ABCDE edit Master subtitle style MODEL IN NESTLE Click to INDIA LTD.

KETKI SHINDE PRN: 11040141043

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ASSESMENT
BACKGROUND WORLD OF NESTLE

Nestle India is a subsidiary of Nestle S.A. India Ltd, one the biggest players in FMCG segment, has a presence in milk & nutrition, beverages, prepared dishes & cooking aids & chocolate & confectionery segments. The company is engaged in the food business. India Ltd was incorporated in the year 1956. The company set up their first production facility in the year 1961 at Moga 8/25/12 in Punjab.

Nestle

Nestle

ENVIRONMENTAL SCANS
EXTERNAL ENVIRON MENT
Political restraints and theNestle India undertook capital objections expenditure of Rs 450 crore in Quotas on the amount of2010 Received $450 million in debt products that it can supply Specific tax leads to higherfunding from the parent prices company for the expansion Nestle reported a YoY domestic sales growth of 23%

POLITICAL ENVIRONMENT

ECONOMIC ENVIRONMENT

SOCIAL FACTORS

Keeps the cultural traditional values of theSpends a lot in searching new 8/25/12 geographic area technologies so as to beat

TECHNOLOGICAL andFACTORS

TASK ENVIRONMENT
CUSTOMERS

COMPETITORS

SUPPLIERS

Marketing networkRival firms in theProvide resources to figure out thesame marketrequired by a target customers which provides thecompany to conduct Spends a lot tosame product and maintain its figure out the operations Packaging customers preferences suppliers, labour Extensive market supplier, vendors share - its customers are brand loyal Produce differentiated products for each age group
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INTERNAL ENVIRONMENT
The

employees, management and the corporate culture, that defines employee behaviour philosophical or leadership style directly impacts employees managers give explicit instructions to employees, while progressive managers empower 8/25/12 employees to make many of their own

Manager's

Traditional

SITUATION ANALYSIS
COMPANY Very strong globally with many different brands that
competes in several markets like Chocolate, dairy products, food, water, baby food and pet food.

COMPETITOR Amul India Ltd., Britannia Industries Ltd, Kwality Dairy, Cadbury, HUL - Brooke bond and Lipton Tea, S CUSTOMERS Nestle India generally targets higher income

Tata Tea, Godrej Tea, Smith and Jones, Nissin Foods, ITC , Heinz. ofpeople with slightly higher prices than its competitors in beverages and milk products. However the chocolates, confectioneries and noodles are priced at a lower price to target the general population.

1991COLLABORAT In the year 8/25/12BM Khaitan group -range of Soya based products. ORS

SWOT ANALYSIS
STRENGTH WEAKNESS PARENT SUPPORT EXPORTS BRAND STRENGTH SUPPLY CHAIN GLOBAL FOOD NUTRITION COMPETION IN MANY SECTOR INNOVATION LEADER MARKETS LOW COST OPERATORS PRODUCT POSITIONING THOUSANDS OF LOCAL PRODUCTS. OPPORTUNITY EXPANSION PRODUCT OFFERINGS GLOBAL HUB HEALTHY FOOD MARKET ASIAN MARKET
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THREAT COMPETITION CHANGING CONSUMER TRENDS SECTORAL WOES DECREASING CHOCOLATE INTEREST BOTTLED WATER

BASELINE - SITUATION
PAST

PRESENT

FUTURE

Nestls first sales agentsCompany directly employslong term for consumers, in India began work in6,000 people in India andshareholders, employees Chennai and Kolkata inmore than half a millionand business partners. 1912. indirectly. a wide variety of high Nestl India has SINCEIts products are sold inquality, safe food products 1961,built strong brandsmore than 3.5 millionat affordable prices. like MAGGI, NESCAFE,outlets across the country. efforts to better CERELAC, LACTOGEN,Introduced value-addedunderstand the changing KITKAT and POLO. product variants inlifestyles to provide International productscompetitive categories likeconvenience, taste, like Nescafe and Lactogen,Prepared Dishes andnutrition and wellness and culinary products toConfectionary. through its product meet the demand of theLow-Unit Packs (LUP) andofferings. ethnic Indian populationLow Price Points strategy living abroad. For threeby launching products years in succession [fromSKUs in small packs. 1999-2000 to 2001-2002] Coffee Corners across metros and mini-metros 8/25/12

COMPONENTS
MISSION Nestl is dedicated to providing the best foods topeople throughout their day, throughout their lives, throughout the world. With our unique experience ofanticipating consumers needs and creating solutions, Nestl contributes to your wellbeing and enhances your quality of life. VISION To be a leading, competitive, Nutrition, Health and Wellness Company delivering improved shareholder value by being a preferred corporate 8/25/12 citizen, preferred employer, preferred supplier

VALUES/ GUIDING PRINCIPLES

Nestle, the employees share some values which have set some standards for other employees and are known as heroes that sets a benchmark. is understood that the performance of any organization is depended on the overall performances of its employees and believes in team work. with nestle providing food 8/25/12

It

Along

SPECIFIC OBJECTIVES

Nestls business objective is to manufacture and market the Companys products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners. Nestl does not favour short-term profit at the expense of successful long-term business development. Nestl recognizes that its consumers have a sincere and legitimate interest in thebehavior, beliefs and actions of the Company behind brands in which they place theirtrust and that without its consumers the Company would not exist. Nestl believes that, as a general rule, legislation is the most effective safeguard ofresponsible conduct, although in certain areas, additional guidance to staff in the form ofvoluntary business principles is beneficial in order to ensure that the highest standards are met 8/25/12 throughout the organization.

DOWN TO SPECIFICS
PERFORMANCE MEASUREMENT

Domestic sales up 21%; Margins expand 120bp due to lower costs; gross margin expansion margins expanded 90b YoY to 51.8% (up 130b QoQ), enabled by an improved channel mix and benefits of gradual price increases over the past two quarters.
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Gross

TARGETS
Moreover

they have also introduced health conscious products in the Maggi segment like Maggi Vegetable Atta noodles, Dal Atta noodles, Rice noodles, healthy soups, pazzta made from suji. Maggi. focuses a lot on the brand of

Nestle The

category of Prepared Dishes and Cooking Aids under the brand of Maggi. public. to lower the prices for general
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Trying

ACTION PLANS
Sales Profit

growth margin capital intensity capital intensity tax rate

Working Fixed

Income Cost

of capital growth duration

Value

EVALUATE
PERFORMANCE MANAGEMENT

The company had posted a net profit of Rs 213.8 crore for the corresponding quarter last fiscal. assessment by Line Managers and HR once in a year with feedback. can question an unfair evaluation.

Formal

Subordinate Specific

have

Key Performance Indicators been enlisted by the HR 8/25/12

NESTLES CORPORATE LEVEL STRATEGIES

Products growth through innovation and renovation (while maintaining a balance in geographic activities and product lines). potential business based on sound human values and principles. commitment to the health and well being of people in every country in the scope of their operations. should be conducted by adhering to the values and management principles ofthe organization. BUSINESS LEVEL STRATEGIES

Long-term Build

Long-term

Business

Low

cost - less price transparency is followed.

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COMPETITIVE ADVANTAGE
Research Its

and development (R&D),

product range reach and workforce

Global

280,000-strong

FOUR GROWTH PLATFORMS

consumers

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RECOMMENDATIONS
Constructive

partnerships between industry and Government. should be set for trans-fats and encouragement given to the use of omega 3 fatty acids. education is vital. This is the responsibility of both the Government and industry that acts as advertisement for the company. 8/25/12

Limits

Consumer

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