Chapter 1

Introduction
1.1 Introduction:
Nestlé was founded in 1867 by pharmacist Henri Nestlé on the shores
of Lake Geneva in Vevey, Switzerland. One hundred and thirty-four years later, our
headquarters are still in Vevey, surrounded by the Swiss Alps in one of the world’s
best-preserved environmental settings. As they have grown from humble
beginnings into the world’s largest food company, they have attempted to take the
fundamental cultural values of environmental preservation and cleanliness into
every country where they operate. Company has 468 Nestlé factories currently in
operation.
-Company’s facilities reflect the environmental values basic to Nestle Company.
-Top management follow the Company’s environmental performance
-Company’s Environmental Officer reports directly to General Management to
ensure there is on-going awareness regarding environmental affairs.
Nestlé Environmental Advisory Group meets regularly to review current
environmental issues and to anticipate potential concerns. This allows them to
maximize control over their activities and contribute to sustainable development
in the countries where they operate. The Nestlé Environment – Progress Report
2000 describes the results of continuous improvement in its environmental
practices and being a leader in environmental performance.

1.2 History:
 Nestlé is a Swiss multinational food and beverage company founded in 1866
by Henri Nestlé. Here’s a brief history:
1.Inception: Henri Nestlé, a German-born Swiss pharmacist, developed Farine
Lactée, a milk-based food for babies in 1866. This product laid the foundation for
the company.
2.Early Growth: The company initially focused on infant food, but it soon
expanded its product range to include condensed milk, cereals, and other food
products.
3.Mergers and Acquisitions: Over the years, Nestlé engaged in various
mergers and acquisitions, including the merger with Anglo-Swiss Condensed Milk
Company in 1905 and the acquisition of brands like Nescafé in 1938.
4.Post-WWII Expansion: Nestlé continued to grow globally after World War II,
diversifying its product portfolio into areas such as chocolates, coffee, and pet
food.
5.Product Innovation: Nestlé has been known for its innovation, introducing
products like instant coffee, Nestea, and Nesquik in the mid-20th century.
6.International Presence: Nestlé expanded its presence internationally,
becoming one of the world's largest food and beverage companies, with a wide
range of brands like KitKat, Maggi, and Perrier.
7.Health and Wellness: In recent decades, Nestlé has shifted its focus
towards health and wellness, promoting nutrition and responsible sourcing of
ingredients.
 8.Environmental Initiatives: Nestlé has also committed to sustainability and
environmental initiatives, aiming to reduce its carbon footprint and use of plastic.
9.Controversies: The company has faced various controversies over the years,
including criticism for its marketing of infant formula and concerns about water
bottling practices.
Nestlé remains a major player in the global food and beverage industry, with a
diverse product portfolio and a presence in numerous countries worldwide.

1.3 Nature of the business :

Nestlé is a multinational corporation primarily engaged in the food and
beverage industry. The nature of its business can be summarized as follows:
1.Food and Beverages: Nestlé produces and markets a wide range of food and
beverage products. This includes items like breakfast cereals, dairy products,
coffee, bottled water, confectionery, frozen foods, and pet care products.
2.Nutrition and Health: Nestlé is involved in the development and distribution
of products related to nutrition and health. It produces infant formula, nutritional
supplements, and medical foods, catering to various stages of life and specific
dietary needs.
3.Global Presence: Nestlé operates in numerous countries around the world,
serving a diverse customer base. It has a significant global reach with products
tailored to regional tastes and preferences.
4.Brand Portfolio: The company owns a vast portfolio of well-known brands,
including Nestlé, Nescafé, KitKat, Maggi, Purina, and many others, covering a wide
range of food and beverage categories.
5.Research and Development: Nestlé invests heavily in research and
development to create new products and improve existing ones. This includes
efforts in nutrition science, food technology, and sustainability.
6.Sustainability: Nestlé is committed to sustainable practices in its operations,
with initiatives focused on responsible sourcing, reducing environmental impact,
and promoting social responsibility.
 7.Consumer Packaged Goods: Nestlé’s products are primarily consumer
packaged goods, meaning they are sold directly to consumers through various
retail channels, both in-store and online.
8.Diversification: While food and beverages are its core business, Nestlé has
also diversified into other areas, such as healthcare and skin health through
subsidiaries like Nestlé Health Science and Galderma.
In summary, Nestlé’s core business revolves around producing and selling a wide
range of food and beverage products with a global presence, while also embracing
a commitment to nutrition, sustainability, and innovation.

