ORGANIZATIONAL%20BEHAVIOR

1
(No Transcript)
2
ORGANIZATIONAL BEHAVIOR
3
PRESENTED TOMR.SOHAIL ISLAM

• PRESENTED BY
• ROHMA IMRAN
• AYESHA JAMIL
• ZUNAIRA TALIB
• ANEELA SHAHEEN
• RUBAB QAMAR

4
INTRODUCTION

• Nestlé is a Swiss-German word which means
  Little Nest which is its trademark
• Nestlé is the worlds number one food company
• 5th largest company of the world according to its
  turn over
• 2 million 31 thousand people employed from all
  over the world
• Present in 81 countries of the globe having 522
  factories
• Over 700 products renovated or innovated in the
  past five years, with wellness in mind

5
HISTORY

• Henri Nestlé established Nestlé in 1867 in
  Switzerland (Vevey HQ)
• His first product was lactogen formula for
  infants by the name Farine Lacteé

6
KEY DATES 1866 COMPANY FOUNDATION

• Major joint ventures 1981 Galderma
• 1905 Merger between Nestlé and Anglo-Swiss
  Condensed Milk Company
• 1929 Merger with Peter, Cailler, Kohler
  Chocolates Suisses S.A.
• 1947 Merger with Alimentana S.A. (Maggi)
• 1969 Vittel (equity interest)
• 1971 Merger with Ursina-Franck
• 1974 L'Oreal (equity interest)
• 1977 Acquisition of Alcon (2002 partial IPO)

7

• 1985 Acquisition of Carnation
• 1988 Acquisition of Buitoni-Perugina
• 1988 Acquisition of Rowntree
• 1990 Cereal Partners Worldwide
• 1991 Beverage Partners Worldwide (formerly CCNR)
  
• 1992 Acquisition of Perrier
• 1998 Acquisitions of San Pellegrino and Spillers
  Pet foods

8

• 2000 Acquisition of Power Bar
• 2001 Acquisition of Ralston Purina
• 2002 Acquisition of Schöller and Chef America
• 2002 Dairy Partners Americas and Laboratories
  innéov
• 2003 Acquisition of Mövenpick, Powwow and
  Dreyer's
• 2004 Acquisition of Valio (ice cream activities)
  
• 2005 Acquisition of Wagner, Protéika, Musashi

9
SITUATION ANALYSIS

• BUSINESS DEFINITION AND SCOPE

10
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.
11
PRODUCT DEFINITION

• Nestle, a multinational company has acquired
  merged with various companies.
• Factors behind its success are multifarious,
  quality, improved technology, innovation which
  have created brand loyalty amongst its customers.
• SBUs like Pharmacy, Breakfast Cereals and
  Cosmetics, Ice cream, Frozen Foods, Sauces.

12
BRANDS

• Quality and nutritional value are the essential
  ingredients in all of its brands.
• Millions of people prefer Nestlé products every
  day, happy with the addition to their wellness
  that they bring.
• Today Nestlé is present in different markets with
  the following main brands-

13

• Baby Foods
• Breakfast Cereals
• Beverages
• Bottled Water
• Chocolate Confectionery
• Dairy Products
• Food Services
• Ice Cream
• Prepared Foods
• Petcare
• Pharmaceuticals
• Cosmetics

14
BABY FOODS

• Infant nutrition Nestlé,
• Lactogen,
• Nestogen,
• Cerelac,
• Neslac,
• PowerBar,
• Pria etc..

15
BREAKFAST CEREALS

• Chocapic
• Shreddies
• Cheerios
• Cookie Crisp
• Lucky Charms,
• Cinnamon Toast etc..

16
BEVERAGES

• Coffee Nescafé
• Ricoré
• Ricoffy
• Nespresso
• Bonka
• Loumidis
• Fruity fruits
• Nestlé fruit juices

17

• Nestea
• Nesquik
• Milo
• Carnation
• Nido
• Nestlé Omega Plus
• Coffee-Mate etc..

18
BOTTLED WATER

• Nestlé Pure Life
• Nestlé Aquarel
• Contrex
• Acqua Panna
• Arrowhead
• Poland Spring
• Deer Park,
• Ice Mountain etc..

19
CHOCOLATE CONFECTIONERY

• Chocolate confectionery and biscuits
• Nestlé
• Crunch
• Galak/Milkybar
• Kit Kat
• Smarties
• Butterfinger
• Aero
• Polo

20
DAIRY PRODUCTS

• Nido
• Nespray
• Carnation
• La Lechera etc..

