NESTLÉ

GROUP 10

MEMBER

1. Phan Thị Thu (TK)2. Trần Thị Thu3. Đào Thị Thúy4. Hoàng Thị Thủy5. Phạm Thị Thủy6. Vũ Bích Thủy7. Nguyễn Thị Trà8. Vương Thị Trà9. Dương Thanh Trà (NT)10. Trần Ngọc Trâm

OUTLINE

I. Nestlé’s Background and History1. Nestlé’s beginnings in Switzerland in 1866

2. World War I’s influences on Nestlé 3. How Nestlé kept up business during World War II 4. Period of diversification from 1944 to 1975 5. Diversifying outside of the food sector

6. Changes and expansion continue

II. Environmental Scanning

III. Nestlé’s Management Strategy 1. General management strategy2. Specific management strategy in Vietnam

IV. Nestlé’s Human Management

I. Background and history of Nestlé

1. Nestlé’s beginnings in Switzerland in 1866

The key factor which drove the early history of the enterprise that would become the Nestlé Company was Henri Nestlé search for a healthy, economical alternative to breastfeeding for mothers who could not do so. In the mid-1860s, Nestlé, a trained pharmacist, began experimenting with various combinations of cow milk, wheat, flour and sugar in an attempt to develop an alternative source of infant nutrition for mothers who were unable to breast feed. His ultimate goal was to help combat the problem of infant mortality due to malnutrition. Henri Nestlé also showed an early understanding of the power of branding. He adopted his own coat of arms as a trademark; in his German dialect, Nestlé means littleness. One of his agents suggested that the nest could be exchanged for the white cross of the Swiss flag. His response was firm: "I regret that I cannot allow you to change my nest for a Swiss cross .... I cannot have a different trademark in every country; anyone can make use of a cross, but no-one else may use my coat of arms."

Meanwhile, the Anglo-Swiss Condensed Milk Company, founded in 1866 by Americans Charles and George Page, broadened its product line in the mid-1870s to include cheese and baby formulas. The Nestlé Company, which had been purchased from Henri Nestlé by Jules Monnerat in 1874, responded by launching a condensed 5 milk product of its own. The two companies remained fierce competitors until their merger in 1905. Some other important firsts occurred during those years. In 1875 Vevey resident Daniel Peter figured out how to combine milk and cocoa powder to create milk chocolate. Peter, a friend and neighbor of Henri Nestlé, started a company that quickly became the world’s leading maker of chocolate and later merged with Nestlé. In 1882Swiss miller Julius Maggi created a food product utilizing legumes which was quick to prepare and easy on digestion. His instant pea and bean soups helped launch Maggi &Company. By the turn of the century, his company was producing not only powdered soups, but also bouillon cubes, and sauces and flavorings.

2. World War I’s influences on Nestlé

The Corporation formed by the 1905 merger was called the Nestlé and Anglo-Swiss Milk Company. By the early 1900s, the Corporation was operating factories in the United States, Britain, Germany and Spain. In 1904, Nestlé added chocolate to its range of food products after reaching an agreement with the Swiss General Chocolate Company. Condensed milk exports increased rapidly as the Corporation replaced sales agents with local subsidiary companies. In 1907, the Corporation began full-scale manufacturing in Australia, its second-largest export market. Warehouses were built in Singapore, Hong Kong, and Bombay to supply the rapidly-growing Asian markets. Most production facilities remained in Europe, however, and the onset of World War I caused severe disruptions. Acquiring raw materials and distributing products became increasingly difficult. Fresh milk shortages throughout Europe forced factories to sell almost all their supplies to meet the needs of local towns. Nevertheless, the war created tremendous new demand for dairy products, largely in the form of government contracts. To keep up, Nestlé purchased several existing factories in the United States.

By the end of the war, the Corporation had 40factories, and its world production had more than doubled since 1914. The end of World War I brought with it a crisis for Nestlé. Government contracts dried up following the cessation of hostilities, and civilian consumers who had grown accustomed to condensed and powdered milk during the war switched back to fresh milk when it became available again.

