APPRASING QUALITY PROJECT PRACTICES FOLLOW BY NESTLE MILK PAK

OBJECTIVES

1. To evaluate management practices in Nestle fresh milk.

2. To bring improvements in the working environment of Nestle to
develop more effective culture.
3. To bring innovations and creativity in Nestle fresh milk in order to
make it more attractive to consumers over its competitors.
4. To assure a strong availability of internal control in order to assure the
provision of Quality products Nestle fresh milk.
5. To help in taking preventive measures regarding the economic
uncertainties.
6. To create more competitive advantages of Nestle fresh milk.
7. To bring improvement in the motivational facet for employees in order
to have their full commitment towards the work to increase growth
and to achieve the desired goals and objectives.

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INTRODUCTION

This project is about the application of different management evaluation

tools in Nestle company to evaluate the management practices of nestle
company which will ultimately help in analyzing and evaluating the culture
and structure of Nestle company.
It will help to bring some effective changes in the management of Nestle Co.
in order to enlarge the success ladder of the company. It will bring more
solutions to one problem and better ways to solve it and
achieve the desired goal. It can be helpful in organizing
and arranging things so that expectations can be met and
new ways to bring motivation in people that would lead
them to work towards those goals.
As Nestle is a successful company, studying its
management and knowing its culture and structure will uncover many ways
of handling a situation and success that would help us to cope with the
precarious situations.
It will help us to enlighten our minds and will end in a vast enhancement of
our knowledge as well as provide us with an opportunity to practice the
already learnt concepts and to make them more clear and will teach us to
tackle the possible arising problems. It will not only help in learning more
but will also help in remembering the already learnt concepts by their better
applications through the chosen platform i.e. Nestle Co.

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NESTLE PAKISTAN PRIVATE LIMITED

Mission Statement

"Nestlé is the largest food company in the world. But, more important
to them is to be the world's leading food company”.

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COMPANY PROFILE

Company Nestle Pakistan

Profile: Limited
Ticker: NESTLE
2009 Sales: 34,184,000,000
Major Food & Beverages
Industry:
Sub Industry: Diversified Food
Country: PAKISTAN
Employees: 2345

Nestle at a glance
Nestle International:

Nestlé is the world's leading Nutrition, Health and Wellness company. It is

committed to increasing the nutritional value of its products while
improving the taste. We achieve this through our brands and with initiatives
like the Nutritional Compass and 60/40+.

Ever since Nestlé was established, we have been committed to nurturing

people worldwide. Today, as the world's leading Food and Beverages
Company, and leaders in health and wellness, we try to cater to all your
family's nutritional needs, no matter where in the world you live.

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Our story begins in 1867, when Henri Nestlé developed a baby formula that
saved a child's life and marked the beginning of Nestlé's decades-old
commitment to nutrition.
In the 140 years since then, we have expanded around the world and
developed a range of products designed to suit every taste, need and cultural
preference. Our distinctive seal is recognized everywhere as a guarantee of
quality and healthfulness.
Nutrition, quality and convenience remain the keystones of our products
and even as we confront the new century's challenges, we feel it is our duty
to adapt to the changing needs of our consumers.
Our responsibility does not simply lie in perfecting the products we develop
at our R&D centre’s spanning four continents, but the role our products play
in making lives well - both for our consumers and for communities in the
countries we serve.

Nestle Pakistan:

Nestlé has been serving Pakistani consumers since 1988,

when our parent company, the Switzerland-based Nestlé
SA, first acquired a share in Milkpak Ltd.
Today we are fully integrated in Pakistani life, and are
recognized as producers of safe, nutritious and tasty food, and leaders in
developing and uplifting the communities in which we operate.
We at Nestlé Pakistan ensure that our products are made available to
consumers wherever in the country they might be. Convenience is at the

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heart of the Nestlé philosophy, and our aim is to bring products to people's
doorsteps.