1.4 Vision , machin ,and values of the company:

As of my last knowledge update in September 2021, here are the vision,
mission, and values of Nestlé:
Vision:
Nestlé’s vision is to be “the world’s leading nutrition, health, and wellness
company.” This vision reflects their commitment to enhancing the quality of life
and contributing to a healthier future for individuals and families through their
products and initiatives.
Mission:
Nestlé’s mission 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.” They aim to meet the various dietary needs and
preferences of consumers worldwide.
Values:
Nestlé is guided by a set of core values, which include:
1.Nutrition, Health, and Wellness: Nestlé is dedicated to improving the
nutritional value of its products while ensuring they are safe and enjoyable to
consume. They are committed to helping consumers make healthier choices.
 2.Quality:Nestlé places a strong emphasis on the quality and safety of their
products, adhering to strict quality standards and continuously improving their
processes.
3.Responsibility and Sustainability: Nestlé is committed to being a
responsible corporate citizen. They focus on sustainable sourcing of ingredients,
reducing their environmental impact, and contributing to the communities where
they operate.
4.Truest: Building and maintaining trust with consumers, partners, and
stakeholders is a fundamental value for Nestlé. They aim to be transparent and
ethical in all their business dealings.
5.Cultural Diversity: Nestlé recognizes the importance of cultural diversity
and inclusion. They strive to create an inclusive workplace where diverse
perspectives are valued.
6.Consumer Focus: Nestlé’s primary focus is on meeting the needs and
preferences of consumers. They aim to provide products that cater to a wide
range of tastes and dietary requirements.
Please note that companies may update their vision, mission, and values over
time to align with changing business strategies and societal trends. It’s a good
practice to refer to Nestlé’s official website or corporate documents for the most
up-to-date information on their vision, mission, and values.

1.5 Goals and objectives:

Nestlé, like many large corporations, typically sets a range of goals and
objectives to guide its business operations. While specific goals and objectives
may change over time, here are some common areas where Nestlé focuses its
efforts:
1.Business Growth: Nestlé aims to achieve sustainable and profitable growth.
This includes expanding its product portfolio, entering new markets, and
increasing market share in existing markets.
2.Innovation: Nestlé places a strong emphasis on innovation. They seek to
develop new products and improve existing ones to meet changing consumer
preferences and needs.
 3.Nutrition and Health: Given their vision, Nestlé is committed to enhancing
the nutritional value of their products and helping consumers make healthier
choices. Objectives related to this may involve reducing sugar, salt, and saturated
fats in their products.
4.Sustainability: Nestlé has sustainability objectives related to responsible
sourcing of ingredients, reducing greenhouse gas emissions, minimizing water
usage, and promoting recycling and circular economy practices.
5.Consumer Satisfaction: Ensuring that consumers are satisfied with Nestlé’s
products is a key objective. This includes product quality, safety, and meeting
consumer expectations.
6.Market Leadership: Nestlé often seeks to maintain or achieve leadership
positions in specific product categories or markets.
7. Social responsibility : Nestlé is committed to being a responsible corporate
citizen. Objectives in this area may include initiatives related to community
engagement, philanthropy, and ethical business practices.
8.Employee Development: Nestlé values its employees and may have
objectives related to employee development, diversity and inclusion, and creating
a positive work environment.
9.Financial Performance: As a publicly-traded company, Nestlé has financial
objectives related to revenue growth, profitability, and shareholder value.
10.Digital Transformation: In the modern business landscape, digital
transformation is often a goal. Nestlé may seek to enhance its digital capabilities
to better engage with consumers and improve operational efficiency.
It's Important to note that specific goals and objectives may vary from year to year
and can be influenced by market conditions, consumer trends, and other factors.
Nestlé’s annual reports and corporate communications provide more detailed
insights into their current goals and objectives.

