Final Year MBA Case Study of SHRM on Nestle

Introduction of company

The company called Nestle is very popular company which leads the nutrition. This company mainly deals with the concepts such as health and wellness. It has a wide range of popularity over world wide. It has 456 factories which are established over 84 nations.

Nestle is a company which will work for public and consist 250000 shareholders over world wide. It plays leader role among remaining companies. It leads some particular product categories such as coffee, water, milk, ice cream, chocolate, and drinks. It also plays the co-leader position while dealing with huge pet care with various advanced features.

It specifies various objectives in order to maintain the shareholders values and bearable investment and economic growth of the organization. It has concentrated on the future organic improvement and huge efficiency environment.

History of Nestle

Nestle is a company which is profited by merging of small organizations. In the duration of 1860’s Henri Nestle who is the innovator and made many researches on the mixtures and combinations of milk, fleet, sugar. Later each year company of Nestle had formed and continuously growing over world wide. In 1867, his approach saved many born infants.

In 1866, two researchers fromAmericacalled Charles and page found the concepts of milk organization. Then it worked out on it and launched that company which mainly deals with condensed milk products. In 1875 it introduces the milk chocolate. This product is experimented and found by the neighbor of Henri. After this the neighbor called peter became most popular chocolate maker over the world. Peter established a company after he got popularity. Then later he joined his company in Nestle Company.

The world war affects the milk products a lot. Particularly it affects the Nestle products when it has got the new publicity and demand for their products. The cause for this disaster is nestle company made many contracts with government. So it got more loss at the end of world war. In 1921, first time the Nestle Company got loss. It records that as a first loss at the end of First World War. At the end of war the people begin to use fresh milk except the condensed and milk by powder.

In the year 1930, Brazilian coffee organization begins dapples. After 8 years this nestle company introduces a new product which has got unexpected demand for that product. The name of the product is Nescafe. Then the company got the instant success

After 1974, due to the increments in oil prices and decrements in industrialized nations, the economy of the company had decreased.

Goals of nestle


The vision of Nestle Company is to meet the desires and wants of the consumers each and everyday by efficient implementation of marketing and selling the products with high and efficient quality.


The mission of the company Nestle is to provide good quality food for the people which ensure good health of consumers.

Business objectives:

ü  To make and market the products in such a way that the quality of products should satisfy the consumers, employees and shareholders.

ü  Sustain the position on which the people kept trust and belief on the various brands of its products.

ü  The main objective is that the effective management of employees and provides a wonderful work environment.

SWOT analysis:


Strengths include several factors such as parent support, Brand strength and product innovation. This company performs well over worldwide. So it has got huge popularity for products. This company launched its branches in 6 continents. So that it can be known as the global company. It offers local products also with good quality.


Exports: The Nestle Company exports are at Rs.2571 m. this could be verified at the end of 2003. But these major product as coffee has exported toRussia due to the volatile market inRussia. This factor often hit the overall efficiency of the company.

Supply chain

Nestle company has a huge and difficult supply chain. But the management of this supply chain can be affected by the factor of traceability.

Apart from the above reasons there are also few weaknesses such as scientific and unaware of products.


Product offers:

The Nestle Company provides services such as expansion of more no of brands. It also introduces new brands with high quality.

Global hub:

India Nestle became the export Hub among remaining countries. The reason to make the Indian Nestle is that less manufacturing cost of Nestle products. Moreover the other health based products have got more popularity.



This Nestle Company had faced so immeasurable competition which is mainly from specific organized and unorganized parts.

Sectored woes:

If there is an increment in various considerations such as fuel, raw materials, then this company does not increase the burden on consumers. This company has global wide competitors as it is an international company.

SHRM at Nestle

Nestle is a human company which provides products with good quality world wide. This is the international company as it is facing global competitors.

Spirit f Nestle:

Making huge capitals in people” is the key to success of this company. The company derives that the people are the key drivers for their company to make profits. Particularly NestleIndia provides a dynamic professional work environment to the employees. So this company provides a good place to work for employees.

Corporate level strategies

  • The company is a long-term stable.
  • The business could be incremented based on the human values and rules.
  • Growth level is possible through the innovation and renovation.

Competitive advantage

  • International reach
  • Research and development
  • Product range


Here the training program will be conducted in each and every department at Nestle. The training is always related to the professional life.

Nestle provide the following services,

  • It conducts apprenticeship programs.
  • Local training sessions are also conducted regarding technical and communication

Pay structure

The payment package will be always based on the individual performance and efficiency. If the person is in position of team leader, then the pay scale will be based on the successful achievements done.

