Project

Business Ethics and Corporate Governance

Prepared For
Ma’am Samreen

Associate Lecturer

Lahore Garrison University

21th January 2021

Prepared By
Shahzeb Aurangzeb

FA17-BBA-078

Batch 2017 – 2021

Lahore Garrison University

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 Table of Content
Acknowledgement ___________________________________________________ 2
Dedication ___________________________________________________ 3
Executive Summary __________________________________________________ 4
Introduction ___________________________________________________ 5
History ___________________________________________________ 5
Mission, Vision, Values and BOD _______________________________________ 10
Products ____________________________________________________ 11
SWOT Analysis ____________________________________________________ 16
Management _____________________________________________________ 17
Ratios _____________________________________________________ 31
Problems _____________________________________________________ 32
Conclusion ______________________________________________________ 35
Recommendations _____________________________________________________35

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 Acknowledgement
“In the Name of Allah most Merciful and most Beneficent’’
I am very thankful to Almighty Allah who gave me the opportunity, courage and insight to
explore more knowledge to complete this whole and for his blessings that have brightened in all
parts of our lives and our parents whose prayers always supported us in every task. In scripting
this project, I was guided by our experience, knowledge and interest in the subject “Business
Ethics and Corporate Governance”. Beyond of all the material available I am thankful to our
respected resource person “Ma’am Samreen’’ for giving us such a deep knowledge about the
subject, which made “BE & CG” very interesting subject. That is possible due to her unique and
natural style of teaching we ever experienced during our academics and through her motivational
behavior we’re able to complete this difficult task.

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 Dedication
I dedicate this project to our Business Ethic’s Teacher Ma’am Samreen who helped us in our
work. She guided us perfectly to how to perform and how to complete your project she gave us
many examples related to the project. She is the only who encouraged us that we can do it when
we did not have any knowledge about this project. We are thankful to her for her so much
corporation.

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 Executive Summary
Nestle company is health, nutrition and wellness firm that supplies, manufactures and produces
ready dishes and cooking aids, pharmaceuticals and ophthalmic goods, milk based products
cereals and baby foods. The company operates across six zones that include zone America, zone
Oceania, zone Africa and Asia. Nestle was formed in 1866 by Henry Nestle and its main
headquarter is in Switzerland. With employment of different business strategies and introduction
of new products line, Nestle boosts of employing approximately 339,000 personnel with
operations in all regions all over the globe. The company aims to be the leader in the food
industry more specifically health, wellness and nutrition. Despite its success in the market,
Nestle still faces internal and external challenges that they need to overcome in order to reach
their goals. With the dynamism in the market Nestle tends to embrace change and comes up with
products suitable for its customers while still improving on the quality of its original products
line. Improvements on the technology, organizational structure, marketing mix, operations as
well as human resource management led to more profit margins of the company.
Nestle has a lot of challenges especially external ones that seem to grow each day. But with these
comes opportunities that need to be explored. Nestle enjoys high credibility among customers
because of its quality products and loyalty and trust among its customers. It also has the chance
to be able to cooperate and forge partnerships with other local industries to boost their image in
whichever region they are based. With dynamism comes new trends that need embracing to be
able to conquer certain markets. Competition is good as it makes companies think and come up
with strategies that enable them stay above competition.

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 Nestle
Introduction
Nestle is a Swiss multinational food and drink company headquartered in Vevey, Vaud,
Switzerland. It is the largest food company in the world, measured by revenues and other
metrics, since 2014. It ranked No. 64 on the Fortune Global 500 in 2017 and No. 33 on the 2016
edition of the Forbes Global 2000 list of largest public companies.
Nestle's products include baby food, medical food, bottled water, breakfast cereals, coffee and
tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks. Twenty-nine of
Nestle's brands have annual sales of over CHF1 billion (about US$1.1 billion), including
Nespresso, Nescafe, Kit Kat, Smarties, Nesquik, Stouffer's, Vittel, and Maggi. Nestle has 447
factories, operates in 189 countries, and employs around 339,000 people. It is one of the main
shareholders of L'Oreal, the world's largest cosmetics company.
Nestle was formed in 1905 by the merger of the Anglo-Swiss Milk Company, established in
1866 by brothers George and Charles Page, and Farine Lactee Henri Nestle, founded in 1866 by
Henri Nestle. The company grew significantly during the First World War and again following
the Second World War, expanding its offerings beyond its early condensed milk and infant
formula products. The company has made a number of corporate acquisitions, including Crosse
& Blackwell in 1950, Findus in 1963, Libby's in 1971, Rowntree Mackintosh in 1988, Klim in
1998, and Gerber in 2007. Nestle has a primary listing on the SIX Swiss Exchange and is a
constituent of the Swiss Market Index. It has a secondary listing on Euronext.

History
Nestle's origins date back to the 1860s, when two separate Swiss enterprises were founded that
would later form the core of Nestle. In the succeeding decades, the two competing enterprises
aggressively expanded their businesses throughout Europe and the United States. In 1866,
Charles Page (US consul to Switzerland) and George Page, brothers from Lee County, Illinois,
USA, established the Anglo-Swiss Condensed Milk Company in Cham, Switzerland. Their first
British operation was opened at Chippenham, Wiltshire, in 1873.
In 1867, in Vevey, Henri Nestle developed milk-based baby food and soon began marketing it.
The following year saw Daniel Peter begin seven years of work perfecting his invention, the
milk chocolate manufacturing process. Nestle was the crucial co-operation that Peter needed to
solve the problem of removing all the water from the milk added to his chocolate and thus
preventing the product from developing mildew. Henri Nestle retired in 1875 but the company,
under new ownership, retained his name as Societe Farine Lactee Henri Nestle.

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In 1877, Anglo-Swiss added milk-based baby foods to their products; in the following year, the
Nestle Company added condensed milk to their portfolio, which made the firms direct and fierce
rivals. In 1879, Nestle merged with milk chocolate inventor Daniel Peter.

