ESOFT School of Business

Assured Diploma in Business

Management.

Assignment on
Nestle Lanka PLC

Student - Mehvish M Ariff.

Lecturer – Miss Shenali.

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 Assignment Brief.

1. Introduction to Organization.

1.1 History of the Oranization.

Nestle is a Swiss multinational food and drink processing multinational company

headquartered in Vevey, Vaud, Switzerland. It is the largest food company in the
world, measured by revenue and other numbers since 2014. It ranked No. 64 on
the Fortune Global 500 in 2017 and No. 33 in the 2016 edition of the Forbes Global
2000 list of largest public companies.

Nestle started back in 1866, when the first European condensed milk factory
was opened in Cham, Switzerland by the Anglo-Swiss Condensed Milk
Company. A year later in 1867 in Vevey, Switzerland, Nestle’s founder Henri
Nestle advanced the world’s first milk food for babies– a mixture of cow’s
milk, wheat flour and sugar - to save the life of a neighbour’s child; a
premature baby who could bear neither his mother's milk nor any of the
standard alternatives and had been given up for lost by local physicians.
Nutrition has been the foundation of Nestle ever since.
Figure 1 The founder of
Nestle Henri Nestle

People across the world soon got to identify the value of his life-saving
product, named Farine Lactee, which created an international company by
1872. Following a two-decade long battle as fierce competitors, the Anglo-
Swiss Condensed Milk Company combined with Nestlé in 1905 to form the
leading food, beverage, nutrition, health and wellness company it is today.
Henri Nestlé, himself an immigrant from Germany, was involved in turning
Nestlé towards international extension from the very start. Nestle owes more
than its name, logo and first baby-food product to the founder. Henri Nestlé
personified many of the key attitudes and standards that form part and parcel of
Nestlé’s corporate culture – realism, flexibility, the inclination to learn, an
open mind, and respect for other people and cultures.

Figure 2 The first product of

Nestle named Farine Lactee

Ref – Nestlé – Wikipedia and Explore our nest museum | Nestlé (nestle.lk)
1.2 Current Business Activities of Nestle.

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 The 10 Principles of Nestle’s Business Operations.

Consumers.
 Nutrition, Health and Wellness.
 Quality Assurance and Product Safety.
 Consumer Communication.
 Human Rights in Nestle’s Business Activities.

People of Nestle.
 Leadership and Responsibility.
 Safety and Health at Work.

Suppliers and Customers.

 Supplier and Customer Relations.
 Agricultural and Rural Development.

The Environment.
 Environmental Sustainability.
 Water.

Details of these 10 Major Principles.

 Nutrition, Health and Wellness.

The core aim of Nestle is to enhance the quality of consumers’ lives every day, everywhere
by offering tastier and healthier food and beverage choices and encouraging a healthier
lifestyle. The company expresses this via Nestle’s Corporate Proposition.

 Quality Assurance and Product Safety.

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Everywhere in the World, the name Nestle represents a promise to the consumer that the
product is Safe and of High Standard.

 Consumer Communication.

Nestle is committed to responsible, reliable Consumer communication that empowers

consumers to exercise their right to informed choices and promotes healthier diets. It respects
Consumer Privacy.

 Human Rights in Nestle’s Business Activities.

Nestle fully supports the United Nations Global Compact’s (UNGC) guiding principles on
human rights and labour and aim to provide an example of a good human rights and labour
practices throughout Nestle’s Business Activities.

 Leadership and Personal Responsibility.

The success of Nestle is based on its people. They treat each other with respect and dignity
and expect everyone to promote a sense of Personal Responsibility. They recruit competent
and motivated people who respect Nestle’s values, provide equal opportunities for their
development and advancement, protect their privacy and do not tolerate any form of
harassment or discrimination.

 Safety and Health at Work.

Nestle is committed to prevent accidents, injuries and illnesses related to work, and to protect
employees, contractors and others involved along the value change.

 Supplier and Customer Relations.

Nestle requires its Suppliers, Agents, Subcontractors and their employees to demonstrate
honesty, integrity and fairness, and to adhere to the non-negotiable standards. In the same
way, nestle committed to its own customers.

 Agricultural and Rural Development.

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Nestle contributes to improvements in Agricultural Production, the social and economic
status of farmers, rural communities and in production systems to make them more
environmentally sustainable.

 Environmental Sustainability.

Nestle commits itself to have environmentally sustainable business practices. At all stages of
the product life cycle it strives to use natural resources efficiently, favour the use of
sustainably-managed renewable resources, and target zero waste.

 Water.