21
FOOD SERVICES

• Food Services and professional products Chef
• Davigel
• Minors Petcare Purina
• Friskies
• Fancy Feast, Alpo, Gourmet etc..

22
ICE CREAM

• Antica Gelateria del Corso
• Dreyer's/Edy's
• Drumstick/Extrême
• Maxibon/Tandem
• Mega
• Mövenpick
• Sin Parar/Sem
• Parar/Non Stop

23
PREPARED FOOD

• Lean Cuisine
• Hot Pockets
• Maggi
• Refrigerated products (cold meat products, dough,
  pasta, pizzas, sauces, snacks) etc..

24
PET CARE

• Friskies
• Fancy Feast
• Dog Chow
• Cat Chow
• Tidy cats etc..

25
PHARMACEUTICALS

• Alcon
• Pharmaceutical and cosmetic joint ventures
  Galderma
• Laboratoires innéov
• Patanol

26
COSMETICS

• LOréal

27
CUSTOMERS

• Every person, of any age group,
• gender etc is the target customer of
• Nestle
• Nestle target its customers by knowing
• customer needs demands. For this
• purpose it made customer profile.
• Customer profile based on two
• criteria

28

• Qualitative research-
• This involves setting up small focus groups of
  consumers who express their ideas and opinions
  about their needs and views on different
  products.
• At one level, this might involve asking groups of
  athletes to talk about their lifestyles, dietary
  habits and training regimes.
• At another level, it could involve a consumer
  focus group discussing the quality of the
  nutritional labeling on a yogurt drink.

29

• Quantitative research-
• This involves only relatively few people like
  professional market researchers may interview
  thousands of people through postal or telephone
  interviewing.
• Nestlé regularly uses both forms of research to
  gain a clear idea of consumer opinions and
  trends.
• Using these customer profile techniques, Nestle
  developed its different product strategies to
  target the customers.

30
(No Transcript)
31
AYESHA
32
NESTLE ASIA
33
COUNTRIES

• Bangladesh
• China
• Hong Kong
• India
• Indonesia
• Iran
• Israel
• Japan
• Jordan
• Kazakhstan
• Kuwait
• Lebanon
• Malaysia

• Pakistan
• Philippines
• Republic of Korea
• Saudi Arabia
• Singapore
• Sri Lanka
• Syria
• Taiwan
• Thailand
• United Arab Emirates
• Uzbekistan
• Vietnam

34

• Nestlé Waters is number one in Vietnam with its
  La Vie brand.
• Annual consumption per person varies in Asia,
  from 1.2 L in Pakistan to 47 L in Thailand.

35
NESTLE PAKISTAN
36
INTRODUCTION

• Nestlé MilkPak Limited (NML) was incorporated in
  Pakistan under the Companies Ordinance, 1984
  listed on Karachi and Lahore stock exchanges
  since 1980.
• Joint venture between Nestle Switzerland and
  MilkPak Limited came about in 1988.
• Nestlé Pure Life was launched in Pakistan in 1998

37
SEGMENTATION

• Segmentation of world in three zones
• US
• Asia
• Oceania Africa
• Nestle has divided the whole Pakistan in to three
  zones
• Northern Zone
• Central Zone
• Southern Zone

38
REGIONAL SALES OFFICES

• Nestle has 10 Regional Sales Offices in all over
  the Pakistan.
• Karachi F - 77/1, Block 7,Clifton, KDA Scheme
  5,Karachi, Sind, Pakistan Phone [phone]
  Fax [phone]
• Hyderabad 178, Block C, Unit 2Latifabad,
  Hyderabad, Sind, Pakistan Phone (0221)
  860403Fax [phone]
• Sukkur F - 33/5 - CWorkshop RoadSukkur, Sind,
  Pakistan.Phone [phone]Fax [phone]
• Lahore 29-B, Main Gulberg,Lahore, Punjab,
  PakistanPhone [phone]-6, 5761484Fax (042)
  515061

39

• Faisalabad House No. 24-Y-103 Madina
  Town,Faisalabad, Punjab, Pakistan Phone
  [phone]Fax [phone]
• Gujranwala Plot No 144-A, First Floor
  Satellite-Town Market, Gujranwala, Punjab,
  Pakistan.Phone [phone] Fax [phone]
• Peshawar 201, 2nd Floor, City Tower, Jamrud Road,
  B Block,Peshawar, N.W.F.P., Pakistan Phone (091)
  840859, 842415Fax [phone]
• Multan Surij Miani Road, Chungi No.1,Multan,
  Punjab, Pakistan Phone [phone]Fax (061)
  515061