1901–1989: Mergers
In 1904, François-Louis Cailler, Charles Amedee Kohler, Daniel Peter, and Henri Nestle
participated in the creation and development of Swiss chocolate, marketing the first chocolate –
milk Nestle.
In 1905, the companies merged to become the Nestle and Anglo-Swiss Condensed Milk
Company, retaining that name until 1947 when the name 'Nestle Alimentana SA' was taken as a
result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding
company, Alimentana SA, of Kempttal, Switzerland. Maggi was a major manufacturer of soup
mixes and related foodstuffs. The company's current name was adopted in 1977. By the early
1900s, the company was operating factories in the United States, the United Kingdom, Germany,
and Spain. The First World War created demand for dairy products in the form of government
contracts, and, by the end of the war, Nestlé's production had more than doubled.
In January 1919, Nestle bought two condensed milk plants in Oregon from the company
Geibisch and Joplin for $250,000. One was in Bandon, while the other was in Milwaukie. They
expanded them considerably, processing 250,000 pounds of condensed milk daily in the Bandon
plant. Nestle felt the effects of the Second World War immediately. Profits dropped from US$20
million in 1938 to US$6 million in 1939. Factories were established in developing countries,
particularly in Latin America. Ironically, the war helped with the introduction of the company's
newest product, Nescafe ("Nestle's Coffee"), which became a staple drink of the US military.
Nestle's production and sales rose in the wartime economy.
After the war, government contracts dried up, and consumers switched back to fresh milk.
However, Nestle's management responded quickly, streamlining operations and reducing debt.
The 1920s saw Nestle's first expansion into new products, with chocolate-manufacture becoming
the company's second most important activity. Louis Dapples was CEO till 1937 when
succeeded by Edouard Muller till his death in 1948.
The end of World War II was the beginning of a dynamic phase for Nestle. Growth accelerated
and numerous companies were acquired. In 1947 Nestle merged with Maggi, a manufacturer of
seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963), Libby's
(1971), and Stouffer's (1973). Diversification came with a shareholding in L'Oreal in 1974. In
1977, Nestle made its second venture outside the food industry, by acquiring Alcon Laboratories
Inc. In the 1980s, Nestle's improved bottom line allowed the company to launch a new round of
acquisitions. Carnation was acquired for $3 billion in 1984 and brought the evaporated milk
brand, as well as Coffee-Mate and Friskies to Nestle. In 1986 Nestle Nespresso S.A. was
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founded. The confectionery company Rowntree Mackintosh was acquired in 1988 for $4.5
billion, which brought brands such as Kit Kat, Smarties, and Aero.

1990–2011: Growth Internationally

The first half of the 1990s proved to be favorable for Nestle. Trade barriers crumbled, and world
markets developed into more or less integrated trading areas. Since 1996, there have been
various acquisitions, including San Pellegrino (1997), D'Onofrio (1997), Spillers Pet foods
(1998), and Ralston Purina (2002). There were two major acquisitions in North America, both in
2002 – in June, Nestle merged its US ice cream business into Dreyer's, and in August, a US$2.6
billion acquisition was announced of Chef America, the creator of Hot Pockets. In the same
time-frame, Nestle entered in a joint bid with Cadbury and came close to purchasing the iconic
American company Hershey's, one of its fiercest confectionery competitors, but the deal
eventually fell through.
In December 2005, Nestle bought the Greek company Delta Ice Cream for €240 million. In
January 2006, it took full ownership of Dreyer's, thus becoming the world's largest ice cream
maker, with a 17.5% market share. In July 2007, completing a deal announced the year before,
Nestle acquired the Medical Nutrition division of Novartis Pharmaceutical for US$2.5 billion,
also acquiring, the milk-flavoring product known as Ovaltine, the "Boost" and "Resource" lines
of nutritional supplements, and Optifast dieting products.
In April 2007, returning to its roots, Nestle bought US baby-food manufacturer Gerber for
US$5.5 billion. In December 2007, Nestle entered into a strategic partnership with a Belgian
chocolate maker, Pierre Marcolini.
Nestle agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010. The sale was
to form part of a broader US$39.3 billion offer, by Novartis, for full acquisition of the world's
largest eye-care company. On 1 March 2010, Nestlé concluded the purchase of Kraft Foods's
North American frozen pizza business for US$3.7 billion.
Since 2010, Nestle has been working to transform itself into a nutrition, health and wellness
company in an effort to combat declining confectionery sales and the threat of expanding
government regulation of such foods. This effort is being led through the Nestle Institute of
Health Sciences under the direction of Ed Baetge. The institute aims to develop "a new industry
between food and pharmaceuticals" by creating foodstuffs with preventative and corrective
health properties that would replace pharmaceutical drugs from pill bottles. The Health Science
branch has already produced several products, such as drinks and protein shakes meant to
combat malnutrition, diabetes, digestive health, obesity, and other diseases.
In July 2011, Nestle SA agreed to buy 60 percent of Hsu Fu Chi International Ltd. for about
US$1.7 billion. On 23 April 2012, Nestlé agreed to acquire Pfizer Inc.'s infant-nutrition,
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formerly Wyeth Nutrition, unit for US$11.9 billion, topping a joint bid from Danone and Mead
Johnson.

