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Table of content

Executive summary

History

Company information

Mission an vision statement

Goals of nestle

Products

Corporate social responsibilities

10

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Partnership success

15

Quality assurance

16

Safety and health environment policy

17

conclusion

19

Executive summary
Nestle has been serving this world for over one hundred and thirty years. It has
differentiated itself through its high quality product mix and positioned itself as health
and Nutrition Company while targeting the health conscious people throughout
the world. Nestle started its operations in Pakistan back in1988, by acquiring a diary
company MILKPAK LTD, when people of Pakistan actually needed it.
Since Pakistan is the fifth worlds largest milk producing country therefore Nestle
deals mainly in dairy products. Moreover it also sells juices, chocolates, prepared
food like noodles, baby food, infant formula milk and breakfast cereals in Pakistan.
Nestle is a low cost leader with its efficient operations hence it provides its
customers with high quality products and sells them at a premium price. Therefore it
is earning good profits.

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Nestle has set its manufacturing plants at in Karachi, Lahore, Islamabad and
Kabirwala. The milk processing plant at Kabirwala district is the Nestls world
largest milk processing plant.
When nestle introduced its products in Pakistan people were neither aware nor
accustomed to them. Therefore nestle ran an extensive marketing campaign to
educate people and create a need for its products.
Pakistan is a land where fresh eatables are readily available. Nestle should sell
the same quality of products in Pakistan as it sells abroad. It should also inmore
brands in Pakistani market which it offers in other markets of the world since
consumers in Pakistan are becoming more demanding day by day.

History
Who could not tolerate any of the conventional substitutes, and had been given up
for lost by local physicians. People quickly recognized the value of the new product,
after Nestl's new formula saved the child's life and within a few years, Farine
Lacte

Nestl

was

being

marketed

in

much

of

Europe.

Henri Nestl also showed early understanding of the power of branding. Nestl
means 'little nest'. Nestle was created in 1867. Nestl is today the worlds leading
food company, with a 140-year history and operations in virtually every country in the
world. Their principal assets are not office buildings, factories, or even brands.
Rather, it is the fact that they are a global organization In the mid-1860s Nestl, a
trained pharmacist named Henri Nestle began experimenting with various
combinations of cow's milk, wheat flour and sugar in an attempt to develop an
alternative source of infant nutrition for mothers who were unable to breast feed. His
ultimate goal was to help combat the problem of infant mortality due to malnutrition.
He called the new product Farine Lacte Henri Nestl. Nestl's first customer was a
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premature infant comprised of many nationalities, religions, and ethnic backgrounds

all working together in one single unifying corporate culture. Their culture unifies
people on all continents, with roughly half their factories and people located in the
developing world.
Nestle started it operations in Pakistan in 1988. A qualified workforce, trained by
nestles or emerging from a strong educational and industrial context, strongly
influences the companys ability to be globally competitive. The fair treatment and
development of company staff and the strengthening of the local workforce are
essential long-term investments. They reinforce the conditions for growth and
sustained economic development in the locations where Nestl operates. Nestls
ability to employ thousands of people each year is an important contribution the
company makes towards future generations, providing income to families who can

Enhance their chances at better education, healthcare and standard of

living for entire families and communities.

Company Information:
Ticker:
NESTL

Country:
PAKISTAN

Major Industry:
Food & Beverages

Sub Industry:
Diversified Food
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Employees:
2,345 (Pakistan as of January 2008)

Currency:
Pakistan Rupee

Market Capital:
61,221,938,400

Share Type:
Ordinary

Mission Statement:
"Nestl is the largest food company in the world. But, more important to them is to be
the world's leading food company.

At Nestl, we believe that research can help us make better food so that people live
a better life. Good Food is the primary source of Good Health throughout life. We
strive to bring consumers foods that are safe, of high quality and provide optimal
nutrition to meet physiological needs. In addition to Nutrition, Health and Wellness,
Nestl products bring consumers the vital ingredients of taste and pleasure.

Vision statement:
Nestl aim is to meet the various needs of the consumer every day by marketing
and selling food of a consistently high quality. The confidences that consumers have
in our brands is are four companies many years of knowledge in marketing, research

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and development, as well as continuity consumers relate to this and feel they can
trust our products.

In particular, we envision to:

Lead a dynamic, motivated and professional workforce proud of our heritage and
positive about the future.
Meet the nutrition needs of consumers of all ages from infancy to old age, from
nutrition to pleasure, through an innovative portfolio of branded food and beverage
products of the highest quality.
Deliver shareholder value through profitable long term growth, while continuing to
play a significant and responsible role in the social, economic, and environmental
sectors of Pakistan.