40

• Quetta 63 B - D, Chaman Housing Scheme, Opposite
  Askari Park Quetta, Baluchistan, Pakistan Phone
  [phone]Fax [phone]
• Islamabad 74-W, Yaseen Plaza, 1st Floor, Blue
  Area, Islamabad, Pakistan Phone (051)
  271874-75,824328, 824384, 274376
• These offices work under their respective zonal
  offices
• Registered Corporate Office Is in Lahore 308 -
  Upper Mall, Lahore PABX 5757082-95 Fax [phone]

41
FACTORIES

• Nestle has two factories in Pakistan for the
  production of different food items.
• One in Sheikhupura near Lahore and other in
  Kabirwala near Multan

42
REGIONAL OFFICE
NESTLE GUJRANWALA
43
INTRODUCTION

• Gujranwala Plot No 144-A, First Floor
  Satellite-Town Market, Gujranwala, Punjab,
  Pakistan. Phone [phone] Fax (055)
  3733415

44
HIERARCHY
45
ZUNAIRA
46
MANAGEMENT
ORGANIZATIONAL STRUCTURE
47
CEO
MANAGEMENT DIECTOR FINANCE MANAGER
MARKETING MANAGER PRODUCTION MANAGER
NATIONAL SALES MAANGER ZONAL SALES MANAGER
ZONAL SALESMANAGER ZONAL SALES
MANEGER NORTH
CENTER
SOUTH
SALES DEPT A/C DEPT SALES PROMOTION DEPT
REGONAL SALES MAANGER SALES DEPT
A/C
DEPT
AREA SLAES SUPERVISOR SALES FORCE
48
MANAGEMENT PROCESS
PLANNING
ORGANIZING
CONTROLLING
LEADING

• Recognition
• RD
• Plan
• Formulation
• Estimation

• People
• Process
• Situation

• Decentralized
• People oriented
• Motivating
• activities

• Comparing of
• Manufactured
• products

49

• Nestlé has very strong flexible liberal structure
  with tight internal control with strict check
  balances.
• Zonal and regional managers are told budget
  limitations targets guidelines from Vevy (HQ)

50
SWOT ANALYSIS

• STRENGHTS
• Value added products
• Brand name
• Six brands having
• 70 group sales
• RD department
• Unique features and technologies
• 40 60 test result criteria

51

• Weakness
• Less consumer research in few areas.
• Opportunity
• Market expansion by using bio-technology.
• Threats
• Baby milk action
• New and indirect competitors
• Product acceptance

52
COMMITMENT

• The continuous progress and leadership is made
  possible through the collective commitment of the
  tens of thousands of individual Nestlé employees
  who, on a daily basis, work to make this a better
  planet on which to live.
•  

53
RECRUITMENT

• Each year, number of top young graduates are
• recruited. All have strong academic
• qualifications, essential language skills
• relevant internships or professional
  experience.

54
RECRUITMENT CRITERIA

• Graduates with a degree in Business
  Administration or Economics with professional
  experience.
• High degree of adaptability and mobility.
• Unquenchable thirst for knowledge.
• Superb communication skills.
• The ability to assume control anywhere in the
• world.

55
TRAINING OF EMPLOYEES

• New employees are prepared to gain
• experience in sales and marketing-related
• activities other areas of the business.
• Activities include-
• Production,
• Supply chain information systems,
• Finance control,
• Purchasing,
• Communication Market Research.

56
MOTIVATION

• Employees get Motivation by-
• Immediate job satisfaction
• Long-term career development
• Superior pay and benefits
• The personal growth that comes from experience
  and training
• Materialistic as well as internal motivation

57
REWARDS BENEFITS

• Health screening/on-site occupational health
  facilities
• Sick pay
• 25 days' holiday
• Mobile phone on a business need basis
• Company bonus scheme
• Contributory final salary pension scheme
• Childcare vouchers (dependant on salary)
• Gym facilities at larger sites
• Staff shop at most sites
• Flex time at some sites

58
LEADERSHIP PRINCIPLES

• Their motto is
• "Teamwork with responsible leadership".
• Nestlé is people product oriented.
• Value for its stake holder but would not favor
• short term profit at expense of long term
  business
• development.
• As decentralized as possible.
• Concept of Continuous improvement of activities.

