Linear Systems Applications in Business Administration

ALLAMA IQBAL OPEN UNIVERSITY,

ISLAMABAD
(Department of Business Administration)

Course: Business Math & Statistic

Level: MBA
Course code: 8532

Assignment Title:

Linear Systems Applications in Business Administration

Submitted To: Submitted By:

Mr. Mehtab Anwar M. Haroon Khan

(MBA Marketing, Roll Number: BU 549995)

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Linear Systems Applications in Business Administration

Acknowledgements

In the name of Almighty Allah, the most gracious, the most beneficent by help of whom I
am able to complete my assignment which is about compensation management of an
organization. I am grateful to Allah almighty, for enabling me to fulfill this tiring, but interesting
job for the completion of my assignment.

No doubt Allah is the main source of knowledge and wisdom. It is a great blessing of
Almighty Allah, that He enables me because of His Holy Prophet (peace is upon him) I am
presenting my humble contribution for distribution of knowledge. I bow my head before
Almighty Allah who gave me courage, knowledge and confidence and to carry on assignment
and enabled me to accomplish it.

I would not be going to do justice in presenting this assignment without mentioning the
people around me who have been inextricably related with the completion of this assignment. I
would like to express my heartfelt thanks to our course teacher for his support and guidance,
which he rendered throughout the study to peruse this assignment. Finally, for any all too fallible
errors, omissions and shortcomings in the writing of the report only I am responsible for which
we hope that all concerning regards of this assignment will forgive us.

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Linear Systems Applications in Business Administration

Abstract

Linear equations are about the use of known quantities to discover unknown
quantities. Business is about the exchange of money, and any unit of money is measured as a
quantity. The money is exchanged for other quantities for hours of work, for tons of raw
materials or for the volts of electricity that may constitute the overhead costs of a manufacturing
plant. A cleaning contractor has two employees, A and B, who are available to clean a particular
office building. Here we have study the nestle organization with respect to its operation
management and financial analysis regarding application of application of linear system .TPM
(Total Performance Management), NQMS (Nestle Quality Management System), NSMS (Nestle
Safety Management System) and NGMP(Nestle Good Manufacturing Practices) etc. are unique
& assures the safety of worker & best quality food products. Nestle is international organization,
being an multinational is always great because it is always backed up by the parent company but
however Nestle Pakistan is doing best in this region because of the static demand & less
portfolio. Nestle management is key success factor of the company they are highly committed &
they do not compromise on their tasks. Quality & sustainability is another factor that is giving
nestle an edge against its competitors and NESTLE PAKISTAN is at top because of high
demand & promising quality they provide. Nestlé's overarching principle is that each employee
should have the opportunity to develop to the maximum of his or her potential. Nestlé do this
because they believe it pays off in the long run in their business results, and that sustainable
long-term relationships with highly competent people and with the communities where they
operate enhance their ability to make consistent profits. And in Nestlé’s view, it must be fully
integrated in the social, cultural & economic fabric of the countries in which it operates. Thus no
matter which country it operates in it is committed to strengthening local communities. At
Nestlé’s Pakistan they are whole heartedly committed to meet their obligation to Pakistan society
and be a good corporate citizen of the country.

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Linear Systems Applications in Business Administration

Table of Content

 Title page
 Acknowledgement
 Abstract
 Table of contents
 Introduction to the issue
 Practical study of the
organization
 Data collection method
 Swot anlysis (stregth ,weaknesses
, oppertunities , threats)
 Conclusion
 Recommendations
 References

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Linear Systems Applications in Business Administration

Introduction to the topic

Linear equations are about the use of known quantities to discover unknown quantities.
Business is about the exchange of money, and any unit of money is measured as a quantity. The
money is exchanged for other quantities for hours of work, for tons of raw materials or for the
volts of electricity that may constitute the overhead costs of a manufacturing plant.

