HRM department of nestle

The Human Resource department is dedicated to our employees, and ensures that we have all the right people with the right skills, in the right places at the right time. Understanding that our people are the bedrock of all our business strategies, it is our mandate to enhance their skills with cutting-edge training and provide them with world-standard facilities. We select flexible, innovative people who are ready to confront new challenges and make a difference. Our ground-breaking Management Trainee Programme aims to develop talented young men and women and help them achieve their potential in a dynamic and enabling environment. Over a hundred people travel abroad every year to take advantage of our international training and development events. Reference

Nestle: Job Design Selection-Combination of written test, GD & interview (Interviews for top management posts). The company incorporates practices like Job Enrichment and Job Enlargement, to motivate employees and to break the monotony of their job tasks. The correspondent herself works in both sales and brand management departments, which is an example of job enlargement Training Programme in Nestle From the factory floor to the top management, training at Nestl is continuous. And because it is mainly given by Nestl people, it is always relevant to the professional life.

Throughout the world, each country runs its own training programmes (e-Learning, classroom courses, external courses), and it has five training centers in France, UK, Spain, Mexico and Brazil. Nestle runs following training programmes Literacy training Programme: this is run by nestle to improve skills in employees who are given new machines or equipment to work. The objective is to prepare workers to operate new equipment and production methods. This requires the ability to read, write and do basic calculations. This process is part of what is called the Mission-directed Work Team Approach. In addition to increasing productivity, the process helps to empower the teams to take responsibility for their performance and maintain a positive attitude to their work. Nestle Apprenticeship Programmes: It is an intensive four-year programme. Technical classes are given. Apprentices take a series of exams leading to a Technician Diploma or an Advanced Technician Diploma. Local Training Programmes - The local training programme means a lot of employees work in the Nestls, in other words the Nestls 2/3 of the employees who work for the Nestls arrange and organise the training programme to share the experience of whatever the problems being faced by each employees and that they are trying to train them in such a manner that when any problem occurs they can themselves be aware of it and can take the right decision when need, these are sort of being run in every different countries where Nestls operate and it is a unique programme, in other word it is termed as Nestls people development activities and continuously been followed throughout Rive-Reined International Training programmes: They have allocated different programmes for training different people, they have a specially designed training programmes in which thy run more than 70 courses. Which are around the word and something like 1700 to 1800 manager and senior manager attend this sort of courses this includes from around the world and over 70 to 80 countries are participating in this sort of courses. The staff that is training them is a highly qualified and with a lot of them being those from the Nestles senior managers who have tones of experience and have a lot of expertise in the field and can take care of the precise things that need to be handled, they put their experience into play and train the staff, so that not only the company benefit but also the staff benefit from the training. The sometimes have the top management participating in the programme it might sometimes even include the CEO

Reference: http://www.ukessays.com/essays/management/the-organizational-structure-and-strategy-of-nestlemanagement-essay.php

Performance of Human Resource Management in Nestle Nestle, the largest FMSG Company is working all over the world with more than 500 factories in 86 countries making up of most of the continents. Henri Nestle set up Nestle in Switzerland customers are provided with more than 500 products by Nestle. Nestle was entitled by Henri Nestle. The logo of the company consists of his family coat of arms, the nest with a mother bird protecting her young. The symbol of the company is associated with its care and attitude to lifelong nutrition. The Nestle nest bears the meaning of nourishment, security and sense of family that are important to life. Hr activities at Nestle Recruitment: The current report is that innumerable employees are engaged in Nestle,. Nestle hires most of the employees through a method. An opportunity of employment comes when some employees want to resign or there is an urgent need. But in case of these three situations the head of the department must have to obtain consent of the managing Director (MD). The Divisional Head fills up a Recruitment and Budgeted Form if the request is approved. Performance Appraisal: The corresponding manager or supervisor evaluate or Judge the Job performance of an employee by a method like performance appraisal, employee appraisal, and performance review or development discussion. The employees are given importance at their work place as the Nestle Company is absolutely dependent on the quality of its employees performance. The company pays incentives to its employees to encourage them to give better performance. Compensation Benefit: Compensation is a main thing of Nestle Real Rewards package, which forces the top performers to give their best. The philosophy of Nestle is to afford and keep up disciplined compensation programs that keep up a long term relationship with employees at the time of judging their performance. Nestle promise to offer compensation packages including base pay, short and long term incentives and benefits,. Nowadays they are competitive in market. Objective of the Organization HRM The protection of its employees is Nestle first priority because employees are the asset of this company. To maintain the global corporate standard Nestle focuses on the need for safe working environments. Nestle has resolved to provide a safe working environment for all their employees, contractors and visitors and they are trying to implement Health and safety practices and programs at all working places objectives of the organization are We provide a safe work place to owe employees. We lessen risks of our employees and contractors and visitors and take care of their injury or illness. We meet all requirements like health, safety, legislative etc. We establish and monitor new purposes to decrease work related injury or illness. We develop an efficient injury management system which helps the affected employees return to work.

