terms of revenue and other measures. Fortune global 500 ranked nestle on 11 th position
in 2014 while fobes global 2000 list public companies nestle 33rd rank in the world.
Production lines of nestle manufactures medicated food, baby food, water containers,
breakfast cereals, tea, coffee etc. Nestle operates 447 production units, serving in 194
countries nad hired almost 339000 employees. Nestle was established in 1905 resulted by
the merger of anglo swiss milk company. With the support of all this business operation
nestle generated revenue of $88.8 billion in 2015.
Food industry demands a lot of efforts to penetrate exactly in the targeted position. The
PESTLE analysis of entire business environment of nestles will give the hints to improve
the operations at the right time, at a right place with a right direction. PESTLE analysis will
give more result oriented opportunities to nestle for future business growth along with
sustainable profit.
 Political Factors-
Nestle serves in several countries. The rules and regulations set by the government are
different in different regions. Nestle should focus on these political dynamics like
taxation, import export excise duties, government permission to enter in to the target
segment and also to introduce hygiene products allowed by the regulated bodies.
Moreover in the contemporary trends keeping in view the government stability, Nestle
should consider and recognize all the related risks that could be involved. Nestle should
also consider the changing global regulations which are yet to adopt by the company.
Albeit nestle is such an organization which in real sense promote the government health
policies by maintain the quality standards and rules and regulations.
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 Economical factors-
Nestle can perform well only when the economic scenario globally is stable. In
recessionary periods, employment, level of income and spending go down. The result is
that economic fluctuations and decline in economic activity can lead to reduced sales
and profits for international businesses. In 2018, Nestle’s financial performance
remained strong. Globally, the economic scenario was good in most of the leading
markets of Nestle including United States. The Americas are a leading source of
revenue for Nestle and therefore improved economic activity in this region as well as
Asia Pacific generally lead to better performance as well as higher sales and profits.
The financial performance of multinational brands depends to a very large extent on the
performance of the global economy and stability in key regional markets.
 Social Factors-
The shared thoughts and beliefs of the customers influence the business operations. The
culture, life style, norms and values force Nestle to deliver the specific product to the
right segment. Nestle so far has considered the social perspective well. The company
has well understood the concept that consumers changing attitude has immense
importance. People are now very much prone to the healthy life style. Nestle has made
a good reputation of understanding and evaluating the consumers behavior and the
related dynamics. Nestle is a global brand but the product has been produced locally in
order to sustain the quality. Adherence to the strong values and principals has always
been the priority of the company that assists in building the trust on the consumers.
 Technological Factors-
Technology gives many opportunities for the development of new products or
improvement of existing ones. New techniques of marketing such as internet and e-
commerce are important to focus in this modern era. Therefore Nestle uses technology
in several business operations like to maintain the databases with the help of software.
The rampant use of social media has narrowed the gap between the direct interaction of
consumer and the company.
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Nestle should follow such a maxim that accelerate innovation with the help of
technological advancements. Nestle is already using the state of the art technology for
the production of various products, they are meeting the global standards by installing
the contemporary plants.
 Legal Factors-
Legal factors involve the legal environment of a company and its influence on the
operation to meet the demand and minimize the cost. For instance, Nestle has to follow
the health and safety laws for their employees and also to produce hygiene products for
the customers. Nestle need to focus on these too while operating in different regions of
the world.
 Environmental Factors-
Today the world is more conscious to have clean environment. Nestle need to focus on
these rules and regulations also to produce healthy food with environmental friendly
operations. Several countries set different rules, so to increase the acceptance of the
products by the targeted segment the rules are significant to follow. Nestle has also
been taking into account the considerable attention towards the social contribution.
Political Economical Social
1- Changes in regulations 1. Rise in middle class in 1. Nestle children and

of countries. emerging economy. infant initiative.
2- Lobbing in united states. 2. Rise price of raw 2. Farmer training program.
materials from suppliers. 3. Skill development for
women.
Technological Legal Environmental

1. Infant milk formula
1. Development of scandal. 1. Water conservation.
innovative product 2. Reputational and 2. Environmental
through technology financial impact of performance of
solution. Maggi ban in India. packaging.
2. Digital consumer 3. Accusation of child 3. Recycling coffee
engagement center grounds for renewable
28
slavery. energy.
CHAPTER-4
SWOT ANALYSIS OF NESTLE

