This document provides an overview of Nestle, including its history, organizational structure, brands and products, and financial analysis. It discusses that Nestle is a multinational food and beverage company founded in 1866, with over 2000 brands across 150 countries. The document outlines Nestle's mission to positively influence social environments as responsible corporate citizens. It also describes Nestle's matrix organizational structure with top, middle and lower level management, and key departments like sales, R&D, and human resources. Finally, it summarizes Nestle's financial performance in 2018, including metrics like sales growth, gross profit ratio, and earnings per share.

3. CONTENTS
 History and Introduction
 Hierarchy and Organizational Structure
 Brands and Products
 Financial Analysis
 SWOT Analysis
 Marketing and Advertisement
 Conclusion
 References

5. What is Nestle?
Multinational food and beverage company
Nestle product include baby food, breakfast
cereals, coffee, tea, Ice cream, dairy product
etc.
It is the largest food company in the world
Nestle Pakistan started in 1988 under a joint
venture and took over management in 1992

6. Your Footer Goes Here 6

7. Nestle Mission Statement
 Nestle mission ,in the words of
the founder Henri Nestle, is to:
“… positively influence the social environment
in which we operate as responsible corporate
citizens ,which due regard for those
environment standards and societal aspirations
which improve quality of life.’’
Henri Nestle,1857.

8. Nestles Vision
“ The Nestle global vision is to be the
leading health ,wellness, and nutrition
Company in the world.”

9. 9
Nestle –A very brief history
1866: The Nestle was Henri Nestle search
1905: Nestle merge with Anglo-Swiss Milk
1938-1944: World War 1 brought crisis
Nestle
1944-1975: End World War 2 dynamics
phase of Nestle history
1981: Nestle approached the 1980s with
renewed flexibility and determination
2005: Chairman recognized that the habit of
World were changing and hence it began
own transformation

10. Farine Lactee Henri Nestle

11. Nestle –A very brief history
2009: Held the first Creating Shared Value Forum in
New York, with leading experts in the areas of
nutrition ,water and rural development coming
together to discuss serious global challenges

12. 12
Head Quarter of Nestle
Head quarter in VEVEY Switzerland
Total factories = 487 in 86 countries
Total employees = more than 283000

14. SYSTEM AND ORGANIZATION
STRUCTURE OF NESTLE
Organization charts include:
 Matrix
 Flat (known as Horizontal)
 Decentralized
 Permits Subordinates high level of
independence

16. NESTLE ORGANIZATION
CHART
Divided into THREE types:
 Top level management
 Middle level management
 Low level management

18. TOP LEVEL
MANAGEME
NT
DIRECTORS
CHIEF
EXECUTIVE
MANAGING
DIRECTORS

19. ROLE OF TOP LEVEL
MANAGEMENT
Lays down the objectives
Issue necessary instructions for
preparation of subdivision
procedures, schedule, budgets, etc.
Prepares strategic policies & plan for
the initiative.
Coordinate & controls the activities of
all the departments.

20. Appoint Executive for middle level for
instance departmental managers.
Provides direction and guidance.
Responsible for maintaining a contact
with the outside world.
Responsible towards the stakeholders for
the performance of the initiative.

21. MIDDLE LEVEL OF
MANAGEMENT
BRANCH
MANAGERS
DEPARTMENTA
L MANAGERS

22. ROLE OF MIDDLE
MANAGEMENT
Execute the plans of the organization.
Participate in employment and
training of lower level management.
Interpret and explain policies from
top level management to lower level.

23. Evaluate performance of junior
managers.
Sends important data and reports to top
level management.
Make plans for the sub-units of the
organization
Responsible for inspiration of the lower
level management.

24. LOWER LEVEL
MANAGEMENT
SUPERVISORY LEVEL
OF MANAGEMENT
OPERATIVE LEVEL OF
MANAGEMENT

25. ROLE OF LOWER
MANAGEMENT
Assigning of jobs and tasks to various
workers.
Instruct and guide workers for day-to-
day activities.
Responsible for quality as well as
quantity of production.

26. Responsible for maintaining good
relation in the organization.
Communicate workers’ problems,
suggestions and recommendatory
appeals to the higher level.

27. DEPARTMENTS OF
NESTLE
Sales department
Customer service department
Research and development department
Suppliers and distributors
Brands department
Human resource department

28. SALES DEPARTMENT
Primary source of information about
market.
Workers visit the market to find out
competitors.
Workers are collect the complaints of
the customers. t the market and find
out who are
Make sure the availability of product
in the market.

29. CUSTOMER SERVICE
DEPARTMENT
 Head office based department.
 Customer’s complaints are collected and
moved in to the Quality Assurance
Department.
 Nestle believe in maintaining regular
contact with their customers.
 ‘‘Talk to Nestle’’

30. RESEARCH &
DEVELOPMENT
DEPARTMENT
R&D are localized.
Head office in Switzerland.
Nestle divided the whole world into 3
zones each has its own R&D.
1) America
2) Europe
3) Asia Oceania Africa

31. BRANDS DEPARTMENT
Subdivided into departments for each
product line.
Product line comes under a Business
Manager.
Business manager has two Brand
Managers.
Brand manager is responsible for
specified product.

32. HUMAN RESOURCE
DEPARTMENT
Subdivided into three branches:
– Shared Services
– Centre of Expertise
– Business partners

33. The 10 principles of
Nestle Business
Operations
For Consumers:
1) Nutrition, health and wellness.
2) Quality assurance and product safety.
3) Consumer communication.
4) Human rights in our business activities.