In 1921, the Corporation recorded its first loss. Rising prices for raw materials, the worldwide post-war economic depression and deteriorating exchange rates deepened the gloom. Nestlé’s management responded quickly, bringing in Swiss banking expert Louis Dapples to re-organize the Corporation. He streamlined operations to bring production in line with sales and reduced the Corporations outstanding debt. The 1920s also saw Nestlé’s first expansion beyond its traditional product line. The manufacture of chocolate became the Corporations second most important activity. New products appeared steadily: malted milk, a powdered beverage called Milo, powdered buttermilk for infants, and, in 1938, Nescafé. The Brazilian Coffee Institute first approached Louis Dapples in 1930, seeking new products to reduce Brazil’s large coffee surplus. Eight years of research produced a soluble powder that revolutionized coffee-drinking habits worldwide. Nescafé became an instant success and was followed in the early 1940s by Nestea.

3. How Nestlé kept up business during World War II

The effects caused by the onset of World War II were felt immediately by Nestlé. Profits dropped from $20 million in 1938 to $6 million in 1939. Neutral Switzerland became increasingly isolated in a Europe at war, and the Corporation transferred many of its executives to offices in Stamford, Connecticut. The first truly global conflict put an end to the traditional Company structure. To overcome distribution problems in Europe and Asia, factories were established in developing countries, particularly in Latin America. Ironically, World War II helped speed up the introduction of the Corporations newest product, Nescafé. After the United States entered the war, Nescafé became a staple beverage of American servicemen serving in Europe and Asia. Annual production levels reached one million cases by 1943. As in World War I, production and sales rose in the wartime economy: Nestlé’s total sales jumped from $100 million in 1938 to $225 million in 1945. As the end of the war approached, Nestlé executives found themselves unexpectedly heading up a worldwide coffee corporation, as well a company built upon Nestlé more traditional businesses.

4. Period of diversification from 1944 to 1975

The end of World War II marked the beginning of the most dynamic phase of Nestlé history. Throughout this period, Nestlé growth was based on its policy of diversifying within the food sector to meet the needs of consumers. Dozens of new products were added as growth within the Corporation accelerated and outside companies were acquired. In 1947, Nestlé merged with Alimentana S.A., the manufacturer of Maggi seasonings and soups, becoming Nestlé Alimentana Company. The acquisition of Crosse & Blackwell, the British manufacturer of preserves and canned foods, followed in 1960, as did the purchase of Findus frozen foods (1963), Libby’s fruit juices (1971) and Stouffers frozen foods (1973).

Meanwhile, Nescafé continued its astonishing success. From 1950 to 1959, sales of instant coffee nearly tripled, and from 1960 to 1974, they quadrupled. The Corporations total sales

doubled twice in the 15 years following World War II. The development of freeze-drying led to the introduction of Tasters Choice instant coffee in1966.

5. Diversifying outside of the food sector

Finally, Nestlé’s management made the decision to diversify for the first time outside of the food industry. In 1974, the Corporation became a major shareholder in L’Oreal, one of the worlds leading makers of cosmetics. After the agreement with L’Oreal in 1974, Nestlé overall position change rapidly. For the first time since the 1920s, the Corporations financial situation deteriorated as the price of oil rose and growth in industrialized nations relented. In addition, foreign exchange rates deteriorated with the French Franc, Dollar, Pound Sterling, and Mark all losing value relative to the Swiss Franc.

Finally, between 1975 and 1977, the price of coffee beans quadrupled, and the price of cocoa tripled. As in1921, the Corporation was forced to respond quickly to a radically changed marketplace. Nestlé’s rapid growth in the developing world partially offset a decline in the Corporations traditional markets, but it also carried with it the risks associated with unstable political and economic conditions. To maintain a balance, Nestlé made its second venture outside the food industry by acquiring Alcon Laboratories, Inc., a U.S. manufacturer of pharmaceutical and ophthalmic products. Taking such a step in a time of increased competition and shrinking profit margins required boldness and vision. Even more-so than the L’Oreal move, Alcon represented a leap into unknown waters for Nestlé. But, as Group Chairman Pierre Liotard-Vogt noted, "Today we find ourselves with a very wide range of activities, all of which have one thing in common: they all contribute to satisfying the requirements of the human body in various ways."