2012–present: Recent developments

In recent years, Nestle Health Science has made several acquisitions. It acquired Vitaflo, which
makes clinical nutritional products for people with genetic disorders; CM&D Pharma Ltd., a
company that specialises in the development of products for patients with chronic conditions like
kidney disease; and Prometheus Laboratories, a firm specializing in treatments for
gastrointestinal diseases and cancer. It also holds a minority stake in Vital Foods, a New
Zealand-based company that develops kiwifruit-based solutions for gastrointestinal conditions as
of 2012.
Another recent purchase included the Jenny Craig weight-loss program, for US$600 million.
Nestle sold the Jenny Craig business unit to North Castle Partners in 2013. In February 2013,
Nestle Health Science bought Pamlab, which makes medical foods based on L-methylfolate
targeting depression, diabetes, and memory loss. In February 2014, Nestle sold its Power Bar
sports nutrition business to Post Holdings, Inc. Later, in November 2014, Nestle announced that
it was exploring strategic options for its frozen food subsidiary, Davigel.
In December 2014, Nestle announced that it was opening 10 skin care research centres
worldwide, deepening its investment in a faster-growing market for healthcare products. That
year, Nestle spent about $350 million on dermatology research and development. The first of the
research hubs, Nestle Skin Health Investigation, Education and Longevity Development
(SHIELD) centres, will open mid 2015 in New York, followed by Hong Kong and São Paulo,
and later others in North America, Asia, and Europe. The initiative is being launched in
partnership with the Global Coalition on Aging (GCOA), a consortium that includes companies
such as Intel and Bank of America.
Nestle announced in January 2017 that it was relocating its U.S. headquarters from Glendale,
California, to Rosslyn, Virginia outside of Washington, DC. In March 2017, Nestle announced
that they will lower the sugar content in Kit Kat, Yorkie and Aero chocolate bars by 10% by
2018. In July followed a similar announcement concerning the reduction of sugar content in its
breakfast cereals in the UK.
The company announced a $20.8 billion share buyback in June 2017, following the publication
of a letter written by Third Point Management founder Daniel S. Loeb, Nestle's fourth-largest
stakeholder with a $3.5 billion stake, explaining how the firm should change its business
structure. Consequently, the firm will reportedly focus investment on sectors such as coffee and
pet care and will seek acquisitions in the consumer health-care industry.
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In September 2017, Nestle S.A. acquired a majority stake of Blue Bottle. While the deal's
financial details were not disclosed, the Financial Times reported "Nestle is understood to be
paying up to $500m for the 68 per cent stake in Blue Bottle". Blue Bottle expects to increase
sales by 70% this year. In September 2017, Nestle USA agreed to acquire Sweet Earth, a
California-based producer of plant-based foods, for an undisclosed sum.
In January 2018, Nestle USA announced it is selling its U.S. confectionary business to Ferrero,
an Italian chocolate and candy maker. The company was sold for a total of an estimated $2.8
billion. In May 2018, it was announced that Nestle and Starbucks struck a $7.15 billion
distribution deal, which allows Nestle to market, sell and distribute Starbucks coffee globally
and to incorporate the brand's coffee varieties into Nestle's proprietary single-serve system,
expanding the overseas markets for both companies.
Nestle set a new profit target in September 2017 and agreed to offload over 20 of its US candy
brands in January 2018. However, sales grew only 2.4% in 2017, and as of July 2018, share price
declined more than 8%. While some suggestions were adopted, Loeb said in a July 2018 letter
that the shifts are too small and too slow. In a statement, Nestle wrote that it was "delivering
results" and listed actions it had taken, including investing in key brands and its global coffee
partnership with Starbucks. However, activist investors disagreed, leading Third Point
Management to launch Nestle NOW, a website to push its case with recommendations calling for
change, accusing Nestle of not being as fast, aggressive, or strategic as it needs to be. Activist
investors called for Nestle to divide into three units with distinct CEOs, regional structures, and
marketing heads - beverage, nutrition, and grocery; spin off more businesses that do not fit its
model such as ice cream, frozen foods, and confectionery; and add an outsider with expertise in
the food and beverage industry to the board.
In October 2018, Nestle announced the launch of the Nestle Alumni Network through a strategic
partnership with SAP & Enterprise Alumni to engage their over 1million Alumni globally. In
September 2018, Nestle announced to sell Gerber Life Insurance for $1.55 billion.

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 Mission
“Nestle 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.”

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.” 

Core Values
Nestle core values are “full legal compliance, honesty, fair dealings, integrity, and respect.”

Board of Directors
Mark Schneider CEO
Greg Behar CEO
Paul Bulcke Chairman
Francois Xavier Roger CFO
Stefan Pelzar Chief Technology Officer
Ulf Wiinberg Senior Health Care Chief
Patrick Aebischer Member of BOD

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 Products
Nestle has over 2000 brands with a wide range of products across a number of markets,
including coffee, bottled water, milkshakes and other beverages, breakfast cereals, infant foods,
performance and healthcare nutrition, seasonings, soups and sauces, frozen and refrigerated
foods, and pet food.
Beverages
 Carnation
 Caro (sold in the US as Pero)
 Chocolate D'Onofrio (Peru)
 Enviga (joint-venture with Coca-Cola, Beverage Partners Worldwide)
 Libby's
 Milo
 Nesquik
 Nestea (joint-venture with Coca-Cola, Beverage Partners Worldwide)
 Ovaltine (U.S. only)
 Special.T
 Supligen (Caribbean) – milk beverage
 Sweet Leaf Tea
Coffee
 Blue Bottle Coffee Company
 Bonka
 Buondi (Portugal)
 Chameleon Cold-Brew
 Christina (Portugal)
 Dolca (Argentina)
 Dolce Gusto
 Ecco (Peru, Chile)
 El Chana (Uruguay)
 International Roast
 Kirma (Peru)
 Loumidis (Greece)
 Mountain Blend
 Nescafe
 Nespresso
 Partner's Blend
 Ricoffy
 Ricore

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  Ristretto
 Sical
 Starbucks (Perpetual License)
 Sunrise (India)
 Taster's Choice
 Tofa
 Zoegas
Water
 Aberfoyle (Ontario, Canada)
 Acqua Panna (Italy)
 Alaçam (Turkey)
 Aqua Mineral (Poland)
 Aqua Pod
 Aqua Spring (Greece)
 Aquarel (Spain)
 Arctic (Poland)
 Arrowhead (US)
 Baraka (Egypt)
 Buxton (UK)
Cereals
 Cerevita (Zimbabwe)
 Cheerios (in some non-US markets)
 Chocapic
 Cini Minis
 Clusters
 Cookie Crisp (in non-US markets)
 Crunch (chocolate)
 Fitness
 Gold Flakes
 Milo cereals
 Nesquik Breakfast Cereal
 Nestlé Corn Flakes
 Cerelac (Pakistan)
Chilled
 Chamyto (Brazil, Mexico, Chile)
 Chandelle (Brazil, Chile)
 Chiquitin (Mexico, Chile)

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  Club (Mexico)
 Hirz (Switzerland)
 La Laitiere (France, Belgium, UK)
 La Lechera (Spain, Mexico)
 Munch Bunch (UK)
 Nestle
 Nesvita (India, Pakistan)
 Ninho (Brazil)
Chocolate, Confectionery and Baked Goods
 100 Grand Bar
 Abuelita
 Aero
 After Eight
 All Stars
 Allen's
 Alpia (Germany)
 Alpino (Brazil)
 Animal Bar
 Kit Kat (outside the US)
 Milky Bar
 Minties (Australia)
 Mirage
 Moça (Brazil)
 Munch (India and Bangladesh)
 Munchies
 Negrita (Chile)
 Nestle Aero
 Nestle Alpine White
 Nestle Crunch
 Nestle Crunch Crisp
 Nestle Crunch Pieces
 Nestle Crunch White
 Nestle Crunch with Caramel
 Nestle Crunch with Peanuts (limited edition)
 Nestle Dessert
 Nestle Milk Chocolate
 Nestle Nips
 Nestle Princessa
 Nestle with Almonds