COMPANY
29
SWOT ANALYSIS
Nestle SWOT Analysis-
Strengths Weaknesses
1- Unmatched research and development

capability 1. Criticism over high water usage, selling
2- Strong geographic presence, with one of the contaminated food, anti-unionism, forced child
best geographically diversified revenue sources labour and using other unethical practices
3- Unrivalled product and brand portfolio 2. Contaminated food recalls.
4- Environmental sustainability efforts
5- Ownership of some of the most recognizable
brands in the world
Opportunities Threats
1. Clear and accurate labelling indicating of any

harmful products
1. Poor quality water and scarcity.
2. Transparency in material sourcing
2. Increase competition in beverage and food
3. Growing number of small Silicon Valley based
industries.
food start-ups
3. The price of coffee beans could rise due to
4. Growing ready-to-drink (RTD) tea and RTD
major weather disasters.
coffee markets
30
 Strengths
1. Unmatched research and development capability
According to Nestlé, one of its key competitive advantages is research and

development (R&D) capabilities. The company spent CHF1.678 billion or US$1.697
billion on R&D in 2015. This accounted for 1.89% of the total revenue. In comparison,
The Coca Cola Company spent 0% of its revenue on R&D and PepsiCo, Nestlé’s chief
rival, spent only 1.2% or just US$754 million of its revenue on R&D.
Figure 1. R&D spending by the largest food and beverage companies (in US$ billions)
R&D expenditure Revenue % of revenue
Nestlé S.A. 1,697 89.772 billion 1.89%
PepsiCo 0.754 63.056 billion 1.20%
Mondelēz 0.409 29.636 billion 1.38%
Coca-Cola 0 44.294 billion 0%

Source: PepsiCo Website
Nestlé’s R&D capabilities also stem from its R&D network. The company has the largest
R&D centers’ network of any food or beverage company in the world, with 34 R&D
facilities and over 5000 people working in them.
Nestlé’s superiority in R&D against its rivals provides a sustainable competitive advantage
and long-term success.
2. Strong geographic presence, with one of the best geographically

diversified revenue sources
31
Nestlé operates and sells its products in 189 countries, reaching almost the entire world.
The company has divided its operating segments into 3 geographic areas: The Americas
(AMS), Europe, Middle East and North Africa (EMENA) and Asia, Oceania and sub-
Saharan Africa (AOA). None of the regions earn over 50% of the total revenue.
Nestlé, unlike most of its rivals, does not rely on any single country or a few different
countries to generate most of its revenue. The U.S., which is the single largest company’s
market only generates CHF25.293 billion or 28.5% of the total revenue. The next largest
market, China, generates CHF7.06 billion or 8% of the total revenue.
In comparison, PepsiCo and The Coca Cola Company earn 56% and 46% of their revenue
from the U.S. alone, respectively. This proves that Nestlé’s strong and diverse geographic
presence, gives it a competitive advantage over its rivals, especially when the U.S. market
is negatively affected.
3. Unrivalled product and brand portfolio

Nestlé’s product portfolio is wider than any of its rivals in the industry. The company
offers over 2000 different product choices in 7 main categories:
 Powdered and liquid beverages. Brands include: Nescafé, Nescafé Dolce Gusto,
Nespresso, and Nestea.
 Milk products and ice cream. Brands include: Nestlé, Dreyer’s, Movenpick.
 Prepared dishes and cooking aids. Brands include: Maggi, Chef, Buitoni, Stouffer’s,
Wagner.
 Nestlé Nutrition. Brands include: Wyeth, Nan, S-26 Gold, Beba, Lactogen.
 Pet Care. Brands include: Purina, Friskies, Pro Plan, Felix, Gourmet.
 Confectionary. Brands include: Nestlé, KitKat, Cailler.
 Water. Brands include: Pure Life, S.Pellegrino, Vittel, Perrier.
32
Wide product portfolio allows Nestlé to better satisfy various consumers’ needs and target
wider consumer segment. The company is also less affected by the changing consumer
tastes or consumer backlash against one of its brands.
4. Environmental sustainability efforts