Finally committed to the sustainable use of Water and continuous improvement in Water
Management. It recognizes that the world faces a growing water challenge and that
responsible management of the World’s Resources by all water users is an absolute necessity.
Ref – Nestle assignment (slideshare.net)

1.3 Mission, Vision, Goals and Objectives of Nestle.

Our Mission Statement

Nestle is the world’s leading nutrition, health and wellness company. Nestle’s mission of
“Good Food, Good Life” is to give consumers with the best tasting, most nourishing choices
in a vast range of food and beverage categories and eating occasions, from day to night.
Ref – Mission & Vision | Nestlé (nestle-esar.com)

 
Our Vision and values
To be a superior, competitive, Nutrition, Health and Wellness Company delivering
upgraded shareholder value by being a favoured corporate citizen, favoured employer,
favoured supplier selling favoured products.
Ref – Mission & Vision | Nestlé (nestle-esar.com)

Our Goals

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Goals of Nestle: The Core goals of Nestle are as follows: “Good Food, Good Life, the key to

health, nutrition and wellness,” according to Nestle. Nestle takes great satisfaction in offering

customers the greatest products with over 115 years of knowledge and expertise because

happy, healthy consumers are necessary to us. Nestle generates their products with the

preferences, tastes, and demands of their customers in mind. Nestle believes that its

customers, like millions of other consumers, know that customers can trust their products to

deliver purity, quality, convenience, and nutrition. Nestle’s products are tailored according to

the tastes and needs of Sri Lankans. Nestle is constantly working to develop new products

and improve old ones, and serve their consumers better. They are always experimenting with

or releasing fresh value-added services and making them available in sizes that will suit every

requirement. So, explore the world of health with Nestle products, and find out what suits

your family’s needs”

Nestle, the world’s largest food company, has set out a display of sustainability

and development targets.

 An area to reduce water use by 40% across its product range, which includes, Perrier,
Nescafe was also announced in its newest Nestlé in Society report..

 “What is new is that we are sharing the assurances we have made outside.

 “We believe that by setting ourselves visible short-term goals for which we can be
held accountable, somewhat than long-term aspirations, we can really make an effect,”

 “We have already achieved a lot,”. “But we identify there is always more to do. We
have a good track record on meeting short-term targets around certain aspects of our
environmental performance, and I am confident we can build on this.”

 A switch to 100% acceptable palm oil will be welcomed by campaigners bothered

that the growing demand for the product is negatively impacting the environment.

 Palm oil is used in a wide range of supermarket goods including chocolate, soap, and
margarine.

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 The demand for palm oil has driven a flash to clear forests to nurture the crop. It is
also used for some biofuels.

Our Objectives.

Objectives of Nestle: “Marketing purposes are well-suited with the overall corporate
objectives of Nestle. Company’s objective is to be the world’s superior and best-branded food
manufacturer while guaranteeing that Nestle name is identical with the products of the
highest quality”.
Nestle’s business objective is to manufacture and market the Company’s
products in such a way as to create value that can be constant over the
long term for shareholders, employees, consumers, and business
partners.
 Nestle does not favour short-term profit at the expense of successful long-
term business development.
 Nestle recognizes that its consumers have a faithful and authentic
interest in the behaviour, beliefs and actions of the Company behind
brands in which they place their trust and that without its consumers the
Company would not exist. So, the needs & wants of consumers should be
considered.
 Nestle believes that, as a general rule, regulation is the most effective
safeguard of responsible manner, although in certain areas, additional
guidance to staff in the form of voluntary business principles is beneficial
in order to guarantee that the highest standards are met throughout the
organization.
 Nestle is aware of the fact that the success of a corporation is a
image 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 critical.
 Nestle continues to maintain its assurance to follow
and respect all
applicable local laws in each of its markets

Ref – Objectives – Nestle (wordpress.com)

1.2 Organizational Structure of Nestle

Figure 3 The Objectives of Nestle

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 1.4 Type of Business

Nestle Lanka PLC is a Corporation based in Sri Lanka that manufactures, markets,sells and
distrbutes Food and Beverages goods. The firm specializes on the export of locally produced
food and beverage products. Kurunegala is home to its manufacturing facility, which
produces over 90% of the company’s products supplied in Sri Lanka. Nespray Everyday,
Nespray Nutri Up, Milkmaid and Coffee Mate are among the company’s Dairy Brands.
Nestomalt, Milo and Nescafe are among its Beverages. Maggi Noodles, Maggi Cubes and
Maggi Coconut Milk Powder are some of the company’s food brands.

Breastfeeding women, babies, toddler cereals, and growing-up milk are all served by Nestle
Nutrition. Nestle Health Science offers nutritional remedies for a number of ailments.
medical situations It also sells morning cereals, as well as chocolate and sweets. Nestle
Professional is the company's food service division, which caters to out-of-home customers.
Ref – Nestle Lanka PLC, NEST.N0000:CSE profile - FT.com

2. Organizational Analysis of the Company

2.1 Current Situation/ Situational Analysis

SWOT ANALYSIS
Strenghts
 Unbeaten Research and Development Capability.
 Strong geographic presence, with one of the best geographically diversified
revenue sources.
 Unrivaled product and Brand Portfolio.
 Environmental sustainabilty efforts.