Mathematics is everywhere: weather forecasting, automatic teller machines, secure

websites, electronic games, statistical data analysis, opinion polls and many more. Mathematics
and Statistics hold pivotal position in almost every field like Industry, Commerce, Physics,
Chemistry, Economics, Biology, Psychology, Astronomy and many more, so application of
mathematics is quite extensive. It has devised many tools in the field of commerce and
management. This paper attempts to overview some of the important areas of mathematics such
as algebra, matrices, statistics, probability, linear algebra and operational research in business
which helps in achieving the business objectives viz, maximizing profits, minimizing costs and
ensuring optimal utilization of resource.
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Linear Systems Applications in Business Administration

APPLICATION AND IMPLICATION OF BUSINESS MATHEMATICS

Business mathematics gives the students expanded knowledge of mathematic

applications for personal use and business applications.

Personal use application includes financing costs and loan procedures, as well as major
consumer expenses and earnings auto/housing/insurance/wages/benefits/banking/investing.
business applications include the cost of recruiting, hiring, training, maintaining employees;
manufacturing/production costs; purchasing/selling/marketing costs;
transportation/warehousing/inventory costs; and financial management and planning.

Various application of business mathematics in production

1. Cost of manufacturing a product

2. Break-even analysis

3. Quality control

4. Time study

5. Fundamental processes

a. Compute break-even point in number of manufactured units

b. Compute percent of defective goods

c. Use time and study results to compute number of units that can be

produced and percent of time on task

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Linear Systems Applications in Business Administration

d. Compute dimensions of packaging containers

Simple Sample

A cleaning contractor has two employees, A and B, who are available to clean a
particular office building. From prior experience, their manager knows that A can clean this
complex in 5 hours. Also, A and B working simultaneously--A from the bottom floors up, B
from the top floors down--can get it done in 3.5 hours. How long would it take B to do the job
alone?

The linear equation that would come in handy here is 1/5(3.5) + 1/t(3.5) = 1.

SCIENCING VIDEO VAULT

Multiplying both sides by 5t yields: 3.5t + (3.5)(5) = 5t.

Working that through yields a t of 11.67 hours.

The contractor should probably fire B and hire more As.

Standard Definition

The example 1/5(3.5) + 1/t(3.5) = 1 is a linear equation by the standard definition, which
means it is an algebraic equation in which there is no variable of higher than the first degree.

It isn't an especially interesting linear equation, though, because it only has one variable.
We know everything about employee A going in, so the only variable t was that representing our
desideratum, B's time.

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Linear Systems Applications in Business Administration

Both mathematical interest and business applications increase when we add another
variable. However, we will stick to the rule that only first-power variables, which graph as
straight lines, are allowed.

Linear equations use one or more variables where one variable is dependent on the
other. Almost any situation where there is an unknown quantity can be represented by a linear
equation, like figuring out income over time, calculating mileage rates, or predicting profit.
Many people use linear equations every day, even if they do the calculations in their head
without drawing a line graph.

Variable Costs

Imagine that you are taking a taxi while on vacation. You know that the taxi service
charges $9 to pick your family up from your hotel and another $0.15 per mile for the trip.
Without knowing how many miles it will be to each destination, you can set up a linear equation
that can be used to find the cost of any taxi trip you take on your trip. By using "x" to represent
the number of miles to your destination and "y" to represent the cost of that taxi ride, the linear
equation would be: y = 0.15x + 9.

Rates:

Linear equations can be a useful tool for comparing rates of pay. For example, if one
company offers to pay you $450 per week and the other offers $10 per hour, and both ask you to
work 40 hours per week, which company is offering the better rate of pay? A linear equation can
help you figure it out! The first company's offer is expressed as 450 = 40x. The second
company's offer is expressed as y = 10(40). After comparing the two offers, the equations tell
you that the first company is offering the better rate of pay at $11.25 per hour.

Budgeting:

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Linear Systems Applications in Business Administration

A party planner has a limited budget for an upcoming event. She'll need to figure out how
much it will cost her client to rent a space and pay per person for meals. If the cost of the rental
space is $780 and the price per person for food is $9.75, a linear equation can be constructed to
show the total cost, expressed as y, for any number of people in attendance, or x. The linear
equation would be written as y = 9.75x + 780. With this equation, the party planner can
substitute any number of party guests and give her client the actual cost of the event with the
food and rental costs included.

