CHAPTER 1

INTRODUCTION

INTRODUCTION
Human resource management is the management of employee skills, knowledge, abilities,
talents, aptitude and creative abilities etc.
a) Employee in HRM is treated not only as economic man but also as social and
psychological man. Thus the complete man is reviewed under this approach. Employee is
also treated as a resource.
b) Employees are treated as a profit center and therefore capital for Human Resource
c) Development and future utility.
d) Human resource management is a strategic management function.

A career is a sequence of positions/jobs held by a person during the course of his

working life. According to Edwin B. Flippo a career is a sequence of separate but related
work activities that provide continuity, order and meaning to a persons life.

Employees (of all categories) want to grow in their careers as this provides more
salary, higher status and opportunity to use knowledge, education and skills effectively. An
individual with potentials joins a firm not for job but for career development. An organization
has to provide better opportunities to its employees in their career development and also use
their efficient services for the benefit of the organization.

Career planning essentially means helping the employee to plan their career in terms
of their capacities within the content of organizational need. It is a management technique for
mapping out the entire career of young employees in higher skilled, supervisory and
managerial positions. Thus it is the discovery and development of talents, and planned
deployment of their talent.
For an employee, career planning provides him an answer as to where he will be in
the organization after 5 or 10 years or what are prospects of his growing in the
Organization.
Career planning is not an event or an end in itself but a process of Human Resource
and Development.
The term career planning and development is used extensively in relation to business
organizations. It is argued that if the organizations want to get the best out of their employees,
they must plan the career development programs in their organization effectively. Such
programs offer benefits to employees and also to the organizations. The employees will
develop new skills will be available to the organization. This type of career planning can be
described as organizational career planning
Career planning and development is the responsibility of the HR department of the
organization. As already noted, every person joining an organization has a desire to make
career as per his potentiality, ability, skills and so on.

NEED AND IMPORTANCE OF THE STUDY

To map out careers of employees as per their ability and willingness and to train and
develop them for higher positions. To attract and retain the right type of persons in the
organization. To utilize available managerial talent within the organization fully. To achieve
higher productivity and organizational development. To provide guidance and assistance to
employees to develop their potentials to the highest level. To improve employee morale and
motivation by providing training and opportunities for promotion.
Career planning helps an employee to know the career opportunities available in an
organization. Career planning encourages him to avail of the training and development
facilities in the organization so as to improve his ability to handle new and higher
assignments. Career planning anticipates the future vacancies that may arise due to
retirement, resignation, death, etc. at managerial level. Therefore, it provides a fairly reliable
guide for manpower forecasting. Career planning facilitates expansion and growth of the
enterprise. The employees required to fill job vacancies in future can be identified and
developed in time.

OBJECTIVES OF THE STUDY

Factors that employee focus on while career planning.
To study career planning process in nestle.
To study the effectiveness of various career development programmes conducted
by the nestle.
To know in what way the training given by the organization is effecting on an
employee and what way it is helpful for their Career Planning and Development.
To suggestions.

SCOPE OF THE STUDY

The following activities/areas are covered within the scope of organizational career planning
a) HUMAN RESOURCE FORECASTING AND PLANNING
Here, efforts will be made to identify the number of employees required in future. In addition,
the selection procedure will be adjusted with the overall strategic goals of the organization.
b) CAREER INFORMATION
Here, information relating to career opportunities (promotions, training for self development,
etc) will be supplied to employees. Supplying career information/opportunities has special
significance as this motivates employees to grow and reach to higher position.
c) CAREER COUNSELLING
Such counseling is next to supplying career information. Career counseling is possible by
senior executives through periodic discussions with their subordinates. Such career guidance
encourages subordinate employees to take interest in certain areas where suitable
opportunities of career development are available. It is a type of internal guidance and
motivation of employees for the selection of possible career paths. Such counseling is needed
when employees have to plan their own careers and develop themselves for career progress.
d) CAREER PATHING
Management now plans job sequences for transfers and promotions of their employees. This
makes transfers and promotions systematically with advance information to employees.
Career pathing creates suitable mental makeup of employees for self development.
e) SKILL ASSESSMENT TRAINING
Training is essential for career planning and also for manpower development. Along with job
analysis, organizational and job manpower requirement analysis should be undertaken by the
management. This prepares proper background for the introduction of career planning
programs for employees.

RESEARCH METHODOLOGY
AREA OF THE STUDY
The study was mainly concentrated towards the career planning & development in NESTLE.
RESEARCH DESIGN
The research design used for this purpose is both exploratory and Descriptive. Exploratory
research includes collection of Secondary data,
Descriptive Research: Descriptive research includes survey and fact-findings enquire of
different kinds involving a detailed survey by a questionnaire issuing to employees of
NESTLE.
DAT
A COLLECTION
The study is based on the data collected through primary and secondary sources.
PRIMARY DATA
An interview schedule was designed to collect primary data from direct personal interviews
from the customers general public and sales men by a questionnaire survey.
SECONDARY DATA
Secondary data was collected from journals, magazines, web sites and from other relevant
publications.
SAMPLING DESIGN
The sampling design mainly consists of the sample taken for the study along with the sample
size, sample frame and sampling method.
SAMPLE UNIVERSE
All employees of NESTLE were taken as the sample universe.
SAMPLE SIZE
From the universe, sample sizes of 100 employees were selected for the purpose of the study.

SAMPLING METHOD
Random sampling method was used based on the willingness and availability of the
employees.
A Methodology does not set out to provide solutions but offers the theoretical
underpinning for understanding which method, set of methods or so called best practices
can be applied to a specific case.
It has been defined also as follows:
1. The analysis of the principles of methods, rules, and postulates employed by a
discipline.
2. "The systematic study of methods that are, can be, or have been applied within a
discipline"
3. "The study or description of methods

LIMITATIONS OF THE STUDY

Questionnaire is used as a primary tool in this study, so views expressed by the
Respondents are confined to the elements of the questionnaire.
Biased view of respondents may influence the validity of the information.
The time for the project is 45 days in which the collection of data, interpretation, analysis,
conclusion and the objectives of the study should be justified.
Sometimes respondents were not co-operative in answering a few questions which affects
the accuracy of the research.
Time Factor
Unsuitable for Large Workforce,
Lack of Objectivity
External Interventions
Lack of Knowledge and Awareness
Lack of Flexibility
Difficulty in Measuring Career Success

ORGANISATION OF THE STUDY:

1. INTRODUCTION: The first chapter gives the detail introduction on the lending.

2. REVIEW OF LITERATURE: The second chapter states the objectives scope, source
of data, research methodology.

3. COMPANY PROFILE OF THE ORGANIZATION: The third chapter gives the profile
of the organization where the project is conducted. It also explains about the future
plans of the company.
4. DATAANALYSIS AND I NTERPRETATION: The chapter gives detail regarding the
analysis and interpretation of data after collection. It comprises of brief notes
regarding analysis and various methods through which they may be carried out. It
also consists of the data in form of tables, graphs and pie-charts and its interpretation
.
5. SUMMARY OF FINDINGS, CONCLUSIONS AND SUGGESTIONS: The chapter
concluded the project report it comprises of the findings and conclusion draw from
the above analysis based on the data collected and also includes suggestion.

CHAPTER- 2
REVIEW OF LITERATURE

SURVEY-1
Title: Career Planning and Development
Source: Nestle Food Products
Nestle Food Products, senior loan officer conducted a survey on increasing demand
for Products. The survey found that about 25% of Production reported increase demand for
commercial and industrial Products from large and middle market firms. About 10% reported
stronger loan demand from small business.
The career potential development
Production help the employee t for

is

improved. More than half of domestic

development in market productions applicant had

improved while 35% said the nestle business borrowers had improved.
Through the first seven months of fiscal year, 7(a) loan program was introduced and
was soon up by 53% when compared with the same period a year ago. In the fiscal year, more
than $13 billion 7(a) Products had been approved and it is also expected that program could
hit the authorized limit of $17.5 billion before the end of fiscal year. Therefore as a result it
was found that here was an increasing demand for Products.