6. Changes and expansion continue

Under the new Chief Executive Officer, Helmut Maucher, Nestlé approached the 1980swith a renewed flexibility and determination to evolve. The Corporations strategy for this period was twofold: improve its financial situation through internal adjustments and divestments, and continue its policy of strategic acquisitions.

Thus, between 1980 and 1984, the Corporation divested a number of non-strategic or unprofitable businesses. At the same time, Nestlé managed to put an end toa serious controversy over its marketing of infant formula in the Third World. This debate had led to a boycott of Nestlé products by certain civil and religious organizations. This issue is still alive in some quarters, but there is no longer any significant boycotting. In 1984, Nestlé’s improved bottom line allowed the Corporation to launch a new round of acquisitions, including a public offer of $3 billion for the American food giant Carnation. At the time, the takeover, sealed in 1985, was one of the largest in the history of the food industry.

The first half of the 1990s proved to be a favorable time for Nestlé: trade barriers opened and world economic markets developed into a series of more or less integrated trading areas. The opening up of trade in Central and Eastern Europe, as well as China, and a general trend towards liberalization of direct foreign investment was good news for a company with interests as far-flung and diverse as Nestlé. While progress since then has not been as encouraging, the overall trends remain positive. In July 2000, Nestlé launched a Group-wide initiative called GLOBE (Global Business Excellence), aimed at harmonizing and simplifying their business process

architecture; enabling Nestlé to realize the advantages of a global leader while minimizing the drawbacks of their size. There were two major acquisitions in North America in 2002: in July, Nestlé announced that the U.S. ice-cream business was to be merged into Dreyers, and in August, a 2.6bn USD acquisition of Chef America Inc. was announced, which was a leading U.S.-based hand-held frozen food business. Also in 2002, the joint venture Dairy Partners Americas was set up with Fonterra; and Laboratoires innerve was set up, another joint venture, this time with L’Oreal. The year 2003 started well with the acquisition of Mövenpick Ice Cream, enhancing Nestlé’s position as one of the world market leaders in the super premium category. In 2006, Jenny Craig and Uncle Tobys were added to the Nestlé portfolio and2007 saw Novartis Medical Nutrition, Gerber and Henniez join the Corporation. Nestlé entered into a strategic alliance with the Belgian chocolatier Pierre Marcolini at the end of that year. In 2008, Nestlé began a process of selling Alcon bydivesting 24.8% to Novartis. In 2009, Nestlé opened the Chocolate Centre of Excellence in Broc, Switzerland, with Pierre Marcolini, one of the master chocolatiers. The new decade began with Nestlé announcing the finalisation of the sale of Alcon to Novartis which was completed mid-year. This represented a remarkable investment on behalf of Nestlé’s shareholders. Immediately following the Alcon announcement, Nestlé bought Kraft’s frozen pizza business.

Further highlights were the launch of the Special. T tea machine system and the completion of the 25bn Swiss Francs share buyback programme – and the announcement of a new 10bn Swiss Francs programme.

II. Environmental Scanning

In order to describe the framework of macro environmental factors that impacts on Nestlé when entering Vietnamese market, we use the PESTLE analysis which including: Political, Economic, Social, Technology, Legislation and Environmental factors. Through this analysis, we can easily find out the advantages and disadvantages of Vietnam market.

1. Politic

Vietnam is a country with political stability, where there are also many incentives for foreign investment enterprises. Thanks to the preferences, Nestle will definitely grab the opportunity of rapid development in Vietnam. Besides, Nestle also supports the sustainable economic development of Vietnam and helps to improve of living standard as well as the condition of the poor.

Encouraging the integration of Vietnam in the world economy by bringing it into the world trading system, and supporting the process of economic and social reforms

2. Legislation and regulations

It is the policy of the Nestle Group to strictly comply with all laws and regulations relevant to our activities. They participate in discussions on food legislation and regulations between international organizations, government representatives, industry, the scientific world and consumer associations. Nestle also applies this policy to environment related matters.

In order to complement that plan, they 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. They oppose unjustified bans and any other discriminatory measures.