Nestlé prides itself on company’s sustainability efforts. The company’s environmental
initiatives have helped to reduce waste, packaging material usage and to keep the
environment cleaner.
Since 1991, the company has saved 500 million kg of packaging material by redesigning its
packages. Nestlé uses recycled materials and chooses materials from renewable source
whenever possible.
By 2016, 105 of Nestlé’s factories have reached zero waste in production, one of the best
results in the industry.
Few of the company’s rivals could match the company’s efforts in sustainability, which
result in lower production costs, cleaner environment and happier communities.
5. Ownership of some of the most recognizable brands in the world

Nestlé owns and markets a few well recognized brands, such as Nestlé, Nescafé, Maggi,
Purina, KitKat and Nan. According to Forbe ] and Interbran, Nescafé brand is the 32nd and
36th most valuable brand in the world, and is worth US$16.3 billion and US$12.5 billion,
respectively. Nestlé brand also ranks as the 49th and 56th most valuable brand in the world
in Forbes’ and Interbrand’s lists.
Brand value is closely related to brand recognition. Nestlé’s brand recognition is also
increased by its presence in 189 countries. Brand awareness helps the company to
introduce new products and sell the current products more easily.
 Weaknesses
33
1. Criticism over high water usage, selling contaminated food, anti-

unionism, forced child labor and using other unethical practices
Being the largest food company in the world attracts lots of attention. Most of that
attention is criticism over the companies’ practices and Nestlé is no exception to
that.
Over the years, the company has been criticized for a number of its practices:
 Unethical marketing of baby formula;
 Claims that water should be privatized;
 Asking for a debt payment from a famine struck country;
 Misleading labeling;
 Sourcing materials from suppliers using child and forced labor;
 Anti-unionism.
The latest criticism is over the company’s uncontrolled water usage in California,
where prolonged drought is hurting the state. California state has experienced water
shortages over the last few years and many restrictions have been placed on
businesses and residents to reduce their water consumption. On the other hand,
Nestlé, which drains the water from aquifers in reservations’ areas, isn’t controlled
by state laws and does not have to restrict its water usage. Nestlé’s inability to
address the communities’ needs and problems in California, but instead increasing
the problems even more, draws lots of criticism.
Negative publicity results in damaged brand reputation, lost consumer confidence

and declined sales. Few of the company’s rivals receive as much criticism as
Nestlé.
2. Contaminated food recalls
34
Nestlé is a huge food company selling tens of thousands of different food products
daily. Even with strict quality control measures the company often has to recall its
products in various markets due to some form of contamination. In 2014, Nestlé
recalled and destroyed 37,000 tons of contaminated Maggi noodles in India. This
resulted in hundreds of millions in lost sales and damaged brand reputation. Recently,
the company had to recall various prepared dishes in the U.S., which may have
contained pieces of glass. The company has to recall some of its products almost
monthly. Such negative publicity heavily affects Nestlé’s business.
 Opportunities
1. Clear and accurate labeling indicating of any harmful products

According to the study done by Delloitte, consumers are more likely to buy
products that are clearly and accurately labeled. Almost 62% consumers are more
likely to choose products that are free of any harmful products. 51% of the surveyed
said that their decisions will be influenced by clear and accurate labeling and 47%
would like to see clearly displayed information.
Nestlé, which has a history of providing misleading nutritional information on its

labels should improve its practices and clearly label the products and include all the
necessary information in addition to nutritional values.
2. Transparency in material sourcing

Consumers are becoming more and more conscious of where the food came from
and how it was grown or made. Many young consumers are placing sustainability
as an important decision making factor when buying their food. Social
responsibility of buying ethically grown, sustainable foods is often more important
that price. Nestlé could start sourcing all of its materials from sustainably grown
plantations and farms.
3. Growing number of small food startups
35
There is a growing number of food startups that are looking for ways on how to
disrupt the food industry. According to CB Insight] food startups raised nearly
US$5.5 billion in 2015, indicating a significant support for the food startups. These
new startups are developing the next generation foods and drinks, provide various
solutions on food delivery, new meal kits, specialty foods and introduce new ways
to grow and sell the food.
In the current situation, where the established brands are losing sales and the capital
is still very cheap, Nestlé could increase its investments in startups that will help the
company to meet the future challenges and increase the sales.
4. Growing ready-to-drink (RTD) tea and RTD coffee markets

According to the Beverage Marketing Corporation Report RTD coffees is the
fastest growing liquid beverage sector in the U.S. for the last 3 years. While the
whole beverage industry grew only slightly, RTD coffees grew by a staggering
37%. Healthy beverages, such as RTD teas were also growing over 4% annually.
 Threats
1. Poor quality water and its scarcity