SURVEY-2
Title: Investors strong support for fair value of productions
Source: Nestle Institute
Nestle Institute head of financial reporting policy at Nestle Institute conducted a
survey to ascertain investor-member views on the fair value measurement of Products.
The survey found that Nestle Institute members strongly desire higher quality, more
transparent and more relevant information about asset values contained in fair value
measures. The small number of banking analysts queried through other surveys pales in
comparison to the board based investor-member feedback before, during and after the
financial crisis.
Again in September, more than 70% or approximately 8000 out of 1100 respondents,
stated that they want fair value as the primary measurement basis for financial Products and
needs strong support for the fair value of Products.

REVIEW OF LITERATURE

CAREER DEVELOPMENT ACTIONS

a) JOB PERFORMANCE
Employee must prove that his performance on the job is to the level of standards
established, if he wants career progress.

b) EXPOSURE
Employees desire for career progress should expose their skills, knowledge,
qualifications, achievements, performance etc., to those who take the decision about career
progress.

c) RESIGNATIONS
Employees may resign the present job in the organization, if they find that career
opportunities elsewhere are better than those of the present organization.

d) CHANGE THE JOB

Employees who put organizational loyalty above career loyalty may change the job in
the same organization are better than those in the present job.

STEPS IN CAREER PLANNING

1.

ANALYSIS OF PESONNEL SITUATION

2.

PROJECTION OF PERSONNEL SITUATION

3.

IDENTIFYING CAREE

4.

SELECTION OF PRIORITIES

5.

DEVELOPMENT OF CAREER PLANS

6.

WRITE UP OF FORMULATED CAREER PLANS

7.

MANAGERIAL PLANNING

8.

IMPLEMENTATIO

9.

REVIEW AND EVALUATION

10.

FUTURE NEEDS

1. ANALYSIS OF PERSONEL SITUATION

This is the first step which needs to be completed before the introduction of career
planning programme. This relates to a time from which career planning is to be introduced.
Here, the base line will be prepared to help the planners to make projections for the planning
period and to help in the evaluation of plans. In order to analyze the present career situation,
the following information will be required:

Total number of employees their age distribution, qualifications, positions, specializations,

etc.
Structure broad as well as detailed and the qualifications required for each grade.
Personnel need of the organization. (Category wise)Span of control available within the
organization. Field staff at head office with necessary details, and facilitates

available for

training and development within and outside the organization. The information collected on
these aspects serves as the base for the preparation of career development plan for the future
period.
2. PROJECTION OF PERSONNEL SITUATION
In this second step, an attempt is being made to find out the situation likely to develop
after the completion of career development plan. This can be done on the basis of assumption
which can predict what is likely to happen at the close of the career development plan.
3. IDENTIFYING OF CAREER NEEDS
In this third step of career development plan, efforts are made to find out precisely the
career development needs of the future period. It is possible to identify the scope and
limitations of career development needs on the basis of the data collected (through personnel
inventory of the organization, employee potentials, and appraisal of employees).
4. SELECTION OF PRIORITIES
It is rather difficult to meet all the needs of the employees and the organization for
career development immediately i.e. through one career development plans. Naturally, there
is a need to select the pressing and urgent problems of employees and organization. In
addition, other factors such as technical, financial and administrative must be taken into
consideration while finalizing the priorities.
5. DEVELOPMENT OF CAREER PLAN
This is the most important step in the whole process of career developing plan. Such
plan must describe the following in concrete form/forms
What is to be attained/achieved?
The extent to which it is to be attained,
The employees involved,
The department in which the proposed plan will operate;

 The length of time required the achieving the goals

6. WRITE-UP OF FORMULATED PLAN
After deciding the priorities of career development plan, the next major step is to
prepare a write up (brief report) of the career plan. This writ-up should contain all necessary
detail such as schedule (time sequence of plan), procedures and other details so that the
evaluation of the plan will be easy and meaningful.
7. MONITORING OF CAREER DEVELOPMENT PLAN
Monitoring of the plan is essential for its effective execution. Expected
results/benefits will be available only when the plan is implemented properly. Planned
(expected) targets and targets actually achieved can be compared through suitable monitoring
of the plan. The gap between the two (i.e. short falls) can be located quickly. In addition,
suitable remedial measures can be taken to rectify the shortfalls.
8. IMPLEMENTATION (OF CAREER DEVELOPMENT PLAN)
Implementation/execution of the plan is an integral aspect of planning process itself.
For effective implementation, co-operation and co-ordination at all levels is necessary. The
implementation needs proper monitoring so as to avoid possible shortfalls.
9. REVIEW AND EVALUATION OF CAREER PLANS
A plan needs periodical review. Such evaluation avoids mistakes, deficiencies, etc
during the implementation stage. It is built-in device to measure the effectiveness of the plan.
Actual benefits available will be known only through such review and evaluation. Such
evaluation should be done by experts. It should be conducted systematically and also
impartially.
10. FUTURE NEEDS
This is the last step/stage of the current career development plan and the first
step/stage of the next plan. Here, on the basis of the achievements of the current plan, the
career needs of the future period (of employees and also of the organization) are estimated.
The new priorities are decided and the details of the new career development plan are
prepared. Planning is a continuous process/activity. This rule is applicable to career
development plans of an organization.

Many populations do not have career development services readily available. If one
does not have access to career assessments, reflecting on ones

hobbiesand natural

inclinations can be a beneficial area to begin brainstorming ideas

(Lewis & Sabedra, 2001).
For instance, if a client loved making potteryloved working with her hands, working
independently and then sharing her work, creating new ideas and implementing them
perhaps she could open up a shop in a large city, work as a florist, or become an instructor for
a senior art class at the community center, and so on. One often hears that there is a time for
work and a time for play (i.e., hobbies). However, they do not have to be distinct and
mutually exclusive from one another; weaving ones avocation into ones career can create a
compatible, interesting, and fulfilling combination for some.
Assessments are not foolproof but they are often the starting point when working with a
client who is trying to make decisions for the future. It is also important to realize that career
development is not just about tests or quick fixes; it takes time and effort for the client to
learn about themselves and their interests.
Dream job scenarios can be helpful in terms of promoting client awareness of what
duties, work schedules, and so on one could enjoy, but students should understand that the
term career is not referring to one specific job but rather a lifetime of various job roles,
learning, and growth opportunities.
(Goodman, 2006).
It is not enough to ask a person a few questions about his or her interests in life and hope
to steer the person into a complimentary field. It is essential to realize that not only are our
careers central to ones identity, but they affect and are affected by, all of the other areas of
our lives (Goodman, 2006). Thus, it is very beneficial for career development professionals
to have not only an awareness of current available career and economic opportunities, but
also a background in interpersonal communication and individual counseling.

Career services professionals can be a key for individuals to find career fields that are
meaningful, fulfilling, and in keeping with how they would enjoy spending a large portion of
their day. Counselors must understand that clients are coming from a variety of backgrounds
and influences and, consequently, will have very different views about work and even about
the very career services they seek. Counselors must be willing and able to listen actively to
what their clients are saying and sense what they are not saying. Counselors should also be
aware that many clients do not believe that they have the necessary skills, aptitude, and/or
abilities to enter or succeed in a certain profession. Counselors can assist individuals in
finding ways to increase their skill and knowledge levels as well as provide encouragement
for the client to work toward their aspirations.
It is critical that children and young adults, perhaps even beginning at the elementary age, are
exposed to career-related discussions and opportunities. The more an individual is familiar
with brainstorming and considering career options, the easier it should be for him or her to
express talents, interests, and skills when trying to decide on a career path. Many children are
exposed to only a small fraction of available careers, usually those that they see repeatedly on
television and the media, and those positions held by parents and family members. This
minimal exposure can limit the childrens awareness of opportunities and does not expose
them to the thousands of specialties and intricacies of various careers needed in a global
economy. Therefore, it is extremely beneficial to bring career development awareness into the
schools at an early age and help students expand their career horizons by exposing them to a
wide array of career opportunities.
Career service professionals and clients should not stop after they receive the career
assessment results, but use them as a starting point for further reflection, discussion, and
discovery. One has the opportunity to benefit from career interest, skill, and personality
assessments; however, one must realize that interests and skills do not necessarily reflect
actual abilities.
(Smith & Campbell, 2003; Miller, 1999).
For example, perhaps a student decides to become a doctor because she loves helping
people; however, she cannot endure the sight of blood and has failed biology and anatomy.
Despite the students interests, her abilities reflect a need to pursue a different profession.