34. The 10 principles of
Nestle Business
Operations
For People of NESTLE:
5) Leadership and personal
responsibility.
6) Safety and health at work

35. The 10 principles of
Nestle Business
Operations
For suppliers and customers:
7) Relation based on honesty, integrity
and fairness.
8) Agriculture and rural development

36. The 10 principles of
Nestle Business
Operations
For the Environment:
9) Environmental sustainability.
10) Target zero waste.

38. Brands & Products
 Owns over 2000 brands across 150
..countries
 Best known for Fast Moving Consumer
..Goods
 Respects the cultures of countries and
..people
 Working hard to deliver the best quality
 Keeps customers satisfied with the
quality ..of products

39. Brands & Products
 Owns over 2000 products in 150
countries

42. Coffee

43. Bottled Water
More than 100 controls are carried
out daily, from water source to
packaging, in order to ensure the
perfect quality of the final product.

44. Juices

45. Culinary and Food

46. Confectionery
• `
No.1 Asset in our
Confectionery
portfolio.
Unbeatable
combination of
consistently high
product quality
Have a break, have a KitKat

47. Baby Food
Each Stage of your child’s life is
unique.
Cerelac provides nutrition
according to their age
Comes in 4 stages

48. Breakfast Cereals

49. 49
Financial Analysis

50. Registered Office
 Nestlé Pakistan Limited
 308 – Upper Mall,
Lahore, Pakistan.
 Fax: (042) 35789303-4

51. External Auditors
• K.P.M.G. Taseer Hadi & Co.
Chartered Accountants

52. Legal Advisors
• Chima & Ibrahim.
Advocates

53. Bankers
 Standard Chartered Bank
 Habib Bank Limited
 MCB Bank Limited
 Citibank, N.A.
 United Bank Limited
 National Bank of Pakistan Limited
 Meezan Bank Limited
 Telenor Microfinance Bank
Limited

54. Financial Year End
1st January - 31st December
Total No. of shares
 45,349,551

55. 55

56. 56
Market Share
Nestle
Unilever
Others
60 %
10%
30%

57. 57
Ratio Analysis
 Sales
 Gross Profit Ratio
 Inventory Turnover Ratio
 Current Ratio
 Interest Cover Ratio
 Dividend Payout
 Earnings per Share
 Return on Equity

58. Net Fixed Assets, Capital
Expenditure & Depreciation

59. 59
Sales
Sales grew by PKR 2.4 billion, a growth of 2.0%
largely driven by pricing
Increase in selling price
Reduction in cost of sales

60. Gross Profit Ratio
30%
32%
34%
36%
38%
2017 2018
GP Ratio
GP Ratio
Delivered a Gross Margin of 33.2%.
The major factors behind the decline was due to
significant Rupee devaluation and increased
commodity prices, which could not be fully
compensated with pricing and cost saving initiatives.

61. Inventory Turnover Ratio
0
1
2
3
4
5
6
7
2017 2018
Inventory Period
Inventory
Period
4.7
5.8
It measures the period for
which goods remain in stock
before getting sold.
 Efficient inventory
management
 Higher sales

62. Current Ratio
0.55
0.6
0.65
0.7
0.75
2017 2018
Current Ratio
Current Ratio
 It represents margin of safety or cushion available to the creditors
 Lower ratio as compared to previous year represents:
 Financial difficulty
 Lower inventories
 Longer creditors credit period

63. Interest Cover Ratio
0
5
10
15
20
25
2017 2018
Interest cover
Interest cover
 It indicates whether the business earned sufficient profits to
pay periodically the interest charges
 Decrease indicates :
 Lower profitability
 More use of debts
 Less credit worthiness

64. Return on Equity
 It measures overall efficiency of a company
 This ratio is of great importance to present and prospective
shareholders
 This shows efficient management
 Higher profitability

65. 65
Dividend Payout
 The Board of Directors has recommended to pay final cash
dividend of PKR 63 per share
 In addition to the interim cash dividend already paid of PKR185 per
share
 Which brings the total dividend for the year to PKR 248 per share
for 2018 as compared to 320 per share in 2017.

66. Market Capitalization

67. Profit after Tax
 Net Profit after tax reported was 9.3%.
 The drop mainly resulted from reduction in gross profit.

68. Market Price per Share

69. 69
Earnings per Share (EPS)

71. Marketing
• Micro Environment
• Macro Environment

72. Micro Environment
• Suppliers
• Marketing Intermediaries
• Customer
• Competitors

73. Macro Environment
• Political Environment
• Cultural Environment
• Economic Environment
• Technological Environment

74. Advertisement
• In the advertisement of NPL the
message is given that :
“ There is one water, which gives
you hope, happiness and trust and that
water is Nestle pure life. It is pure safe
and healthy water. ”
• Slogan of NPL :
JIYO! Kay yehi ha zindagi

76. Conclusion
 Nestle is the largest food manufacturing company
in the world.
 Nestle has almost tried all the strategies to expand
internationally, and now they help economies to
grow.
 Nestle created joint ventures with other
companies which enhanced Nestles and there
companies’ performance positively.

77.  Nestle is flexible and highly adaptive to the
competitive external environment and also
decentralized decision authority.
 The main purpose of nestle working together is
that the communities which are serving Nestle
should prosper in long term.
Conclusion

78. References
 https://www.nestle.pk
 https://dps.psx.com.pk/company/NESTLE
 www.google.com
 Nestles Annual Report 2018

79. Thank you !

80. Any Questions ?