Making Predictions:

One of the most helpful ways to apply linear equations in everyday life is to make
predictions about what will happen in the future. If a bake sale committee spends $200 in initial
start up costs and then earns $150 per month in sales, the linear equation y = 150x - 200 can be
used to predict cumulative profits from month to month. For instance, after six months, the
committee can expect to have netted $700 because (150 x 6) - 200 = $700. While real world
factors certainly impact how accurate predictions are, they can be a good indication of what to
expect in the future. Linear equations are a tool that make this possible.

Practical study of the organization

As Nestlé started with a condensed milk and later it

climbed so fast at the ladder of success that it is now a
leading brand in food products with so many sub-brands.
Currently Nestlé is dealing with bottled water, breakfast

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Linear Systems Applications in Business Administration

cereals, coffee, confectionery, dairy products, ice cream, pet foods, other beverages, shelf stable,
chilled, Ice cream, Infant nutrition, performance nutrition, healthcare nutrition, frozen foods,
refrigerated products, food services and professional products and snacks.29 of Nestlé's brands
have annual sales of over 1 billion Swiss francs (about $ 1.1 billion). Nestlé has around 450
factories, operates in 86 countries, and employs around 328,000 people. Today, Nestlé markets a
great number of products, all with one thing in common: the high quality for which Nestlé has
become renowned throughout the world. The Company's strategy is guided by several
fundamental principles. Nestlé's existing products grow through innovation and renovation while
maintaining a balance in geographic activities and product lines. Long-term potential is never
sacrificed for short-term performance. The Company's priority is to bring the best and most
relevant products to people, wherever they are, whatever their needs, throughout their lives.
Taste of Nestlé in each of the countries where Nestlé sell products. Nestlé is based on the
principle of decentralization, which means each country is responsible for the efficient running
of its business.

The selected company for pursuing the report is Nestle, which is a Swiss multinational
organization with its operations engaged in providing nutritional and health-related consumer
goods. The global operations of the company are controlled and monitored from headquarter
located in Vesey, Switzerland. The selection of the particular company is based on its leading
position within the identified industry measured by the revenues. The operations of the company
significantly cover various segments in the global market from baby foods, and adult nutritional
products to the snacks and pet foods (Park, Unison, and Cosgrove 2015). Apart from that,
different beverage products are offered by the company to its target market to ensure the growth

and achievement of increasing revenues throughout the operating years. The global business
operations of the company within the food and beverage industry are governed and controlled by
the particular mission and vision statement of the enterprise. The brand tagline of Nestle is
“Good Food, Good Life”, clearly indicating the continuous emphasis by the company to produce
quality foods and serve those to the identified target market for contributing the promotion of
quality regarding the health and lifestyles of the community.

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Linear Systems Applications in Business Administration

From the initial evaluation, it can be argued that the operations of the company are highly
focused on being a leading and competitive nutrition, health and wellness company within the
particular market. Such activities are designed to be a preferred corporate citizen and preferred
supplier selling the favorite products and ultimately contributing to the increase in shareholder
value. The company achieves such objectives with the help of its specifically designed
operations effectively aligned by the critical mission statement (Das 2015). The production and
management related operations of Nestle always priorities of providing the best tasting and most
nutritious products to its market consumers in its wide range of food and beverage items in the
different categories. These products are effectively aimed to provide joy to the various eating
occasions from morning to night. Therefore, the operational strategies with the combination of
planning and controlling the product and process design will be comprehensively evaluated in
the subsequent sections to ensure the establishment of useful understanding regarding the
operations management.

The operations of Nestle are managed by developing some critical stages like planning
the capacity, locating the facility, designing the products, application of Just-In-Time,
developing the manufacturing system, and establishing the supply chain management system.
These systems and processes are primarily identified to highlight the discussion within and
ensure the following sections the formation of proper evaluative understanding related to the
specific departments of the organization.

