A report on Nestlé’s Corporate HR Strategy

Individual Report

Submitted by:
Mustafa Saeed

Course Name: Master of Business Administration

Module Name: Human Resource Management
Submission Date: November 2010
Submitted to: Dr. John Davies
Executive summary

Contents
Introduction
Implementation
Recommendation & Conclusion
Refrences
Introduction: -
Nestlé was founded in 1866 by Henri Nestlé and is today the

world's biggest food and beverage company. Sales at the end of

2005 were CHF 91 bn, with a net profit of CHF 8 bn. Nestlé

employ around 250,000 people from more than 70 countries and

have factories or operations in almost every country in the world.

The history of Nestlé began in Switzerland in 1867 when Henri Nestlé, the pharmacist,

launched his product Farine Lactée Nestlé, a nutritious gruel for children. Henri used his

surname, which means ’little nest’, in both the company name and the logotype. The

nest,

which symbolizes security, family and nourishment, still plays a central role in Nestlé’s

profile.

Since it began over 130 years ago, Nestlé’s success with product innovations and

business acquisitions has turned it into the largest Food Company in the world. As the

years have passed, the Nestlé family has grown to include chocolates, soups, coffee,

cereals, frozen products, yoghurts, mineral water and other food products. Beginning in

the 70s, Nestlé has continued to expand its product portfolio to include pet foods,

pharmaceutical products and cosmetics too.

Today, Nestlé markets a great number of products, all with one thing in common: the
high quality for which Nestlé has become renowned throughout the world

The Company's strategy is guided by several fundamental principles. Nestlé's existing

products grow through innovation and renovation while maintaining a balance in

geographic activities and product lines. Long-term potential is never sacrificed for short-

term performance. The Company's priority is to bring the best and most relevant products

to people, wherever they are, whatever their needs, throughout their lives.

Taste of Nestlé in each of the countries where Nestlé sell products. Nestlé is based on

the

principle of decentralization, which means each country is responsible for the efficient

running of its business - including the recruitment of its staff.

That's not to say that every operating company can do as it wishes. Headquarters in

Vevey sets the overall strategy and ensures that it is carried out. It's an approach that is

best summed up as: 'centralize what you must, decentralize what you can'.

Nestlé 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. Nestlé believes that they should think about

their organizations globally but they deal with people by interacting with them locally.
“Thinking globally - acting locally”
Evolution of Nestlé: -
1867 Henri Nestlé founded the company in Vevey, Switzerland.
1898 Nestlé purchases its first factory outside of Switzerland - Viking Milk
factory in
Norway.

1905 Nestlé merges with Anglo-Swiss Condensed Milk Company.

1929 Nestlé merges with Peter-Cailler-Kohler Chocolates Suisses S.A.

1938 Nestlé launches Nescafé - the world’s first instant coffee.

1947 Nestlé merges with Alimentana S.A. with the brand Maggi.

1962 Nestlé purchases Findus.

1974 Nestlé becomes a significant shareholder in the Cosmetics Company

L’Oréal.
1977 Nestlé purchases Alcon, manufacturer of eye care products and kits.

1985 Nestlé purchases the Food Company Carnation.

1988 Nestlé purchases the confectionary company Rowntree Mackintosh and

the pasta
company Buitoni-Perugina.

HR Strategies
Hr strategies defined
Hr strategies set out what the organization intends to do about the diffrence aspects of
its human resource managmene policies and practices. They will be integrated with the
business strategy and each other. Hr strategies are described by Dyer and
Reeves(1995)as ‘internally consistent bundels of human resource pracices, and in the
words of Boxall(1996), they provide ‘ a framework of critical ends and means’.
Richardson and Thompson (1999) suggest that:
A strategy, whetehr it is an HR strategy or nay other kind of management Strategy must
have tow key element. Ther must be strategic objectives (i.e things the strategy is
supposed to achieve), and ther must be a plan of acction (i.e the means by awhich it is
prosoed that the objectives will be met.

PURPOSE
The purpose of HR stratedies is to guide HRM development and implementation
programmes. They provide a means of comminicating to all conserned the intentions of
the organization about thow its human resources will be managed. They provide the
basis for strategic plans and enables the organization to measure progress and evaluate
outcomes agians objectives.HR strategies provide vision for the future bu tthey are sloa
vehicles that define the acitons requred an how the vision should be realized. As Gratton
(2000) commented: ‘there is no great strategy, only great execution

1992 Nestlé purchases the mineral water Company Perrier.

Refrences:
http://www.google.co.uk/search?
sourceid=navclient&aq=0&oq=introduction+to+nes&ie=UTF-
8&rlz=1T4RNSN_enGB392GB392&q=introduction+to+nestle
http://www.scribd.com/doc/21544545/Introduction-Nestle-Was-
Founded-in-1866-by-Henri-Nestle-And