Assignment

On
Nestle Bangladesh Limited

Submitted To
Prof. Dr. Abdullah Al Mamun
Professor
Department Of Management
University Of Chittagong

Submitted By
Name ID No
Md. Saidur Rahman 13302016
Ahmed Ullah Khan 13302142

Date of Submission: 13/12/2018

Name:​ The name of our firm is ​Nestlé Bangladesh Limited.

Location: ​Nasirabad Housing Society​, ​Nasirabad, Chittagong, Bangladesh 4200

Regions of Nestlé Bangladesh Limited

Nestlé Bangladesh Limited markets its products throughout the country with the help of its
distributors. Apart from that, Nestlé Professional is a separate function which is responsible for
the institutional sale, though it is breaking out of its threshold and going for a more aggressive
way of selling the products personally in crowded places such as Robindro Shorobor. There are
currently 80 distributors of Nestlé Bangladesh products of which 76 are retail distributors and
remaining 4 are Nestlé Professional’s distributors providing products for the out of home
consumptions. The whole country is divided into seven regions:
a) Dhaka North
b) Dhaka South
c) Chittagong
d) Bogra
e) Khulna
f) Sylhet
g) Barisal

History of Nestlé Bangladesh Limited

As amongst the world’s largest food and Beverage Company, Nestlé ​have enhanced the quality
of life of individuals and their families in 191 countries over 150 years.

Popular Nestlé brands started entering this part of the sub-continent during the British rule and
the trend continued during the pre-independence days of Bangladesh. After the independence in
1971, Nestlé World Trade Corporation, the trading wing of Nestlé S.A, sent regular dispatch of
Nestlé brands to Bangladesh through an array of indentures and agents and some of the brands
such as NESCAFE, CERELAC, LACTOGEN, MUNCH ROLLS and MAGGI became some
very common products.

Nestlé Bangladesh Limited started its commercial operation in Bangladesh in 1994. Its total
authorized capital is TK1.5 billion and total paid up capital is TK 1.1 billion. The only factory of
the company in Bangladesh is situated at Sreepur, 55 km north of Dhaka. The factory produces
the instant noodles and cereals and repacks milks, soups, beverages and infant nutrition products.

Today Nestlé Bangladesh Ltd. is a strongly positioned organization. The Company is

continuously growing through the policy of constant innovation, concentrating on its core
competencies and its commitment to high quality food to the people of Bangladesh. Since the
beginning of Nestlé’s operation in Bangladesh, the chairman of the company has been Mr.
Latifur Rahman, one of the top industrialists of the country, his firm Transcom used to import the
products of Nestlé. His business house Transcom is still involved in wide range of business like
beverage, pharmaceutical, electronics, newspaper, tea export, fast food franchises etc. Still he
remains as an honorary chairman of the company.

In Bangladesh Nestlé’s vision is-to be recognized as the most successful food and drink
Company in Bangladesh, generating sustainable, profitable growth and continuously improving
results to the benefit of shareholders and employees.

Quality and Safety for our consumers is Nestlé’s top priority. This applies to our entire portfolio,
from foods and beverages to all our systems and services. To know more about Nestlé Quality
Policy click here.

With a promise of Good Food, Good Life, Nestlé Bangladesh continues to innovate across its
product lines to enhance people’s quality of life and contribute to a healthier future of
Bangladesh.

Year Event

1992 Nestlé Bangladesh started its commercial operations.

1994 Started manufacturing sweetened condensed milk.

Started repacking Milk Powders, Infant Nutrition and Infant Cereal.

1997 Commenced first Noodle line.

1998 Nestlé Bangladesh became 100% owned subsidiary of Nestlé SA.

 Started manufacturing Breakfast Cereal.

Inaugurated the Distribution Centre.

2002 Started manufacturing Local Infant Cereal.

2004 Discontinued manufacturing of Breakfast Cereal.

Switched from local repacking of Infant Nutrition to imported FG.

2007 Expanded Distribution Centre, and attained ISO 14001 & OHSAS 1800 Certification

2008 Attained NQMS, ISO 22000 Certification.

2009 Commissioned second Noodle line.

2010 Initiated Nestlé Healthy Kids (NHK) Programme.

2012 Commissioned third Noodle line.

Transitioned to Mechanized Distribution Centre.

Awarded Standard Chartered-Financial Express CSR award 2010-11.

2013 Commenced confectionery production.

Digitalized Warehouse Monitoring System (WMS).

Initiated pilot knowledge-sharing programme.