The abundance and variety of career choices can lead individuals into a state of
confusion, frustration, and career indecision.
(Osipow, 1999).
These clients may not know where to begin. It is important to note that career
assessments can also be a helpful way to narrow down possibilities for an individual who is
choosing among several career options.

CHAPTER- 3
COMPANY PROFILE

EXECUITVE SUMMARY
Nestl has been a leading food manufacturer and major purchaser of agricultural raw
materials for over 130 years. Food and agriculture are an integral part of the social cultural,
economic and political context of every community. Today, Nestl is the worlds largest and
most diversified food company, with nearly 500 factories in 77 countries, producing healthy,
enjoyable food products for every stage of life. The present study has been carried out with
the objective of studying Nestle, their brand exercises, the use of celebrity endorsement as a
tool of brand building by firms and the consumers perception about the brand image of Nestle
The research was carried out with the help of primary as well as secondary sources of
data Primary Data has been collected through consumer survey, among the existing and
potential consumers of Nestle Products. However secondary dats has been collected through
Books, Periodicals and Journals in the field of marketing, branding and Newspapers and the
Internet. The only limitation in this survey was that I could not conduct a survey on a big
scale, due to the time constraint. After all the literature and market research, and analysis I
wish to conclude that the philosophy behind the branding strategy of Nestle has been to
develop the brand so as to attract and retain the consumers. The branding strategies adopted
have resulted in building a sustainable and differential advantage over its competitors.

ABOUT NESTLE

Profile of the company

Nestl with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestl and is
today the world's biggest food and beverage company. Sales at the end of 2004 were CHF 87
bn, with a net profit of CHF 6.7 bn. We employ around 247,000 people and have factories or
operations in almost every country in the world.

The Company's strategy is guided by several fundamental principles. Nestl's existing

products grow through innovation and renovation while maintaining a balance in geographic
activities and product lines. Long-term potential is never sacrificed for short-term
performance. The Company's priority is to bring the best and most relevant products to
people, wherever they are, whatever their needs, throughout their lives.

Background
Nestle was promoted by Nestle Alimentana, Switzerland, a wholly owned subsidiary of
Nestle Holdings Ltd., Nassau, Bahama Islands. Nestle is one of the oldest food MNC
operating in India, with a presence of over a century. For a long time, Nestle Indias
operations were restricted to importing and trading of condensed milk and infant food. Over
the years, the Company expanded its product range with new products in instant coffee,
noodles, sauces, pickles, culinary aids, chocolates and confectionery, dairy products and
mineral water.
Nestle was incorporated as a limited company in 1959. In 1978, the Company issued shares
to the Indian public to reduce its foreign holdings to 40%. Its name was changed from Foods
Specialties Ltd. to the current name in 1981.The parent held 51% stake in the company as at
2000 end. It has FIPB approval to hike stake by 10% and has been gradually acquiring shares
from the open market. Parent stake in the company as at 2001 end stood at 53.8%. The parent
plans to continue hiking stake through open market purchases.
Nestle India Ltd, 51% subsidiary of Nestle SA, is among the leading branded food player in
the country. It has a broad based presence in the foods sector with leading market shares in
instant coffee, infant foods, milk products and noodles. It has also strengthened its presence
in chocolates, confectioneries and other semi processed food products during the last few
years.
The company has launched Dairy Products like UHT Milk, Butter and Curd and also
ventured into the mineral water segment in 2001. Nestles leading brands include Cerelac,
Nestum, Nescafe, Maggie, Kitkat, Munch and Pure Life.

Company Mission
At Nestle, we believe that research can help us to make better food, so that people live a
better life. Good food is the primary source of good health, so we are trying to make good
food. To provide fresh and pure products to the customers, we introduced (SHE) Safety,
Health and environment policy to protect health of our employs and keep clean our
surrounding environment

Company Vision

Vision of Nestle Milkpak Company is to expand business according to the increasing

demand of market.

As per our company vision in 2020 production capacity of all plants working in Pakistan
is being increased. So extension of Kabirwala Plant is the example of our company
vision.
Plant locations
Nestle started its manufacturing operations with Milkmaid in 1962 at Moga factory.
Manufacturing of Nescafe started in 1964 at the same factory. The company set up another
factory at Cherambadi in Tamil Nadu, for manufacture of infant foods, coffee etc. For almost
two decades there were no new additions of manufacturing facilities due to restrictive policy
environment. The company set up its Nanjangad (Karnataka) factory in 1989 and the
Samlakha (Haryana) factory in 1992. The Ponda (Goa) factory started operations in 1995.
The Company set up its sixth manufacturing unit in 1997 at Bicholim in Goa

Business of the Nestle

Nestle is the largest food company in the world. It is present in all five continents, has an
annual turnover of 74.7 billion Swiss Frances. There are 509 factories are running in 83
countries, having 231,000 employs

HISTORY OF NESTLE
Nestl was the result of a series of mergers of many small companies. In the mid-1860s,
Henri Nestle, merchant, chemist and innovator, experimented with various combinations of
cows milk, wheat flour and sugar. The resulting product was meant to be a source of
nutrition for infants, who could not be breast-fed by their mothers. In 1867, his formula saved
the life of a prematurely born infant. Later that year, production of the formula, named Farine
Lactee Nestl, began in Vevey and the Nestle Company was formed.
Henri Nestle wanted to develop his own brands and decided to avoid the easier route of
becoming a private label. Henri also wanted to make his company global. Within a few
months of the launch, Henri began to sell his products in many European countries. In the
companys initial years, Henri took various steps to facilitate research, improve product
quality and develop new products.
Meanwhile in 1866, two Americans, Charles and George Page had founded the Anglo-Swiss
Condensed Milk Company. The company launched a milk based infant food, which competed
with Nestls products. In 1875, Daniel Peter, a friend and neighbor of Henri developed milk
chocolate. Peter became the worlds leading chocolate maker, and later merged his company
with Nestl. The rivalry between Nestl and the Anglo-Swiss Condensed Milk Company
intensified but ended in 1905, when the two companies merged under the Nestl banner.
World War I created a new demand for dairy products. Nestle grew mainly by executing
government contracts. The end of the war created a crisis for the company as people started
using fresh milk again, instead of condensed and powdered milk. In 1921, Nestl recorded its
first loss, which was partly due to the worldwide postwar economic slowdown. Louis
Dapples, a Swiss banking expert restructured the company, streamling its operations and
reducing the debt burden.
In 1930, the Brazilian Coffee Institute approached Dapples, seeking new products. After eight
years of research Nestl developed a soluble powder that revolutionized coffee drinking
around the world. The product was launched under the brand name Nescafe and became an
instant success. The onset of World War II speeded up the introduction of Nescafe. The

beverage also became a popular drink among American servicemen in Europe and Asia. The
end of World War II triggered off a new phase of growth for Nestl. Many new products were
added as the company grew through acquisitions.
After 1974, Nestls financial position deteriorated. Oil prices rose and growth in
industrialized nations slowed down. The Swiss franc appreciated and the price of coffee
beans and cocoa shot up. This situation was partially offset by Nestls rapid growth in
emerging markets.
In 1981, Helmut Maucher took over as CEO. His policies had a significant impact on Nestls
style of functioning. Maucher pursued a two-pronged strategy to improve the companys
financial situation: First he embarked on internal restructuring and divestments; second he
decided to continue with strategic acquisitions. Between 1980 and 1984, he divested a
number of non-strategic or unprofitable businesses, amounting to nearly SFr8 bn. The
divestments included certain food products that were not consistent with Nestls emphasis
on high value added segments. To improve the companys financial situation, he embarked on
a cost-cutting exercise. While the employee strength was reduced significantly, the inventory
and outstanding debt were brought down.
In 1990, Nestl formed a joint venture with General Mills called Cereal Partners Worldwide
to promote Nestl breakfast cereals. It covered 70 countries accounting for about 75 per cent
of the breakfast cereal consumption outside the US and Canada. Nestl also formed a joint
venture with Coca-Cola, called the Coca-Cola Nestl Refreshment Company, to market tea
and coffee-based ready-to-drink beverages under the Nestea and Nescafe brands.
In 1996, Nestl decided to end its 50-50 Clinic Nutrition joint venture with Baxter Healthcare
and established Nestl Clinical Nutrition to provide orally consumed nutrition products to
hospitals and nursing homes.
Nestl opened the 20th century by merging with the Anglo-Swiss Condensed Milk Company
to broaden its product range and widen its geographical scope. In the new millennium, Nestl
is the undisputed leader in the food industry, with more than 470 factories around the world.
Nestl launched a Group-wide initiative called GLOBE (Global Business Excellence), aimed
at harmonizing and simplifying business process architecture; enabling Nestl to realize the
advantages of a global leader while minimizing the drawbacks of size.