Operations Strategy:
The operations strategy of Nestle is highly contributed by the application of nutrition,
health and wellness strategy. The particular strategy is designed to support the people desiring to
have a healthy lifestyle. The operations are designed by the practical contributions from
innovation, which is continuously driven by the company through the industry-leading research
and development. The entire scenario supports the constant transformation of the food and
beverage portfolio of the enterprise. Apart from that, the research and development activities of

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Linear Systems Applications in Business Administration

Nestle are continuously focusing on exploring the roles of nutritional therapies for ensuring the
improvement to the health and lifestyle of people (Kanapathy et al. 2016). With the help of these
activities, the company is increasing focusing on creating awareness among the people from
different communities for taking more care for their health and wellbeing aspects. Hence, the
operations strategy of Nestle is largely based on striving to deliver a positive impact on the
numerous societies across the world regarding their activities. In order to achieve the specific
aim, Nestle persistently shares various insights regarding the global nutrition, health and
wellness challenges, builds superior partnerships with other major companies, and engages with
the policymakers, key leaders, and stakeholders from the particular geographical location of
company operations.
From the initial information, it can be quite understood that the strategy developed by the
company for promoting health and nutrition contributes the development of the overall business
successfully. Therefore, it can be stated that the business plan is adequately dependent on the
growth and sustainability of health and wellness initiatives designed and performed by the Nestle
(Tang, Sodhi, and Formentini 2016). The certain approaches of the company always triggered to
empower people within the community to make a decision during the purchase of food products.
With the application of the science-based programmers promoting health and nutrition factors of
the people, growing numbers of customers are becoming convincing to buy and try the food and
beverage products offered by Nestle. For example, the healthy kids programmed designed by
Nestle aims to promote the healthy eating and drinking habits, especially for the children as they
grow older (Ghauri 2015). Therefore, the company’s operational policies are develop to teach
nutritional needs and importance to the children and their parents to while encourage to take part
in the various physical activities to maintain the certain level of required fitness. Such activities

directly influence the business strategy of the company to generate more value for the operations
of the company.
On the other hand, constant evolution to the operations strategy of Nestle can be
witnessed due to the fundamental influence of the government policies and interventions. Due to
such scenario, the significant modifications to the commitments of the company are observed.
For an example, the company has successfully reduced the quantity of salt, sugar, and saturated
fats from its core products in a mean to remove the portion of trans-fat while meeting the critical

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Linear Systems Applications in Business Administration

preference of the customers (Kusnierczak 2014). The same scenario applies in the labelling and
printing GDAs (Guideline Daily Amounts) in the product packaging and development stage of
Nestle. The identified evolutions contribute to the betterment of the company operations and
making it much more affordable and transparent towards the global customers.

Supply Chain:
The supply chain aspect of Nestle is highly driven to establish the great platform
supporting the involvement of collaborative supply chain professionals. The company achieves
the original competitive edge through the effective contributions from the supply chain of the
company. With the combination of the Demand and Supply Planning, Physical Logistics,
Planning and Procurement, and Customer Services, the management and control mechanism is
developed by the company in such a manner to facilitate the development of superior
communication with the customers. At the same time, the supply chain management strategies
adopted by the company helps it to offer the products according to the market needs of the
consumers in the right possible times.
More clearly, the Supply Chain Management of Nestle is the combination of art and
science assisting the company to achieve its corporate objectives in superiorly. With the help of
the process, the company identifies the particular need of raw components for producing the
products or services (Zhang and Preechawipat 2012). Apart from that, the company recognizes
the manufacturers for delivering the goods manufactured by the corporation and subsequently
offered to the customers. The key supply chain management activities of Nestle is developed by
the useful contributions of the important parties like suppliers, manufacturers, distributors,

retailers, consumers, and producers. The process can be highlighted effectively with a relevant
diagram below.