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  Nestle Wonder Ball
Foodservice Products
 Chef-Mate
 Davigel
 Minor's
 Santa Rica
Frozen Foods
 Buitoni
 California Pizza Kitchen (US)
 Delissio Pizza (Canada)
 DiGiorno Pizza (US)
 Hot Pockets (US)
 Jack's Pizza
 Lean Cuisine
Healthcare Nutrition
 Boost
 Carnation Instant Breakfast
 Compleat
 Crucial
 Diabetisource
 Fibersource
 Garden of Life
 Glytrol
Pet Care
 Bakers
 Bakers Complete
 Bonnie
 Castor & Pollux
 Chef Michael's Canine Creations
 Felix
 Go Cat
 Gourmet
 Lucky Dog
Yogurt
 Acti-V (Philippines)
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 ActiPlus (Pakistan)
 Fruit Selection Yogurt (Philippines)
 Hirz (Switzerland)
 Longa Vida (Portugal)
 Molico (Brazil)

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 SWOT Analysis
Strengths
 Brand Image.
 Marketing strategies established by the company are innovative.
 Financial, marketing and sales strategies are formulated by gauging the periodic research
carried out to judge market trends.
 It is a large scale organization, with abundant funds and has the capability of acquiring
weaker firms by throwing them out of competition.
 Growing Sales and profits.
 Major shareholder in the food industry of Pakistan.
 Aggressive Marketing.
 Efficient Distribution networks throughout the country.
 Quality Products.
 Environment Friendly.
 Skilled labor.
 Educated staff.
 Large number of offerings.
 Pre purchase virtual display.
 Good background of the company.
 Easy to approach outlets.
 Strong supply chain network
 Strong research and development department
Weaknesses
 Criticism over high water usage, selling contaminated food, anti-unionism, forced
child labor and using other unethical practices.
 Contaminated food recalls.
 The target market of Nestle products is upper middle and high class because lower
middle and poor class cannot afford to buy Nestle products due to its premium price
compare to other companies like Shezan etc.
 It is a main weakness of Nestle products that there are different companies which
provide substitutes of Nestle products but the name of Nestle products is always stand
in the last because of low advertising and marketing.

Opportunities
 Nestle have opportunity to expand their product line like tea etc.
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  Company can open separate stores for eliminating retailers.
 Integration of new acquisitions in growth markets.
 Growth in international & emerging markets.
 Transition to a "Nutrition and well-being" company.
 Continuous growth in the Pakistan coffee market.
 Ethical business activities and support in community.
 Nestle can make itself as social company.
 Fair Trade agreements for cocoa and other products produced in third world countries.
 In today's health conscious societies, they can introduce more health-based products, and
because they are a market leader, they would likely be more successful.
 It should regularly indulge with candy and chocolates.
Threats
 Price fluctuations due to rupee devaluation as raw material are imported. The uncertainty
of economic conditions poses a great threat as the major funds invested in the country
come from outside Pakistan.
 The present economic crisis in the world, led to the withdrawal of foreign management
from the company and the investment has come to a halt.
 Competition with Nestlé’s owns smuggled brands.
 Effect of Seasonality’s upon sales.
 Imported raw material, in some of the company’s products.
 Major Player may enter target market Legal and ethical issues.
 Market segment growth could attract new entrants.
 Economic slowdown can reduce demand.
 Main competitors Shezan, Olfruit, Maza and Haleeb are main threat for Nestle juices
especially the Shezan is growing very fast.
 Inflation is getting higher and higher so the purchasing power of the people is decreasing
day by day.
 Taste of consumer has already developed which is hard to change.

Management
Nestle has a Board of Directors, led by our Chairman Paul Bulcke, who was the former Nestle
CEO. The day-to-day management of the Nestlé business is taken care of by our Executive
Board. The designated Board Members manage diverse parts of the global business.
The Nestle Group is managed by geographies - Zones EMENA (Europe, Middle East and North
Africa), Americas and Asia/Oceania/sub-Saharan Africa - for most of the food and beverage
business, with the exceptions of our globally managed businesses, which include Nestle Waters,
Nespresso, Nestle Health Science and Nestle Skin Health. We also have joint ventures such as
Cereal Partners Worldwide and Froneri.

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Management Organogram

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Marketing

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Enhancing quality of life, contributing to a healthier future, and building great brands are at the
heart of everything we do at Nestle. With more than 2,000 brands, ranging from global icons
such as Nescafe, KitKat, and Maggi to local and regional favorites, the strength of our brand
portfolio and breadth of brand activities makes Marketing at Nestle a rewarding, exciting, and
challenging career opportunity.
Indeed, “Brand Building the Nestle Way” is a distinctive approach that sets our marketing
function apart in the industry – from both a commercial and career point of view. The Marketing
role encompasses all aspects of brand management with direct or indirect responsibility for brand
communication, innovation, product and packaging design, and consumer insight. Our focus on
building attractive and rewarding brand experiences for our consumers’ means we not only work
closely together within the Marketing function but collaboratively with other groups such as
Sales and eBusiness, R&D, Technical Applications, and agency partners among others. There is
a wealth of opportunity at Nestle for those seeking to build an exciting, long term career in
Marketing.

Sales
Nestle sell over a billion of products every day, generating CHF 89.5 billion sales in 191
countries across the world in 2016. Our Sales team drives that forward. We have a very varied
brief. We handle category and shopper management, customer relationships, route to market
strategies, field sales activities and our customer-facing supply chains. All of these areas are
focused on delighting our consumers and making sure our products are available wherever and
whenever they want them.
Whether you want to focus on devising category strategies and initiatives, developing fact-based
selling proposals, managing distribution networks or building field sales, we have the breadth
and scope you need. From here, you can move into general management or specialize. Either
way, you’ll need to back your commercial success in a sales or customer-focused environment
with a winning mentality, self-reliance, integrity and personal drive. If you support these abilities
with the intellectual curiosity to find new solutions and the highest standard of integrity, then this
team will be perfect for you.

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Finance
The finance team drives nestle growth platforms, supports our operational pillars, leverages our
competitive advantage and always delivers. Nestle support sound business decision-making and
innovation planning. Of course, they also help optimize our growth, cash flow and return to
shareholders. The true change agents – aiming for long-term value creation.
The function has specialists in areas ranging from Tax to Pensions, Risk Management to
Treasury, Audit to Acquisitions & Business Development, and Internal Controls. There’s even a
Decision Support Department specifically to help businesses with management reporting. And
the roles range from business partners to factory controllers, to controllers of functions such as
Supply Chain or Sales. Nestle Finance team your next career destination and you’ll monitor and
report the performance of our business, analyze strategic issues and complete specific projects.
Whatever your particular focus, you’ll never be short of challenges and can be sure that your
ideas and expertise will sharpen our competiveness.

