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INTRODUCTION TO BUSINESS
ANALYSIS OF NESTLE CASE STUDY
Henri Nestlé established Nestlé in 1867 in Switzerland
His first product was lactogen formula for infants by the
name “Farine Lacteé”
“Nestlé” is a Swiss-German word which means “Little Nest”
which is its trademark
Nestlé is the worlds’ number one food company
5th largest company of the world according to its turn over
NESTLE IN MALAYSIA
• Nestlé's commitment to providing quality products to
Malaysians dates back almost 100 years ago.
• Nestlé began in Malaysia in 1912 as the Anglo-Swiss
Condensed Milk Company in Penang and later, growth and
expansion made a move to Kuala Lumpur necessary in
• Since 1962, with its first factory in Petaling Jaya, Nestlé
Malaysia now manufactures its products in 7 factories and
operates from its head office in Mutiara Damansara.
"Nestlé is the largest food company in the world.
But, more important to them is to be the world's
leading food company”.
Organizational chart clearly indicates the,
responsibilities, authorities and
accountability for each function.
Nestle is practicing functional structure.
Employees in the organization has clearly
written job description according to the
When delegations occurs, agreement is
written with the mutual understanding.
Functional organization is a common type of
organizational structure in which the organization
is grouped based on specialization by functional
Some argue that functional departmentalization
allows for greater operational efficiencies in that
employees with shared skills and knowledge are
grouped together by functions performed.
Nestle adapt Fayol’s management process style.
Fayol was one of the most influential contributors
to modern concepts of management, having
proposed that there are five primary functions of
(4) coordinating, and
(5) controlling (Fayol, 1949, 1987).
Controlling is described in the sense
that a manager must receive feedback
on a process in order to make
Many of today’s management have
reduced the five functions to four: (1)
planning, (2) organizing, (3)
leading, and (4) controlling.
Nestle practices “DEMOCRATIC LEADERSHIP
For taking any advice and decision Nestle
depends on its employees.
Nestle motto is:
"Teamwork with responsible leadership".
Nestlé is people & product oriented.
As decentralized as possible.
Employees get Motivation by:-
Immediate job satisfaction
Long-term career development
Superior pay and benefits
The personal growth that comes from
experience and training
Materialistic as well as internal motivation
Motivated by Rewards & Benefits
REWARDS & BENEFITS
Health screening/on-site occupational health
25 days' holiday
Mobile phone on a business need basis
Company bonus scheme
Contributory final salary pension scheme
Childcare vouchers (dependent on salary)
Gym facilities at larger sites
Staff shop at most sites
Flex time at some sites
Nestle established internal and external
Employees are free to communicate to any
authority. There is no particular established
Authorities are bound to listen to the
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