Nestle favors 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, Nestle 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.

3. Economic

Vietnam is a market offering ground floor and growing opportunities for both local and foreign companies. Vietnam’s economic growth rate has been among the highest in the world in recent years, expanding annually at 5-8.5 percent, while industrial production has been growing at around 14-15 percent per year.

The growing economy will result in people’s increasing consumption demand; therefore, facilitate Nestlé’s operation to become stronger in the Vietnamese market.

Moreover, Vietnam has joined WTO; this is a good chance for many enterprises to compete in a good and fair condition. There is no afraid that foreign companies will be less favored.

4. Society

Vietnam is a very populous country, placed 13th in top most populous countries in the world and 3rd place in Southeast Asia areas. Vietnamese growth rate is quite fast, approximately 1 million people per year. Population structure is young with age group from 0-14 account for 27%, age group from 15-59 is 64% and age group above 60 is only 9% (according to the data of 2005). Young population becomes one of the most important advantages for Vietnam to attract many multination companies as Nestle. Since Nestles’ products including many products for children care (such as milk, powder milk, cereal, yoghurt, etc.), Vietnam is a very potential market for Nestle to further explore and develop in the future. Young population is also the great source for workforce which attracts many foreign investors coming to Vietnam.

The income average of Vietnamese people is not quite high; however, it keeps increasing in recent years. Nowadays, Vietnamese living standard is much more improved than before; therefore, people pay more attention to the needs of health care as well as quality and nutrition foods. They are also more cautious on choosing foods or taking care of family health.

The average age of Vietnamese people is quite high 74,3 (according to data of 2009). People now more and more care about how to live long and healthy. They do pay attention to the nutrition structure of each meal and try their best to choose the best products for all members of their families.

Vietnam is also a country in which easily accept the culture interfere all over the world. For example, we can obvious see it through the Hallyu wave of our neighborhood, Korea. In Vietnam, there are many young boys and girls wearing clothes with haircut or makeup in Korea style.

5. Technology

Internet has been strongly developed in Vietnam since last decade. People in Vietnam now easily grab a chance to use internet almost everywhere. Internet becomes a useful tool for not only users but many administrators, companies to expand their business. There are many online companies which work so effectively and attract many customers only by the internet. They find it more easily to provide their services just by one click and customers also find it clear to search information about what they’re looking for.

Thanks to internet development, Vietnamese people have a chance to update and catch up with the technology all over the world. Vietnamese government pays more attentions on

technology transfer since our infrastructures are still weak and lack. Government already see the important of applying newest technologies on manufacturing, therefore, they pay more attention and focus more on research and development fields. Government also requires enterprises concentrate on this field and invest more capital on it.

In recent years, we not only show interest in technology transfer but also try to catch up with technology situation in worldwide.

6. Environment

Vietnam is located on the eastern margin of the Indochinese peninsula, it’s considered as the gateway of Southeast Asia areas which is also the center of business. It’s a very strategic position for Vietnam to attract more and more foreign investors come and invest in our companies.

Vietnam is a country of tropical lowlands, hills, and densely forested highlands, with level land covering no more than 20% of the area. The country is divided into the highlands and the Red River delta in the north; and the Giai Truong Son (Central Mountains, or the Chaîne Annamitique, sometimes referred to simply as "the Chaine."), the coastal lowlands, and the Mekong River Delta in the south. It’s another advantage of Vietnam, we have great source of natural resources which can help a lot in many light as well as heavy industry.

However, Vietnam is also one of many countries which are dealing with climate change. We are putting many efforts to adapt and overcome this hot issue.