59
Nestlé FAVORS
Flat organization structure
Clear level of responsibility
Function responsibilities
Team with its leader
60
ANEELA
61
MANAGEMENT AUDIT
62
GENERAL INFORMATION

• Name of the agency Regional Sales Office,
• Satellite Town, Gujranwala.
• Postal address Plot No 144-A, First Floor,
  Satellite Town Market, Gujranwala, Pakistan.
• Postal code and City 52250.
• Country Pakistan.
• Phone [phone]

63

• Fax [phone]
• E-mail nestle_gj_se_at_brain.net.pk
• WWW-address www.Nestle.com
• Contact person Mr. Ikram Elahi
• Function contact person Sales Administration
  
• 
  Executive
• Founding date April 1997

64
SECURITY AND ENVIRONMENTAL MANAGEMENT

• Different actions like emergency exit signs,
  training sessions on safety are taken by the SEM
  committee.
• SEM training records are updated on monthly
  basis. Its the duty of reporting safety officer
  in every region/area.
• Department is established for safety policies
  according to job description and according to the
  sensitivity of area.

65

• Goal of safety department is No Accident and
  all the equipments and tools are working
  according to the safety measures.
• Department ensures that required medical
  surveillance, monitoring, removal, and reporting
  responsibilities for applicable exposure
  standards are assigned and carried out.
• Security and security procedures in every
  department is very strict. All the employees have
  to work under specific security rules.
• Budget is given to SEM committee by the head
  office.

66
Human Resource Security Management Audit

• All the employees and contractors are well
  informed about their responsibilities and
  companys rules and regulations before they are
  hired.
• All third-party users are fully aware and are
  told their limits i.e. up to that extent they are
  eligible and allowed to use the facilities.
• All the employees are assigned to perform duties
  and responsibilities that they can perform.

67

• Third party users are provided those facilities
  which they actually deserve.
• Job description is provided clearly to understand
  the responsibilities in a proper way and to
  perform up to required standards.
• All the employees have to face interviews that
  totally reflect each and everything regarding
  their personality and character.
• Prospective employees and contractors are asked
  to sign agreements that specify what their
  security roles and responsibilities are.

68

• Third party users are asked to sign the
  agreements about their duties and
  responsibilities as a proof to make sure that
  they are fulfilling their promise/duties.
• Organizations security role and responsibilities
  are according to information security policies
  in order to avoid any violation.
• Implementation of security policies is according
  to security requirements.
• Security roles and responsibilities are
  documented for the guidance of organizations new
  associates.

69

• All personnel implement our organizations
  information security policy as they are given
  in-depth information about our security
  policies.
• Security policies are developed as there is no
  risk to face for any sort of un-authorized
  destruction.
• Security events must be reported to the
  organization in order to achieve protection and
  establish security policies according to
  requirements.

70

• Security roles are not communicated to job
  applicants during the pre-employment process and
  neither to non-staff members.
• Job description is linked with security policies
  so they are documented and communicated properly.

71
ORGANIZATIONAL STRUCTURE

• Organizational chart clearly indicates the,
  responsibilities, authorities and accountability
  for each function.
• Employees in the organization has clearly written
  job description according to the designation.
• When delegations occurs, agreement is written
  with the mutual understanding.

72
HUMAN RESOURCE MANAGEMENT

• Evaluation of the employee is done quarterly in
  a year.
• Wages, salaries and fringe benefits increases
  with the working duration of employees in the
  organization.
• Training programs are offered primarily and
  frequently to improve the skills of employees.
• Companys policies and procedures are displayed
  as a chart in every office of Nestle and they are
  also accessible at net

73
BUDGETING AND EXPENSE CONTROL

• Limited budget is given annually to every office
  of Nestle.
• If extra budget is required then that particular
  office put forward the request to the CEO of head
  office and CEO approves the budget according to
  the need and situation.
• Amount and rate of expenditures are made
  according to the budget given.

74
TAXES AND LEGAL OBLIGATIONS

• Tax, finance and accounting department is
  responsible for all tax reports and payments.
• Company has its own multiple distribution
  channels which enables company to supply any
  critical items.
• Before any purchases, comparison market statement
  is made and according to the prices in that
  statement purchases are made.

75
MARKETING AND SALES PROMOTION

• Nestle knows the specific segment of the market,
  its business is attempting to serve.
• It determines the sales of its products against
  those of its competitors with the help of
  research.

76
LOCATION

• Nestle always make sure that all of its
  operations are convenient and easily accessible
  to its target market.
• Product handling is responsibility of company.

