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Analysis of Organizational Resources of Nestlé Company

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Human Resources

People are Nestle’s greatest asset. They ensure that the workers benefit as much as they can from their work at Nestle’s. Nestlé fully supports the United Nations Global Compact’s four guiding principles on labour. Nestlé therefore upholds:

  1. Freedom of association and the effective recognition of the right to collective bargaining
  2. The elimination of all forms of forced and compulsory labour
  3. The effective abolition of child labour
  4. The elimination of discrimination in respect of employment occupation.

Nestle also supports the 10th United Nations Global Compact Principle which is businesses should work against corruption in all its forms, including extortion and bribery. Any activity that infringes these rules is investigated on a case-by-case basis and may result in disciplinary sanctions or criminal charges.

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Some of the standard methods Nestle use in engaging their employees are by offering them opportunity of an exciting career supported by continuous development and training for everyone from the factory floor to top management so that employees can adapt their capabilities and career prospects in a rapidly changing world. Besides, employees at all levels are also invited to take part in the “Nestlé and I” global employee survey which includes five questions covering employee engagement. Action plans are being implemented at both market and corporate level to address the areas that has been outlined by the employees that they believe require additional attention such as recognising high performance and managing low performance and demonstrating transparency in relation to career development.

Financial Resource

Nestlé is well positioned in its operating markets. This statistic shows the sales distribution of the Nestlé in 2017, broken down by region. Based on the statistic and its latest annual report, the largest share of sales came from North and South America accounted for approximately 45. 3 percent of Nestlé’s global sales.

Based on sales in 2017, the Nestle Group in United States generated sales about 26. 7 billion which is the leading market of Nestle worldwide and followed by Greater China Region, 6. 58 billion with Nescafe, KitKat, Nespresso, Maggi and Milo as the biggest brands and the highest market selling among the other 2000 brands. Malaysia is one of the top five key Nestle markets in Asia and ranks among the top 20 markets in the Nestle world with Maggi Noodles as one of the highest market demand. Over 600 million packs sold per year which is equivalent to 1 pack for every person in Southeast Asia. To double the productivity Nestle Malaysia has invested RM90 million into this noodle manufacturing line, which incorporates advanced technology.

Average Nestlé Warehouse Worker hourly pay in the United States is approximately $14. 89, which is 26% above the national average with benefits of dental insurance, employee discounts, Health Insurance, Life Insurance and Vision Insurance.

Salary information comes from 39 data points collected directly from employees, users, and past and present job advertisements on Indeed in the past 36 months. Last updated is on June 9, 2018. DistributionSupply chain professionals at Nestlé play a critical role in ensuring quality products reach their customers and consumers. To achieve this, Nestle collaborate with the commercial teams to develop the demand forecast, and also with their suppliers around the world to ensure responsibly sourced materials. In alignment with operations, they balance inventory levels to establish the right supply of their products. Once produced, supply chain is responsible for safely storing and transporting their products to meet their customers’ and consumers’ needs in-full and on-time. Nestle are an aligned, agile, and adaptable organisation that is committed to delivering results, not only within supply chain, but also in support of overall business priorities.

Suppliers

Nestle source their agricultural raw materials principally milk, coffee, cocoa, cereals, vegetables, fruit, herbs, sugar and spices either through trade channels or directly from farmers. Although they don’t have control over the farms, they support sustainability in the supply of agricultural raw materials and agricultural best practices. To put these words into action, they have over 800 of their own agronomists, technical advisers and field technicians. Their job is to provide technical assistance to more than 400, 000 farmers throughout the world to improve their production quality, as well as their output and efficiency. They do this on a daily basis in as many as 40 countries including Inner Mongolia, China, Pakistan, Ethiopia and Colombia. This specialist team has pioneered the development of sustainable local fresh milk and coffee production. For example, coffee farmers in the Yunan Province of China are improving yields and quality as a direct result of Nestle advisors’ expertise, as are farmers in Indonesia, Mexico, the Philippines and Thailand. Similarly, hundreds of thousands of milk farmers are benefiting from Nestlé animal husbandry assistance and milk collection initiatives in countries as far afield as Chile, India, Mexico and Pakistan.

Relationship with Suppliers

Nestlé aims to deal only with reputable suppliers who are willing to apply Nestlé quality standards. Supplier relationships are benchmarked and evaluated with the objective of striving for continued improvement in the areas of quality, service, etc. As a relationship between a supplier and Nestlé strengthens and progresses, it may evolve into one of preferred supplier status. Key suppliers with which Nestlé has a contractual relationship are audited in order to ensure that they comply with the Nestlé Corporate Business Principles or that they are working actively to achieve compliance. Whenever instances of non-compliance are brought to the Company’s attention, Nestlé will demand that corrective measures be initiated. Nestlé personnel will maintain the highest standards of integrity and professional competence in all business relationships. Sanctions will be applied in the event of misconduct or abuse of established corporate standards and guidelines.

Customers

What makes Nestle the world’s largest food company are the millions of consumers across the globe who put their trust in its products. Nestle reputation over many years for consistent quality and safety, and its ability to meet changing consumer needs has earned consumer’s trust around the world. The whole company is dependent on consumer choosing Nestle products in preference to their competitors’ products. That’s why they are wholeheartedly dedicated to the consumer and focused on meeting his or her needs. Every day Nestlé sells over a billion products. These individual consumer transactions give the Company total annual sales of more than CHF 90 billion.

For success and growth, Nestle have to build the greatest possible consumer trust in both the Company and its products. One way is to get as close to the consumer as possible. Their aim is to achieve better consumer understanding than their competitors. Their employees work hard to put themselves in the shoes of the consumer at every step, from product concept to the writing on the pack. Their executives spend days observing consumers in their homes and in the shops. Often this type of hands-on research is more rewarding than huge quantitative studies. Nestle is a consumer-driven company, and they tailor their products to suit local tastes and desires in the 100-plus countries where they present. They are committed to listening to their consumers and interact with hundreds of thousands of consumers per year through their consumer hotlines, websites and other means. Additionally, Nestle are committed to meeting consumers preferences and they carry out extensive consumer testing on their products to make sure that consumers will prefer their products to those of the competition.

Assess to information

The company secretary, under the direction of Chairman, ensures a balanced flow of information is disseminated for decisions to be made on an informed basis. Prior to the Board and Board Committee meetings, a formal and structured agenda are forwarded to all Directors at least five days prior to the Board and Board Committee meetings, for the Directors to be prepared to deal with matters arising from such meetings and to enable the Board and Board Committees to make decisions. In addition to that, reading materials on the subject matter, if any, are also prepared. The Board firmly believes that effective deliberation and its decision making process is highly dependent on the quality of information furnished by the Management Team and the Leadership Team. As part of the Board’s initiative to promote environmental sustainability and efficiencies, the Board has adopted paperless meeting documentations through the usage of electronic devices.

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