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  Ownership of some of the most recognizable brands in the World.

Weaknesses
 Criticism over high water usage, selling contaminated food, anti unionism, forced
labour and using other unethical practices.
 Contaminated food recalls.

Opportunities
 Clear and accurate labelling indicating of any harmful products.
 Transparency in Material sourcing.
 Growing number of small Silicon Valley based food startups.
 Growing Ready-To-Drink (RTD) Tea and (RTD) Coffee Markets.

Threats
 Poor quality water and its scarcity.
 Increased competition in the Food and Beverages Industries.
 The prices of Coffee beans could significantly rise due to major weather disasters.

2.2 Communication process of the company

Nestle company is a global producer. In such companies there are multiple branches
throghout the world. So in such companies Organizational Communication works
efficiently. Web communication is one such way to work effectively in managing the
company. The process of communication is within the workers, employees, customers,
food suppliers as well as creditors, debtors and consumers.

Since the example is Nestle we have to see the communication process whether it is
upwards, downwards, horizontal or diagonal. In Nestle it is all four ways. The open
channels of communication which are both ways and managed in companies such as
Nestle which creates a very good surrounding for the employees and ascends the
efficiency of work.
Generally if it is downwards communication it goes from head of the company
to juniors that includs policy rules, regulation, charts and other princples of the company.
The open culture of Nestle has improved to downwards communication but upwards
communications is more welcome. Upwards communication is more perfectly connected
with an open culture of Nestle and specially encourages in the feedbacks and complaints.
For ex: if a consumer complaints it is heard by the sales store and reported upwards to
ensure these grievences.

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 Managers have shown their activities through Horizontal communication. Open
horizontal communication engages everyone to work on one’s personal development and
achievement of the company’s results. Nestle is a company that has integrity, honesty and
honour so the requisistes for the managers is very high. Which are certain important
conditions that are effective in Communication.
The next is Diagonal communication which is differently treated in Nestle. The
management board members make decisions on behalf of the company and to
communicate them to lower positions.
Such ways of Communication are important for the company’s success.
Ref - Nestle and Its Communication Networks | Essay (thesisleader.com)

2.3 Human Resource Activities.

Nestle can evaluate aspects of resource management, including as recruiting, selecting,
training, rewarding, performance management and other personnel management
activities. Nestle can lessen competitive pressure through good HR management, which is
built on the motivation, dedication and abilities of its personnel. The corporation can also
fulfillits cost-cutting goals by comparing the costs of hiring and training against the
expected return. Nestle’s reliance on employee talent will make this value chain
supportactivity even more important.
Ref - Value Chain Analysis Of Nestle (essay48.com)

2.3.1 Recruitment and Selection Process.

Recruitment Process

Figure 4 The Recruitment Process of Nestle

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 .

Application

Once the candidate has submitted his online application, Nestle’s Talent
Acquisition Team will review the information he has provided to make sure that
he is a qualified candidate for the role.

Interview

In the next phase, nestle company will call him for couple of interviews, first with
their Talent Acquisition Team – either by phone or face-to-face. From there he
might be invited to interview with the suitable line manager. At this point, they
will be looking at his prospective fit with Nestle’s culture, as well as exploring his
achievements and motivations. Some roles require that they conduct assessments,
such as writing tests, case presentations and more. He will be notified if this
particular element is required. Throughout, they will use capability-based
interviewing techniques that draw on his experience and real examples from his
professional life.

Job Offer

They will welcome him to Nestle Sri Lanka Team and provide him with valuable
information introducing him to the Nestle World. First the Talent Acquisition
Team will extend a conditional offer, conduct background and reference checks,
and if cleared, the move to a final offer. Reaching this stage generally takes about
six to eight weeks from the time of application.

Orientation

As a new Nestle Sri Lanka employee he will be probably have questions about his
job and the company in general. To help him commence on his journey and feel at
home, he will participate in an HR Orientation Program, as well as a Functional
Onboarding Programming with his line manage. Throughout he will have the
support he needs from the Human Resources, his line manager and the Business
Team. Nestle’s goal is to get him up to speed as faster as possible to ensure he is
motivated and successful in his new role.

As part of his Orientation, he will also be assigned a ‘buddy’ to help with his
integration. His buddy isn’t a supervisor or a formal mentor, but a colleague who
can offer support by solving his questions and helping him get settled.

Ref - Recruitment process | Nestlé (nestle.ca)

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 2.3.2 Employment Appraisal Methods

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