III. Management Strategy of Nestlé

1. General management strategy

Nestle has a Board of Directors, lead by the Chairman Peter Brabeck-Letmathe, who was the former Nestle CEO. There are 15 members of the Board of Directors. Full details of each member and the committees that they operate within can be found in the Broad of Directors section of Nestle. The day to day management of the Nestle business is taken care of by our Executive Board members. The 13 designated Board Members manage diverse parts of the global business and have full curriculum vitea of each member.+ The Nestle Group is managed by geographies (Zones Europe, Americas and Asia/Oceania/Africa) for most of the food and beverage business, with the exceptions of Nestle Waters, Nestle Nutrition, Nestle Purina Petcare, Nespresso, Nestle Professional and Nestle Health Science which are managed on a global basis - these we call the Globally Managed Businesses. We also have joint ventures such as Cereal Partners Worldwide and Beverage Partners Worldwide.+ Nestlé’s success is based on their people. We treat each other with respect and dignity and expect everyone to promote a sense of personal responsibility. We recruit competent and motivated people who respect our values, provide equal opportunities for their development and advancement protect their privacy and do not tolerate any form of harassment or discrimination. They are committed to preventing accidents, injuries and illness related to work, and to protect employees, contractors and others involved along the value chain.

+ Nestle has code management system according to WHO.In all developing countries, Nestle has implemented an extensive WHO Code Management System, built along the lines of ISO quality assurance systems. The manual, outlining Nestle policies and procedures, gives detailed operational guidelines to all Nestle employees in their daily conduct of business related to Infant Food to ensure compliance at all levels with both the WHO Code of Marketing of Breast-milk Substitutes and local regulations. The procedures include built-in checks to ensure that potential code violations are avoided.

+ Nestle has internal ombudsman system.Each Nestle Market has a designated Ombudsman, outside of line management, to whom suspicions of WHO Code violations can be reported in a confidential manner.

There is also a Corporate Ombudsman, who is a member of the Executive Board of the Nestle Group, to whom employees can report allegations if they are uncomfortable with reporting them to their market’s ombudsman.

+ Nestle has internal and external audits.

Internal audits on WHO Code compliance   are carried out in about 20 countries each year by corporate auditors. Nestlé employees are   informed that their actions are subject to audits and that Code violations may   result in punitive measures. Audit results are communicated to top management, and where violations occur, these are reported to the Nestle CEO.

In addition, Nestle commissions external audits on code compliance on an ongoing basis. Since 2004, Bureau Veritas, a major   global auditing company, has been   commissioned to review Nestle infant food marketing in several countries in Africa, Asia and Latin America. ) Management Commitment of nestle.Members of Nestle Management at all levels are strongly committed to the Company, its development and its culture as expressed in The Nestlé Management and Leadership Principles.

+ They practice what they preach and show the example in their daily work.

Apart from professional skills and insight, the capacity and willingness to apply these principles are the main criteria for progressing in the organization, regardless of origin, nationality, religion, race, gender or age.

+ Nestlé has adopted an environmental business strategy that incorporates initiatives to address environmental policy and compliance, recognition of business opportunity, and response to public perception and expectations. Nestlé’s commitment to the environment, portrayed through this environmental management strategy, focuses on three main areas of the company’s operations:

Integrated approach throughout the supply chain Water as a key priority Systematic management of environmental performance

Within these core areas, Nestlé has encouraged more responsible environmental performance with continuous improvement in research and development to support long-term growth and competitiveness through innovation and renovation (EPR 2000).

From production operations to distribution and consumer purchasing, Nestlé has developed an integrated approach for considering the environment throughout the supply chain process. According to the Environmental Progress Report Highlights (2000), Nestlé states the objective in company factories is to maximize “eco-efficiency”, or to maximize the production of goods while minimizing the consumption of resources. The environmental performance of manufacturing processes is measured through worldwide factory surveys and environmental performance indicators (EPIs) that are verified against action plans, and are used to assess the progress toward “eco-efficient” objectives. Nestlé also claims the support of sustainable agricultural practices, as it does not own or operate farms where raw materials are obtained, and boasts a monetary overall investment for the protection of the environment (Figure 1) that amounted to more than 3% of total capital expenditure from 1997 to 1999(NESTEC 2001).

In addition to manufacturing efficiency, Nestlé has increased its focus on the packaging process to favor source reduction, reuse, recycling and energy recovery to minimize the impact of waste on the environment. The company’s Environmental Progress Report Highlights (2001) asserts that the packaging reduction results have been significant, and that this progress is due to clear objectives and the implementation of a systematic approach. Neither in this report nor the extended Nestlé 200 Environmental Progress Report, however, are these objectives elaborated

upon. Nestlé also participates actively in various national packaging waste recovery schemes established in the European Union, and claims to use recyclable packaging materials “wherever possible” (NESTEC 2001).