We supply information, provide training to employees and contractors to make them aware of their roles and responsibilities in decreasing the risk of work place injury or illness. We are encouraged a safety and Health management from our suppliers and contractors. We discuss on Health and safety matters with employees and other stakeholders. Method of HRM at Nestle The Nestle group in the area of interpersonal relations and its management style and the corporation values of those areas are stated by the Nestle. Their respect demands specific attitude that is worthy to be highlighted in the present policy. For taking any advice and decision Nestle depends on its employees. So Nestle has a Democratic Leadership Style. If the company is able to attract employees and develop its growth continually, they will easily achieve a long term success. This is a primary duty of all managers. The principle of the Nestle policy is to hire staff with personal attitude and professional skills because it will make them able to consolidate a long term relationship with the company. Hence the potential for professional advancement is an important standard for recruitment. So a clear communication of these principles and values are necessary for beginning the recruitment process. In Nestle people are dealt with respect and faith. There is not intolerance, harassment or discrimination in the management and this principle is applied and maintained at every stage and situation. Nestle management does not work in complexity and they are honest in behaving with customers and employees for excellent communication. The Nestle is improving continuously for their sincerity in work, dialogue and transparency. No effective delegation and improvement of knowledge are possible if all information is not conveyed to those who need to do their work properly. To communicate means not only to inform but to listen and to engage also in dialogue and all employees are given right to communicate with their superiors or co-workers. If there is any difference of opinion or any dispute between employee and the superiors the possibility must be offered for a fair hearing. The HR staff of Nestle will help to remove disharmony impartially and give them opportunity to express their opinion freely. HRM Models The source approach to HRM gives importance on an employee to be resourceful who increases performance by using motivation, communication, leadership to increase commitment and loyalty. The soft model considers that if satisfaction is increased it will be the only way to go about in the management against various estimated methods possibly used in the hard model. Best Practices approach of HRM The approach, inspired partly by Jeffrey Pfeffer (1998) is based on the idea of a set of best, universal HRM practices as per their situation that adopting them lead to superior organizational performances.

Some of the best practices Pfeffer (1998) are employment security, selective hiring, self manager teams, High compensation contingent performances training to afford a skilled and motivated workforce, reduction of status differentials and sharing information. THE OBJECTIVE OF HR/MANPOWER PLANNING: Manpower planning is done to balance and develop the organizations ability to meet its goal by developing Strategies that will contribute its optimum contribution of human resource. The line manager and staff manager take the responsibility of Manpower planning. The line management gives the estimate of manpower requirements and staff manager works on selection and recruitment related to line manager to whom man power is vital. Organizations HR Planning and development What the employee requires can be understood by an effective mechanism called HR planning. HR planning can manage the changes in the organization like growing decrease in requirements of employees. HR planning implements new recruitment and hold skilled and efficient staff by understanding easily the needs of future Workforce Planning Workforce planning is a process which is designed to foretell what, when how much can bring about in talent management. It is an integrated and forward looking process. It provides action plans to the managers to work in a prescribed way. This process helps the managers to avoid or decrease problems of people to take advantage of talent opportunities and to develop the talent pipeline. It builds a competitive advantage over other firms. Goals of Workforce Planning Workforce planning cuts down labor costs quickly and does not impact on productivity negatively. It makes the leaders and managers prepared for future openings. It fills up sudden vacancy immediately and keeps up a flexible contingent workforce. It moves talent proactively to increase the return on talent. It has target retention activities on talent. It has target retention activities on key talent. Man Power Planning According to Steiner, manpower planning is a strategy for the acquisition, utilization, improvement and preservation of an enterprises human resources. It refers to setting up job specifications or the quantitative requirements of jobs determining the number of personnel required and improving sources of manpower.

