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Global Business Management Assignment on Identifying Form of business & Management orientation of Submitted by Swapnil sinha Roll No. 222 Section-D

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Page 1: Assignment Swapnil Sinha

Global

Business

Management

Assignment on Identifying Form of business &

Management orientation of

Submitted by

Swapnil sinha

Roll No. 222

Section-D

Page 2: Assignment Swapnil Sinha

Company background

Nestlé Switzerland

Nestlé S.A is the largest nutrition and Foods Company in the world. Founded and

headquartered in Vevey, Switzerland. Nestlé originated in a 1905 merger of the

Anglo-Swiss Milk Company, which was established in 1866 by brothers George

Page and Charles Page, and the Farine Lactée Henri Nestlé Company, which was

founded in 1866 by Henri Nestlé, whose name meant "Little Nest". The company

grew significantly during the First World War and following the Second World

War, eventually expanding its offerings beyond its early condensed milk and infant

formula products. Today, the company operates in 86 countries around the world

and employs nearly 283,000 individuals.

Nestle headquarters in Switzerland

Page 3: Assignment Swapnil Sinha

Nestle India

Nestlé India is a subsidiary of Nestlé S.A. of Switzerland. With seven factories

and a large number of co-packers, Nestlé India is a vibrant Company that provides

consumers in India with products of global standard.

The Company insists on honesty, integrity and fairness in all aspects of its business

and expects the same in its relationships. This has earned it the trust and respect of

every strata of society that it comes in contact with and is acknowledged amongst

India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of

India'.

Nestlé India has presence across India with 7 manufacturing facilities and 4 branch

offices spread across the region. Nestlé India’s first production facility, set up in

1961 at Moga (Punjab), was followed soon after by its second plant, set up at

Choladi (Tamil Nadu), in 1967. Consequently, Nestlé India set up factories in

Nanjangud (Karnataka), in 1989, and Samalkha (Haryana), in 1993. This was

succeeded by the commissioning of two more factories - at Ponda and Bicholim,

Goa, in 1995 and 1997 respectively. The seventh factory was set up at Pantnagar,

Uttarakhand, in 2006

Page 4: Assignment Swapnil Sinha

The Nestlé Values

High commitment to quality products and brands

Worried by the high level of infant mortality at that time and relying on scientific

research, the Company founder, Henri Nestlé, created a revolutionary product,

“Farine Lactée Nestlé” (Nestlé Milk Cereal), which has helped to save the lives of

many children the world over. Nestlé’s coat of arms, the birds’ nest, which refers

to his name, has become a symbol for our products being a safe harbour for our

consumers. Ever since, product safety and quality, Research & Development based

innovation capacity and strong brands are a priority for Nestlé.

Respect of other cultures and traditions

From its inception, Nestlé developed its business internationally and became aware

of the fact that food products have to be closely linked to local eating and social

habits. That is why Nestlé from the very start has always shown respect for diverse

cultures and traditions. Nestlé endeavors to integrate itself as much as possible into

the cultures and traditions where it is present, adding also to the local environment

its own set of values laid out in this document. Therefore, Nestlé embraces cultural

and social diversity and does not discriminate on the basis of origin, nationality,

religion, race, gender or age. Furthermore, Nestlé believes that its activities can

only be of long-term benefit to the Company if they are at the same time beneficial

to the local community. In short, global thinking and strategies can best be

expressed through local action and commitment.

Page 5: Assignment Swapnil Sinha

The Nestlé culture

Apart from its commitment to safety and quality and its respect for diversity,

Nestlé is committed to a number of cultural values. These values come partly from

its Swiss roots and have been developed during its history. They are also evolving

so as to support the permanent reshaping of the Company.

They can be described as follows:

• Commitment to a strong work ethic, integrity, honesty and quality.

• Personal relations based on trust and mutual respect. This implies a sociable

attitude towards others, combined with an ability to communicate openly and

frankly.

• A personalised and direct way of dealing with each other. This implies a high

level of tolerance for other ideas and opinions, as well as a relentless commitment

to co-operate proactively with others.