Administrative
You cannot expect a clock-in/clock-out culture. The best of you think ahead of our needs. You
are proactive. Constantly lending a hand to what we need before we need it. You know all the ins
and outs – many of the details most of us will never know. Nestle is a place where you will
surround yourself with teams and projects that are living up to our purpose. We are leaning on
you for those details that make an immeasurable difference in every area of what we do – from
IT to research and everything in between.

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Human Resources
Nestle is a people-inspired company. Their people, their strengths, talent and energy are our most
important strength. Currently there are around 328,000 employees and we sell products and
services in 191 countries.
As the function attracting, developing and engaging more of the exceptional talent that nestle
need to grow our business, HR offers opportunities in three key areas. You could continue your
career in HR business partnership helping line managers improve business performance through
people. If you’ve proven experience in recruitment, development or another specialist HR area,
you’ll join our team devoted to specialism. Or you could join our Centre of Scale, the group that
ensures our employees have their essential needs taken care of so they can focus on what they do
best.

Engineering
Nestle engineers are vital members of the Nestle team, bringing their solutions-focused mindsets
to process improvement, operations strategy and manufacturing projects. Overall accountable for
operations fixed assets, engineering at Nestle provides governance, strategy, leadership and
engineering capabilities to ensure our resources are maintained competitive, compliant and safe.
It ensures that the new assets and their related standards, the products, the systems and the
technologies are designed and deployed using a common, shared, holistic, design-to-launch
approach. Furthermore, the team manages the capital investment program of the group.

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So what does it take to be an engineer at Nestle, and what opportunities await you in nestle
team? With an extensive portfolio of brands people love, a commitment to deliver the utmost
quality, and a world of resources to help you take your career in a variety of directions, Nestle
can help you transform your ambition and keen eye for process improvements into a meaningful
impact.

Information Systems/Information Technology (IS/IT)

Nestle global Information Systems/Information Technology (IS/IT) team, provides all the
businesses of Nestle around the world a single, integrated and standardized system landscape
which enable them to operate efficiently. The systems give the vital edge to critical, highly
complex business functions across everything from logistics to manufacturing, human resources,
finance, marketing and sales.
As a part of the IS/IT team nestle will work on the deployment of fit for purpose, secure and
compliant technology, processes, data and systems, enabling new business models and consumer
facing digital and analytical platforms. This will involve deepening your SAP skills, working
alongside colleagues from all sorts of backgrounds and shaping our thinking along with yours.

Communications
Nestle Corporate Communications team plays an important role as a driving force at the heart of
Nestle. It works in close cooperation with other functions and departments to bring the outside
view in, to constructively challenge and help shape our company’s engagement agenda.
The communications team helps us achieve nestle business objectives by developing and
executing proactive external and internal communications and engagement programs. They
provide counsel, strategy and planning, and ensure that consistent and credible communications
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are delivered to key internal and external audiences by strong communication professionals
across the company.
Here are some of the areas you could deepen your communication expertise – either locally or
internationally.

Media Relations: acting as the voice of the company to the outside; responsible for contacts
with online, broadcast and print media.
Public Affairs: covering Nestle’s relationship with external stakeholders, aimed at ensuring
policy development responsive to societal change.
Corporate Content & Digital: managing the corporate websites and social media channels,
reaching millions of consumers, online influencers, and stakeholders every day. Internal
Communications: focused on employee engagement.
Corporate Industry Affairs: in charge of coordinating and aligning Nestlé’s involvement in
external industry and trade organizations in the view to strengthen our position and influence on
the current and future industry agenda. Promote and contribute to the Industry dialogue and
collaboration on the development and implementation of relevant voluntary non-competitive best
practices and standards in order to enrich, collectively, consumer and shopper value in all
markets. You'll need to have a strong interest in current affairs, business, digital and social media
to succeed.

Supply Chain and Procurement

Supply Chain
Supply chain professionals at Nestle play a critical role in ensuring the quality of products that
reach our customers and consumers. To achieve this, nestle collaborate with the commercial
teams to develop the demand forecast, and also with our suppliers around the world to ensure
responsibly sourced materials. In alignment with operations, they balance inventory levels to
establish the right supply of our products. Once produced, supply chain is responsible for safely
storing and transporting our products to meet our customers’ and consumers’ needs in-full and
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on-time. they are an aligned, agile, and adaptable organization that is committed to delivering
results, not only within supply chain, but also in support of overall business priorities.
Supply chain professionals can take many different paths in building a rewarding career at
Nestle. Whether you join us in Demand and supply planning, Procurement, Physical logistics or
Customer service, you’ll help us gain a real competitive edge by bringing us closer to our
customers and making sure our products are available at the right time in the best condition.
Procurement
As strategic partner of the business, nestle procurement team helps the company achieve
sustainable growth. Procurement professionals at Nestlé, ensure responsibly-sourced supply and
create value. Located in hubs in Switzerland, Panama and Malaysia, the division provides a
range of services, including the management of procurement for specific raw materials,
packaging, indirect materials and other services. The hubs also support markets with managing
local spend.

Technical Production
Our shareholders with 418 factories in 86 countries, nestle have a strong manufacturing
capability across all our businesses. Without it, they simply couldn't meet the high expectations
of our consumers and customers. They are passionate and multidisciplinary team working in
diverse areas such as: Engineering, Safety, Health & Environment, Operations Excellence,
Regulatory and Quality. We serve with passion and always strive to do better, collaborating with
colleagues and partners to grow and succeed together. Success in winning hearts and minds
requires quality in everything we do, with a spirit of excellence and ownership.

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Legal
Nestle business partners at our very core. They have a seat at the table within every critical area
of our business so the larger organization can continue to do its best work to support our
purpose. They are involved from beginning to end, or from idea to table. It is a promise they
make as Nestle’s internal legal team to support the company in the same way the company
nourishes the world.

Internships
As a global company, nestle have many opportunities. This could also mean an international
career that broadens your experience and knowledge. The first decision you need to make is
where your passion lies. They hire students onto apprenticeship and internship programs
worldwide, based in different areas of their business.
Many of their managers and senior leaders started their career at Nestle as graduates. Their
entry-level positions have some common characteristics such as individual responsibility and
autonomy. While you’ll benefit from best-in-class training, you’ll need the drive to make the
most of our formal development programs, and on-the-job training. They encourage their people
to view their career as a journey and make the most of our many ongoing opportunities. It could
be a lateral move to broaden your exposure and deepen your experience, or a promotion with
increased responsibilities. Flexibility and the ability to take a long-term view are essential. Rest
assured, with over 2,000 leading brands and a passion for improvement, nothing stands still for
long in Nestlé – least of all, our talented professionals.