The diagnostic approach

This approach helps to understand why manpower problems cause. It is possible by using the combination of qualitative planning techniques and qualitative techniques. Manpower planning is mixed into the total process of management of the employment relationship by identifying the more complex factors. Organizational structure, job design and work practices can be damaged by `the effect of the diagnostic approach. Links between strategy, structure and people can be made by Human Resource planning HRP Forms and develops the rationalized and diagnostic approaches to manpower planning. Training and development of Nestle It must be admitted that the company culture has learning. All employees try to upgrade their skills and knowledge continuously. So employees are willing to learn to be recruited by Nestle. Training and development is done on-the-job. Every manager has a duty to guide and train employees for their progress. Formal training programs are arranged with purpose of improving pertinent skills and competencies. Besides, these programs perform individual development. As a result one cannot get reward by attending programs. Manager of Nestle measures progress which can be achieved by training programs. The purpose behind this is to motivate employees by providing attractive but realistic career that helps them develop their skills over a long-term period within the area of economic reality and a changing environment. The act of mentor is done by each manager for his employees. Formal assessment of Nestle is done once a year on a standard basis. It gives feedback on past performance and future potential. Other related aspects concerning a staff members performance are provided feedback. Objective Evaluation of the Organization Human resource function has significance with the onset of global competition. Human resource managers and corporate planning managers think more strategically and step by step. How intense competition impacts upon employment stability can be addressed by them. Implementing cost savings policies regarding employment and thinking with executives on the process of supporting corporate activities are not the same things. To stop downside of global competition the human resource managers should be more active and recruit and keep up efficient workforce. Planning should be done from the very beginning to stop bloating of organization. Human resource managers should identify human resource strategies like flexible dynamic employees are attracted, selected and then trained and motivated to be more productive than the competition. Human resource managers are not administrators but strategic partners. None but they can act will to help top management particularly in a climate of economic uncertainty. Inspire of being Human Company Nestle has most of the above mentioned qualities seen in the managers of present time. The role of HR at Nestle is changing for certain factors. The HR

managers at Nestle focus on following qualities along with professional skills and practical experience. The HR managers should develop and motivate employees by addressing the issues that help others to improve in their work and their ability. The managers should be curious and broadminded and interested in other culture and lifestyles including continuous learning and sharing knowledge and ideas freely with others. Performance Management The function of performance management is to ensure the fulfillment of goals in an effective and efficient manner. Moreover, it watches performance of organization and process of production, employees etc. Performance Management at Nestle Line managers and HR assess formally once in a year and get feedback. Subordinate managers can interrogate for an unfair evaluation. The HR department has enlisted specific key performance indicators. Remuneration structure and promotion criteria consider individual performance. HR staff must help the management in elaborating training programs. Sufficient training programs are developed at the level of every working company that capitalizes on the availability of local regional or global resources of the group. Some training programs improve the language skills of the employees. These programs also try to consolidate corporate cohesion as well as to promote networking throughout the group. They develop and share best practices of the different management disciplines practiced in the group. E-learning programs are alternative to formal training programs. Competency profile mapping Competencies are accumulated by totalizing success factors important for obtaining good results in a particular job or in a particular company at nestle. Success factors are made up of knowledge, skills and attributes that are stated in case of particular behaviors and are exhibited by efficient performers in those works. Attributes include personal characteristics, features, motives, values or ways of thinking affecting an individuals behavior. Competencies in organization can be divided into two categories- personal functioning competencies that include broad success factors untied to a specific work function or industry. These competencies often notice leadership or emotional intelligence behavior. Functional/Technical competencies involve specific success factors within a given work function at nestle. Critical Analysis of HR PERFORMANCE

