Nestle is the world's largest food and beverage company operating in 194 countries with over 2000 brands. It has a history dating back to 1866 and focuses on nutrition, health and wellness. Nestle has strong financial performance with a return on equity of 17.13% and dividend yield of 2.47%. It emphasizes recruitment, training, performance management, and total rewards to develop and engage its 328,000 employees globally.

1. Nestle ltd Term assignment

2. Submitted by:
Ramsha Gohar BBA f15-57
University of Education LMC

3. Introduction
• Nestlé is the world’s largest food and beverages
company. We are a global company, combining global
strategies with local engagement. Our success is built on
trust, innovation and relevance. Across each of our
categories, we earn our place in people’s lives through
our brands and dedication to improving nutrition,
health and wellness. We win the right to stay there by
offering life-enhancing products, services and
experiences. We focus on capturing premiumization
opportunities, offering affordable, high-quality nutrition
and adding value to our brands and products through
meaningful differentiation and innovation.

4. History
• Nestle’s history begins in 1866,
when the Anglo-Swiss Condensed
Milk Company opens the first
European condensed milk factory
in Switzerland. Henri Nestlé
develops a breakthrough infant
food in 1867, and in 1905 the
company he founded merges with
Anglo-Swiss, to form what is now
known as the Nestlé Group. During
this period cities grow and railways
and steamships bring down
commodity costs, spurring
international trade in consumer
goods.

5. Mission and vision statements
• Vision
Nestlé 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 a result of our
company’s many years of knowledge in marketing,
research and development, as well as continuity –
consumers relate to this and feel they can trust our
products”.
• Lead a dynamic, motivated and professional
workforce – proud of our heritage and positive
about the future.

6. Continue..
• Mission
Nestlé is the largest food company in the world. But, more important
to them is to be the world's leading food company”.
At Nestlé, 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,
Nestlé products bring consumers the vital ingredients of taste and
pleasure.
• Our Ambition:
To be the leading nutrition, health and wellness company in pakistan.

7. Company
Information
• Ticker: NESTLÉ
• Headquarter ; Switzerland
• Major Industry: Food & Beverages
• Sub Industry: Diversified Food
• Employees: 328000(as of 2016)
• Chairman; Paul Bulcke
• Chief Executive Officer ; U. Mark Schneider,

8. Founder info
• Henri Nestlé (1814 -1890) was a German-
born Swiss confectioner and the founder
of Nestlé, the world's largest food and
beverage company,[1] as well as one of the
main creators of condensed milk.
• in1867 when founder Henri Nestlé created
one of the first infant foods in response to
the need for a healthy and affordable
product to serve as an alternative for
mothers who could not breastfeed their
babies. He called his product Farine Lactée
Henri Nestlé.
• Within a few years, the Farine Lactée
product was marketed in Europe. Nestlé
called his company Société Farine Lactée
Henri Nestlé. In 1874, Nestlé developed its
condensed milk product, to contend with the
Anglo-Swiss Condensed Milk Company,

9. Region of
operation
• Nestle operates in 194 countries.it has 447
factories in 89 countries and 2000+ brands
worldwide
• Nestle operates In America Africa Europe ASIA and
Oceania

10. Main focus
• Our success is built on our Nutrition, Health and Wellness
strategy. Food and beverages are core to Nestlé.
• The main focus of nestle is on target market that love
beverages and drinks
• Consumer Healthcare as an additional growth platform,
consistent with NHW focus

11. Products
• Beverages
• Coffee
• Water
• Cereals
• Chilled
• chocolate, confectionery
Foodservice products
• Frozen food
• Frozen Dessert
• Healthcare nutrition
• Infant foods
• Performance nutrition

12. MARKETING at NESTLE

13. Segmentation, targeting, positioning
• The world’s leading FMCG Company is using different
strategies in different markets. It uses demographic,
geographic & behavioral segmentation strategies to cater
to the changing needs of the most competitive industry.
• Differentiated targeting strategy is what helping the
company in targeting the homogeneous set of customers
(i.e. customers with similar needs) with their bundle of
products.
• It uses a mix of value-based & product based positioning
strategies depending upon the kind of product they are
branding & the market in which it is selling the products.