1.6 Quality policy of the Nestle company:

As of my last knowledge update in September 2021, Nestlé had a Quality Policy
that reflected its commitment to maintaining high standards of quality and safety
in its products. While the exact wording and details of the policy may change over
time, the core principles typically include:
1.Consumer-Centric Approach: Nestlé places consumers at the center of its
quality policy, aiming to meet their needs and preferences by consistently
delivering safe, high-quality products.
2.Stringent Quality Standards: Nestlé maintains strict quality standards and
conducts rigorous quality control measures throughout its supply chain, from
sourcing raw materials to manufacturing and distribution.
3.Food Safety: Ensuring the safety of its products is a top priority. Nestlé
implements food safety management systems to minimize risks and prevent
contamination.
4.Continuous Improvement: Nestlé is committed to continuous improvement
in all aspects of its business, including product quality. This involves ongoing
research, innovation, and the adoption of best practices.
5.Regulatory Compliance: Nestlé adheres to all relevant laws and regulations
related to food safety and quality in the countries where it operates. They also
work to stay ahead of emerging regulations.
6.Supplier Relationships: Nestlé collaborates closely with its suppliers to
ensure the quality and safety of raw materials and ingredients used in its
products.
7.Employee Training: Nestlé invests in employee training and development to
ensure that its workforce is equipped with the knowledge and skills necessary to
maintain high-quality standards.
8.Transparency and Communication: Nestlé communicates openly with
consumers and stakeholders about the quality and safety of its products. They
value transparency in all their operations.
Please note that specific details of Nestlé’s Quality Policy may have evolved since
my last update, so it’s a good practice to refer to Nestlé’s official website or
corporate documents for the most current and detailed information on their
Quality Policy.

1.7 Product or service profile:

Nestlé offers a diverse range of products and services primarily in the food and
beverage industry. Here's a profile of some of their key product categories and
brands:
1. Beverages:
Nescafé: Instant coffee products.
Nestea: A variety of ready-to-drink teas and powdered tea mixes.
Nestlé Waters: Bottled water brands like Perrier, S.Pellegrino, and Nestlé
Pure Life.
Naquin: Flavored milk products and cocoa mixes.
Coffee-Mate: Coffee creamers and related products.
2. Dairy Products:
 Nestlé Milk Products: A wide range of dairy products, including milk,
yogurt, and cheese.
Nestlé Ice Cream: Ice cream brands like Häagen-Dazs.
3. Confectionery:
Nestlé Chocolate: Brands like KitKat, Crunch, and Aero.
Nestlé Candy: Products like Smarties and Butterfinger.
4. Breakfast Cereals:
Nestlé Cereals: A variety of breakfast cereals, including Cheerios, Shredded
Wheat, and Chocapic.
5. Prepared Foods:
Maggi: A brand offering soups, seasonings, noodles, and cooking sauces.
Stouffer’s: Frozen and prepared meals.
6. Infant Nutrition:
Nestlé Baby and Infant Nutrition: Infant formulas like NAN and Gerber
baby food products.
7. Healthcare Nutrition:
Nestlé Health Science: Specialized nutritional products for people with
specific medical needs.
8. Pet Care:
Purina: A range of pet food products for dogs and cats, including brands
like Purina ONE and Felix.
9. Professional and Food Service:
Nestlé Professional: Products and services catered to the foodservice and
hospitality industry.
10. Skin Health:
Galderma: A subsidiary focused on dermatology and skin health products.
Nestlé’s product and brand portfolio is extensive, catering to a wide range of
consumer preferences and dietary needs. They are known for their commitment
to quality, nutrition, and responsible sourcing of ingredients across their product
categories. Please note that the availability of specific products may vary by
region, and Nestlé may introduce new products or discontinue existing ones over
time.