The performance of an organization must be analyzed for the development. This analysis makes revaluation of existing strategy possible and easy to understand the faults so that organization can rectify them at once. Recruitment, training and development of employees caliber have been done with high standards. HR Management provides best working conditions with suitable growth opportunities. Employees must maintain rules and regulation of the country. HR Management keeps the record of the best performing employees and gives them opportunities for growth. This analysis proves the best performance standard of HR dept. in the present market. It is clear that Nestle emphasizes on personal achievement and the pay structure HR has planned for its employees and the company also mixes practices like Job Enrichment and Job enlargement, to motivate employees and to break the monotony of their Job tasks. An example of Job enlargement is the correspondent who acts both in sales and brand management department. Abraham Maslows Hierarchy of Needs In the year 1950 people accepted the theories of motivation by Maslow. These theories state the process of satisfying peoples requirements in the workplace. The theory explains that dissatisfaction can be created by unsatisfied needs. The hierarchy generally appears to be a pyramid with each level consisting of a certain class of needs. According to Maslow bottom needs of the pyramid are basic needs which are concerned with existence their needs must be met before a persons moving to the next level. Physiological needs Food, shelter and clothing are the three elementary things essential for man to live on this earth. Only the workplace can satisfy these needs. Safety needs These needs are concerned with physical survival. Some security needs are high standards of health and safety in the workplace. Job security absence of bullying sufficient rest period pension and sick schemes these needs are fulfilled at Sainsburys. Love and belonging The work together in a group means to give and receive affection and friendship. The working part of a team, social Facilities and working friendship can satisfy the needs in the workplace. The employees at Sainsburys work together and feel part of a team. Self Esteem In the workplace all the members should respect each other and feel valued. They should have confidence and self respect. Businesses can offer rewards for achievement or promotion.

Self Actualization All people are offered training challenges and opportunities to develop each individual needs. They should achieve their full potential. Performance related pay (PRP) Performance related pay in an extra payment system added to the base pay. The employees get this payment according to the standard of their performance. Besides, this payment is given to a company after considering how it is performing in financial context. Some forms of PRP are strategic pay, flexible pay, and variable pay. Strategic pay is a pay design process starting with business strategy and organizational design. It disputes against an assumption that certain best practices must be mixed with a companys approach to pay. (Lawler 1995) Flexible pay is that kind of payment system where the pay of the employee is tied to the market situation. In this system the pay of an employee depends on customer satisfaction, customer retention and repeat revenue. The employees will be paid according to their skills and experience rather than job based. This will deploy employees to any projects where their particular skill is required. Variable pay is offered to the employees with financial incentives after they whom their favorable behavior to the business strategy of a company. Heery (1996) recommended importantly that the proportion of pay which is contingent on performance should go up as a proportion of total remuneration. Suggestion for Nestle Communication strategy: There must be an effective communication strategy in Nestle and the employees should be educated and trained about the changes occurring in the organization. Through open to use meetings and bulletins can help to do this. Effective Training and Development: Training and development play a huge role in the practices followed by Nestle. It is an inseparable part of the corporate strategies. In house, trainers conduct most of the training programs. External trainers are required for some specialized training programs., All the employee get the scope of going abroad for training and having an idea of global markets. Entrepreneurship strategy: Every employee should be an entrepreneur who can think ideas independently and realize them by using existing resources and support of the organization to build new kind of product and service. Recruit purposefully: The reason of the expected global shortage of workers is that the baby boomers are choosing to act for short time as their retirement savings have been decreased. If the market comes back fully there can be a mass exodus as the boomers leave the workforce. Company making severe staffing cuts and do not keep their HR people connected to potential hires will be caught severely short staffed. Now savvy companies can hire talented people who have been downsized by other organizations. High HR operation cost should be reduced.

