TABLE OF CONTENTS

About the company…………………………… 1

Successful or Unsuccessful…………………….. 1

Highly developed Human Resource (HR) 1

department……………………………………
…
Understanding of local cultures, traditions 2
and needs………………………………………

Best quality with lower cost…………………… 2

Very favorable task 3

environment……………...
Conclusion……………………………………… 3
.
About the company:

Nestlé is the world's largest food & Beverages Company in terms of sales as well as product
range and geographical presence. It has around 230,000 people working in more than 84
countries with 466 factories and with sales representatives in at least another 70 countries with
almost CHF 107.6 bn turnover. Nestlé Bangladesh Limited, a wholly owned subsidiary of
Nestlé S.A., started its commercial production in 1994 and currently employs around 400 people.
It has factory, situated at Sripur, produces instant noodles, cereals and repacks milks, soups, and
infant nutrition products and regional offices in Chittagong, Khulna, and Bogra, to market its
popular products like Lactogen, Cerelac, Nido, Maggi Noodles, Maggi Soup and Nescafe across
the country. 

Successful or Unsuccessful:

Nestle has been a huge success in Bangladesh.

Nestlé Bangladesh Limited’s had a turnover Tk8.9 billion in 2009, which tells us about their
success in the marketplace.

The key Success Factors of Nestle Bangladesh Ltd are-

1. Highly developed HR department

2. Quality Product
3. Understanding of local cultures, traditions and needs
4. Very favorable task environment

Highly developed Human Resource (HR) department:

Nestlé regards its personnel as its most valuable asset. The HR department of nestle is highly
competitive and efficient in the sense that they carefully select personnel before hiring them.
Potential employees are assessed by WORK SAMPLING process.
Nestlé offers an excellent working environment where people are regardless of their levels, have
equal opportunities to express their opinions both in team and without being in team, to their
upper manager. Management of Nestlé believes in open door policy and highly discourages
bureaucracy in the operational process.
Nestle also provides orientation and on-the-job training to its employees of all level, starting
from when they join Nestle, till they leave the company. Nestlé offers an international working
climate especially in teamwork which is conducive to creativity, innovation and the development
of personality and which gives new employees responsibility at an early stage of their career, and
opportunities of fast development of high performers. The training always happens after 6
months and holds for 2 weeks and conducted by external trainer of foreign country’s Nestle’
office. In another training session, external trainer evaluates the teamwork and gets 360-degree
and effective performance feedback from other employees. The external trainer sends an
appraisal to the top level manager to increase the compensation or facility of the person whose
performance is better. All this facility gives employee freedom to take good decision, work and
solve problem efficiently and get some positive and negative reinforces in the job. Nestle believe
that a happy employee translates into a productive employee. Hence, the role of the HR
department is so important to the success of Nestle Bangladesh.

Best quality with lower cost:

Quality made Nestle’ a differentiator. For this Nestle is providing best quality of foods and to do
so they take effective steps, update, adapt, extend products and brands to enhance their relevance
to consumers since they consider taste, appearance and price when they make a decision. It
charges higher price than its competitors charge for its best quality and safety. Nestlé's existing
products grow and succeed through renovation while maintaining a balance of quality in
geographic activities and product lines. Long-term potential is never sacrificed for short-term
performance by them. Seventy years ago, Nescafe coffee was created; today continual renovation
ensures Nescafe coffee remains the consumers’ favorite, with more than 4000 cups drunk per
second.
Nestlé always responds to new technological change first for betterment of quality and then for
production. Nestlé always responds faster to quality improvement than its competitor does. They
understand what customers want and respond to their expectations rapidly and effectively. Nestlé
built industries to lower the cost, than it charges at international market, which can be affordable
for Bangladeshi. Customers expect value of their money, good quality at reasonable price which
nestle is currently providing in Bangladesh.

Understanding of local cultures, traditions and needs:

Nestle has already been marketing its products for around 40 years and gained the trust of the
consumers and the recognition. In Bangladesh people believe experienced company is better than
new. Nestlé’s success is based firmly on the concept that “food is a local matter”. Nestlé always
analyze local culture, traditions, needs, facts that food products have to be closely linked to local
eating and social habits than their competitors do. Nestle understands people of all age- babies to
old people. Hence they market products related to each stage. For children- popular food is
cerelac and lactogen, for growing children, adult and old people they have maggi noodles, Maggi
soup, Nescafe etc. which provides adequate amount of nutrients. Advertisements of Nestle
products are made mainly for Bangladesh mothers who always concerned with the type of food
their children eat and hence their advertisements always portraits a mother cooking up some
healthy delicious magi noodles, or soups or making Nido milk. Although their products are
available in virtually every corner of the world, they don’t believe in a standard worldwide taste.
Different cultures, geographies, needs, tastes and habits all influence what consumers eat and
drink. So it’s vital that they have local knowledge and local experience.

Very favorable task environment:

Task environment includes customer, competitor, supplier, labor.
 Customer- Nestlé is very preferable now to the customer because they produce unique
and quality full.
 Competitor- Maximum number of this company’s product are in monopoly market state
like NESCAFE’, COFFEMATE, CORN FLAKES, LACTOGEN, CERELAC MAGGIE
SOUP because of significant absence of competitor. After melamine detection, Nido is
the infant baby formula based products’ market leader.
Like NESCAFE’ has competitor like Mc Coffee, bru but they have very insignificant presence.
 Supplier and labors- Huge number of suppliers and labors who charge low price.
Conclusion:

In conclusion, we recommend nestle to build more industries of other product like butterfingers
(chocolates), breakfast cereals since product range in Bangladesh is limited. It will incur more
cost efficiency, employment and customer for new product. We would also suggest nestle to
indulge in more research and development so that they can further cut down on costs.