Quality Management:
The operations of Nestle is highly committed to maintaining quality and safety in the
production process for ensuring the safe and health usage is provided to the consumers. Over the

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Linear Systems Applications in Business Administration

years, quality and safety for the consumers are the fundamental concerns for the formation of key
strategies designed by the company for managing quality. The same concept applies to the entire
portfolio of the company from food and beverage products to the systems and services. From the
analysis to the company’s website, it can be determined that the product safety and quality
assurance is one of the top ten corporate business principles of Nestle (Cullen and Parboteeah
2013). The same principles have followed the company for its global operations including the
activities of Nestle in Thailand.
The quality management system and its actions of Nestle are designed by the useful
guidance obtained from the quality policy developed by the company. The policy describes some
of the useful commitments of the enterprise, such as:
• Matching with the expectations and preferences of the market consumers to promote the
development of trust in the business operations
• Complying with the quality requirements and regulations regarding the internal and
external food health and safety
• Developing and spreading a zero-defect and no-waster attitudes for the members of the
organization
• Prioritising quality as the group-wide objective

From the information highlighted in this particular section, it can be ascertained that
quality management system is the global platform for Nestle to guarantee the compliance of
specific standards followed in different countries. Specific quality standards regarding the food
and beverage products are designed to ensure food safety and health related to benefits to the
consumers (Smith 2012). Apart from that, the internal quality management system of the

company is thoroughly audited by the independent certification bodies to ensure the conformity
to the international standards, norms, and regulatory requirements.

In this section, I will move on to discuss How Nestlé currently makes use of the
marketing mix concepts of pricing, promotion and distribution channels to reach its key

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Linear Systems Applications in Business Administration

target market for Nestlé adult milk products in specific. Their adult milk products are
targeted at health-conscious adult consumers who desire to retain heart and bone health.

Price is the one element of the marketing mix that produces revenue and communicates to
the market the company’s intended value positioning of its product or brand. Nestlé’s consumers
range from the poorest to the wealthiest, and those seeking for convenience food or specific
alternatives with perceived consumer benefits. These offer opportunities for them to provide high
quality nutritious products. (Nestle Management Report, 2007). Nestlé has adopted value pricing
through winning loyal customers by charging a fairly low price for a high-quality offering. For
instance, Nestlé targets the lower income group through their Popularly Positioned Products
(PPP) strategy, which focuses on creating items that are both highly nutritious and affordable on
a daily basis for low-income consumers. Value pricing involves re-engineering their company’s
operations to become a low-cost producer.

Nestlé set strategic price points for their products, considering the fact that those with
lower incomes have an even greater need for highly nutritious foods. (Nestle Management
Report, 2007). Nestlé had developed product lines rather than single products and introduce price
steps, known as their multi-price point strategy, aimed at capturing all market opportunities. In
this way, their targeted consumers are able to trade up and down without trading out of Nestlé’s
products. An illustration of their multi-price point strategy for a packet of 900g of adult milk
within the product line is estimated as follow:

Nestlé also stimulate purchase of their milk products through various promotional
pricing. For instance, the Nestlé milk powder promotion at FairPrice offers a redemption of $10

NTUC FairPrice gift vouchers when customer accumulate $100 worth of Nestlé milk powders
purchase. The promotion encourages purchase of Nestlé milk products within a specified time.
Nestlé also establish special prices in certain events to draw more customers.

Nestlé had an unmatched geographic presence in many markets, including emerging

markets. Nestlé has created very close relationships between their brands and their consumers as

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Linear Systems Applications in Business Administration

well as an in-depth understanding of their consumers and an expertise in related trends. This has
also enabled Nestlé to develop local management teams, build local manufacturing and R&D and
establish local supply-chain initiatives including long-term relationships with suppliers.
Internationally, Nestlé’s milk product is available in more than 100 countries throughout the
World. (Nestle Management Report, 2007)
Nestlé used intensive distribution strategy by placing their milk products in as many
outlets as possible, knowing that their targeted consumer requires a great deal of location
convenience. Intensive distribution increases product availability. In Singapore, we can find
Nestlé’s milk product in popular outlets like convenience stores, pharmacies, and all leading
supermarkets. These places are situated within 10 minutes’ walking distance from consumers’
homes.

