Scheme of

Presentation

Group members
Zubair Mushtaq
Wajih-ul-hassan
Ali Husnaen
Imranullah

Fast facts

1874 Henri Nestl, a pharmacist

1988 Nestle Pakistan

Switzerland-based
Nestl SA acquires a 40 percent share in MILKPAK
Ltd.
231,000 employees and Nestle Pakistan 2500
Nestl in Pakistan is operating since 1988 under a
joint venture with Milk Pak ltd and took over
management in 1992.

Introduction
Ever since 1867, when Henri Nestl invented
the first infant food, nutrition has been in
Nestle DNA.
The Companys priority is to bring the best
and most relevant products to people.
Nestl Pakistan also prides itself in being the
leaders in Nutrition, Health & Wellness.

Mission Statement
Nestl is dedicated to providing the
best foods to people throughout their
day, throughout their lives, throughout
the world. With our unique experience
of anticipating consumers needs and
creating solutions, Nestl contributes
to your well-being and enhances your
quality of life.

Vision Statement
The Nestl global vision is to be the
leading health, wellness, and Nutrition
Company in the world. Nestl Pakistan
subscribes fully to this vision. In
particular, we envision to:
Lead a dynamic motivated and
professional workforce proud of its
heritage and bullish about the future.

Nature of the
Business
Nestle Pakistan is the FMCG company
which has major industry to cater
food & beverages.
1. Major Industry: Food & Beverages
2. Sub Industry: Diversified food

Products of Nestle
Pakistan

Ambient Dairy

Chilled Dairy

Beverages

Bottled Water

Culinary & Food

Baby Food

Breakfast Cereals

Coffee

Confectionery

Brands

External
Analysis

General Environment

Demographic
Segment
Nestls product is for everyone. People from
any area, any culture, any age, and income.
It is not any luxury item which is used by a
specific people.
all six continents are their customer.
For instance, Nestl segment into different of
age. For baby, they have Nestl baby foods
while young people can drink Milo, Nescafe or
eat ice cream, chocolate and cookies.
In Vietnam, Nestle has the Maggi brand with
many kinds of Asia sauce, but Maggi do not exist
in England because of the different in the

Economic Segment
Although Nestl is leading food industry, it shares its knowledge and expertise
with local small and medium companies.
It helps entrepreneurs to compete in the new free trade environment which will
ultimately benefit the industry and the economy by making the market growth.
Besides that, Nestl also collaborates with local government to provide technical
assistance to farmers in planting and harvesting crops. The farmer will get income
and Nestl will get to purchase good and fresh raw materials to produce their
food. By having own local productions, Nestl should no longer needs to import
any raw materials from other country where they will save much more money. It
will also benefit the consumers whereby consumers could enjoy the local
productions with low price. More consumers will use this product and therefore
Nestl will gain more profit from that.

Porters five forces

Analysis

Strengths
Unmatched Product Portfolio
Company Image
High Quality Products
Well-Developed Strategy
Market Share
Good Marketing Skills And Services
Brand Strength
Product Innovation
HR Department

Weaknesses
Limited Distribution
Channel
No outlets in Pakistan
Capacity Utilization

Opportunities
Support from Foreign
Investors
Enhance Distribution Channel
Changing Social Trend
Health conscious
Market growth

Threats
Government Regulation
Increase in Competition among
Competitor
No Entry Barrier
Inflation rate
Unfavorable Changes in Consumer
Demand
Loss of Market Share

Strategies

Strategies of Nestle
Pakistan
Corporate Strategy
o Operational Pillars
o
o

Growth Drivers
Competitive Advantage

Business Strategy

Operational Pillars
Innovation and renovation
Operational Efficiency
Consumer communication

Growth Drivers
Nutrition, Health, and
Wellness
Emerging markets and
popularity positioned
products
Out-of-home consumption

Competitive
Advantage
Unmatched Product and Brand
Portfolio
Unmatched Research and
Development capability
Unmatched geographic presence
People, culture, values and
attitude

Business Level
Strategy
Each brand of Nestl business has the same strategy
since Nestl is a food corporation.
The core strategy for each brand is the same as the
corporation's strategy as laid out in the 3 pillars.
The manufacturing factories for these brands follow the
same protocol for energy reduction.
They reuse many of their products in order to create
energy to produce their products.
Their main strategy is to create low-cost, highly
efficient operations make a universally ability products,
and to improve communications with their consumers.