The Companys strategy will continue to be guided by several fundamental principles.

Nestls existing products will grow through innovation and renovation while maintaining a
balance in geographic activities and product lines. Long-term potential will never be
sacrificed for short-term performance. The Companys priority will be to bring the best and
most relevant products to people, wherever they are, whatever their needs, throughout their
lives.

BUSINESS PRINCIPLES
Since Henri Nestl developed the first milk food for infants in 1867, and saved the life of a
neighbors child, the Nestl Company has aimed to build a business based on sound human
values and principles.

While our Nestl Corporate Business Principles will continue to evolve and adapt to a
changing world, our basic foundation is unchanged from the time of the origins of the
Company, and reflects the basic ideas of fairness, honesty, and a general concern for people.
People first
Employees, people and products are more important at Nestl than systems. Systems and
methods, while necessary and valuable in running a complex organization, should remain
managerial and operational aids but should not become ends in themselves. It is a question of
priorities. A strong orientation toward human beings, employees and executives is a decisive,
if not the decisive, component of long-term success.

Quality products
Our focus is on products. The ultimate justification for a company is its ability to offer
products that are appealing because of their quality, convenience, variety and price -products that can stand their ground even in the face of fierce competition.
Long-term view
Nestl makes clear a distinction between strategy and tactics. It gives priority to the longrange view. Long-term thinking defuses many of the conflicts and contentions among groups
this applies to employment conditions and relations with employees as well as to the conflicts
and opposing interests of the trade and the industry. Of course, our ability to focus on longterm considerations is only possible if the company is successful in the struggle for shortterm survival. This is why Nestl strives to maintain a satisfactory level of profits every year.
Decentralization
Switzerland is home to Nestl's Swiss subsidiary, its international headquarters and the
registered office of Nestl's holding company, but Nestl does not regard its Swiss
headquarters as the center of the universe. Decentralization is a basic principle of Nestl. Our
policy is to adapt as much as possible to regional circumstances, mentalities and situations.
By decentralizing operational responsibility, we create strength and flexibility and are able to
make decisions that are better attuned to specific situations in a given country. Policies and
decisions concerning personnel, marketing and products are largely determined locally. This
policy creates stronger motivation for Nestl's executives and employees and a greater sense
of identification with Nestl's business. It is not Nestl's policy to generate most of its sales in
Switzerland, supplemented by a few satellite subsidiaries abroad. Nestl strives to be an
"insider" in every country in which it operates, not an "outsider."
Uniformity
A very important concern at Nestl has to do with uniformity: how consistent Nestl's
principles, policies, rules of conduct and strategies should be, and to what extent they should
differ depending on the country, subsidiary, region, branch or group of products. In general,
Nestl tries to limit the uniformity of its policy to a requisite minimum. This minimum is then

systematically enforced, unless there are compelling reasons in a given market that justify
deviation from policy.
Diversification
Nestl does not want to become either a conglomerate or a portfolio manager. Nestl wants to
operate only those businesses about which it has some special knowledge and expertise.
Nestl is a global company, not a conglomerate hodgepodge. We regard acquisitions and
efforts at diversification as logical ways to supplement our business, but only in the context
of a carefully considered corporate marketing policy. Nestl is committed to the following
Business Principles in all countries, taking into account local legislation, cultural and
religious practices:

Nestl's business objective is to manufacture and market the Company's products in such
a way as to create value that can be sustained over the long term for shareholders,
employees, consumers, and business partners.

Nestl does not favour short-term profit at the expense of successful long-term business
development.

Nestl recognizes that its consumers have a sincere and legitimate interest in the
behaviour, beliefs and actions of the Company behind brands in which they place their
trust and that without its consumers the Company would not exist.

Nestl believes that, as a general rule, legislation is the most effective safeguard of
responsible conduct, although in certain areas, additional guidance to staff in the form of
voluntary business principles is beneficial in order to ensure that the highest standards are
met throughout the organization.

Nestl is conscious of the fact that the success of a corporation is a reflection of the
professionalism, conduct and the responsible attitude of its management and employees.
Therefore recruitment of the right people and ongoing training and development are
crucial.

Nestl continues to maintain its commitment to follow and respect all applicable local
laws in each of its

Research and Development

The Nestl research and development centers have two main tasks: to create new products
and manufacturing processes and to improve those that already exist. These centers play a
key role in product safety and quality and also have their role in conserving resources and
protecting the environment. Environmental concerns are an integral part of any development
process to ensure that our future commercial operations meet the desired criteria. The Nestl
Research Center provides the scientific support needed to prevent and solve environmental
problems arising in the development groups as well as manufacturing. In addition, studies are
carried out to find new ways of using industrial residues to create value added byproducts.
This will reduce total emissions and effluents. The Nestl development centers prepare
environmental impact studies for new products and manufacturing processes. These cover all
aspects, from raw materials, through processing, to the final packed product. These analyses
provide additional elements for use in deciding whether to commercialize a new product, or
to introduce a new or modified process.
Foresight
At present, the world faces daunting questions about its ability to provide enough wholesome
food for everyone. Malnutrition and poor eating habits are still serious problems in many
developing countries. By 2100, the world's population will double. Will it be possible to feed
a world with so many inhabitants? At Nestl, the big picture is all about feeding the world
and providing food and nutrition for an ever-growing population. Our response to this
situation is to intensify research, strive for innovations and improve quality.
Flexibility and simplicity
The public's sense of the power and size of a corporation is often inaccurate, for a company's
power is limited by a host of factors including legislation, competition, regulatory bodies and
publicity. From a business point of view, it is desirable for a firm to achieve the size best
suited to a specific industry or mode of production. To be competitive internationally and
make significant investments in research and technology, a larger company has an advantage.
From a strictly organizational point of view, flexible, simple structures work best and
excessively large units should be avoided whenever possible. In both respects Nestl has a

natural advantage: Although it is a big company, it is spread out over many countries and
each of Nestl's factories has its own management and responsibility.
Handling of raw materials
The Nestl Group is in principle not directly involved in primary production of raw materials
and other food ingredients. In general we use locally available raw materials and purchase
them either directly from producers or through existing trade channels. Raw materials have to
meet clearly established quality criteria and are checked for possible contaminants including
environmental contaminants. Our purchasing specifications comply not only with legal
requirements but go further to ensure highest safety and wholesomeness of our products.
Whenever possible we give preference to those goods for which environmental aspects have
been taken into consideration. In those cases where the required agricultural raw materials are
not available locally, but the natural production conditions exist, we encourage local
production and provide assistance for cultivation and dairy farm management. We support
plant growing and livestock husbandry methods which:

preserve and improve natural soil productivity and economize and protect water
resources

allow the lowest, most appropriate and safe use of agro-chemicals

use the least energy.

Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw materials
into finished products, with the aim to make them safe and convenient for the consumers. The
manufacturing activities of the Nestl Group:

respect natural resources by efficient use of raw materials and energy

minimize waste generation and emissions

ensure environmentally safe disposal of all waste which cannot be recycled.

Regular assessments of processing practices are carried out. These assessments include:

evaluation of individual plant performance with regard to operations which have an

impact on the environment

definition of targets for improvement

review of plant compliance with local government regulations, company environmental

standards, as well as results achieved in comparison with targets for improvement

full investigation of incidents which may affect the environment.

Information on developments in environmental protection technology and practices is

disseminated as required to ensure that all plants are using the most effective environmental
practices for their type of processing. This applies also for co packers.