Research & Development (R&D)

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Innovation has been at the heart of nestle company since its beginning. Whether it’s about
convenience, health or pleasure, our R&D team creates trustworthy products, systems and
services that contribute to improving the quality of peoples’ lives. Their R&D team drives
projects that go from developing packaging and equipment, to designing food and beverages for
the pilot of Solar Impulse, a world-first attempt to circumnavigate the globe in a solar powered
aircraft; working with Imperial College London to improve nutrition, or producing a tiny
bouillon cube that tackles iron deficiency.
Clearly, there’s a huge range of projects for scientists, engineers, nutritionists, food technologist,
designers, regulatory specialists and consumer care representatives to get involved in. Their
R&D network is the largest in the food industry with 40 R&D Centres, 4,800 scientists and
researchers working across the world. You can join them different areas:
Nestle Product Technology Centres: The Product Technology Centres (PTCs) provide
technical development expertise for our product, manufacturing and packaging processes. Each
is aligned with a particular business and certain product categories – as such, it acts as a global
hub. For instance, the Switzerland PTC offers worldwide know-how on coffee, beverages,
cereals, dairy and nutritional products.
Nestle Application Groups: Attached to individual Nestle factories, their Application Groups
make sure our products reflect local tastes. They also work with PTCs to test scientific
applications. Here, you’ll gain broad exposure to everything from pet care with Purina, to
chocolate with KitKat.
In-house fundamental research centers: Nestle Institute of Health Sciences provides and
translate biomedical research into personalized science-based nutrition. Nestle Research Center
provides the scientific knowledge and research base for product renovation and innovation.
Clinical Development Unit provides medical expertise and manages clinical trials for the
company, worldwide.

Role of human resource management in Nestle’s Strategy

Nestle is a human oriented company concerned of individual human requirements throughout the
globe with specialized focus on the well-being of each of its customers and its employees. This
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is visible in its brand temperament and its sense of responsibility towards the people it serves.
Nestle functions to extend its profits but, at the same time, to improve the standard of living of
individuals wherever it is active and the quality of life for all those connected to the company.
Nestle also believes that it is these people who are the backbone of the Company and that
success cannot be achieved without their commitment and their energy, thus, making people its
most valuable asset. Involvement of people at all levels starts with appropriate information on
the Company’s activities and on the specific aspects of their work. Through open communication
and active co-operation, people are invited to contribute to improvements that can help
company’s results and its efforts to improve millions of lives.
Therefore, we can infer that the principles that Nestle follows for its people are:
 High Performance
 High Involvement
 High Commitment
NESTLE’S CORPORATE LEVEL STRATEGIES
 Product’s growth through innovation and renovation (while maintaining a balance in
geographic activities and product lines).
 Long-term potential
 Build business based on sound human values and principles
 Long-term commitment to the health and well being of people in every country in the
scope of their operations.
 Business should be conducted by adhering to the values and management principles of
the organization.
BUSINESS LEVEL STRATEGIES
 Low cost - less price transparency is followed.
 Differentiation - to reduce the risk of complexity of supply chain and lower attractiveness
for discounters.
COMPETITIVE ADVANTAGE
 Research and development (R&D),
 Its product ranges
 Global reach and
 280,000-strong workforce
ALIGNMENT OF BUSINESS STRATEGIES AND HR PRACTICES
In Nestle, Human resource strategies are developed in alignment to the business objectives of the
company and the strategic path of the company. This makes sure that the Human resource
strategies are always in sync with the business goals. The company is unique in these regards as
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it has been able to inculcate its business objective and its core values, in its people’s day-to-day
activities right from recruitment all the way to the continuous performance evaluations.

Product’s Growth through innovation and renovation

To increase the product growth i.e. productivity human resource strategies are adopted such as
flexible, dynamic employees are attracted, selected and then trained and motivated to be more
productive than the competition. One case in point is the Kit Kat manufacturing plant in York
England, under the manager ship of Ian Jobson and, ultimately, Nestle CEO Peter Brabeck. In
1998, Time magazine reports, it took 38 man-hours to produce a ton of chocolate. This year,
using a combination of robotics, automated packaging, and production-line improvements, the
forecast production time is 23 hours. This decrease in production time was feasible because of
process innovation.
Adherence to the values and management principles of the organization

 Respect for other cultures and traditions

Nestle embraces cultural and social diversity and does not discriminate on the basis of origin,
nationality, religion, race, gender or age. Furthermore, Nestlé believes that its activities can only
be of long-term benefit to the Company if they are at the same time beneficial to the local
community. In short, global thinking and strategies can best be expressed through local action
and commitment.

 Diversity

From creating hundreds of the world’s leading brands to offering an amazing variety of career
options to our employees, it’s clear that Nestlé’s businesses are exceptionally diverse. So it
should come as no surprise that Nestle values diversity in the people working them just as much
as they have diversity in their products.
It’s the company’s policy to provide an environment where respect is shown to all individual
employees and where employees are valued, recognized and rewarded on the basis of their talent
and their contribution rather than any consideration of age, gender, race, sexuality, religion or
disability. As an organization, Nestlé is opposed to any form of unfair discrimination and believe
that an inclusive approach will be of maximum benefit to all our employees as well as our wider
business goals and the society in which we live. This ethos can be summed up in the following
statement:
“We believe that to succeed we must recruit and retain talented individuals and value and respect
the differences each of those individuals brings with them.”

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In addition, we have a strong ongoing commitment to developing policies, procedures and
practices that will actively promote equality of opportunity and optimize the abilities of our
workforce. Decisions relating to the recruitment, employment, training, progression, assessment
and retention of our people will always be supported by these principles of equality of
opportunity.