Objective:

Making our customers winners by constantly exceeding their expectations

Nestle corporate business principles:

Nestlé is committed to the following Business Principles in all countries,

taking into account local legislation, cultural and religious practices:

 Nestlé's business objective is to manufacture and market the

Company's products in such a way as to create value that can be
sustained over the long term for shareholders, employees, consumers,
and business partners.
 Nestlé does not favor short-term profit at the expense of successful
long-term business development.
 Nestlé recognizes that its consumers have a sincere and legitimate
interest in the behavior, beliefs and actions of the Company behind
brands in which they place their trust and that without its consumers
the Company would not exist.
 Nestlé believes that, as a general rule, legislation is the most effective
safeguard of responsible conduct, although in certain areas, additional
guidance to staff in the form of voluntary business principles is
beneficial in order to ensure that the highest standards are met
throughout the organization.

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 Nestlé is conscious of the fact that the success of a corporation is a

reflection of the professionalism, conduct and the responsible attitude
of its management and employees. Therefore recruitment of the right
people and ongoing training and development are crucial.
 Nestlé continues to maintain its commitment to follow and respect all
applicable local laws in each of its markets.

Branches in Pakistan:
Nestlé Pakistan has its branches in the following major cities of Pakistan:

 Lahore

 Islamabad

 Faisalabad

 Sheikhupura (factory)

 Karachi

Nestlé is a customer and profit oriented organization rather than system and
strategy oriented. The mechanics of generating profit are low-cost
production and high-price sales.

Style of working:
Nestlé is profit and customer oriented organization rather than system and
strategy oriented. The products are manufactured at low-cost and sales are
made at high price.

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All the departments of Nestlé are related to each other along with their
independent working. In order, to improve their working and their level of
service they provide to their customer, weekly and monthly meetings are
held. These meetings discuss the following things:

 Performance level of employees

 Progress at territory level and as a whole

 Sales of the organization

 Where an improvement is required

The working/activities of division include the following features:

 Selling through proper transportation

 Area storming for creating awareness

 Stall activities

 Rewards offering scheme

 Taking feedback from the customers

 Providing service for chiller maintenance and technical problems

This activities/working of the organization involve the basic principles of

marketing, client service, public relation, planning, organizing, leadership
and communication whose brief description are as follows:

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The basic principle of Nestlé in marketing is to provide its customers with

quality product at reasonable price.

SELECTED PRODUCT
Nestle fresh milk:
Welcome health, strength and happiness into your home with delicious and
nutritious MILKPAK; standardized UHT milk that benefits from NESTLÉ’s
expertise in bringing you the very best in health, wellness and nutrition.

MILKPAK is a trusted brand known throughout the country for its nutritious
wholesome goodness and pure natural taste. To secure a happier and
healthier future for your family, you need the support of a strong partner like
MILKPAK, now fortified with extra strength of Iron, Vitamin C and Vitamin
A that keeps you and your family strong.

Iron as an essential mineral helps in the formation of healthy blood and

strengthens your immune system. Vitamin C helps the absorption of Iron in
the body and Vitamin A is important for clear vision.

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The addition of Iron and Vitamins has enhanced the nutritional value of
MILKPAK while retaining the same delicious taste.
One glass of MILKPAK fulfills 20% Iron, 41% Calcium, 18% Vitamin A and
20% Vitamin C of your daily requirements as per Nutritional Reference
Values, CODEX Alimentations.

CRITICAL ANALYSIS

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NESTLE HALEEB OLPERS

Critical Success Rating Rating Rating

Factors

Market Share 4 3 3

Product Quality 4 3 3

Customer 3 2 2
Service

Price 2 3 3
Competitivenes
s

Financial 4 3 2
Position

Customer 3 2 2
Loyalty
Adopt 4 2 3
technology

Advertising 3 4 2
Quality of 4 3 3
management

TOTAL Rating 3.7 2.75 3.1

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LABORATORY ANALYSIS OF MILK BRANDS

AVAILABLE IN PAKISTANI MARKET
N Bran Mentio Code Amou Date of Expir Formali Total Calciu Marke
O d n No nt in manufactu e n Energ m in t
nam Conten Batc ml or re Date Presenc y 250 ml Share
e ts on h No Liter e (K (mg)
label Cal)
1 Nestl Yes Yes Yes Yes Yes Yes 155 238 41%
e
Milk
Pak
2 Hale No No Yes No Yes Yes 139 244 27%
eb
3 Olpe No Yes Yes No Yes Yes 184.9 436 20%
rs
4 Open No 127 352 12%
Milk