Marketing and distribution

Marketing is based on the principle of satisfying consumer needs. This is the foundation also
for the environmental marketing approach of Nestl. Environmental product claims in
advertising, promotional material and on packaging are in accordance with legal
requirements, based on solid scientific evidence and used in a serious and reasonable manner.
Our aim is to minimize wastage in communication, publicity and promotional material, in
particular through more precise targeting of marketing activities. Consumer promotions and
merchandising material such as consumer offers, in store promotions, display material,
leaflets, printed matter, etc. take environmental aspects into account.
This means due consideration of environmental impact in selecting both materials and
printing methods. In distribution, energy efficient and pollution controlled methods are
encouraged wherever possible.
Information, communication and education
Nestl's policy is designed to provide correct and coherent information on the activities of the
Group. Activities related to the environment benefit from the same treatment and their
communication is secured through all currently available means inside and outside the Group.
It is furthermore Nestl's duty to create awareness, to train and motivate employees on their
personal responsibility with regard to the protection of the environment.
Legislation and Regulations
It is the policy of the Nestl Group to strictly comply with all laws and regulations relevant to
our activities. We participate in discussions on food legislation and regulations between
international organizations, government representatives, industry, the scientific world and
consumer associations. We also apply this policy to environment related matters. In doing so,
we cooperate with legislators through local industry associations in order to promote laws
and regulations in the field of environment which are reasonable, rational, realistic,
applicable and enforceable. We oppose unjustified bans and any other discriminatory
measures. We favor the harmonization of food regulations in order to remove existing trade
barriers and to avoid the creation of new ones. This applies also to environmental issues. We
favor the exchange of information, of experience and of knowledge between the various

interested parties. Thanks to all these synergies, we can contribute to valuable discussions and
be recognized as an active partner in helping authorities to formulate comprehensive
strategies in the field of the environment.

NESTLE QUALITY POLICY

Everyday, millions of people all over the world show their confidence in us by choosing
Nestl products. This confidence is based on our quality image and a reputation for high
standards that has been built up over many years.
5.1 Quality is the cornerstone of our success
Every product on the shelf, every service and every customer contact helps to shape this
image. A Nestl brand name on a product is a promise to the customer that it is safe to
consume, that it complies with all regulations and that it meets high standards of quality.
Customers expect us to keep this promise every time. Under no circumstances will we
compromise on the safety of a product and every effort must be made to avoid hazards to
health. Likewise, compliance with all relevant laws and regulations is a must and is not
negotiable. People, equipment and instruments are made available to ensure safety and
conformity of Nestl products at all times. The effort is worth it. Companies with huge
quality standards make fewer mistakes, waste less time and money and are more productive.

They also make higher profits. Quality is their most successful product. It is the key to their
success, today and tomorrow.
The customer comes first
Nestle want to win and keep customers: distributors, supermarkets, hotels, shopkeepers and
the final consumers. They have very different requirements. Trade customers expect excellent
service, correct information and timely delivery. Consumers consider taste, appearance and
price when they make their choice. Its task is to understand what customers want and respond
to their expectations rapidly and effectively. We serve various groups of consumers and there
is demand for products at different levels of perceived quality and price. All customers,
however, expect value for their money good quality at a reasonable price.

When offering quality to customers we also mean environmental quality. Nestl shares
societys concern for the environment and is committed to environmentally sound business
practices throughout the world. Customers are central to their business and they always
respect their needs and preferences.
Competition
Baby food and Instant coffee are categories where brand loyalties are very strong and Nestle
is the market leader. HLL is a significant competitor to Nestle in instant coffee; while Heinz
is the main competitor in the baby foods market. The market for culinary products, semiprocessed foods such as noodles, ready mixes for Indian ethnic breakfast and sweets, is
largely an urban market. HLL and Indo Nissin Foods are the main competitors in these

product segments. Nestle has also achieved a significant 25% share in the
chocolate/confectionery market. The company has recently expanded its dairy products
portfolio to include, milk, curd and butter. The company also forayed into the bottled water
segment with the launch of its Perrier brand in the premium mineral segment and Pure Life in
the purified water segment.
Quality is a competitive advantage
We live in a competitive world and must never forget that their customers have a choice. If
they are not satisfied with a Nestl product, they will switch to another brand. Their goal,
therefore, is to provide superior value in every product category and market sector in which
we compete. The pursuit of highest quality at any price is no guarantee for success, nor is a
single-minded cost-cutting approach. Lasting competitive advantage is gained from a
balanced search for optimal value to customers, by simultaneous improvement of quality and
reduction cost. Success can never be taken for granted. We must watch and learn from our
competitors. If they do something better, we must improve our own performance. We can
achieve competitive advantage through Quality.
Quality is a joint effort
Operating companies are fully responsible for maintaining agreed quality standards. Not only
Production units, but also Marketing, Purchasing, Distribution and Sales have a vital role to
play in providing quality to customers. This implies a thorough knowledge of the products
and services we offer. Quality units at different levels of the organization provide specific
support, promote quality awareness, assume guardianship and audit the system. Quality
departments monitor operations against agreed standards and must intervene in case of nonconformity. Quality policy and principles, the mandatory standards and the recommended
tools for implementation are laid down in the Nestl Quality System which is applicable
throughout the group. Further directions are given through instructions, norms and guidelines,
often specific to a product. Our business products, such as raw material producers, packaging
suppliers, contract manufacturers and distributors are expected to share our concern for
Quality. They too must set up an adequate quality system, so as to meet our requirements
consistently. The quality efforts must be shared by every function and department in the
company as well as our business partners.

Quality is made by people

Adequate equipment, procedures and systems are needed to make Quality; so are involved
and dedicated people. Each and every Nestl employee must do his best to provide quality
products and services. Training and teamwork are crucial to the successful implementation of
high quality standards. Continuous training ensures that everyone understands his tasks and
has the necessary skills to carry them out. Teamwork allows us to achieve results that are
greater than the sum of individual efforts. We motivate employees by demonstrating
management commitment to Quality, by setting challenging goals and by giving them
responsibility and recognition. It is through employee involvement that goals and targets can
be achieved in the shortest time. Quality must be a way of life for everyone in the company.
Quality is action
Quality is the result of deliberate action. It is the responsibility of senior managers to
communicate the quality objectives and to provide the resources necessary for their
implementation. It is then up to all employees to make Quality happen throughout the
company. Progress is followed by listening to our customers and by measuring our
performance. Shortcomings and mistakes must be analyzed and corrected. Problems must be
anticipated and prevented before they occur. We also must identify and take advantage of
opportunities. To stand still is to fall behind. So we must strive for continuous improvement
in every area. It is through many small improvements as well as through major breakthroughs
that we will achieve excellence. At Nestl, Quality is our first priority. Let us practice it every
day.
As said by Nestle:

Quality is the foundation of our food, nutrition, Health and Wellness Company.

A Nestle brand name on product is a promise to the customers that :

It is safe to consume.

It complies with all relevant laws and regulation.

Quality is to win consumers trust and preference.

We are committed to offering products and services to all customers that meat their needs.

Quality is every bodys commitment.

Our management takes the lead, sets the objectives and demonstrates its commitment
towards quality.

All Nestle functions across our value chain are fully responsible to follow mandatory
norms.

Quality is to strive for Zero defect and no waste.

We focus on facts and results and we strive for Zero defect and excellence in every thing
we do.

We adopt No waste and we constantly look for competitiveness and opportunities for
continuous improvement of the quality standards delivered to our customers.

Quality is to Guarantee, food safety and full compliance.

We enforce food safety, regulatory and quality requirements in every step of our value
chain.

SWOT ANALYSIS
Nestle India Limited is the Indian arm of Nestle SA, which holds a 51% stake in the
company. It is one of the leading branded processed food companies in the country with a
large market share in products like instant coffee, weaning foods, instant foods, milk
products, etc. It also has a significant share in the chocolates and other semi-processed foods
market.
Nestl's leading brands include Cerelac, Nestum, Nescafe, Maggie, Kitkat, Munch and
Milkmaid, confectionery. To strengthen its presence, it has been the company's endeavour to
launch new products at a brisk pace and has been quite successful in its launches.
Strengths:
Parent support - Nestle India has a strong support from its parent company, which is the
worlds largest processed food and beverage company, with a presence in almost every
country. The company has access to the parents hugely successful global folio of products
and brands.
Brand strength - In India, Nestle has some very strong brands like Nescafe, Maggi and
Cerelac. These brands are almost generic to their product categories.
Product innovation - The Company has been continuously introducing new products for its
Indian patrons on a frequent basis, thus expanding its product offerings.