TRAINING
From the factory floor to the top management, training at Nestlé is continuous. And because it is
mainly given by Nestlé people, it is always relevant to the professional life. Throughout the
world, each country runs its own training programs (e-Learning, classroom courses, and external
courses).
Nestle provides the following:
 Literacy training-to upgrades essential literacy skills, especially for workers who operate
new equipment.
 Nestle Apprenticeship Programs.
 Local Training Programs-on issues ranging from technical, leadership, and
communication and business economics.
This kind of culture is also supported by decentralized structure of Nestle: Nestle is as
decentralized as possible, within the framework imposed by fundamental policy and strategy
decisions requiring increasing flexibility. Operational efficiencies, as well as the group-wide
need for alignment and people development, may also set limits to decentralization.
Decentralization: Nestle recognizes that its consumers have a sincere and legitimate interest in
the behavior, beliefs and actions of the Company behind brands in which they place their trust
and that without its consumers the Company would not exist.
 Nestle believes that, as a general rule, legislation is the most effective safeguard of
responsible conduct, although in certain areas, additional guidance to staff in the form of
voluntary business principles is beneficial in order to ensure that the highest standards are
met throughout the organization.
 Nestle is conscious of the fact that the success of a corporation is a reflection of the
professionalism, conduct and the responsible attitude of its management and employees.
Therefore, recruitment of the right people and ongoing training and development are
crucial.
 Nestle continues to maintain its commitment to follow and respect all applicable local
laws in each of its
Talent Management and International HR

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Talent Management and International HR Team, on the other hand, focuses on developing the
potential and careers of all the employees at Nestle, particularly those with high levels of
performance and potential who are likely to be Nestlé leaders of the future. The main task of this
talent management program is to develop the framework and processes which will enable the
company to identify and develop the potential of employees at Nestle. This program supports
individuals with a clear career development plan to go on international assignments out of the
respective locations such as Nestlé’s international headquarters in Vevey, Switzerland, or to
other Nestlé markets around the globe.
Learning and development
Learning and Development Team is involved in development of cutting-edge interventions and
supporting change through far-reaching development programs such as our ‘Lead2Win’
program. This team also helps the company to create and implement functional development
programs across the business, covering everything from manufacturing to supply chain. At
Nestle Learning and Development means Continuous Improvement and Creativity and
Innovation. Learning and Development is carried out by Continuous Improvement that leads
directly on to Creativity and Innovation. This process generally involves two stages:
1. A team of passionate and professional development experts is formed to create Core Skill
Development Strategies that will enable continuous personal and professional growth
across the business. After that, the strategies are tailored for each business area with the
help of HR Business Partners and Business Directors.
2. The next stage is to go online, where the trainees are able to take advantage of our vast
learning and development intranet. This resource has been specifically designed to help
trainees manage their own learning in an easy to use virtual environment. Once you're up
and running there, you'll be able to focus on picking up new skills particular to your job
and career ambitions with the help of our leadership development programs, designed to
create the leaders of tomorrow.
Differentiation
Nestle follows differentiation strategy and to make it a success it has HR strategies aligned
accordingly. To support the differentiation strategy, Nestle practices following HR strategies to
support differentiation:
 They strive for long term performance indicators. Nestle does not favor short-term profit
at the expense of successful long-term business development.
 They believe in extensive trainings of their employees to keep the pace with changing
environment and keep them updated with latest innovations
 At Nestle, equal and fair pay practices are followed. Nestlé’s pay structure, rewards &
incentives systems are also designed in such a way so as to promote creativity.

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 Recruitment process is also totally based on hiring and recruitment of people who bring
in new ideas.
 Broad career paths are provided to employees by a continuous process of career
development and high employee participation prevails in the organization.

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 Ratios
Financial Ratios
Items 2017 2018 2019
ROE 4,634 4,020 3,256
Debt/Equity 28.82% 41.81% 58%
EPS 249.88 254.57 162.17
Net Profit Margin 12% 9.60% 6.30%

These figures show that returns on equity and net profit is decreasing from past three years
further the debt ratio is also increasing year by year non the less the earnings per share of 2019
decreased to 162.17 from 254,57.

Stock Price
Items 2017 2018 2019
Stock price 8712 11500 9000

The stock price increased in 2018 from 8712 to 11500 but in 2019 it fall down on 9000.

Revenue
Items 2017 2018 2019
Revenue PKR 112 Billion PKR 116 Billion 121 Billion

The revenue has showed progress if we compare it with previous years.

Capitalization
Items 2017 2018 2019
Market Capitalization 521,520 408,146 365,064

The market capitalization is the offers for general public in the market it is also in declining
phase from last couple of year.

