Global

Business
Management

Assignment on Identifying Form of business &

Management orientation of

Submitted by
Swapnil sinha
Roll No. 222
Section-D
 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

 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
 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.
 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.

 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.
Range of products being offered by Nestle Switzerland
Baby food

Cerelac Organic Graduates

Mulicon Naturnes Nestum

 Bottled Water

Arrow head Deer Park Perrier

Poland spring Pure life S.pellegrino

 Breakfast Cereal

Cheerios Chocapic Cini Minics

Cookie Crisp Estrlitas Fitness

 Chocolate and confectionery

Aero Butterfinger Caillei Crunch

Kit-Kat Intense Smarties

 Coffee

Nescafe classic Nescafe cappuccino Nestle Decaff

Nestle dolce gusto Nescafe Gold

 Dairy

Nestle Cerevita Coffee Mate

Nestle La Laitiere Nestle Nido

 Drinks

Nestle Nescau Nestle Nesfrappe Nestle takumi

Nescafe press Nescafe Milo

 Ice Cream

Antica Gelateria del Corso Dibs Dreyer’s Edy’s

Drumstick Extreme Hagen dazs

La cremica Mexibon Nero

Range of products being offered by Nestle India
Beverages
Milk Products & Nutrition
Prepared Dishes & cooking Aids
Chocolates & Confectionery
 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.