Weakness:
Exports The companys exports stood at Rs 2,571 m at the end of 2003 (11% of revenues)
and continue to grow at a decent pace. But a major portion of this comprises of Coffee
(around 67% of the exports were that of Nescafe instant to Russia). This constitutes a big
chunk of the total exports to a single location. Historically, Russia has been a very volatile
market for Nestle, and its overall performance takes a hit often due to this factor.
Supply chain - The Company has a complex supply chain management and the main issue for
Nestle India is traceability. The food industry requires high standards of hygiene, quality of
edible inputs and personnel. The fragmented nature of the Indian market place complicates
things more.
Opportunities:
Expansion - The Company has the potential to expand to smaller towns and other
geographies. Existing markets are not fully tapped and the company can increase presence by
penetrating further. With India's demographic profile changing in favour of the consuming
class, the per capita consumption of most FMCG products is likely to grow. Nestle will have
the inherent advantage of this trend.
Product offerings - The Company has the option to expand its product folio by introducing
more brands which its parents are famed for like breakfast cereals, Smarties Chocolates,
Carnation, etc.
Global hub - Since manufacturing of some products is cheaper in India than in other South
East Asian countries, Nestle India could become an export hub for the parent in certain
product categories.
Threat:Competition - The Company faces immense competition from the organised as well
as the unorganised sectors. Off late, to liberalise its trade and investment policies to enable
the country to better function in the globalised economy, the Indian Government has reduced
the import duty of food segments thus intensifying the battle.
Changing consumer trends - Trend of increased consumer spends on consumer durables
resulting in lower spending on FMCG products. In the past 2-3 years, the performance of the

FMCG sector has been lacklustre, despite the economy growing at a decent pace. Although,
off late the situation has been improving, the dependence on monsoon is very high.
Sectoral woes - Rising prices of raw materials and fuels, and inturn, increasing packaging and
manufacturing costs. But the companies may not be able to pass on the full burden of these
onto the customers.

NESTLE PRODUCTS
Quality and nutritional value are the essential ingredients in all of the nestles brands.
Millions of people prefer Nestl products every day, happy with the addition to their wellness
that they bring. If you are looking for a specific brand our product, just use the alphabetical
index below to jump straight to a listing. Or you can explore by category.

Baby Foods

Milk based products and baby food contributes to 43% of Nestle's turnover. For ensuring
regular procurement of good quality milk, Nestle has developed a network around its Moga
factory for collection of fresh milk everyday from the farmers. Nestle has a dominating 87%
market share in the baby weaning foods with its Cerelac and Nestum brands. Infant milk
powder is sold under the Lactogen and Nestogen brands. Brand loyalties are very high in
categories such as infant food and weaning cereals, enabling the company to command a
price premium Other milk products include dairy whiteners (21% market share) sold under
the EveryDay and Tea Mate brands, sweetened condensed milk and ready to cook mixes for
traditional Indian sweets sold under the Milkmaid brand. The company also markets ghee
(6% market share) under the EveryDay brand. Nestle has expanded its milk product portfolio
with the launch of new dairy products such as UHT milk, Curd and Butter. Huge investments
are being made in building a diversified dairy business and the distribution infrastructure for
the same. Milk products sales registered a 10.6% yoy growth .
The production of infant food goes right back to the origins of the Nestl Company. Henri
Nestl's 'Farine Lacte' was the first product to bear the Nestl name.

In 1867 a physician persuaded Henri Nestl to give his product to an infant who was very
ill he had been born prematurely and was refusing his mother's milk and all other types of
nourishment. Nestl's new food worked, and the boy survived. From the very beginning,
Nestl's product was never intended as a competitor for mother's milk. In 1869, he wrote:
"During the first months, the mother's milk will always be the most natural nutrient, and
every mother able to do so should herself suckle her children."
The factors that made baby foods success in the early days of the Nestl company quality
and superior nutritional value are still as valid today for the wide range of infant formula,
cereals and baby food made by Nestl. The World Health Organization (WHO) recognizes

that there is a legitimate market for infant formula, when a mother cannot or chooses not to
breast feed her child. Nestl markets infant formula according to the principles and aims of
the WHO International Code of Marketing Breast Milk Substitutes, and seeks dialogue and
cooperation with the international health community and in particular with the WHO and
UNICEF, to identify problems and their solution. Nestl's expertise as the world's leading
infant food manufacturer, gained over more than 125 years, is put at the disposal of health
authorities, the medical profession and mothers and children everywhere.
Chocolate & Confectionery
Nestle forayed into chocolates & confectionery in 1990 and has cornered a fourth share of the
chocolate market in the country. The category contributes 14% to Nestle s turnover. It has
expanded its products range to all segments of the market The Kitkat brand is the largest
selling chocolate brand in the world. Other brands include Milky Bar, Marbles, Crunch,
Nestle Rich Dark, Bar-One, Munch etc. The sugar confectionery portfolio consists of Polo,
Soothers, Frootos and Milkybar Eclairs. All sugar confectionery products are sold under the
umbrella brand Allen's. Nestle has also markets some of its imported brands like Quality
Street, Lions and After Eight. New launches such as Nestle Choco Stick and Milky Bar Choo
at attractive price points to woo new consumers. Chocolate confectionery sales registered a
strong 21.5% yoy growth in 2001 aided by good volume growth in Munch, Kitkat and
Classic sales. Nestle relaunched Bar-One during the year. The story of chocolate began in the
New World with the Mayans, who drank a dark brew called cacahuaquchtl. Later, the Aztecs
consumed chacahoua and used the cocoa bean for currency. In 1523, they offered cocoa
beans to Cortez, who introduced chocolate to the Old World, where it swiftly became a
favorite food among the rich and noble of Europe. Nestle forayed into chocolates &
confectionery in 1990 and has cornered a fourth share of the chocolate market in the country..
It has expanded its products range to all segments of the market The Kitkat brand is the
largest selling chocolate brand in the world. Other brands include Milky Bar, Marbles,
Crunch, Nestle Rich Dark, Bar-One, Munch etc. The sugar confectionery portfolio consists of
Polo, Soothers, Frootos and Milkybar Eclairs. All sugar confectionery products are sold under
the umbrella brand Allen's. Nestle has also markets some of its imported brands like Quality
Street, Lions and After Eight. New launches such as Nestle Choco Stick and Milky Bar Choo
at attractive price points to woo new consumers. Chocolate confectionery sales registered a

strong 21.5% yoy growth in 2001 aided by good volume growth in Munch, Kitkat and
Classic sales. Nestle relaunched Bar-One during the year.

From the beginning, turning raw, bitter cocoa beans into what one 17th century writer called
"the only true food of the gods" has been a fine art, a delicate mixture of alchemy and
science.
Ice Cream
There are many myths and stories as to the invention of ice cream: was it Marco Polo who
brought it back from China (along with pasta)? Probably not, considering the most likely
never visited China.
The story of its popularity is however connected with the invention of technology to make it
on an industrial scale, and to keep it cold once made. Before refrigeration techniques, food
was frozen with the aid of ice, mixed with salt, which was either stored in ice houses or
shipped from cold countries. But then at the end of the 19th century, both making and
freezing it became easier, and together with the invention of the ice cream cone, made the
product boom.
Today, the United States is the absolute leader in terms of volume consumed, but the highest
per head consumers are in New Zealand. Flavours you'd never have thought of and yet they're
commercially available:

Sorbets - Smoked Salmon, Tomato, Cucumber

Ice Creams - Garlic, Avocado, Sweet corn.

The ice cream cone is the most environmentally friendly form of packaging. A Syrian from
Damascus, Ernest E Hamwi is credited with its invention. Apparently, during the 1904 St
Louis World's Fair, his waffle booth was next to an ice cream vendor who ran short of dishes.
Hamwi rolled a waffle to contain ice cream and the cone was born.
Prepared Foods
Convenience foods packaged soups, frozen meals, prepared sauces and flavorings date
back more than a century. With the Industrial Revolution came factory jobs for women and
less time to prepare meals.
The problem was so widespread that it became the object of intense study in 1882 by the
Swiss Public Welfare Society, which offered a series of recommendations, including an
increase in the consumption of vegetables.
The Society commissioned Julius Maggi, a miller with a reputation as an inventive and
capable businessman, to create a vegetable food product that would be quick to prepare and
easy to digest. The results two instant pea soups and an instant bean soup helped launch
one of the best known brands in the history of the food industry. By the turn of the century,
Maggi & Company was producing not only powdered soups, but bouillon cubes, sauces and
flavorings.