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 Problems in Nestle
Child labor, unethical promotion, manipulating uneducated mothers, pollution, price fixing and
mislabeling – those are not words you want to see associated with your company. Nestle is the
world’s largest foodstuff company, and it has a history that would make even hardcore
industrialists shiver. We’re going to look at why Nestle has such a bad reputation and whether or
not it deserves it.
Baby Formula and Boycott
In the ’90s, and this is a sad story about poverty, breastfeeding, and greed. Nestle aggressively
pushed their breastfeeding formula in less economically developed countries (LEDCs),
specifically targeting the poor. They made it seem that their infant formula was almost as good
as a mother’s milk, which is highly unethical for several reasons. The first problem was the need
for water sanitation. Most of the groups they were targeting especially in Africa didn’t have
access to clean water (many don’t to this day), so it was necessary for them to boil the water. But
due to low literacy rates, many mothers were not aware of this, so they mixed the formula with
polluted water which put the children at great risks. Nestle seems to have knowingly ignored this
and encouraged mothers to use the formula even when they knew the risks. Breastfeeding, one of
the most important aspects for an infant, especially in unsanitized areas, was cast aside. Baby
formula was “the nearest thing in the world”, and this “splendid triumph of care and science” is
“so like mother’s milk that the tiny stomach won’t notice the difference”. But the tiny stomach
did notice the difference.
Child labor, abuse, and trafficking
Most people love chocolate, but few know the dirty deals behind chocolate production. The 2010
documentary The Dark Side of Chocolate brought attention to purchases of cocoa beans from
Ivorian plantations that use child slave labor. The children are usually 12 to 15 years old, and
some are trafficked from nearby countries – and Nestle is no stranger to this practice.
In 2005, the cocoa industry was, for the first time, under the spotlight. The International Labor
Rights Fund filed a lawsuit against Nestle (among others) on behalf of three Malian children.
The suit alleged the children were trafficked to Côte d’Ivoire, forced into slavery, and
experienced frequent beatings on a cocoa plantation. In 2010, the US District Court for the
Central District of California determined corporations cannot be held liable for violations of
international law and dismissed the suit – a controversial decision which has since been
appealed. But even if Nestle wasn’t legally liable for these abuses, they are, at least morally. But
that wasn’t the only case of this kind. A report by an independent auditor, the Fair Labor
Association (FLA), says it found “multiple serious violations” of the company’s own supplier
code. It was reported that Nestle hadn’t carried out checks against child labor and abuse.
Additionally, many injuries caused by machetes, which are used to harvest cocoa pods, have
been reported.
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Health Threats
In July 2009, the Food and Drug Administration (FDA) and the Centers for Disease Control and
Prevention (CDC) warned consumers to avoid eating any varieties of prepackaged Nestle Toll
House refrigerated cookie dough due to risk of contamination with E. coli O157:H7 (a foodborne
bacterium that causes illness). In the US, it caused sickness in more than 50 people in 30 states,
half of whom required hospitalization. In particular, one woman had a fatal infection before the
batch was reclaimed.
But this is just a minor incident compared to the 2008 Chinese Milk Scandal. Six infants were
killed and 860 were hospitalized with kidney problems after Nestle products were contaminated
with melamine, a substance sometimes illegally added to food products to increase their apparent
protein content. In October 2008, Taiwan Health ministry announced that six types of milk
powders produced in China by Nestlé contained low-level traces of melamine and were removed
from the shelves.
Pollution
As with any “respectable” large company, Nestle has been involved in several incidents
regarding pollution. A 1997 report found that in the UK, over a 12-month period, water pollution
limits were breached 2,152 times in 830 locations by companies that included Cadbury and
Nestle. But again, the situation in China was much worse.
While people in the US and Europe are slowly becoming more environmentally concerned and
some are opting for more sustainable sources of water, Nestle has moved to another market –
Asia. Alongside companies such as Kraft or Shell, Nestle made several environmental violations.
Nestle Sources Shanghai Ltd’s bottled water manufacturing plant also made the list for starting
operation before its wastewater treatment facilities had passed an environmental impact
assessment.
Ethiopian Debt
In 2002, Nestle made what turned out to be a colossal error: demanding that Ethiopia pay them
back a debt of US$6 million. There’s nothing wrong with that per se… if Ethiopia wasn’t facing
extreme famine at the time. For a company that has 29 brands that make over $1 billion a year,
asking a famine-stricken country to pay you back 6 million seems questionable, to say the least.
Nestle’s claim dates back to the 1970s when the military regime in Addis Ababa seized the
assets of foreign companies. The public roar came almost overnight; with the company receiving
40,000 letters from outraged people, in one of the most famous cases of public opinion beat
corporate greed. In the end, Nestle took a U-turn, settling for a partial debt which was also
invested in the country’s bouncing back from famine. For Nestle, who initially insisted that the
compensation issue was “a matter of principle” and that it was in the best interest of Addis
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Ababa to settle the demand to repair its record with foreign investors, it was a huge moral defeat.
For analysts, it was an exciting case which showed that even giants can falter in the face of
public opinion.
A Deal with Mugabe
Striking dubious partnerships to make a profit seems to be a recurring theme. The Swiss
multinational made a deal with the wife of the infamous dictator from Zimbabwe Robert
Mugabe, buying 1 million liters of milk a year from a farm seized from its rightful owners by
Grace Mugabe
Grace has taken over at least six of Zimbabwe’s most valuable white-owned farms since 2002,
building a farming empire from illegally confiscated farms, which led to an international
boycott, as well as EU and US sanctions. She is known for her ridiculously lavish lifestyle,
which includes overseeing the construction of two luxuriant castles. In 2014, she was given a
doctorate diploma only three months after signing up for the program. Nestle went forward with
the deal though, even as the country’s agriculture-based economy was collapsing and inflation
was reaching unheard of levels.
Price Fixing
In Canada, the Competition Bureau raided the offices of Nestlé Canada (along with those of
Hershey Canada Inc. and Mars Canada Inc.) in an investigation on price fixing. Nestlé and the
other companies were subject to class-action lawsuits and ultimately settled for $9 million,
without actually admitting liability. Furthermore, former president and chief executive officer of
Nestle Canada is facing criminal charges.
In the US, another, larger trial was rejected, because even though it was plausible that the same
thing happened in the US, there was no clear evidence of any foul play. The suspicion remained
however and still lingers with the company.
Promoting Unhealthy Food and Mislabeling
That Nestle is promoting unhealthy food should come as no surprise, but the level at which they
operate it is simply staggering. A recent report by the UK Consumers Association claims that 7
out of the 15 breakfast cereals with the highest levels of sugar, fat, and salt were Nestle products.
In November 2002, police ordered Nestle Colombia to decommission 200 tons of imported
powdered milk, because they were falsely relabeled, not only as a different, local brand, but also
with a different production date. A month later another 120 tons suffered the same fate, causing
uproar among the Colombian population.
Nestle bringing old powdered milk from a different country and labeling as local and new is not
only unethical and illegal, but it poses health hazards for consumers.
Drawing the Line
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All major companies have incidents, accidents and scandals. When you have so many people
working for you, it’s virtually impossible to maintain a clean sheet. Someone will eventually
screw up, someone will eventually do something they should. As I was preparing to write this
article, a friend actually asked me if other companies don’t have a similar record, and advised me
to look at Mars, for example. What I found was that Mars and other big companies have indeed
had their share of scandals (sometimes the same ones as Nestle), but not nearly on the same
scale. Nestle has shown, time and time again, that they have few ethics and little interest in a real
social responsibility. From promoting their formula to uneducated African mothers to lying
about production dates, to using water without a permit to dealing with ruthless dictators, they
have often gone the extra mile to make an extra profit – even when the extra mile meant hurting
people, directly or indirectly.

Conclusion
Nestle with no doubt is running bundle of products and made their image worldwide which is
also growing day by day but these problems which I have stated in the report need to be
considered by the administration if they want to maintain their will and image throughout life or
else their image can disappear one day if they don’t overcome with these.

Recommendations
Based on my research, I would like to recommend to Nestle to produce more products that are
suitable for older people such as protein milk and cereal with necessary nutrition where every
older people can make it as their daily use and also they should produce some organic product to
whom are very health conscious so it can be a healthy snack. Since children obesity is
increasing, Nestle can produce a chocolate bar with less sugar so that obesity will not increase.
Moreover, nestle should produce more energy drink that is suitable for all ranges such as
students and people that is active in their daily life.
In order for Nestle to maintain its competiveness in the market it needs to ensure that, when
proceeding with the segmentation of a market, its segments are identifiable, sizeable, stable, and
accessible and coincide with the company’s goals and resources. It must be identifiable in that it
shouldn’t be difficult for the marketer to recognize the chosen segment. A marketer is successful
if a chosen segment is profitable and is somewhat going to remain the same. This also means that
the marketer was able to acquire the chosen market segment affordably.

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