14. Strategy to
competitive
advantage.
• Nestlé has consistently delivered sustainable,
industry-leading results by offering healthy,
delicious, convenient food and beverage
products and services.
• In a rapidly-changing environment, the key to
our success has been our ability to balance
continuity with change. It has required
discipline and decisive actions to build
sustainable value for the long term. We
continue on our Nutrition, Health and Wellness
journey, while we stay true to our purpose and
values.

15. We change by;
• adapting our portfolio to meet evolving consumer
demands,
• pushing the boundaries of science,
• accelerating innovation,
• as well as driving greater agility and efficiencies.
Our people are embracing these changes with passion and
dedication. This gives us confidence that Nestlé is well
positioned for the future
Key success factors

16. Marketing mix
• product
There are 4 different strategic business units within Nestle which are used to
manage various food products. Beverages milk items chocolates and
prepared food.
• price
The price is dependent on the market of each individual products. For
example, Nescafe and Maggi being the clear leaders are priced with higher
margins for the company as compared to competition. This is because
the product quality is good enough and a bit of skimming price will not cause
the customer to switch brands.
In other products like Kitkat and Munch, due to tough competition from
other companies, Nestle offers competitive pricing.

17. Continue..
• place
The typical distribution strategy of Nestle is as follows.
Manufacturing--C & F agent--Distributors—Retailers--Consumer
Manufacturing--Bulk buyers--Consumer
• Promotions
Nestle regularly uses TVC’s and ATL marketing. It is also present online
through some smart creative. Overall, Nestle is a brand which has strong
products as well as strong marketing, and hence the brand has a very
high brand recall value.

18. SWOT ANALYSIS OF NESTLE
STENGHTHS
. Diversified Portfolio
. Extensive distribution system
. More Decentralization.
. Large workforce and R & D
centers
Weakness
. Brand structure
. Legal & consumer issues
. Criticism on CSR policies
Opportunities
. Healthy breakfast
. Expanding market
. Strategic Alliances
. Focusing more on R & D to
handle ethical issues
Threats
. Competition in the market
. Price of commodities
. Buyers power
. Bargaining power of suppliers

19. PEST ANALYSIS OF NESTLEPOLITICALANVIRONMENT
• changing of
food standards
and regulatision
• The Brexit
movement
• Unstable
environment fpr
britian
ECONOMICALFACTORS
• The United
States market,
the Chinese
market
• sway of foreign-
exchange rates
and prices.
• selling off its
confectionery
business.
SOCIO-CULTURALFACTORS
• public’s
obsession with
healthy eating
• extraction and
usage of
drinking water
• when the
company does
pay to take this
water, the price
is next to
nothing.
TECHNOLOGICALFACTORS
• connect with
audiences all
over the world.
• Blockchain
technology
• igital surveys,
email marketing

20. BCG MATRIX
OF NESTLE

21. Hr Department Of Nestle

22. CORE HRM VALUE.
• Our people, their
• strengths, talent and
energy are our most
important asset.

23. INTRODUCTION TO HR at NESTLE
• We are a people-inspired company.
Our people, their strengths, talent
and energy are our most important
strength. Currently there are around
328,000 employees
• The Nestlé Management and
Leadership Principles inspire all the
Nestlé employees in their actions
and in their dealings with others.

24. HRM Functions at Nestle
• Recruitment and selection
• The Nestlé policy is to hire employees with personal attitudes
and professional skills enabling them to develop a long-term
relationship with the Company. Therefore, special attention will
be paid to ensure there is a strong alignment between a
candidate’s values and the Nestlé culture
• Only relevant skills and experience and adherence to the Nestlé
principles will be considered in employing a person.

