Assignment

On
Strategic Management (STM)
Submitted to
Sir Commodore Shahid Nawaz (r)
Submitted by
Muhammad Adeel
Enrollment # 01-222181-010
Rizwan Bashir
Enrollment # 01-222181-019
28-02-2019
Department of Management sciences (MS)
BAHRIA UNIVERSITY, ISLAMABAD.
 Nestle Pakistan Private Limited

Products:
Nestle Bunyad, Nestle Nido, Milk pack, Nestle yogurt, Nescafe, Nestle pure life
drinking water, Nestle Fruita Vitals, Maggi Noodles, Kit Kat, Cerelac, KoKo Krunch,

Brand:
Nestle is providing a large variety of products under the name of following brands,
NESCAFE, MAGGI, NESTLE PURE LIFE, NIDO FORTIFIED, NESTLE
CERELAC & COFFE MATE.

FACTORIES/Production Facilities:
Nestle have four factories operating in Pakistan which are located in Sheikhupura,
Kabirwala, Karachi and Islamabad.

Head Office:
Head office of Nestle Pakistan limited is located in Lahore.
Sales offices:
Sales offices location is based on division in different regions and their regional
offices are located in Quetta ,Hyderabad ,Lahore, Gujranwala, Faisalabad, Multan,
Islamabad, Jhelum and Peshawar.

Chief Executive Officers (CEO):

Muhammad Adeel, Rizwan Bashir

Vision:
To make Nestle a leading food company that provides healthy and nutrition’s full
foods and beverages of high quality to their consumers.

Mission Statement:
To remain committed to improve the quality of life and health of people through our
hygienic products and corporate social activities.

Goals:
To be the leading food company of Pakistan that provides healthy food products to
their consumers.
 Major trends in general environment

Political and legal:

 Strict Hygiene standards
 Political instability
 Raids by food authority
 Bad security conditions in Pakistan
Economic:
 Leading food firm with a wide variety of products
 Pakistan food industry is emerging industry regardless of huge economic
pressure
 Increasing inflation in Pakistan
 Increasing interest rate in Pakistan
 Increasing taxes in Pakistan
Social:
 Increasing trend of packed food in past few years
 Changing tastes
 Health conscious customers
Technical:
 Online order placement
 New payment methods
 Transformation from traditional to Contemporary Trends (Automation)

Impacts of trends in general environment on Nestle:

The Company is following strict hygiene standards in order to provide the healthy
products to their customers. Due to the strict hygiene standards the company is able to
capture a large market share and customer trust. Due to this Nestle products are
trusted worldwide. Due to unstable political conditions the company’s operations are
effected and its business is also reduced. Due to tension with India and Afghanistan at
border and changing economic policies of government, the firm’s business is also
badly affected and share price is also decreased. Nestle is one of the largest food firm
in Pakistan which contribute a reasonable share in our GDP and its business is
increasing day by day. But economic conditions of Pakistan are effecting negatively
its operations. For example increasing inflation is reducing the peoples buying powers
and firm’s sale is decreasing. Increasing taxes are also reducing growth opportunities
of firm.
The firm is also following the changing social trends in order to produce and deliver
the products according to customers taste and preferences. In recent few years the
consumer’s trend in changed towards highly hygienic and packed foods and Nestle is
fulfilling this need successfully by delivering healthy packed foods to consumers.
Nestle is using latest technologies and fully automated machines at their production
plants due to which cost of production is decreased ,and firm is able to deliver the
cheaper products in the market. The firm is also providing the online order faculties to
their customer.

Major Sources of Information to Monitor Changing Trends

This is quite difficult to keep Nestle Pakistan up to date in the industry’s trend and
events, that too when industry is maneuvering /changing rapidly. Keeping an eye on
the changing trends and events of the industry could help Nestle to keep it self
progressive and result oriented in the market/industry. Following are some of the
important sources of information gathering about changing trends and events of the
market and industry.

Social Media (Facebook, twitter, instagram etc.)

Importance of social media in order to attain information about the changing trends of
market/businesses cannot be ruled out due to its influence in the market/business and
lives of its users. Millions or to some extent billions of people/users/consumers are
connected and being influenced by the social media campaigns. Accessibility to the
customers/consumers and general public makes social media becoming an inevitable
medium of gathering information about the changing trends and events. Keeping in
view the social media influence and importance Nestle Pakistan has also decided long
ago to use the said platform of gathering data and information as Nestle Pakistan is
using/operating not only its website but twitter, Facebook and other social media
related platforms are being used by the firm.

Business/trade journals subscriptions.

The higher management of Nestle and its R and D (Research and development)
department are being provided with the opportunity to get the subscription of different
Business and trade journals through which they are aware of changing trends and
events and take considerable actions/decision according to the market/industry’s
requirement. These subscription would only be useful if the information which is
being provided in the journals are being critically analyzed and studied by the
managers and subscribers. In spite of having information about the changing trends
and events through theses journals Nestle management is not ruling out the
importance of other sources of gathering information, especially when the same
information of trends is also available for the rivals/competitors at the same level
through these journals.
Customer/consumer’s Feedback
Nestle Pakistan is a trendsetter firm/origination in the consumer’s market of the world
in general and Pakistan in particular. Its customers are belonging to every class of the
society using hundreds of its goods on a large scale. Nestle Pakistan always welcomes
the feedback from its customers/consumers about their products quality and their
services. This kind of feedback is always helpful not only to improve the quality of
services and products but this information gathered through the consumer/customer’s
feedback ,enables Nestle Pakistan to analyze take appropriate decision and actions in
order to improve and become compatible with the rapidly changing trends and events
of the market and industry.

Monitor/Observe the Rival’s/competitor’s Business strategies in the

Market/Industry
Monitoring and observing the business strategies, performance, business tactics and
policies of the rival and competitors of Nestle Pakistan is helping Nestle out to
compete in the market as far as market’s trend and events are concerned. Since
competitors like PepsiCo, Engro Foods Pakistan, Gourmet, Unilever Pakistan and
Heinz Pakistan are having a major share in the consumer market therefore there
business strategies and the way of doing business in the industry and market are being
analyzed and assessed by the Nestle Pakistan’s R and D department in order to gather
maximum information of their current and future strategies and policies which are
effecting the market share due to the changing trends and events and demands of the
consumers and markets.

News (Electronic, Print and Social media)

Nestle Pakistan through its R and D department is keeping itself updated by going
through the news element of the gathering timely and accurate information and data
for changing and growing trends and events of the consumer market. Gathering
information related to changing trends and events for meeting the market and
consumer’s requirements is being achieved through the news channels and these
channels could be electronic, print or social media. These channels are helping Nestle
Pakistan to make it sure that all the trends and changing demands should be met
through having a proactive approach towards the market and consumer’s demands.
Timely and accurate data or information gathered through news and newspaper gives
the reaction time to Nestlé’s production facilities to produce goods and products as
per/according to the changing de mands and trends of the market and customers