Nestle (Operation
Management Aspects)
Capacity and Capacity Planning
Facility Location
Product design
Globalization
JIT( Just in time) Manufacturing System
Forecasting
Supply Chain Management

Nestle (Capacity)
Capacity is the ability to hold,
receive, store and accommodate.
Volume and certainty of anticipated
demand
Strategic objectives
Cost of expansion and operation
Best operating level

Nestle (Facility
Location)
The factor by which the management
calculate by formulas to locate their facility.
Heavy manufacturing facility
Light industry Facility
Retail and Services facility
Benefits
Location Incentives

Nestle (Product
design)
Focusing new generation.
R&D
Consumers daily life.
Differentiation

Nestle (Globalization)
The companies develop their operations into
many of the countries.
Export import regulations, duties and tariffs
Raw material availability
Number and proximity of suppliers
Transportation and distribution system
Labor cost and education
Available technology
Commercial travel

Nestle (JITManufacturing System)

Raw Material
Reduce space requirements
Continuous improvement
Lower production cost
Increased flexibility
Increased machine utilization
Lower inventory cost

Nestle (Forecasting)
Short-range forecast
Medium-range forecast
Long-range forecast

Nestle (Supply Chain Management)

Good supplier relations
Price advantage for materials
Responsibility of SC Manager
To buy raw material as an input.
To use raw material in economical way.
To supply all of the materials to the
customers

Corporate
Governance

Statement of Compliance with

Code of Corporate Governance
The financial statements prepared by the
management of the Company present fairly its
state of affairs, the results of its operations,
cash flows and changes in equity.
Proper books of accounts of the Company have
been maintained.
Appropriate accounting policies have been
consistently applied in preparation of financial
statements and accounting estimates are
based on reasonable and prudent judgment.

Statement of Compliance with

Code of Corporate Governance
International Financial Reporting Standards, as applicable
in Pakistan, have been followed in preparation of
financial statements and any departure there from has
been adequately disclosed and explained.
The system of internal control is sound in design and has
been effectively implemented and monitored.
There are no significant doubts upon the Companys
ability to continue as a going concern.
There has been no material departure from the best
practices of corporate governance, as detailed in the
listing regulations.

INSIGHTS TO
MANAGEMENT
REPORT 2014

Strategic Planning
The Companys strategic direction was reviewed at the
meeting of the Directors.
A process has been put in place whereby long term Market
Business Strategies and Annual Operational Plans
established by Management are regularly reviewed by the
Directors in line with the Companys overall business
objectives.
Part of the process involves the setting of measurable Key
Performance Indicators (KPls).

Business Level
Strategies of Nestle
A three-year Market Business Strategy was
developed this year with a key focus on Safety,
Health and Environment in order to prevent
accidents and protect our people and environment.
In 2015, Nestle will make their operations more
reliableto deliver competitive advantage to their
consumers.
To enhance the quality of products, Nestle will focus
on defect reduction projects and strengthen
compliance.

Business Level
Strategies of Nestle
To deliver Nutrition, Health and Wellness with high
quality and competitiveness, Nestle will also
continue consumer centric Innovation and
Renovation.
The factories are continuously working on
development of their Human Resource through a
structured approach,
Improving gender diversity in the team and
building dedicated residential facilities for our
female workers.

Corporate Level
Strategies at Nestle
The Board has revised a vision/mission
statement, overall corporate strategy and
significant policies of the Company.
A complete record of particulars of significant
policies along with the dates on which they
were approved or amended has been
maintained