25. Employment
and working
conditions
• provide flexible working conditions whenever
possible and encourage our employees to have
outside interests especially community
involvement.
• flexible employment possibilities that support a
better balance of private and professional life
consistent with our ambition as a leading Nutrition,
Health and Wellness Company.
• We believe that it is essential to build a relationship
based on trust and respect of employees at all
levels. We do not tolerate any form of harassment
or discrimination

26. Total rewards
• Attracting new hires and keeping current
employees engaged is not only about
remuneration and benefits based on solid
performance. It is also about the hard earned
value and trust that our name brings to those
who work with us
• Nestlé, therefore, focuses on
• Fixed Pay,
• Variable Pay,
• Benefits,
• Personal Growth
• and Development and Work Life Environment as
the key elements that define Total Rewards

27. Training and learning
• Learning is part of the Company culture. Employees at
all levels are systematically encouraged to consider
how they upgrade their knowledge and skills.
• Nestlé also offers a comprehensive range of training
activities and methodologies to support everyone’s
learning and growth. Attending a programme should
never be considered as a reward but as a component
of on-going development.
• Leaders have the opportunity to attend either
international training courses at Rive-Reine, which
build integrated business understanding

28. Talent,
development
and
performance
management
• At Nestlé, a high performance culture supported
by differentiated rewards and development is key
to the delivery of individual and business
objectives.
• The line manager and employee work together
to ensure that challenging objectives are set and
effectively evaluated throughout the year.
• Employees receive regular feedback on their
performance
• Each employee, supported by the line manager,
is in charge of her or his own professional
development.

29. performance
management
continued..
• employees who are interested in international
assignments can be given the opportunity to work
in different countries
• At Nestlé, promotions are based on sustained
performance from a results and behaviour
standpoint, as well as future potential.
• HR management provides the support for
implementing the necessary tools, and partners
with line managers to prepare the resources
necessary for the continued development of
people and the Company.

30. FINANCE at NESTLE

31. Financial strategy
• nestle regularly revisits its capital structure to reflect
changing market conditions and strategic priorities. Nestlé’s
financial strategy aims at striking the right balance between
growth in earnings per share, competitive shareholder
returns, flexibility for external growth and access to
financial markets.
• Nestlé will also continue to assess opportunities for margin
improvement through targeted efficiency programs that do
not undermine the company’s performance in attractive
long-term growth categories.

32. How do we
create long-
term value?
Our long-term value creation model is based on the
balanced pursuit of resource efficient top- and
bottom-line growth.
We create value by:
– Increasing growth through innovation,
differentiation and by being relevant to our
consumers. We have committed to reach mid single-
digit organic growth by 2020.
– Improving operational efficiency with the goal to
increase our underlying trading operating profit
margin to between 17.5% and 18.5% (from 16.0% in
2016), and
– Allocating our resources and capital with discipline
and clear priorities, including through acquisitions
and divestitures.

33. Nestle’s financial information
Return on
Equity TTM
17.13% 18.68%
Return on
Equity 5YA
15.27% 17.29%
Return on
Assets TTM
7.07% 6.18%
Return on
Assets 5YA
5.98% 7.08%
Return on
Investment TTM
10.23% 8.57%
Return on
Investment 5YA
8.39% 10.09%
Financial ratios are
relationships based
on a company's
financial information
and they can serve as
useful tools to
evaluate a company's
investment potential.

34. Shares valuation
Per Share Data company industry
Revenue/Share TTM 30.29 28.53
Basic EPS 3.36 3.7
Diluted EPS 3.36 3.69
Book Value/Share MRQ 19.29 19.89
Tangible Book Value/Share MRQ 2.36 3.27
Cash/Share MRQ 3.46 1.7
Cash Flow/Share TTM 4.46 3.45
• earnings per share or EPS is an important financial measure,
which indicates the profitability of a company.

35. dividends
Dividend
Name company industry
Dividend Yield 2.47% 3.09%
Dividend Yield 5
Year Avg.
3.01% 3.29%
Dividend Growth
Rate
2.88% 3.62%
Payout Ratio 72.14 39.39
The dividend yield is an
estimate of the dividend-only
return of a stock investment.
... Because the dividend
yield changes with the stock's
price, it often looks unusually
high for stocks that are falling
quickly.

36. conclusion
To conclude we can say that
nestle no doubt is leading food
and beverages company around
the globe with its diversified
portfolio talented staff and the
most importantly effective
strategies.
We suggest nestle to
• Cut down its product line so
that it can more focus on high
return products
• Invest to take a good position
in customer's mind in terms of
CSR