The decision making process could be enhanced by leverage of real time information for HR decisions. Need an essay? You can buy essay help from us today! http://www.nestle.pk/aboutus/humanresource http://www.ukessays.com/essays/business/performance-of-human-resource-management-innestle-business-essay.php

Communication Strategies followed by Nestle At Nestle the working environment was very informal. People were encouraged to participate and they could easily communicate with their co-workers. Few of the things that we noticed about their communication flow were: Mostly downward communication occurs. However employee suggestions are also welcomed. They can talk to their superiors easily. Employees and workers are encouraged to participate in decision making to some extent. They are asked their opinions in any new package that the company is offering. But mostly at higher level, GM of all the departments interacts with each other for major decisions. And the lower level is informed about the decision. No trend of memos, unless there is a major event or an unexpected holiday announcement. There is not much written communication. They mostly contact through a phone call or email. In a way we see that there is an open communication channel within the company. There is the network of communication links within organization, to achieve the goals as well as institutional objectives. INTERNAL COMMUNICATION Nestle has maintained open communication channels both downward and upward in the companys hierarchy. This is quite effective in creating a good working environment for the employees. Mostly all the conversation that is being carried on is through e-mails within departments and employees. All sorts of announcements are made through e-mails most of the time no such memos are used.

Downward Communication In Nestle message which is sent to workers by top authority is called downward communication. It is the is deliberate creation of communication channels by the top authorities on formal lines to inform, instruct, direct, suggest and evaluate employees in the process of coordinating individuals efforts towards organization goal. Downward communication takes place when managers like to inform or educate the employees. Downward communication is also utilized by the managers to send feedback to the subordinates as a response to the upward communication . Upward Communication The message or any other data which is sent to authorities by the employees is called upward communication. Through this, top management can maintain continuous touch with the low levels. In absence of this communication top level will be isolated and in the long run managers will be totally fail to manage people and work Examples include, Complaints about working conditions or about any other negligent employee. The medium used include letters and emails. Horizontal/ lateral communication Horizontal communication is a process of interaction between two or more individuals positioned at the same hierarchical levels of the same franchise. Crosswise or diagonal communication Flow of communication does not follow a particular direction. Example: A manager of some franchise may discuss the matters might discuss for any matters with each other. EXTERNAL COMMUNICATION In Nestle the external communication means sending messages to persons outside the company. The sources used by Nestle for its external communication are as follows By Annual Report Media Advertisement Print media advertisement By giving packages Through services Through Presidents message Commercials breaks

Barriers to Communication in Nestle

The problems those are faced by Nestle are as follows Cultural Difference: Since Nestle is a multinational company having thousands of employees from different areas and having entirely different culture, it faces a great problem in its day to day business activities. Emotional Interference Nestle has a huge area all over the world. And operate this huge mob employees is not an easy task. There are many reasons in which the employees become anger and which may cause of barriers. Information overloads and message competition: Nestle in Lahore is the land office in Pakistan which deals to the whole Pakistan. There are millions of message which come from customer and they have not enough time to read and reply, thus barrier in communication. Reference: http://lokoi.blogspot.com/2011/07/project-report-on-nestle.html

Image of horizontal and vertical co-ordination

Definition of external environment: The external environment is typically made up of things, situations, and events that occur outside of an organization, (usually beyond the organizations control), and affects the organization in either a positive or negative way. Some of these external things, situations, and events that affect the organization in a positive or negative way may include the following.

demographics economy government interference political issues social issues competition environment issues

Reference: http://wiki.answers.com/Q/What_is_the_external_environment_of_organization

Five Components of an Organization's External Environment: Customers Your customers are among the external elements you can attempt to influence, via marketing and strategic release of corporate information. But ultimately, your relationship with your clients is based on finding ways to influence them to purchase your products. Market research is used to determine the effectiveness of your marketing messages, and to decide what changes can be made to future marketing programs to improve sales. Government Government regulations in product development, packaging and shipping play a significant role in the cost of doing business and your ability to expand into new markets. If the government places new regulations on how you must package your product for shipment, that can increase your unit costs and affect your profit margins. International laws create processes that your company must follow to get your product into foreign markets. Economy As with the majority of the elements of your organization's external environment, your company must be efficient at monitoring the economy and learning how to react to it, rather than trying to manipulate it. Economic factors affect how you market products, how much money you can spend on business growth, and the kind of target markets you will pursue.