Goals of Nestle:
The main goals as described by Nestle are as follows:
Good Food, Good Life, the key to health, nutrition and wellness. With over 140
years of experience and expertise, we take great pride in bringing you the best
products because happy, healthy consumers are important to us. We develop our
products keeping your preferences, tastes and needs in mind. We understand that
you, along with millions of other consumers, know that you can trust our products to
deliver purity, quality, convenience and nutrition. Our products are carefully aligned to
Pakistani tastes and needs. We're always trying hard to develop new products and
improve existing ones, and serve our consumers better. That's why through constant
renovation and innovation we're always testing or launching value added products
and making them available in sizes that will suit every requirement. So explore the
world of health with Nestl products, and find out what suits your family's needs

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Objectives of Nestle:
Marketing objectives are compatible with the overall corporate objectives of nestle.
Companys objective is to be the worlds largest and best branded food manufacturer
while insuring that nestle name is synonymous with the products of the highest
quality.

Philosophy of Nestle:
Nestls philosophy is summed up in four words:
Good Food, Good Life.
In their quest to become the world's leading health, nutrition and Wellness Company,
they do everything they can to help people live more fulfilling Good Food, Good Life

Henri Nestl chose his own coat of arms to represent the company's philosophy:
a bird's nest, with a mother feeding her young.
The image represents Nestl core values: care, family values, nutrition, healthy
growth, safety and comfort. It is a guarantee of quality and a commitment to
responsibilities as a food company and experts in nutrition.
Over the years Nestl has reaffirmed its commitment to wellness, helping consumers
tolivelonger,healthier,andmoreproductivelives,no matter their
age, gender or socioeconomic status.

Good Ingredients:
Three vital ingredients lie at the heart of Nestl and come together in their brands:
Their people, their research and development, and their commitment to quality.
The 250,000 dedicated people who make up the Nestl family are their source of
strength and energy. Realizing this, Nestl offer them constant professional
development, and feel their cultural diversity is one of greatest assets.
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Products:
Business Lines in Pakistan:
Milked dairy and chilled dairy:
MILKPAK
NIDO
NESLAC
EVERYDAY
NESTLE Dahi
NESTLE Fruit Yogurt
NESTLE Raita
MILKPAK Cream
Beverages:
NESCAFE
NEQUICK
MILO
NESTLE Fruit Vitals

Bottled Water:
NESTLE Pure Life

Baby Food:
CERELAC

Food:
MAGGI-2 Minute Noodles

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Break Fast Cereals:

Corn Flakes
Honey Gold Flakes
KOKO Crunch

Chocolate & Confectionary:

KITKAT
KITKAT Chunky
Polo

Corporate Social Responsibility:

Nestle believes that every single company, no matter where in the world it operates,
ought to be fully integrated into the local social, cultural & economic life. Company
must be good corporate citizens, and give back to the societies to which it belongs.
There are two ways of fulfilling the responsibility and practicing corporate Social
Responsibility:
1- Through social investments: giving to charities, leading and supporting
cultural or welfare initiatives.
2- Through the realization that businesses create social and environmental
impacts, both positive & negative, through the daily operations of their value
chain.
The operations of Nestle throughout the world are committed to making full use of
the above tools. Thus Nestl people everywhere are involved in the many programs
and projects we have designed to strengthen local communities and nations.
Nestle is heavily involved in projects relating to its areas of expertise, such as
nutrition, education & research, health projects, and agricultural assistance. In times

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of crisis Nestle is amongst the first on the scene to help with humanitarian relief aid
and food donations.
To help culture & society flourish, Nestle does its best to encourage a host of other
activities: they support charities, education and training initiatives, art and cultural
events, sport events and HIV/AIDS prevention. Following are the major contributions
of Nestle in being social responsible:

Nestl Pakistan is involved in a wide range of programs and projects intended to

improve the lives of underprivileged Pakistanis.
Our efforts are focused on:

Social Rehabilitation and education advancement:

To help improve education in rural areas, they undertook the rehabilitation of several
primary and middle schools, focusing especially on schools for girls.
In 2004, in partnership with an NGO, they adopted a school in Pindi Dhallon,
Sheikhupura, and achieved such an improvement of educational facilities, including
teaching aids and teacher training, that school attendance doubled.
Three schools were rehabilitated in 2004-05, and also donated over 100 computers
to schools in poor rural and urban community. (1)

Research and Development Initiatives:

In the 21st century, no country can hope to progress without a strong commitment to
scientific training and research.
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Demonstrating our investment in Pakistan's long-term future, they have committed to

help set up a School of Science and Engineering at the world-renowned Lahore
University of Management Sciences (LUMS).
Earthquake Relief:

The Shocks:

In October 2005, the biggest natural calamity in our history struck Pakistan.
Thousands died and millions were left homeless after a massive earthquake hit
mountainous northern areas.