2014 Partnered with 2030 Water Resource Group (WRG).

2016 Commenced Dairy manufacturing and Tea Enhancer bulk repacking.

2017 Introduced Fruit Drinks and Nectars in the market.

Products of Nestlé Bangladesh Limited

Although globally the product line of Nestlé is very large, in Bangladesh currently there are only
12 products of Nestlé. The Company believes all foods and beverages can be enjoyable and play
an important role in a balanced and healthy diet and lifestyle. As a result no matter how short the
 product line may be but it ensures the same quality in compare to the other countries [​​ 10​]​.
 The products of Nestlé Bangladesh Limited (NBL) are [​​ 22​]​;
• Beverage: Shad-Nescafé, Nescafé 3 in 1, Coffee Mate, Gold e-Magic Nestea, and Nesfuta.

• Culinary: Maggi Noodles, Shad-e-Magic, Maggi Healthy Soup, Magic Cube.

• Dairy: Nido Fortified, Nido 2+, Nido 3+, Nido Growing up Milk.

• Breakfast Cereal: Cornflex, Koko Crunch and Huny Gold.

• Nutrition: Lectozen, Lactogen Recover, Prelactogen, NAN, All 110, BABY & Me and Cerelac
(Different flavors).

• Confectionary: Nestlé Munch Rolls.

Nestlé NAN​ i​ s the first nutrient system clinically proven to enhance a baby’s immune defenses
which reduce allergic symptoms by 50%.

The 10 Business Principles of Nestle

1. Leader in Nutrition, Health and Wellness

2. Trusted in Quality assurance and product safety
3. Transparent consumer communication
4. Exemplary human rights and labour practices
5. Credible in leadership and personal responsibility
6. Ensuring Safety and Health at work
7. Recognize supplier and customer relations
8. Inclusive agriculture and rural development
9. Resourceful in environmental sustainability
10. Caring Water

Nestlé Bangladesh’s leading objectives

(a) To develop safe and wholesome packaged foods using the most efficient and appropriate
packaging materials available, while, at the same time, satisfying consumer requirements and
expectations.

(b) Nestlé Bangladesh seeks packaging solutions that:

● will result in the lowest possible weight and volume of packages

● take into account new packaging materials and processes that reduce the impact on the
environment;
● avoid the use of substances that can adversely impact the environment during packaging
production and disposal
● decrease packaging waste at all stages, including package manufacturing, utilization and
disposal
● increase the use of recycled materials wherever possible; and
 ● Increase the recyclables and compatibility of its packages with existing waste
management schemes.

Current market position of Nestle

Nestlé, the world's leading nutrition, health and Wellness Company, aims to grow at the double
of Bangladesh's economy to cater to the growing number of consumer’s conscious of healthy
food.

The maker of Nido, Cerelac, Nescafe coffee, KitKat and Maggie noodles has more than 8,000
different types of products available in the global market, but only 60 are sold in Bangladesh.
Currently, the company employs about 700 people in Bangladesh and provides indirect jobs to
another 2,500. The company has a lot of potential to reach the mostly untapped rural areas.

Challenges of Nestlé Bangladesh Limited

Here are some the common challenges which all the organizations face around the world and
Nestle Bangladesh Ltd is also facing all of these challenges more or less.

✓​Aging workforce and retirements

As most of the upper level positions are filled with aged personnel and each year some of them
are going to retirement, Nestle has to go for continuous recruitment process to fill those positions
when succession is not possible and finding the right person is also a challenge as well.

✓​Less experienced and smaller younger generations

Our current job market is filled with new graduates who lack experience which Nestle seeks to
maintain the standard in their workplace.

✓​Competition with other MNC to get talents

Nestle has to compete with other renown MNCs to get the potential talent from the job market
which is becoming more and more competitive day by day.

✓​Talent Gap
New comers often lack the practical experience and the creative and leadership skills that are
required by the companies. The talent gap impacted business flexibility, expansion and growth.

✓​Observation and Evaluation:

Nestle Bangladesh has come up with many innovative and feasible Management policies which
is new in Bangladesh. In addition, these policies has already been implemented in their other
foreign subsidies and running successfully till today. It has also created a benchmark in the
industry and brought competitive advantage for the organization. Some of their policies that have
impacted them a lot are given below:

✓​Flexible HR philosophy

Nestle Bangladesh practices a flexible and dynamic HR policy in the country. Therefore its
implementation is inspired by sound judgment, compliance with local market laws and common
sense, and also taking into account the specific context.

Management Structure of Nestle Bangladesh