The Nestle Foundations

CHAPTER I
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Nestle was found in 1866 by Henri Nestle and is today the world’s biggest
food and beverage company. The history of Nestle began in Swizerland in 1867 when
Henri Nestle, the pharmacist, launched his product Farine Lactee Nestle, a nutritious
gruel for children. Nestle employ around 250000 people from more than 70 countries
and have factories or operations in almost every countries in the world. Since it began
over 130 years ago, Nestle’s success with product innovations and business
acquisitions has turned it into the largest food company in the world. Presently, Nestle
markets a great number of products, all with one thing in common: the high quality
for which Nestle has become renowned throughout the world. It is based on the
principle of decentralization. As the years have passed, the Nestle’s family has grown
to include chocolates, soups, coffee, cereals, frozen products, yoghurts, mineral water
and other food products. As the world’s leader in nutrition, health and wellness,
Nestle collaborates with countless companies across different industries. The
company grows significantly during the first world war and again following the
second world war, expanding its contributions outside its early reduced milk and child
formula products. Nestle was listed No. 1 in the fortune Global 500 as the world’s
most gainful business with a market capitalization of $ 200 billion, Nestle ranked
No.13 in the FT Global 2011. As nutrition, health and wellness company, Nestle, is
committed to the improvement of value of life by helping community in which it
operates to meet basic and necessary human needs. Nestle is a much focused
company, with more than 94 percent of the sales coming from food and beverage
sectors. Nestle is a company which is present in all over the world but it has
difference and unique motto to deal in all over the world. Today, Nestle has grown to
be the world’s largest food manufacturing company that offering more than 85oo
brands and 10000 products. Nestle is operating world widely with lots of well-known
brands of food products. Nestle is very much successful, as it has already covered
almost whole market share in different countries. So, have basically focused on“ The
impact of Nestle culture on its supply chain management.”

1.1.1 INTRODUCTION
In today’s competitive world it is believed that the effective supply chain
management has become an important driver in improving organization performance
and valuable way of securing competitive advantage. Supply chain management
( SCM ), is the process of overseeing how goods and services evolve from idea
creation and raw materials into a finished consumer products. A supply chain is a
network between an organization and its suppliers to produce and distribute a selected
product, and the supply chain represents the steps it takes to get the products or
services to the client. The supply chain management has become a popular
phenomenon under the paradigm of best business practices. Supply chain
management is an umbrella term that refers to a variety of approaches for the
management of natural and human resources from the supplier to the manufacturer or
service provider to the consumer and back. In the case of Nestle, it has a unique
collaborative culture that impact on its supply chain management. Nestle supply chain
continues to provide a competitive edge to the company by enhancing operational and
capital efficiency and sourcing at the most optimum rates. In the whole supply chain
activities, Nestle follow its own culture of giving first priority to the safety of the team
with continuous focus and use of technology. The supply chain encompasses the
company and the flow of the goods and services within the company, which starts
from the use of the raw materials until the customers. The internal organizational
culture creates an open platform where every members are allowed to exhibit their
extraordinary view that impact in its supply chain management. Nestle’s supply chain
vision is to achieve higher level of customer satisfaction through low cost, highly
efficient operations driven by value creation and continuous improvement. The supply
chain process of Nestle begins and ends with a focus on satisfying the consumer. At
Nestle, the supply chain management has a critical role where it makes sure that only
quality products are reached to its customers and consumers. Following its culture, the
supply chain of Nestle collaborates with its team and forecast the demand which is
then provided to the suppliers, so that they can provide materials. Thus, supply chain
management forms an integral part of day to day operations of the company.

1.2 OBJECTIVES OF THE STUDY
The main objective of the study is to analyze the organizational culture and supply
chain management of Nestle. To accomplish this board objective, following specific
objective have been covered.
i. To find out the effectiveness of supply chain management of Nestle.
ii. To analyze the present scenario of supply chain management.
iii. To identify the impact of Nestle culture on supply chain management.
iv. To access the supply chain management of Nestle.
1.3 RESEARCH METHODOLOGY
Research methodology is a systematic way to solve a problem. A systematic approach
and methodology is needed in order to do any type and prepare report. After the
detailed study, an attempt has been made to the present impact of Nestle culture on its
supply chain management. In the study on this topic, qualitative research method is
applied.
Qualitative Research-
Qualitative research involves collecting and analyzing non- numerical data ( e.g., text,
video, internet etc.) to understand concepts, opinion, or experience. It can be used to
gather in-depth insights into a problem or generate new ideas for research.
1.3.1 RESEARCH DESIGN
Research design is the framework or plan for a study that guides the collection and
analysis of the data. It is a map or blue print according to which research is to be
conducted. The types of research design used for this report are:
The type of research used is exploratory.
The tool used for data collection in this report is secondary data.

1.3.2 SOURCES OF DATA
The data that has been already found out by someone or available in written format is
generally known as secondary data. The secondary data tools used in the reports are
internet, Wikipedia, articles, online materials, website. The founding’s of other people
were also used to achieve appropriate data. Data of nestle culture, supply chain,
product launched, SWOT analysis has been collected from NESTLE’S official site i.e.
www. NESTLE.in. The secondary data thus collected helped to refined and reliable
data. This seminar report is prepared on the basis of secondary sources of data.
1.3.3 OBSERVATION
In the study, it is observed that every organization has its own culture. Likewise the
organizational culture of Nestle makes sure that all employees share the common
purpose and it is well aligned with the broader organizational purpose. Nestle believes
in creating a shared value along the supply chain. The internal organizational culture
of Nestle creates an open platform where every members are allowed to exhibit their
extraordinary view that impact in its supply chain management.
1.4 ORGANIZATION OF THE PROJECT REPOET
The report consist of three chapters. They are organized in three chapter; introduction
followed by observation and findings and lastly conclusions. In chapter one,
introduction part of the study which comprised background of the study, objective of
the study, research methodology and organization of the project report and in chapter
two includes observation and findings. The last chapter includes the conclusion of the
report.