Recruitment services

Nestle can be taken as a bench mark at recruitment services globally. Recruitment process follows the business needs.

Rewards and employee relations team

This contains two sub teams for especially business and operational remits. The sub-team of employee relations and to business HR business rules provides services at procedures and policies of company.

Employee relations

The commitment level of Nestlé’s employees is very high because the Nestle provides a very good healthy environment for working to the employees. So their commitment is so high.

For a multinational company, if there is less than 5% of employee turnover then it is considered as the very low for that company.

In case of grievance, Nestle open a culture for encouraging the people, giving the upward communication and redressed.

In the Nestle Human Resource Policy document, there is a brief illustration in that document the importance is given to the work/life balance.

By the HR department of the Nestle, conducting the ‘Nestle Family’ annual events, in this the families of the employees are invited.

Employees’ safety is the important one for the company. This is according to the Nestle policy on health and safety at work.


  • For the last 140 years, the Nestle creates the ever changing external environment without lose of fundamental beliefs and core values since its inception is at 1866. This Nestle follows the gradual changes policy instead of taking the changes of drastic and risky. Because of the following the above things, the company will be sustainable and profitable growth.
  • The Nestle, in order to enterprise this to global it implements the ERP in June 2000, for doing of this Nestle SA signed, for this make a contract with SAP of $200 millions and for installing the ERP system at additional $80. 

Rewards and incentives

There is an award for the people who are achieving their targets with in the time. This is called as “Passion to Win” awards.

The employees who are working in that company for a long time, for that there is an award called as “Long-Service” award.

The “Nestle Idea Award” is for the people who are coming with the new ideas and innovating thinking and the persons should have ability to implement those ideas. 

There are some principles to follow in the rewards applied by the Nestle. 

Reward principles:

Performance Driven – Based on the performance, the level of reward will be there.  

Competitive – there is a competitive reward package for the employees.

Inclusive – this is considering the valuable contribution of every employee in giving the rewards, not only considering the senior managers.

Flexible – in this allowing the persons to tailor the reward on when ever possible. 


These benefits are for all employees. Those are:

  • Granting the leave, which is may be personal or medical. These are fixed in number per year.
  • There is an assistance scheme for the education of children
  • Provident fund
  • Retirement Gratuity Scheme
  • Group Insurance & Accidental Insurance scheme
  • Conveyance reimbursements
  • Residential Accommodation
  • Monthly health check ups & free consultation for self & family etc. 

Talent management and International HR 

The talent management and International HR team, this is mainly focus on the employees who are having the more potential in their carriers and who are having the ability to become the leaders of the Nestle in the future. This program supports the employees and sends them to the international assignments for the career development to the Nestles international head quarters which are inVevey,Switzerland or any other.

Learning and development

Learning and Development team this program is involved in the development of the cutting edge interventions and ‘Lead2Win’ programs. This team is covering the functional development programs from manufacturing to the supply in the business process.

Learning and development at Nestle means that continuous improvement, creativity, innovation. The continuous development leads to the creativity and the innovation. This is involved in two stages:

  1. The professional development experts created the strategies of core skills development. These are adopted in business area with the help of HR business partners and business directors.
  2. Next is for online. In that training will given to the employees.


To support the differentiation strategy, Nestle has to follow some HR strategies.

  • They favour the long term performance measure.
  • They train the employees and keep them with latest innovations.
  • To promote creativity, Nestles pay structure, rewards & incentives are designed.
  • The persons, who bring the new ideas, will recruit.
  • In the career development process of the employees, they provide the path. 

Impact of Recession on Nestle

 In this phase it face a tribulation in terms of shipment growth and the volume of goods

Reasons behind the strong survival of Nestle even during the Recession:

  • Innovation and renovation of its brands and products
  • Capitalize on a wide variety of market conditions
  • The company is survived because of its defensive qualities as well as its strong growth credentials. 

HR strategies followed by Nestle 

To meet the demand from the market and changing economic environment, Nestle has innovated its HR strategies and they are listed below 

Strategy implemented for Communication: A perfect and well planned communication strategy is always required for any organization to meet the customer requirements. Nestle has implemented a point to point communication strategy, where each and every employee at every level of management is well communicated by their corresponding supervisors regarding the changing conditions and organizational behaviors. 

Training and Development:  Nestle has implemented several levels of training and development programs to educate their staff regarding the latest innovation process implemented by the organization and organizational changes. Feedbacks and surveys are prepared by the top level management to meet the expectations of the employees and satisfy the organization goals.

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