Beverages make over 25% of the total Nestlé’s sales and water is used in all of their
production. Bottled water products alone generate 8% of the total company’s
revenue.
Water is scarce and is becoming even more scarce due to the factors such as climate
change, growing populations, overexploitation of resources, the increasing demand
for food products, increasing pollution and the poor management of waste water.
Demand for water is increasing, and it will likely become more difficult for Nestlé
to access both clean and inexpensive supplies of drinking water, resulting in
potentially increased production costs and therefore lower profitability.
36
The company also currently receives lots of criticism and negative publicity over its
high use of drinking water near the communities suffering from droughts. In the
future, water scarcity will likely become a more significant problem that will
negatively impact company’s operations.
2. Increased competition in the beverage and food industries

According to Nestlé, competitive rivalry is one of the key threats affecting the
company. The beverage and food industries are highly competitive and consist of
numerous small, large and multinational companies. Beverage, food and snack
products compete primarily on the basis of brand recognition, taste, price, quality,
product variety, distribution, advertising, packaging, convenience, service,
marketing and promotional activity, as well as the ability to anticipate and respond
to consumer trends.
Food and beverage markets are growing very slowly and with so many new
startups, Nestlé will find it hard to compete in the future.
3. The price of coffee beans could significantly rise due to major weather
disasters
Coffee generates over 10% of the company’s total sales and coffee beans are the
major raw material used in its production. Therefore, Nestlé’s profit margins are
dependent, to some extent, on the price of coffee beans, which over the past several
years has been very volatile.
The major reasons for such price volatility are droughts, unusually high or low
temperatures and many other weather disasters in Brazil and other coffee-growing
countries. In addition to those factors, growing demand has increased competition
for the best quality coffee beans and has pushed the prices up significantly.
37
CHAPTER-5
FINDINGS
38
FINDINGS
1- Nestle company is a very known company in India. It was started in 1866 by “Henri
Nestle” from Switzerland then in 1905 it was merged with Anglo-Swiss and company
named as Nestle Group.
2- Nestle came to India as Nestle India in 1961 and setup its first factory at Moga, Punjab
where the government wanted to develop the milk economy.
3- Nestle is the world’s largest food and beverage company which has more than 2000
brands and present in 191 countries across the world.
4- In India Nestle have its 8 manufacturing facilities and 4 branch offices with headquarter
in Vevey, switzerland.
5- Nestle is also working with social ambitions like helping children and people to live a
better life and also to protect the environment.
6- Nestle have a wide range of products available in India including milk products,
beverages, prepared dishes and cooking aids, and chocolates.
7- The organization structure of the company is divided into different hierarchy which
includes top, middle and lower level management.
8- To survive and its top position in India Nestle company have to deal with a lot of
competition and its major competitors are Hershey’s, Unilever, Amul, Cadbury,
Starbucks etc.
39
9- To deal with the competition Nestle Company also have to make strategies like
providing the best tasting food with nutrition, wellness and health.
10- Nestle also try to gain advantage and market share with its chocolates segment by
constantly introducing something new.
11- Nestle operates 447 production units, serving in 194 countries nad hired almost
339000 employees.
12- Nestle have a very good research and development capability which help the
company to gain the competitive advantage.
13- Nestle also have some brands for which it faces very less competition due to which
its profit increases.
14- As Nestle operates worldwide so it also has to make sure to know and follow rules
and laws of different companies properly.
15- As the food and beverages industry is constantly increasing Nestle will have to face
a lot of competition in the coming time.
16- Nestle also had to face a lot of criticism due to high water usage and unfair
practices.
17- In 2018 the net profit of the Nestlé Group rose to 10.14 billion CHF from about
7.16 billion CHF in the previous year.
40
CHAPTER-6
RECOMMENDATION
41
RECOMMENDATIONS
1- Nestle should work on its segmenting technique to gain more customers.
2- Nestle should launch some of its brand in India which are available in foreign
countries.
3- As many people are getting diet conscious now-a-days nestle should increase its
focus on that segment.
4- As Nestle have brand which provide nutrition to children Nestle should also focus on
launching such kinds of products and brand for adults and old aged people.
5- Nestle can also focus on mothers as its one of the big segment is infants.
6- Nestle should carry on with their partnership activities that will increase its competitive
advantage.
7- Nestle should also invest in new industries as it’s a established brand it will
automatically get the attention from its old customers.
8- Nestle can also work on its innovations in advertising and marketing of its products.
42
9- Nestle should also put more efforts in tea and coffee segments as this segment have a
lot of scope of growth.
CHAPTER-7
REFRENCES
43
REFRENCES
 Websites-
1- History of nestle-
https://www.nestle.com/aboutus/history/nestle-company-history#targetText=Our
%20history%20begins%20in%201866,known%20as%20the%20Nestl
%C3%A9%20Group
2- Presence of nestle-
https://www.nestle.in/aboutus
3- Organization structure of nestle-
https://www.ukessays.com/essays/management/nestle-system-and-organization-
structure.php#targetText=Nestle%20Company%20is%20a
%20decentralized,proportionately%20high-level%20of%20independence
4- Market share of nestle-
https://www.business-standard.com/article/markets/nestle-india-trent-gsk-consumer-
hit-new-highs-in-weak-market-119082100344_1.html
5- SWOT analysis of nestle-
https://www.strategicmanagementinsight.com/swot-analyses/nestle-swot-analysis.html
44