The conservation of water resources is also an important component of the Nestlé environmental management strategy. Through innovative manufacturing practices and conservation programs to help drive initiatives for water reuse and reduction, Nestlé has supported the long-term, sustainable use of water. Figure 2 has been adapted from the Environmental Progress Report (2000), and illustrates the amount of freshwater use worldwide by Nestlé is “relatively small” compared with other sources of consumption.

Perhaps the most vivid display of Nestlé’s environmental business strategy is its Nestlé Environmental Management System (NEMS), established in 1996 to provide a mandatory framework for environmental management at all levels of organization. This multi-step approach has led to more structured management throughout the company, and attempts to meet policies and guidelines, establish objectives and programs, develop training and communication, and complete operational surveys and audits on a regular basis (Figure 3). The components of the NEMS aim to facilitate continuous improvement and communication while integrating innovation and renovation strategies throughout Nestlé’s long-term environmental commitment (NESTEC 2001).

The NEMS also allows Nestlé to perform more compatibly with international standards for environmental management systems, such as ISO 14001. Currently, the number of certified Nestlé factories implementing the voluntary ISO 14001 standards is 46. Establishing these frameworks for environmental management has focused Nestlé’s efforts on performance and continuous improvement, thus creating an adaptive ability to change with new environmental issues (NESTEC 2001).

2. Specific strategy in Vietnamese market

Today, Nestle has presence in 86 countries with 465 different factories. Among them, Viet Nam is one of the most potential markets of Nestle. Since entering Viet Nam market, Nestle has made strategic plans.

a. Long – term investment commitments.

As the leading coffee producer in the world, Nestle has been a positive contribution to Viet Nam’s coffee industry. In Vietnam, Nestle has 3 factories in Hung Yen, Dong Nai, Long An. These factories are built following the common standards of the group.

In 1992, Nestle began investing in Viet Nam with a bottled water product named Lavie. In 1995, Nestle launched two products: Nestcafe and a nutrition food product named Milo.

According to Nestlé’s managers, Viet Nam’s brands develop more than elsewhere, especially Milo and Maggi brand.

In June 2009, Nestle set up a Maggi spice producing factory in Bien hoa II industrial zone, Dong Nai Province. It not only emphasized Nestlé’s long – term investment commitments in Viet Nam but also aimed for food product development – one of the Nestlé’s important strategies.

Nestlé has committed to develop the coffee sector in the country in many ways, from supporting for agricultural research to making coffee campaigns , directly supporting to farmers in applying the technical advances for production ... In Vietnam, Nestlé buys about 20-25% of coffee production per year for processing at the Nestlé ‘s factories in the world.

b. Activities towards community

As nutrition, health and wellness company, Nestle is committed to the enhancement of quality of life by helping committees in which it operates to meet basic and essential human needs. Wherever Nestle operates, it always maintains the operating standards: compliance, sustainable development and creating mutual value for the community.

In Viet Nam, over the years, Nestle has used its resources skills and technology to help find solutions to the many socio – economic challenges such as poor sanitation, lack of clean water, poverty, disease, malnutrition, food security and many others…

In conjunction with local authorities, Nestle has implemented the water management projects, energy-saving strategy, communicating about nutrition, healthss and promoting an active and healthy lifestyle. The company has also created more jobs, increased productive capacity for farmers and promoting sport value for children. In short, the activities of Nestlé has brought many benefits to the community and created the essential foundation for Nestlé’s sustainable development.

c. Repositioning

When developing in a new market in a new country, some brands have to adapt to meet customers’ need. Nestle is not exception.

Nestle is famous for Redcup coffee brand in the world. This brand is invested carefully and professionally. Nestle executives hope that the quality of the coffee essence, the profession of processing technology will help Redcup conquer Vietnamese customers. However, the result is

very disappointed. While Redcup develops well in other markets, it does not gain the same result in Viet Nam. Vietnamese customers do not pay attention to Redcup at all.