• A more pragmatic than dogmatic approach to business. This implies being

realistic and basing decisions on facts.

• Openness and curiosity for dynamic and future trends in technology, changes in

consumer habits, new business ideas and opportunities, while maintaining respect

for basic human values, attitudes and behavior.

• Pride in contributing to the reputation and the performance of the Company. This

calls especially for nurturing a sense of quality and long-term achievement in the

daily work beyond fashion and shortsighted gain.

• Loyalty to and identification with the Company.

Page 6: Assignment Swapnil Sinha

Organisational Principles

Nestlé is in favour of and implements pragmatically:

• Flat and flexible organisations with few levels of management and broad spans of

control, including project teams and task forces. Networking and horizontal

communication are encouraged with clear accountability of the managers and the

hierarchy.

• Clear levels of responsibility and well-defined objectives are a must. Teamwork

and networking do not affect the manager’s responsibility: a team has always a

responsible leader.

• A structure which assures operational speed and personal responsibility, with

strong focus on results, reducing bureaucracy as much as possible.

Management Commitment

Members of Nestlé Management at all levels are strongly committed to the

Company, its development and its culture as expressed in The Nestlé Management

and Leadership Principles. They practice what they preach and show the example

in their daily work. Apart from professional skills and insight, the capacity and

willingness to apply these principles are the main criteria for progressing in the

organisation, regardless of origin, nationality, religion, race, gender or age.

Page 7: Assignment Swapnil Sinha

Range of products being offered by Nestle Switzerland

Baby food

Cerelac Organic Graduates

Mulicon Naturnes Nestum

Page 8: Assignment Swapnil Sinha

Bottled Water

Arrow head Deer Park Perrier

Poland spring Pure life S.pellegrino

Page 9: Assignment Swapnil Sinha

Breakfast Cereal

Cheerios Chocapic Cini Minics

Cookie Crisp Estrlitas Fitness

Page 10: Assignment Swapnil Sinha

Chocolate and confectionery

Aero Butterfinger Caillei Crunch

Kit-Kat Intense Smarties

Page 11: Assignment Swapnil Sinha

Coffee

Nescafe classic Nescafe cappuccino Nestle Decaff

Nestle dolce gusto Nescafe Gold

Page 12: Assignment Swapnil Sinha

Dairy

Nestle Cerevita Coffee Mate

Nestle La Laitiere Nestle Nido

Page 13: Assignment Swapnil Sinha

Drinks

Nestle Nescau Nestle Nesfrappe Nestle takumi

Nescafe press Nescafe Milo

Page 14: Assignment Swapnil Sinha

Ice Cream

Antica Gelateria del Corso Dibs Dreyer’s Edy’s

Drumstick Extreme Hagen dazs

La cremica Mexibon Nero

Page 15: Assignment Swapnil Sinha

Range of products being offered by Nestle India

Beverages

Page 16: Assignment Swapnil Sinha

Milk Products & Nutrition

Page 17: Assignment Swapnil Sinha

Prepared Dishes & cooking Aids

Page 18: Assignment Swapnil Sinha

Chocolates & Confectionery

Page 19: Assignment Swapnil Sinha

Analysis on form of business &Management orientation of Nestle

Form of Business: Multinational Enterprise

Nestle is a multinational organisation, the parent company is

located in Switzerland but it shows its presence in different

countries. It operates in multiple countries with effective control

over its operations by way of FDI.

Nestle do not have coordinated product offering in different

countries, we can see that there is a difference in product range and

category being offered by nestle in Switzerland and in India.

Strategic integration among its affiliates and the headquarters is

low and decision making is highly decentralized.

It has implemented business strategies in production, marketing,

finance and staffing that transcended national boundaries.

Management Orientation of Nestle: Polycentric orientation

Nestle follows the polycentric approach, it views each country as a

different market and develops strategy and products according to

that country. For e.g. Nestle offers tea (Nestea) in India whereas

only coffee is present in Switzerland. Similarly there are many

products that are offered in the Indian market which are not present

globally.

Nestles’ each subsidiary develops its own unique business and

marketing strategies in order to succeed.