1.8 Area of operation (Global , National, Regional):

Nestlé operates in various areas of operation globally, nationally, and
regionally. Here’s an overview of their presence in different geographic areas:
Global Operations:
1. Global Headquarters : Nestlé’s global headquarters is in Vevey, Switzerland.
From there, they oversee and coordinate their operations worldwide.
2. Global Brands: Many of Nestlé’s brands are sold internationally and have a
global reach. Examples include Nescafé, KitKat, Nestlé Pure Life, and
Nesquik.
National Operations:
3. Country-Specific Subsidiaries: Nestlé has subsidiaries and operations in
numerous countries around the world. These subsidiaries adapt Nestlé’s
products to local tastes and preferences and handle distribution and
marketing in specific countries.
4. Local Manufacturing: In many countries, Nestlé has manufacturing
facilities to produce their products locally, ensuring freshness and reducing
transportation costs.
Regional Operations:
5. Regional Headquarters: Nestlé often has regional headquarters to oversee
operations in specific geographic areas. For example, they may have
regional headquarters for North America, Europe, Asia, and other regions.
 6. Regional Product Variations: In some cases, Nestlé may offer region-specific
variations of their products to cater to local consumer preferences. This
includes different flavors or ingredient choices.
7. Supply Chain and Distribution: Regionally, Nestlé manages supply chain and
distribution networks to efficiently deliver products to local markets.

Nestlé’s ability to adapt to local markets while maintaining global brand

consistency is one of the key factors contributing to its success as a multinational
corporation. They understand the importance of tailoring their products and
operations to suit the specific needs and tastes of consumers in different regions .

1.9 Ownership pattern:

As of my last knowledge update in September 2021, Nestlé was a publicly
traded company listed on various stock exchanges around the world. Its
ownership pattern consisted of a combination of institutional investors, individual
shareholders, and other stakeholders. Here are the key points regarding Nestlé’s
ownership pattern:
1. Publicly Traded: Nestlé is a publicly traded company, which means its shares
are available for purchase by investors on stock exchanges. It is listed on
several stock exchanges, including the SIX Swiss Exchange and the Euronext
Paris.
2. Diverse Shareholder Base: Nestlé has a diverse shareholder base that
includes institutional investors such as mutual funds, pension funds, and
insurance companies, as well as individual shareholders who own shares of
the company.
3. Major Shareholders: Historically, some of Nestlé’s major shareholders have
included institutions like the Vanguard Group, BlackRock, and various Swiss
pension funds. However, the ownership composition can change over time
as shares are bought and sold.
4. Stakeholder Engagement: Nestlé actively engages with its shareholders and
stakeholders through annual general meetings, investor relations activities,
 and communication regarding its financial performance and corporate
governance practices.
5. Corporate Governance: Nestlé adheres to corporate governance principles
and guidelines that promote transparency, accountability, and ethical
conduct in its operations. It has a Board of Directors responsible for
overseeing the company’s management and strategic direction.
Please note that the ownership pattern of a publicly traded company like Nestlé
can change over time as shares are traded in the stock market. For the most
current information regarding Nestlé’s ownership pattern, it’s advisable to refer to
the company’s official reports, such as its annual reports and investor relations
materials.