Thus, recently, Nestle has taken repositioning for Redcup by launching a new brand named “Vietnamese coffee”. Although ingredients and formulations of “Vietnamese coffee” are not different from Redcup, the new appearance impressed Vietnamese customers. With a slogan: you are strong enough to try? And a new image which is a strong and modern man, Vietnamese coffee built a good identification in the customers’ mind. Moreover, the name of this new brand is easily accepted.

Obviously, nestle has to change strategy to enter a new market like Viet Nam. Whether it’ top brand, if it’s unfamiliar to local customers, the best way is changing.

IV. Nestlé’s Human Management

The challenge for human-resource specialists in such an organization is not only in the geographically dispersed nature of the workforce, but also their different languages and cultures and, on an individual level, widely differing learning needs and styles.

As a dynamic and flexible organization with around 280,000 people employed in some 500 factories and offices across the globe, Nestlé Waters North America recognizes that our workforce – our human assets – is one of the most important characteristics that differentiate us in the marketplace. Identifying, recruiting, and retaining top talent across our company are only the beginnings of the story. Our human resources teams cultivate our culture through employee learning and foster our sustained growth by ensuring employee passion is directed to help deliver on business goals. Below is a snapshot of a few of our key opportunities

- Human Resource Policies

Designed in alignment to the Business Objectives, Incorporates practices like Job Enlargement as well as Job Enrichment. It follows mainly three different policies:

+Nestle management & leadership principles

+Nestle human resources policy

+Nestle people development review

- Nestlé’s Culture

Nestlé commits to a strong work ethic, integrity, honesty and quality, personal relations based on trust and mutual respect – a personalized and direct way of dealing with each other. Openness and curiosity for dynamic and future trends in technology, changes in consumer habits, new business ideas and opportunities while maintaining respect for basic human values, attitudes and behavior.

- Training

There is literacy training- to upgrades essential literacy trainings kills, especially for workers who operate new equipment, local Training Program's- on issues ranging program's from technical, leadership, and communication and business economics.

- Performance management

There is transparent performance appraisal system. It has the following characteristics: Formal assessment by Line Managers and HR once in a year with feedback. Subordinate can

question an unfair evaluation. Specific Key Performance Indicators have been enlisted by the HR department. Key performance indicator: Achievement following “Nestle management and leadership principles”. Remuneration structure and promotion criteria take into account individual performance.

- Recruitment

People with realism, hard work, honesty and trustworthiness are looked for. Match between candidates values & company’s culture are recruited. Recruitment for management levels is taken place in the head office by top management and all others at the branch level. The existing employees are promoted to higher posts as per the requirements. There are no lateral recruitments. Another source of recruitment is campus placements and human resource consultancies to look for the enthusiastic, motivated and fresh pool of talent. Decision to hire a candidate is finally taken by HR professionals only and no preference is given to external consultant. This is done to finally have the discretion power in the hands of Company.

- Employee relations

Employee turnover is less than 5%., which is considered to be very low for a multinational corporation. ‡ Nestle has an open culture & upward communication especially in case of grievance redressal is encouraged. Work/Life balance is given importance, as illustrated in the Nestle Human Resource Policy document. Nestle Family· annual events are organized by their HR department whereby employees along with their families are invited. Emphasis is laid on safety of employees.

- Rewards and incentives

+Rewards: There is Passion to Win Awards, Long-service Awards, Nestle Idea Award, and Recruitment Training Performance Management Rewards.

+Incentives: There are many programs such as

Talent Management: To develop the framework and processes which will enable the company to identify and develop the potential of employees at Nestle.

Learning and development: Continuous Improvement, Creativity and Innovation.

Incentives Employee Relations Change Management

- Changing Role of HR

Nestle believes that life creates a climate of innovation. HR professionals should be able to inculcate the willingness to accept change and the ability to manage it. International experience and understanding of other cultures will prepare the employees to face the challenges in global markets.

With human resource management viewpoint and system, Nestle have brought suitable Communication Strategy and Entrepreneurship strategy, effective Training and Development, recruit purposefully, cut high HR operation costs