Competition Your competition has a significant effect on how you do business and how you address your target market. You can choose to find markets that the competition is not active in, or you can decide to take on the competition directly in the same target market. The success and failure of your various competitors also determines a portion of your marketing planning, as well. For example, if a long-time competitor in a particular market suddenly decides to drop out due to financial losses, then you will need to adjust your planning to take advantage of the situation. Public Opinion Any kind of company scandal can be damaging to your organization's image. The public perception of your organization can hurt sales it's negative, or it can boost sales with positive company news. Your firm can influence public opinion by using public relations professionals to release strategic information, but it is also important to monitor public opinion to try and defuse potential issues before they begin to spread. Reference: http://smallbusiness.chron.com/five-components-organizations-external-environment17634.html Types of environment: Every organization needs to be perceived as operating in an environment. Organizations are neither self-sufficient not self-contained. Rather they exchange resources with and dependent upon external environment. External environment can be defined as all the forces and conditions outside the organization that are relevant to its operation and influence the organization. Organizations take inputs (raw materials, money, labor and energy) from the external environment, transform them into products or services, and send back as output to the external environment. The other environment is internal which can be defined as all the forces and conditions within the organization that influences its behavior. Thus, environment can be broadly classified into (1) Internal environment, and (2) External environment. (1) Internal Environment Each business organization has an internal environment, which includes all the elements within the organization's boundaries. Strictly speaking they are part of the organization itself. The major components of the internal environment are : a. Employees b. Shareholders and Board of Directors c. Culture

(2) External Environment According to James Stoner, External environment can be defined as all elements outside an organization that are relevant to its operation. This environmental context becomes more clear if the external environment is further divided into two distinct segments :( 1) general environment and (2) task environment. (a) General Environment The general environment consists of interrelated forces that can be categorized into four elements: 1. Economic Environment 2. Socio-Culture Environment 3. Political Legal Environment 4. Technological Environment (b) Task Environment The task environment puts indirect pressures on business management through the institutional processes of following elements: 1. Customers 2. Suppliers 3. Competitors 4. Financial Institution 5. Government 6. Media Reference http://ebusinessmgmt.blogspot.com/2010/03/types-of-environment-internal-and.html

Mega environment: The mega-environment, or general environment as it is sometimes called, is a segment of the external environment that reflects the broad conditions and trends in the societies within which an organization operates. Major elements of the Mega Environment include the technological element of the mega-

environment. This reflects the current state of knowledge regarding the production of products and services. Technology is a particular state of knowledge. It is not things. A computer, for instance, is an artifact, or an example of technology, and is not technology itself. Research indicates that technology tends to evolve through periods of incremental change punctuated by technological breakthroughs that either enhance or destroy the competence of firms in an industry. The economic element of the mega-environment encompasses the systems of producing, distributing, and consuming wealth. In a capitalist economy, economic activity is governed by market forces and the means of production are privately owned by individuals, either directly or through corporations. In a socialist economy, the means of production are owned by the state and economic activity is coordinated by state plan. In practice, countries tend to have hybrid economies, incorporating elements of capitalism and socialism. Organizations are influenced in any given economic system by a variety of economic conditions over which they have little control, such as inflation and interest rates. The legal-political element of the mega-environment includes the legal and governmental systems within which an organization must function. The socio-cultural element of the mega-environment includes the attitudes, values, norms, beliefs, behaviors, and associated demographic trends that are characteristic of a given geographic area. Socio-cultural trends can result in important shifts in demand for products. The international element of the mega-environment includes the developments in countries outside an organizations home country that have the potential impact to the organization. International factors far beyond the direct influence of a particular organization can have profound effects on its ability to operate successfully. Reference: http://www.blurtit.com/q424409.htm

Following are the effects of Mega Environment Political Nestls mega environment in Pakistan initially consists of the political restraints and the objections that the Pakistan Government has placed on Nestle on the way it conduct its business in the country.