1.9 Competitors information:

As of my last knowledge update in September 2021, Nestlé had numerous
competitors in the global food and beverage industry. These competitors vary in
size and scope but are all players in the same industry. Some of Nestlé’s notable
competitors include:
1. The Coca-Cola Company: A major competitor, known for its wide range of
non-alcoholic beverages, including carbonated soft drinks, juices, and
bottled water.
2. PepsiCo: Another global beverage and snack food company, PepsiCo
produces brands like Pepsi, Lay’s, Tropicana, and Gatorade.
3. nilever: While Unilever’s primary focus is on personal care and home care
products, it is also a significant player in the food and beverage sector with
brands like Ben & Jerry’s, Lipton, and Knorr.
4. Danone: A multinational food-products corporation known for dairy
products, bottled water, and medical nutrition. They compete with Nestlé in
the dairy and nutrition categories.
5. Kraft Heinz Company: A major competitor in the food industry, producing a
range of products including ketchup, condiments, and packaged foods.
 6. Mondelez International: Known for its confectionery and snack brands like
Oreo, Cadbury, and Toblerone, Mondelez competes with Nestlé in the
confectionery market.
7. Mars, Incorporated:The company behind brands like Mars, Snickers, and
M&M's, competing with Nestlé in the chocolate and confectionery sector.
8. General Mills: A multinational food company producing cereals, snacks, and
other packaged food products.
9. Kellogg’s: Known for its breakfast cereals, Kellogg’s competes with Nestlé in
the cereal category.
10.Ferrero Group: Famous for its Ferrero Rocher chocolates and Nutella
spread, it competes with Nestlé in the confectionery market.
Please note that the competitive landscape in the food and beverage industry can
change over time due to mergers, acquisitions, and shifts in consumer
preferences. To get the most current information on Nestlé’s competitors and
their market positions, it’s advisable to refer to industry reports and financial
news sources.

1.10 Infrastructure facilities:

Nestlé, as a global food and beverage company, maintains a vast and complex
infrastructure to support its operations worldwide. Here are some key aspects of
Nestlé’s infrastructure:
1. Manufacturing Facilities: Nestlé operates numerous manufacturing plants
around the world to produce its wide range of products. These facilities are
equipped with state-of-the-art technology to ensure product quality and
safety.
2. Distribution and Supply chain: Nestlé has an extensive global distribution
network to deliver its products to retailers, wholesalers, and consumers.
Efficient supply chain management is crucial to ensure products are
available where and when needed.
3. Research and Development (R&D) Centers: Nestlé invests heavily in R&D
and maintains research facilities to develop new products, improve existing
ones, and conduct nutritional research.
 4. arms and AAgriculture For sourcing raw materials like dairy, coffee, and
cocoa, Nestlé often works directly with farmers or through partnerships to
ensure the quality and sustainability of ingredients.
5. Corporate Offices: Nestlé has corporate offices, regional headquarters, and
business units around the world to manage various aspects of its business
operations.
6. Warehouses and Logistics: Nestlé utilizes warehouses and logistics hubs to
store and manage inventory efficiently, ensuring products are readily
available to meet consumer demand.
7. Retail Presence: In some regions, Nestlé may own or operate retail outlets,
such as Nespresso boutiques, to sell their products directly to consumers.
8. Quality Assurance and Testing Laboratories: Rigorous quality control
measures are in place, including testing labs to monitor product quality and
safety.
9. Digital Infrastructure: In the modern business landscape, digital
infrastructure is essential. Nestlé invests in IT systems and data
management to support various aspects of its operations, including e-
commerce and customer engagement.
10. Sustainability Initiatives: Nestlé is committed to sustainability, and this is
integrated into its infrastructure through efforts like sustainable sourcing of
raw materials, reducing environmental impact, and minimizing waste.
Nestlé’s infrastructure is designed to support its diverse product portfolio, ensure
the quality and safety of its products, and meet the needs of consumers around
the world. The company’s global presence and commitment to sustainability also
play significant roles in shaping its infrastructure.