77
RUBAB
78
PRICING

• All the prices are totally based on quality,
  services and organization makes sure that prices
  should be affordable by all the customers.

79

• A Segregation of Duties IC Questions
• Head office payroll department controls
  paychecks.
• Checks are transferred to the banks in respective
  accounts of the employees.
• B General internal Controls
• Accounting system is handled by accounts
  department.
• Finance department approves/reviews bank
  reconciliations, monthly financials/PLs
  reviews monthly budgets to actual monthly
  expenditures.

80

• Personals of finance department has a password to
  access the financial system.
• Finance department of Head Office has custody of
  blank checks.
• Sales operation department of each region reviews
  monthly/year end accruals.

81

• There are 15 working leaves and 22 official
  leaves given to employees in a year.
• Every person is responsible for reviewing
  policies and procedures for compliance with
  Commission rules.
• C Control Over Expenditures
• Purchase requests are made by concerned purchase
  department by the head of regional office and
  then put forward to the head office for
  approval.
• Venders entered into the accounting system on
  contractual basis.

82

• Purchase requests matched to invoices when paid
  time sheets approved by supervisors.
• Human Resource department of head office approves
  the executive directors' bonuses.
• Payroll department of head office has custody of
  unclaimed payroll checks.
• D Control Environment Controls
• Environment committee of the factories regularly
  manages routine environment issues and review
  with the factory management their past
  performance and future objectives

83

• Termination, detention etc. are the disciplinary
  actions taken against employees which depends on
  the sever-ness of violation and handled by legal
  department.
• Strict confidentiality of the names of employees.
  Gain it depends upon the sever-ness of situation.
  
• E Commitment to Competence
• Detailed job description is given and its
  revised time after time.

84

• F Board Direction
• Annual General Meeting is held every year other
  then that it depends on the situation.
• G Assignment of Authority and Responsibility
• Employees are evaluated according to the company
  policies.
• H Risk Assessment Controls
• Policies and procedures address the safeguarding
  of assets as company is very strict about the
  safeguarding of assets

85

• I Communication Controls
• Polices procedures made available to staff and
  revised time to time.
• Budget requirements, expenditures etc. reports
  are provided to management board in annual
  meeting or when asked by the head office.
• There is a process in place for communicating
  changes in accounting methods, regulations, and
  rules.
• Policies describe the process for communicating
  changes in accounting methods and rules to staff.

86

• There are established internal and external
  communication channels.
• Employees are free to communicate to any
  authority. There is no particular established
  channel. Authorities are bound to listen to the
  employees.

87

• J Monitoring
• Management periodically reviews the accounting
  processes to recommend changes needed for
  improvement.
• K Information system controls
• The financial system password is only known to
  the personals of finance department.

88
PROBLEMS SUGGESTIONS/SOLUTIONS CONCLUSION
89
PROBLEMS

• HRM department is not giving good salaries to the
  employees, so employees are de-motivated and
  dont work with the company for very long.
• Staff is not as responsible as it should be.
• There are not much security measures in the
  office.
• A constant threat to the companys economic
  balance due to unstable government policies.

90

• Shortage of certain products like Nestle ghee,
  which is a significant demand in the market.
• The regional office is not managed properly e.g.
  no board is placed to mention the identity of the
  office.

91
SOLUTIONS/SUGGESTIONS

• Bonus packages and increment in salaries for a
  selective level of work and efficiency should be
  awarded to attract the employees concern.
• Staff should be made more responsible by
  implementing strict rules and regulations and
  taking disciplinary actions against any
  un-professional behavior.
• Skilled workers of the company should join the
  security department to enhance the system.

92

• Long term agreements to be signed with
  governmental departments.
• A small part of the budget should be spent for
  the management of the office.
• Inventory should be maintained.

93
CONCLUSION

• Nestle is a market leader due to different
  reasons
• Its price is high against its competitors but it
  matches its quality with its competitors.
• Nestle is using its brand name to promote its
  products its very popular as compared to its
  competitors.
• Its packaging is good.
• We can easily find Nestle from any retailer shop.
  

94

• Due to its advertisement, Nestle attracts more
  customers has very prosperous future if it
  continues to promote its products and bring all
  the possible innovational aspects using different
  product line strategies.
• It has always maintained the quality of its
  products.
• Despite of all the facts, theres need to
  maintain the condition of office and enhance the
  security.
• Behavior of employees is not professional and
  every department should treat equally.

95
STOP
96

• PLANNING
• ORGANIZING
• LEADING
• CONTROLLING
• PROBLEMS
• SOLUTIONS