In step with the rest of the nation, Nestl Pakistan responded immediately, putting its
infrastructure and resources to work in the affected areas.

First Responses:

When the earthquake struck, Nestl Pakistan responded instantly, even before the
magnitude of the disaster had dawned upon the nation. They immediately donated
food and beverage items.

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Within two days, they had established a crisis committee under the supervision of
Managing Director. The same day, the management team left to visit the affected
areas, and by 11 October, the first six Nestl trucks left factories, bearing bottled
water, powdered and UHT milk and ready-to-cook MAGGI noodles.

Instead of

burdening the government and relief agencies, they aggressively reactivated their
own shattered distribution channels to bring supplies to the people who needed them
most and established six camps to distribute relief goods. Despite blocked roads,
grave logistical challenges & an atmosphere of fear and suffering, nestle teams,
consisting of about forty Nestl employees and distributors, went out and distributed
Nestl products to the affectees.

Within two days Nestle teams reached the worst-hit areas around Muzaffarabad, and
Mansehra. They worked in collaboration with the Pakistan Air Force and arranged for
supplies to be airdropped to the most inaccessible areas.
Other teams of Nestl volunteers supported relief work undertaken by other
agencies around the affected areas.
They also distributed 80 trucks of goods, worth Rs 20 million. Two 10-ton trucks of
drinking water were dispatched to Muzaffarabad Hospital, and volunteer teams
ensured that goods were distributed fairly and efficiently to those who needed them
most.

Aftermaths:

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After the crisis came a time for rebuilding shattered lives. Among the reconstruction
efforts some are the following initiatives:

They have allocated an amount of Rs 20 million, raised through employee

contributions, matching grants and contributions from other Nestl markets.
This amount is to be used to adopt and reconstruct a model village in Azad
Kashmir.

They also intend to build an orphanage in the affected areas for the hundreds
of children who lost their parents in this disaster.

Nestle is initiating a livestock health improvement program to help the locals

rebuild their shattered lives.

The parent company, Nestl SA has donated an additional Rs 16 million for

reconstruction and rehabilitation work.

Pitching:

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Nestl employees worked tirelessly to bring aid to earthquake victims.

Nestl employees donated Rs 3.3 million from their own salaries.

Nestl employees in other countries also stepped forward and donated to the
Nestl relief fund.

Five teams of staff volunteers worked day and night in the affected areas to
ensure that relief goods got where they were needed.

A medical detailing team worked with the students of King Edward Medical
University, Lahore, to collect medicines worth Rs 175,000.

Society:
Taking the Nestl concept of corporate Social Responsibility to heart, they are deeply
involved in social investment and humanitarian aid.

They are committed to Pakistan's long-term betterment, and strictly follow the
code of corporate governance.

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They deal fairly with stakeholders. They serve their consumers through safe,
high quality products & communicate with them responsibly.

They benefit consumers by spreading awareness about healthy nutrition and

lifestyles as well as constantly developing or improving existing products for
health, nutrition and wellness.

Nestle is actively involved in several social action programs (SAPs) to improve the
lives of our country's under-privileged people. Nestle offer generous financial support
to hospitals and organizations that are dedicated to providing services to the poor.
Only recently, they donated a mobile dispensary to APWA for its medical outreach
program in a remote community near Hub, Sindh. They have always responded
generously with assistance to victims of natural disasters, such as floods,
earthquakes and droughts.

Partnership for success:

In efforts to provide pure, high quality milk to consumers in distant towns, Nestl
entered into an unprecedented partnership with local farmers. A complex network of
collection centers ensures that no farmer has to go far to deliver his daily produce.
His payment is prompt and transparent. Advanced chilling systems are in place so as
milk travels to factories in Sheikhupura and Kabirwala, its quality is not degraded.To
improve the quality of milk and the lives of suppliers, Nestle have established a
unique technical assistance team that trains farmers in modern

techniques. The milk collection system has an economic and social impact far
beyond the farmers themselves. Through this Nestle has created hundreds of jobs,
instituted a communications and transport network.More than 900,000 farmers and
their dependants have been directly affected by milk purchases. Today, 14 years after
Nestl first entered the milk district in force, the hard work and determination of Nestls milk
collection & technical assistance teams and their dedication to Corporate Social
Responsibility have raised the bar for dairy concerns in Pakistan
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Quality Assurance:
Nestle takes the motto of Good Food, Good Life very seriously. At every step, from
collecting raw materials from rural farmers to distributing finished goods in city
supermarkets, employees are trained and retrained to understand their role in
ensuring that consumers enjoy food and beverage items of the highest quality. The
Nestl name on a product is a promise to consumers that:

It is safe to consume

It complies with all relevant laws and regulations and meets high standards of
quality. In addition, they constantly try to improve and tighten existing regulations.
They ensure the highest possible benefits and protection for the consumers. For this
reason, Nestle actively participate in the revision of food standards with the
government.

Quality is to win consumer trust and preference

Nestle is committed in offering products and services to its customers that meet their
needs and/or preference and provide sound nutrition.

Quality is everybodys commitment

All Nestl functions across the Value Chain are fully responsible to follow mandatory
norms and instructions for maintaining agreed quality standards. Nestle follows the
international standards of the World Health Organizations Codex Aliment Arius on
food production.

Quality is to strive for zero defects and no waste

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Nestle focuses on facts and results and strive for zero defect and excellence in
everything they do. They constantly look for competitiveness and opportunities for
Continuous Improvement of the quality standards delivered to their consumers.

Safety, Health and Environment Policy:

Nestl Pakistan Ltd. is one of the leading Food and Beverage Companies and aims
to provide consumers with the best quality food products by incorporating safe and
environmentally sound practices into its daily business activities. Their commitment
to sustainable development will be accomplished by integrating occupational safety,
health and risk management programs at all workplaces to provide a healthy and
safe work environment for employees, contractors and Corporate Internal audit:
Visitors, Exercising this commitment and reflecting its benefit to the community
remains central to business strategy for today and tomorrow.

In the process of transforming raw material into finished products, Nestle aims to
make the best possible use of them by minimizing wastage, adopting safe working
methods, efficient use of natural resources and minimizing the impact on the
environment. Nestl Pakistan Ltd. is also committed to communicate Safety, Health
and Environmental Performance to its stakeholders.

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Legal Responsibility:
Corporate Governance Principles:
We are dedicated to following the best practices laid down by our parent company,
Nestl SA. We have implemented the Corporate Governance Principles established
by Nestl SA, covering four core areas:

Rights and responsibilities of shareholders

Equitable treatment of shareholders

Duties and responsibilities of the board of directors

Disclosure and transparency

Recognizing the need to maintain transparency and verify the application of

corporate standards, Nestl Pakistan has established an internal audit department
that monitors administrative and operational functions throughout the company.
Thanks to its operations, we can be assured that adequate internal controls are in
place, management information is reliable, resources are used effectively, and
company assets are safeguarded.

A SHARED RESPONSIBILITY:
HR managers and their staff are there to provide professional support in handling

.people matters but should not substitute themselves to the responsible manager.
Their prime responsibility is to contribute actively to the quality of HR management
throughout the organization by proposing adequate policies, ensuring their
consistent application and coherent implementation with fairness. Acting as business
partners, the HR manager advises and offers solutions which results in positive
impact on the organizations effectiveness. Furthermore, she/he proposes best
practices and provides state-of-the-art support and counseling to her/his colleagues.
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Together they act as co-responsible partners for all HR matters. This partnership is
the key for efficiency in people management. The communication skills of the HR
staff must be appropriate to deal with all delicate matters as they occur frequently in
human relations issues. They gain their credibility not only from their professional
contribution but also through the care and the excellence of their communication
skills.

MANAGERIAL POLICY:
company. "A Policy and Procedure Forum" is held for the line managers who are
responsible to implement the policies approved in their respective departments. If
any changes are made regarding the policies or procedures, it is the responsibility of
the Human Resources Manager to convey the change to the line managers. Apart
from the policies, the managerial styles vary from person to person. Managerial
policy guidelines are made in consultation with the senior executives of the

Conclusion:
Nestl is one of the world's leading food companies and intends to that it remains
fully aware of changes in consumer behavior and consumer tastes. Its excellent
product research and development network ensures that it is well placed to meet the
challenge of changes in consumer expectations. The company's Wellness strategy is

Carefully geared to delivering to customers what they now clearly want in relation to
the foods they eat; a high nutritional value and a positive contribution to their general
Wellness.

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