1.11 Achievement and awards:

Nestlé, as a global corporation with a long history, has received numerous
achievements and awards over the years. While I cannot provide an exhaustive
list, I can mention some notable recognitions and honors up to my last knowledge
update in September 2021:
 1. Corporate Responsibility Awards: Nestlé has received various awards for its
commitment to corporate social responsibility and sustainability. For
example, it has been included in the Dow Jones Sustainability Index and
recognized by organizations like CDP (formerly the Carbon Disclosure
Project) for its climate change efforts.
2. Food and Beverage Awards: Nestlé’s products have won numerous awards
for taste, innovation, and quality. For instance, brands like Nescafé and
KitKat have received accolades in various international competitions.
3. Employer Awards: Nestlé is often recognized as a top employer in various
countries. It has received awards for its workplace policies, diversity and
inclusion efforts, and employee development programs.
4. Environmental Stewardship: Nestlé has received recognition for its efforts
in reducing its environmental impact. This includes awards related to water
conservation, sustainable sourcing, and waste reduction.
5. Product Innovation: Many of Nestlé’s products have received awards for
innovation and product development. For example, Nespresso’s coffee
machines and capsules have been recognized for their design and
functionality.
6. Corporate Governance: Nestlé has been acknowledged for its corporate
governance practices and transparency in financial reporting.
7. Health and Nutrition:v Some of Nestlé’s brands have received awards for
their contributions to health and nutrition. For instance, products under the
Gerber brand have been recognized for their support of infant and child
nutrition.
8. Philanthropic Efforts: Nestlé has been honored for its philanthropic
initiatives, including donations and programs aimed at addressing global
health and nutrition challenges.

Please note that the list of achievements and awards for Nestlé is extensive, and
the company’s recognition may vary by region and year. For the most current and
comprehensive information on Nestlé’s achievements and awards, it’s advisable to
refer to the company’s official website and recent corporate reports.
1.12 strategic plan:
As of my last knowledge update in September 2021, I can provide you with a
general overview of the strategic priorities and focus areas that Nestlé had been
pursuing in its strategic plan. Keep in mind that specific details of their strategic
plan may have evolved since then, so it’s important to refer to their most recent
corporate reports and official statements for the latest information. Here are
some key elements that have historically been part of Nestlé’s strategic approach:
1. Nutrition, Health, and Wellness: Nestlé places a strong emphasis on
nutrition and health. Their strategic plan typically includes a commitment to
enhancing the nutritional value of their products, reducing ingredients like
sugar, salt, and saturated fats, and providing consumers with healthier
choices.
2. Diversification and Innovation: Nestlé seeks to continuously innovate and
diversify its product portfolio. This involves introducing new products and
improving existing ones to meet changing consumer preferences and
market trends.
3. Sustainability and Responsibility: Sustainability is a core pillar of Nestlé’s
strategy. They focus on responsible sourcing of ingedients, reducing their
environmental footprint, and supporting social responsibility initiatives.
Their goal is to achieve net-zero greenhouse gas emissions by 2050.
4. Digital Transformation: Nestlé recognizes the importance of digital
technology in engaging with consumers, improving operational efficiency,
and enhancing supply chain management. Their strategic plan may include
initiatives related to digital transformation and e-commerce.
5. Focus on Coffee and Health Science: Nestlé has shown strategic interest in
coffee through brands like Nespresso, and they have invested in health
science through Nestlé Health Science. These areas are often emphasized in
their plans.
6. Regional Expansion: Nestlé operates in numerous countries, and its
strategic plan may include efforts to expand its presence in emerging
markets or regions with growth potential.
7. Cost Efficiency: Like many large corporations, Nestlé aims for operational
efficiency and cost management to maintain profitability and
competitiveness.
 8. Consumer-Centric Approach: Nestlé’s strategic plan typically emphasizes a
consumer-centric approach, aiming to meet the diverse dietary needs and
preferences of consumers worldwide.
9. Mergers and Acquisitions: Nestlé has historically engaged in mergers and
acquisitions to strengthen its portfolio. They may continue to pursue
strategic acquisitions that align with their business objectives.
Please keep in mind that the specifics of Nestlé’s strategic plan can change over
time to adapt to evolving market conditions and consumer trends. For the most
up-to-date information on Nestlé’s strategic priorities and plans, it is best to refer
to their official corporate communications and annual reports.