Maggi merged with Nestl in 1947. Buitoni, the authentic Italian brand, which has been
producing pasta and sauces in Italy since 1827, became part of the Nestl Group in 1988.
Beverages
Beverages like coffee, tea and health drinks contribute to about 30% of Nestle s turnover.
Beverage sales registered a 15% yoy growth . While about 14% of sales come from
Beverages domestic market, exports contribute to about 16% of sales. Nestle's Nescafe
dominates the premium instant coffee segment. Nestle s other coffee brand Sunrise has also
been relaunched under the Nescafe franchise to leverage on the existing equity of the brand.
Nestle has focused on expanding the domestic market through price cuts and product
repositioning. However it has been losing share in the domestic market, where it has a 37%
market share. Milo, a brown-malted beverage was launched in 1996. It has an estimated
volume share of about 3% in the malted food drink segment. Nestle has launched
noncarbonated cold beverages such as Nestea Iced Tea and Nescafe Frappe during 2001.
Nestle is one of the larges coffee exporter in the country. Key export market is Russia,
besides Hungary, Poland and Taiwan.

Nestls Nescafe dominates the premium instant coffee segment. Nestles other coffee brand
Sunrise has also been relaunched under the Nescafe franchise to leverage on the existing
equity of the brand. Nestle has focused on expanding the domestic market through price cuts

and product repositioning. However it has been losing share in the domestic market, where it
has a 37% market share. Milo, a brown-malted beverage was launched in 1996. It has an
estimated volume share of about 3% in the malted food drink segment. Nestle has launched
non-carbonated cold beverages such as Nestea Iced Tea and Nescafe Frappe during 2001.
Nestle is one of the largest coffee exporter in the country. Key export market is Russia,
besides Hungary, Poland and Taiwan.

Timelines for launches

1866
1867
1905
1929
1934
1938
1947
1948
1969
1971
1973
1974
1977
1981
1985
1986
1988
1990
1991
1992
1993
1997
1998
2000
2001
2002
2003
2005
2006

2007
2009
2010

Foundation of Anglo-Swiss Condensed Milk Co.

Henry Nestl's Infant cereal developed
Nestl and Anglo Swiss Condensed Milk Co. (new name after merger)
Merger with Peter, Cailler, Kohler Chocolates Suisses S.A.
Launch of Milo
Launch of Nescaf
Nestl Alimentana S.A. (new name after merger with Maggi)
Launch of Nestea and Nesquik
Vittel (initially equity interest only)
Merger with Ursina-Franck
Stouffer (with Lean Cuisine)
L'Oral (associate)
Nestl S.A. (new company name)
Alcon (2002: partial IPO; 2008: partial sale)
Galderma (joint venture with L'Oral)
Carnation (with Coffee-mate and Friskies)
Creation of Nestl Nespresso S.A.
Buitoni-Perugina, Rowntree (with KitKat)
Cereal Partners Worldwide (joint venture with General Mills)
Beverage Partners Worldwide (joint venture with Coca-Cola)
Perrier (with Poland Spring)
Creation of Nestl Sources Internationals (2002: Nestl Waters)
Creation of Nutrition Strategic Business Division (2006: Nestl Nutrition)
San Pellegrino and Spillers Petfoods
Launch of Nestl Pure Life
PowerBar
Ralston Purina
Schller and Chef America
Dairy Partners Americas (joint venture with Fonterra)
Laboratoires innov (joint venture with L'Oral)
Mvenpick and Dreyer's
Wagner, Protika and Musashi
Creation of FoodServices Strategic Business Division (2009: Nestl
Professional)
Lactalis Nestl Produits Frais (associate)
Jenny Craig, Uncle Tobys and Delta Ice Cream
Novartis Medical Nutrition, Gerber and Henniez
Vitality Beverage business
Kraft Pizza

COMPETITIVE ANALYSIS
Competitive analysis, as the name implies, is an exploration of the companies in a
given industry sector or market niche that are competing with your company s products or
services for market share. The analysis may be an in-depth exploration of the top five
competitors, or a larger number of competitors could be examined (typically with less depth
in the analysis). In most cases, the client will have identified the target competitors for you.
While this project focuses on competitive analysis in the for-profit arena, it is worth noting
that non-profit organizations can benefit equally from this analysis (which they might term a
comparative analysis, if they viewed the other organizations as working toward a common
goal with them).
Understand the competition
The primary benefits of any competitive analysis are a better understanding of what
your competitors are doing, what they are offering to customers, and how to maintain your
competitive advantage. The findings from this analysis are likely to factor strongly into your
own company s strategic planning. However, this is definitely not the only take-away from
the process of analyzing competitors. The analysis offers information about content and
functionality that they have probably not considered. This is especially true for newcomers to
your industry and should be fairly common; not everyone will be a subject matter expert.
Looking longer-term, this educational process benefits not only the current project, but also
any future project in that same industry.

CHAPTER -4
DATA ANALYSIS & INTERPRETATION

1. Is career planning and development necessary for each employee?

S.NO

PARTICULARS

FREQUENCY

PERCENTAGE (%)

YES

50

100

2S

NO

Necessity of career planning and development

INTREPRETATION:
All employees feel that career planning and development is necessary factor for their growth.

2. Does career planning and development exist in your organization?

S.NO
1.
2.

PARTICULARS
YES
NO

FREQUENCY
45
05

PERCENTAGE
90
10

Existence of Career planning and development

INTREPRETATION:
90% accepted that there is a career development in the organization. While others felt that
there is no career development in the organization

3. At what stage you plan your career?

S.NO

PARTICULARS

FREQUENCY

PERCENTAGE

1.

EXPLORATORY

10

20

2.

ESTABLISHMENT

10

20

3.

MID-CAREER

21

42

4.

LATE-CAREER

14

5.

DECLINISATION

Stage of planning career

INTREPRETATION:
Most of the employees plan their career in the mid-career and establishment, least of them
plan their career in the declining stage.

4. In which area you plan to improve your career?

S.NO
1.
2.
3.

PARTICULARS
Same area of work
More specialized area
Cross functional

FREQUENCY
15
30
05

PERCENTAGE
30
60
10

Area of planning to improve career

INTERPRETATION:
Least of the employees plan to improve their career in the cross functional.

5. What kind of goal you set for your career planning and development?
S.NO
1.

PARTICULARS
Functional

FREQUENCY
05

PERCENTAGE
10

2.
3.
4.

Project
Self development
All the above

05
10
30

10
20
60

Kind of goal setting

INTERPRETATION:
Mostly all the employees set their goal in all the three areas i.e Functional, Project, and Self
Development area for their career planning and development.

6. Are Reviews taken in your organization helpful to you?

S.NO
1.
2.
3.
4.

PARTICULARS
Most of the times
Only few times
Very few times
Never

FREQUENCY
30
13
5
2

PERCENTAGE
60
26
10
4

The helpfulness of reviews in the organisation

INTERPRETATION:
Most of the times reviews taken are helpful in NESTLE.

7. Would you like to have monthly or quarterly reviews?

S.NO
1.
2.

PARTICULARS
MONTHLY
QUARTERLY

FREQUENCY
15
35

PERCENTAGE
30
70

Types of reviews

INTERPRETATION:
Quarterly reviews are preferred by majority of the employees.

8. Is your feedback and needs taken into consideration?

S.NO
1.
2.

PARTICULARS
YES
NO

FREQUENCY
50
0

PERCENTAGE
100
0

Consideration of your feedback

INTERPRETATION:
Employees feedback and needs are taken into consideration by the higher authority.

9. Is your career aspiration helpful for career planning and development?

S.NO
1.
2.

PARTICUALRS
YES
NO

FREQUENCY
50
0

PERCENTAGE
100
0

The helpfulness of career aspiration

INTERPRETATION: Mostly the career aspiration of the employee is helpful for career
planning and development

10. Have you been given opportunity to discuss and clarify regarding
development and training needs?
S.NO
1.
2.

PARTICULARS
YES
NO

FREQUENCY
33
17

PERCENTAGE
66
34

Opportunity to discuss & clarify

INTERPRETATION:
Yes most of the employees are given opportunity to discuss.