Marketing communications is the means by which firms attempt to inform, persuade, and
remind consumers about the products and brands that they sell and Nestlé enhance consumer
communication with nutritional messaging. The marketing communications mix consists of six
major modes of communication: advertising; sales promotion; events and experiences; public
relations and publicity; direct marketing; and personal selling. Advertising can be used to build
up a long-term image for a product or trigger quick sales. Nestlé employed the used of various
media and methods to promote their milk products. Just recently, they started an integrated
print/radio ad for Nestlé Nesvita Omega plus Acticol milk, advertising it as Singapore’s 1st and
only milk with plant sterols which are shown to lower blood cholesterol. Consumers have been
hearing on the radios and seeing in the papers about the benefit of having a lower cholesterol
levels associated with consuming Nesvita Omega plus Acticol milk daily.

Nestlé also drew attention to their products by arranging special events. Nestlé held a
health exhibition “Nestlé Presents Health and You 2010” which caters for the young and old.
They had activities which appealed to all in the family at the event, including free cholesterol
and bone density checks by Nestlé Nesvita Omega plus Acticol for the health conscious and
health seminars and talks by health professionals, nutritionists and doctors. In addition, Nestlé
had a strategic partnership with Singapore Heart Foundation (SHF) known as “Love Your

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Linear Systems Applications in Business Administration

Heart”. The partnership allows Nestlé to carry the SHF logo on the Nestlé Omega Plus range,
endorsing it as the preferred adult milk choice as it has the added benefit of heart health as well
as calcium for bone health. Nestlé also promotes heart health through the media, such as the
“Cholesterol Challenge” in which the public are invited to lower their bad cholesterol. By
becoming part of a special and more personally relevant moment in consumers’ lives, Nestlé’s
involvement with events broadened and deepened the relationship with their target market.

Data collection method

I have collected data from books, internet, also through interviews of the respective persons or
employees of the Nestle Pakistan. For this purpose I visited personally to the sub offices of nestle
and made calls to know about the exact situation.

SWOT Analysis

Strengths:

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Linear Systems Applications in Business Administration

 Nestle is now a days working on this concept because they want to increase their market
share. They are providing quality products to the customers that include their service and
product.
 Nestle has recognizes there is a right time and place for their product; therefore, their
strategy makes room for adjustments, Nestle captured a market with great sweep with the
developed strategy.
 Nestle produce a good quality products. Nestle cannot compromise on quality because
people are more quality conscious now a days, with the best quality they can attain
customer loyalty. Nestle being the world wide renowned brand creates qualitative product
to retain that image.
 Nestle has some very strong brands like Nescafe, Maggie, Cereals, Nestle water and these
brands are almost generic to their product categories. So when a brand becomes generic
then it creates the feel of strong brand in the eyes of customers. Such as Google.com etc.
& Development Team
 Nestle in continuous knowledge about itself and competitors. It has a competitor
advantage because many local companies have no research & Strong culture One of the
most important strength of the Nestle is strong culture and human resource. Everyone
give emphasis to its internal growth, have committed to achieve higher volumes with R
 Nestle is a highly-diversified company operating in many different markets and sectors of
those markets.
 Nestle company has a strong HR department which depicts nestle strong committed
management of the company.

 The Company has been continuously introducing new products, thusexpanding its
product offerings. With the extra ordinary technology adoptionnestle able to produce
innovated products.
 Nestle being a company is less proactive they create changes but usually unless
competitor doesn’t change they doesn’t adopt a change.

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Linear Systems Applications in Business Administration

Weaknesses:

 There is a high cost for launching new brands to supplement older, less-fashionable food
products.
 Bad factor is the limited distribution channel because they distributes their products to
whole seller in their own factory vehicles. As compare to their major competitor they
have limited distribution channel but they are maintaining to penetrate the market as far.
& Enhance Distribution Channel Nestle should be working on the distribution network
to enhance thecompany’s network against its competitor.
 Support from Foreign Investors Government support foreign investors to invest in
Pakistan whicheventually is the opportunity for Nestle.
 The company is heavily dependent upon advertising to shape consumer opinion and drive
traditional sales. This can lead to high marketing costs with a questionable return on
investment.
 Their market share the main objective of every company is to gain profits but as compare
to competitors it’s a drawback.
 Competitor Competition among competitors is major threat to Nestle which can be
controlled by the help to retaining more customers
 They face problem if government employ taxes on them which force them to raise the
price of their product.