Another way in which the Pakistan government may influence the way nestle conducts its business is by placing quotas on the amount of products that it can supply, which will limit the amount of revenue that nestle can generate. These constrains may include the amount of a specific tax that nestle pays to the government in order to conduct the business and this may have a resulting impact on the consumers of nestle products in the shape of higher prices, than what it may be offering to the other countries mainly because of a lower tax it has to pay, and it is depended on the policy of the country. Economic The second mega external environmental factor that influences the organization is the economical factor, which controls the mechanism (contraction and expansion) of production, consumption and distribution. Nestl makes a significant contribution to the economic sector of Pakistan. Through generation of tax revenue, import substitution of milk powder, export and infusion of over 2.3 billion rupees in the rural economy through milk purchases, the company plays an active role in promoting economic growth. The capitalist economic system consists of firms owned privately by individuals or by corporations. In such an economy there is a great scope for the company to take favorable decisions and move towards abettor organizational environment. Social In analyzing the social factors that can influence Nestls course of business activities in Pakistan, we come across the demographical statistic of Pakistan which includes, gender specification, age specification and religious specification, how a social and cultural values of a certain geographical area can influence the important shifts in the demand of the product, which may result in nestle changing some of its strategies accordingly in order to maintain its sales in Pakistan. Nestle lies a great emphasis in penetrating into the market beekeeping the cultural and traditional values of the geographic area in which it is conducting its operation. Before nestle begins its operations in any country its main emphasizes on studying the cultural values of that country, in order to get its products warmly welcomed and make it highly preferred among other companys operating at the same level. Technological Research indicates that technology tend to evolve through periods of incremental change through technology breakthroughs that either enhance or destroy the competence of firms in an industry. At nestle technological factor is of vital importance since many new techniques may change the methods of production of food and make them more efficient.

Therefore nestle have to spend some of its earnings in the search of new technologies. If it ignores this factor and do not respond to it accordingly then there is a possibility that rival firms may take its place. International This includes the fluctuation in the foreign currency rates and also the relationship between the countries, favorable trade agreement with the countries and also the free trade zones, government rebates, tax-free zones and a better infrastructure. Nestl entered the export market in 1993 with the export of infant Cereals to Afghanistan. In 1994 export to Afghanistan was expanded to products to urban consumers. Nestle provides different range of products in the different countries that it is operating inn.

Reference: http://www.scribd.com/doc/20697604/NESTLE-PRESENTATION-LSE

Task environment: Following are elements included in Nestle task environment; Competitors Customers Supplier.

Competitors Competitors also play a vital role in effecting the way in which the organization operates, competitors are basically the rival firms in the same market which is providing the same product, in the case of nestle the are many competitors since there is a wide range of products offered by nestle in Pakistan. Olpers came after nestle with a brand new strategy in order to attract new customers and some of the customers from nestle but did not manage to accomplish it completely since nestle had already gained and retained many of its customers and faces a relative low level of competition.

Customer Nestle has an extensive marketing network to figure out the target customers, it has marketing specialist to understand the market place and the customer needs, secondly to is spending a lot to figure out the customers preferences regarding the substitutes of its products in order to bring the customers on board and retain them. Nestle has an extensive market share, due to the reason that its customers are brand loyal and do not compromise over quality and same is the case with the companys quality assurance (QA) team. One of the principle strategies that nestle utilizes is to produce differentiated products for each age group in order to get a high market share and preferences over other. Supplier Suppliers, which are the individuals or the firms that provide resources required by a company to conduct and maintain its operations in order to produce an everlasting range of goods and services in which organizations/companies specializes. Nestle has an extensive network of suppliers like packaging suppliers, labor supplier, vendors that overlooks after its machinery and finally the specialized people like engineers and the policy makers that helps to run the business most efficiently at the minimum cost.