11. What kind of training program you require for your career planning and
Development ?
S.NO
1
2
3

Particulars
Behavioral
Technical
All the above

Frequency
10
2
38

Percentage
20
4
76

Kind of training programme

INTERPRETATION:
Employees need both behavioral and technical type of training program

12. What is the impact of training program conducted by organization?

S.NO
1.
2.
3.
4.

PARTICULARS
Improvement in technical skills
Improvement in behavioral skills
helpful in achieving goals
Not much helpful

FREQUENCY
28
10
10
2

PERCENTAGE(%)
56
20
20
4

Impact of training programme

INTERPRETATION:
Mostly there is an improvement in the technical skills and training program helped them to
achieve their goals.

13. If there is improvement by the training program then what is your action plan?
S.NO

Particulars

Frequency

Percentage(%)

1.

Based on opportunities I get

23

46

2.

To excel on my own

20

40

3.

Action plan set by superior

14

Action plan

INTERPRETATION:
Usually based on the opportunities the action plan will be set.

14. Is the action plan set by you is really helpful to you in career development?
S.NO
1.
2.

PARTICULARS
YES
NO

FREQUENCY
42
8

Helpfulness of action plan

PERCENTAGE
84
16

INTERPRETATION:
The action plan set by the employee is very much helpful in their career development.

15. Is action plan set by your superior is really helpful in your career development?
S.NO
1.
2.

PARTICULARS
YES
NO

FREQUENCY
37
13

PERCENTAGE
74
26

Helpfulness of superiors Action plan

INTERPRETATION:
74% of the action plan set by their superiors is helpful in setting their career plan.

16. Does development plan set by you match with your career aspiration?
S.NO
1.
2.

PARTICULARS
YES
NO

FREQUENCY
42
8

Development plan setting

PERCENTAGE
84
16

INTERPRETATION:
84% of the development set by the employee matches their career aspiration.

17. Do you get support and motivation from your superior and colleagues to put
your career plan into action?
S.NO
1.
2.
3.
4.

PARTICULARS
All the time
Frequently
Rarely
Never

FREQUENCY
10
8
30
2

Relation with supervisor

PERCENTAGE
20
16
60
4

INTERPRETATION:
Rarely employees get their superiors support and motivation from their superiors to put their
career plan into action.

18. In what way you accept the feedback given by your superior?
S.NO
1.
2.
3.
4.
5.

PARTICULARS
All the time positive
Most of the time positive
half the time positive
Occasionally positive
Never positive

FREQUENCY
15
18
10
5
2

PERCENTAGE (%)
30
36
20
10
4

Feedback given by superior

INTERPRETATION:

Most of the time the feedback given by their superiors is accepted positively.

CHAPTER-6
FINDINGS SUGGESTIONS
&
CONCLUSION

FINDINGS OF THE STUDY

Majority of the employees feel that career planning and development is a neccessary
factor for their growth.
Most of the employees plan to improve their career in the more specialized area.
In general there is a positive trend towards the career planning and development.
Employees are moderately satisfied with career planning and development program in
the organization.
Rarely employees get their superiors support and motivation from their superiors to
put their career plan into action.
The action plan set by the employee is very much helpful in their career development.
Mostly there is an improvement in the technical skills and training program helped
them to achieve their goals.
Employees need both behavioral and technical type of training program

SUGGESTIONS
The needs of career must link to the need with the intervention, an ideal career
development known as the VISION, the need of intervention.
An action plan should be formulated in an order to achieve the vision.
Career development program should be integrated with an organization ongoing
employee training and management development program.
It should be evaluated from time to time in order to review the program.
Examine the individual self setting techniques and opportunities for improving.
Mostly employee lack information about career choices and opportunities, identify the
career path.
Information should be made available all employee concern.
Competency based training are best for career development.

CONCLUSION
Career planning and development programs as we find from the study plays crucial
role in employee as well as organizations development. Career planning is an integral part of
every organization. It motivates and inspires employees to work harder and keeps them loyal
towards the organization. Career planning helps an employee know the career opportunities
available in organization. This knowledge enables the employee to select the career most
suitable to his potential and this helps to improve employees morale and productivity. On
the basis questionnaire .It was also found that promotion is the major reason that sticks them
with the current job. Employees also prefer sound recognisation as well as proper training.
So for conclusion, the objectives of the study, to get the overall knowledge about
actually what the career planning and development is, the scope of such programs in the
telecom industry are adequately fulfilled. And study concludes that in telecom industry
because of its monotonous task and due to tough pressure as well as more stress and
frustration, need to be handling the careers of most valuable asset that is the People.
Conclusively that was worthwhile to choose such topic as project, which is not only
important for an employee and employer. But for the researcher also to select the career, a in
particular line and may be a particular industry in which one wants to make the career and get
enough chances of advancement in career.

BIBLIOGRAPHY

BOOKS
K. Aswathappa, Human resource and Personnel Management, TMH, 4th edition.
Subba Rao, Human Resource Management; HPH, 3rd edition.
V S P Rao, Human Resource Management, Excel, 2nd edition.
C S Venkataratnam, Management of Industrial Relation, Oxford University
press, 4th edition.

JOURNALS AND MAGAZINES

1. Business line
2. Business Today
3. Business World
4. The Economic Times

News papers
The Hindu, Published by N. Ram at Chennai and printed by P. Ranga Reddy at Plot
No.Z-6 to 8, IDEA Uppal, Hyderabad 500 007 on behalf of Kasturi& Sons Ltd.,
Chennai 600 002. Editor-in-Chief: N. Ram (Editors responsible for selection of News
under the Press Regulation Board (PRB) Act. www.the Hindu .com
The Economics Times, Published by Anil Kumar for the proprietors Bennett,
Coleman & Co. Ltd at Times House, 8-2-351, Road No. 3, Banjara Hills, Hyderabad
500 034, Ph: 23355335, Fax: 040-23254400, Printed at Times Press, Plot No. 5A,
Road No.1, IDA, Nacharam, Hyderabad 500 076. www. .the economics times.com

WEBSITES
www.nestle.co.in
www.chrome.com
www.businessweek.com
www.topresult.com
www.pepitone.com

ANNEXURE

QUESTIONNAIRE
1. Is career planning and development necessary for each employee? (
1 .Yes

2. No

2. Does career planning and development exist in your organization? (

1 .Yes

2. No

3. At what stage you plan your career?

1. Exploratory

2.Establishment

3. Mid-Career

4.Late-Career

4. What area you plan to improve for your career?

a)

Same area of work

b)

More specialized area

c)

Cross functional

5. What kind of goal you set for your career planning and development?(
1. Functional

2. Project

3. Self development

4. All the above

6. Reviews taken in your organization are they helpful to you? (

1. Most of the times

2. Only few times

3. Very few times

4. Never

7. Would you like to have monthly or quarterly reviews?

1. MONTHLY

2. QUARTERLY

8. Is your feedback and needs taken into consideration?

1. YES

2. NO

9. Is your career aspiration helpful for career planning and development?

(
1. YES

2. NO

10. Have you been given opportunity to discuss and clarify regarding development and
training needs?
1. YES

2. NO

11. What kind of training program you require for your career planning and
development?

1. Behavioral
2. Behavioral
3. All the above
12. What is the impact of training program conducted by organization? (

1. Improvement in technical skills 2. Improvement in behavioral skills

3. Helpful in achieving goals

4. Not much helpful

13. If there is improvement by the training program then what is your action plan?
(

)
1. Based on opportunities I get
2. To excel on my own
3. Action plan set by superior

14. Is the action plan set by you is really helpful to you in career development?
(
1. YES

2. NO

15. Is action plan set by your superior is really helpful in your career development?
(

)
1. YES

2. NO

16. Does development plan set by you match with your career aspiration?
(
1. YES

2. NO

17. Do you get support and motivation from your superior and colleagues to put
your career plan into action?

1. All the time

2. Frequently
3. Rarely
4. Never
18. In what way you accept the feedback given by your superior?(
1. All the time positive
2. Most of the time positive
3. Half the time positive
4. Occasionally positive
5. Never positive