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NESTLE COMPANY PROJECT

POST GRADUATE DIPLOMA IN MANAGEMENT

Roll No. GM19151

Under the guidance of

Dr. Terjani Goyal

GL BAJAJ INSTITUTE OF MANAGEMENT AND RESEARCH

(Name of the Student)- RIYA RAHA

Place: ALPHA 2, GREATER NOIDA (UP)

FACULTY GUIDE CERTIFICATE

(Signature of Faculty Guide)

Name: DR. TERJANI GOYAL

CHAPTER HEADINGS PAGE NO.

INTRODUCTION OF NESTLE COMPANY

i. HISTORY OF NESTLE COMPANY

MARKET SHARE AND POSITION OF THE COMPANY

CHAPTER-2 i. NESTLE MARKET SHARE

CHAPTER-3 PESTLE ANALYSIS OF NESTLE COMPANY

CHAPTER-4 SWOT ANALYSIS OF NESTLE COMPANY

CHAPTER-5 FINDINGS OF NESTLE COMPANY

CHAPTER-6 RECOMMENDATIONS FOR NESTLE COMPANY

CHAPTER-7 REFRENCES FOR THE STUDY

The pioneer years-

Nestlé India Head Office, Gurgaon, Haryana

Presence Across India-

THE PURPOSE OF NESTLE-

GLOBAL AMBITIONS OF NESTLE COMPANY-

 Help 50 million children live healthier lives.

VALUES OF NESTLE COMPANY-

VISION AND MISSION OF NESTLE COMPANY-

MISSION: To be a leading, competitive, Nutrition, Health and Wellness Company

PRODUCT RANGE OF NESTLE COPANY -

Milk Products & Nutrition-

 NESTLÉ EVERYDAY Dairy Whitener-

 NESTLÉ Bhuna Jeera Raita-

 Nestle Coffee Range-

 NESTEA ICED TEA-

Prepared Dishes And Cooking Aids

 MAGGI 2-MINUTE NOODLES-

 MAGGI VEGETABLE ATTA NOODLES-

 MAGGI CUPPA MANIA-

 MAGGI BHUNA MASALA –

Chocolate And confectionery

 Kitkat Dessert Delight

NESTLE SYSTEM AND ORGANISATION STRUCTURE

A company’s organizational chart typically demonstrates relations between people within

The different types of organization charts include:

Nestle Company is a decentralized organization that is organized according to the matrix

In organization structure, Complex system is a system that is comprises a large number of

Nestle Organization Chart :

 Top Level of Management-

It contains of board of directors, chief executive or managing director. The top

The role of the top management can be summarized as follows:

 Middle Level of Management-

Their role can be highlighted as:

 Lower Level of Management-

Lower level is also known as operative/supervisory level of management. It contains of

Their activities include –

i. Assigning of jobs and tasks to various workers.

Nestle Market Share

 Current Position Of Nestle India In Market-

Analysts at JP Morgan are ‘overweight’ on Nestle India with June 20 target price of Rs

 Nestle India Main Recognitions-

Nestle India is a subsidiary of NESTLÉ S.A. of Switzerland. With eight factories, 4