Opportunities:

 Health conscious Increasing health and hygiene awareness among Pakistanis has greatly
increased sales of nestle products. Both the government and the media havestarted health
awareness campaigns to make Pakistanis realizes that consumption of Nestle hygienic
products is as essential as eating food. Fruit/ juices

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Linear Systems Applications in Business Administration

 Changing Social Trend Consumers in urban areas now adopt Western lifestyles,
especially the younger generation which is hugely influenced by the Western media.
Younger consumers tend to follow Western life style. There was an increase in demand
for Nestle products over the review period.
 Government Regulation They face problem if government employ taxes on them which
force them to raise the price of their product.
 There are substantial growth opportunities considering the average yield of Pakistani
animals at only 1,100 liters/annum as compared to 6,000 liters/annum for animals in
Europe and USA. There are nearly 20 million milk producing animals in the country,
mostly in Punjab (80%). The overall milk market in Pakistan is 20 billion liters, out of
which processed milk contributes only 3 million liters. Nestlé Milk Pak along with other
processed milk businesses contribute only 2% to this large market. Nestlé Milk Pak has
expanded its product range by entering the cold dairy market recently by launching
Nestlé plain yogurt and now fruit yogurt is also added to it.

Threats:
 Increase in Competition among Competitor Competition among competitors is major
threat to Nestle which can be controlled by the help to retaining more customers.
 Bankruptcy .

Conclusion

Linear equations are about the use of known quantities to discover unknown quantities.
Business is about the exchange of money, and any unit of money is measured as a quantity. The

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Linear Systems Applications in Business Administration

money is exchanged for other quantities--for hours of work, for tons of raw materials or for the
volts of electricity that may constitute the overhead costs of a manufacturing plant.A cleaning
contractor has two employees, A and B, who are available to clean a particular office building.
Here we have study the nestle organization with respect to its operation mangement and
financial analysis regading application of application of linear system TPM (Total Performance
Management), NQMS (Nestle Quality Management System), NSMS (Nestle Safety Management
System) and NGMP(Nestle Good Manufacturing Practices) etc. are unique & assures the safety
of worker & best quality food products. Nestle is international organization, being an
multinational is always great because it is always backed up by the parent company but however
Nestle Pakistan is doing best in this region because of the static demand & less portfolio. Nestle
management is key success factor of the company they are highly committed & they do not
compromise on their tasks. Quality & sustainability is another factor that is giving nestle an edge
against its competitors and NESTLE PAKISTAN is at top because of high demand & promising
quality they provide. Nestlé's overarching principle is that each employee should have the
opportunity to develop to the maximum of his or her potential. Nestlé do this because they
believe it pays off in the long run in their business results, and that sustainable long-term
relationships with highly competent people and with the communities where they operate
enhance their ability to make consistent profits. And in Nestlé’s view, it must be fully integrated
in the social, cultural & economic fabric of the countries inwhich it operates. Thus no matter
which country it operates in it is committed to strengthening localcommunities. At Nestlé’s
Pakistan they are whole heartedly committed to meet their obligation toPakistan society and be a
good corporate citizen of the country.

Recommendations

 Company should provide incentives to shop keepers

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Linear Systems Applications in Business Administration

 Employees should be more involved in decision making to become more differentiated.

 Employees should be given compensation in order to keep them loyal.
 They should introduce creativity into the work, so that the employees can do their work
active mindedly.
 Company should conduct survey from time to time to according to which changes can be
introduced in the organization to stay updated in the market.
 Employees should be trained according to the changing standards of the organization.
 Due to a great demand of nestle Milk now a days there is a shortage of nestle milk in
shops sometimes they have to consider this aspect too.
 About 17% people are not satisfied from the taste of Nestle so nestle has to improve its
taste.
 They should also improve their advertising. Their advertising doesn't pay long term effect
in the mind of customers.
 About 70 % people use their products why the rest don't use them they should conduct
survey and concentrate on those facts why they are not using their products.

References
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