TOOLS AND TECHNIQUES

Tools which are applied to evaluate the different management practices of
Nestle Pakistan

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Hofstede Model:
Hofstede model demonstrated that there are national and regional cultural
groupings that affect the behavior of societies and organizations, and that
are very persistent across time.
Hofstede model found four dimensions of culture related values:
 Low vs. high power distance
 Low vs. high uncertainty avoidance
 Individualism
 Masculinity

When we apply this model on nestle Pakistan to find out their culture the
result come out with this data and variables after giving them ranking.

Power 1 2 3 4 5
Distance
Organization YES
Structure
Management YES
Style

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Top YES
Management
Commitment

1. Uncertainty 1 2 3 4 5
Avoidance

Productivity Yes
Product Quality Yes
Product Demand Yes Yes
Market Share YEs

Individualism 1 2 3 4 5

Relationships Yes
with
employees
Relationship Yes
with
customer
Discipline, Yes
Ethics
Outcome and Yes
Profits
Creativity YEs

Masculinity 1 2 3 4 5
Gender Yes
Rules and
Regulations

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Experience Yes
Internal Yes
Control
Progressive Yes
Uniformity Yes

Management Practices in Agriculture Sector

Questionnaire

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For company managers and employee:

Start from here:

Company Name:

Public Sector: Private Sector:

Department:

Age:

Male: Female:

For company managers and employee:

1. Do you train your employees time to time?
1 2 3 4 5

2. Do you interview your employees to know about their problems?

1 2 3 4 5

3. How is the company environment?

1 2 3 4 5

4. Does the company service and care about its customers?

1 2 3 4 5

5. New technology is used to bring innovations in the products?

1 2 3 4 5

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For dealers:

6. Does nestle company deliver orders in time?

1 2 3 4 5

7. Do they satisfy the demand of the customers timely?

1 2 3 4 5

8. Do you get response from the company on the forwarded

complaints?
1 2 3 4 5

9. Does the price change frequently?

1 2 3 4 5

For customers/users of nestle milk:

1. Do you buy nestle fresh milk frequently?

1 2 3 4 5

2. Do you find opportunities at times to communicate your problem to

nestle?
1 2 3 4 5

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3. Do you find Nestle milk price effective?

1 2 3 4 5

PROBLEMS
Nestle organization is very successful as a whole and was very difficult to
point out some of the weaknesses however some factors were discovered
that the organization should take under consideration, following are some
of the problems that can be of any help.

 There are some facts which could be a threat to the nestle milk:

 Low quality of milk provided by milkmen.

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 Shortage of milk providing animal.

 Poor profitability for farmer.
 Lack of education among farmers.
 Processors find it hard to procure sufficient milk to meet future
demand.
 Current load shedding is big problem for company’s budget or price of
milk.
 Only 5% is used from all raw milk other is not accessible for
companies.

RECOMMENDATIONS

 Olpers milk is using new ways in order to capture the market, and has
successfully reached up to 20% of the market share. Nestle should
keep the strategies of their competitors to be the market share leader
in future as well.
 Nestle milk should pay attention to its core areas which need some
development like, farmers profitability, education.

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 It should bring some innovations in the product that can help them in
generating more revenues.

CONCLUSION

Nestlé is a gigantic organization. It is a food concern emphasizing on

producing good food for good health. The seed Henri Nestlé had planted in
1866 is now a tree which provides extremely qualitative food to billions of
people all around the world. It is also providing jobs to millions of people in
more than 479 factories in 81 countries.

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Relationship with the employees is maintained at a cordial level. Employees

work with commitment and dedication to achieve the best for the
organization. Job satisfaction soars at a high level.
As far as the selected product nestle milk Pak is concerned it is the fresh
milk market share leader and doing very well and by taking some of the
factors that can bring improvement in it and can help it in being future
market share leader.

BIBLIOGRAPHY
www.nestle.com

www.nestlepakistan.com

www.scribd.com

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www.docst.com

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