Department of Management Sciences

Course Information
Course Title Strategic Finance Course Code MGT-609
Credit hour 3 Semester M.Phil. 1st
Instructor Information
Name Dr. Adnan Bashir Assignment Type Project
Submission Date: 30-January, 2023
Topic: Select the Topic “NESTLE” and write up its Introduction, Corporate governance,
Strategy Analysis its Core values and Post Covid-19 effects.
Student Details
University of Gujrat (Fall-2022)
Student Name AYESHA MEHRBAN
Roll ID: 22011720-037
Student Name MUHAMMAD HAMZA
Roll ID: 22011720-039
Student Name MUHAMMAD AHMED RAZA
Roll ID: 22011720-042
INTRODUCTION:
Nestle is largest food and beverages company in the world. it's headquartered in vevey
Switzerland. The company was formed in 1905 by the merger of the “Anglo-Swiss Milk
Company” which was established in 1866 by brothers George and Charles Page, and “Farine
Lactée Henri Nestlé” founded in 1867.
BUSINESS DESCRIPTION:
Nestle products includes
 Diary Products
 Coffee And Tea
 Bottled Water
 Juices
 Frozen Food
 Confectionary
 Chocolates
 Breakfast Cereals
 Ice Creams
Nestle key focus on nutrition, health and wellness. Nestle tagline is Good food, Good Life.
Nestle is founded in 1866 and today is 5th Largest company of the world according to it's
turnover. Nestle operates in 194 countries and employee around 339000 people Nestlé is the
world leading nutrition, health and wellness company.

Mission
Our mission of "Good Food, Good Life" is to provide consumers with the best tasting, most
nutritious choices in a wide range of food and beverage categories and eating occasions, from
morning to night.
Vision
To be a leading, competitive, Nutrition, Health and Wellness Company delivering improved
shareholder value by being a preferred corporate citizen, preferred employer, preferred
supplier selling preferred products
EVOLUTION OF LOGO:

PRINCIPLES OF NESTLE:
Consumers:
Nutrition Health & Wellness
Quality assurance and product safety
Consumer communication
Our Peoples:
Human rights in our business activities
Leadership and personal responsibility
Safety and health at work
Transparency:
Internal interaction and communication
External engagement and advocacy
Value Chain:
Responsible sourcing
Customer and business partners
Environmental sustainability
Business integrity:
Ethics integrity
Privacy and ethical data management
HISTORY OF NESTLE:
Nestle in founded in 1866 by Henri Nestle and today is the world largest food and beverages
company. it's Headquarter in vavey Switzerland. Nestle employee around 250,000 and have
operations in almost every country in the world.
Nestle is a Swiss German word which means "little nest"
in 1860s Henri Nestle, A pharmacist, developed a food for babies who were unable to
breastfeed.
1867 Henri Nestle founded the company in vevey, Switzerland.
1898 Nestle purchases its first factory outside of Switzerland viking milk factory in Norway
1905 Nestle merges with Anglo-Swiss condensed milk company.
1929 Nestle merges with Peter-cailler Kohler chocolates suisses S.A.
1938 Nestle launches Nescafé - the world first instant coffee.
1947 Nestle merges with Alimentana S.A. with the brand maggi.
1962 Nestle purchases Findus
1974 Nestle become a significant shareholder in the cosmetics company L'Oreal.
1977 Nestle purchases Alcon, manufacture of eye care products and kits.
1985 Nestle purchases the food company carnation.
1988 Nestle purchases the confectionary company Rowntree mackintosh and pasta company
bultoni-perugina.
1992 Nestle purchases the mineral water company Perrier.
1998 Nestle purchases spillers pet food business.
2000 Nestle sell the Findus brand to all countries except for Switzerland.
2001 Nestle merges with Ralston Purina, the premier petfood company in north America and
with unique expertise in the dry dog food area.
2002 Nestle acquire frozen food business chef America for USD 2.6 billion.
2006 Nestle acquire weight management business Jenny Craig and Australian breakfast
cereals company Uncle Toby.
2007 Nestle acquire Novartis Medical Nutrition and buy baby food company Anglo-food
service business division, Nestle professional.
2010 Nestle acquire Kraft foods frozen pizza business.
2012 Nestle acquire Pfizer nutrition for 11.9 billion.
2013 Nestle buy US based medical food company palmab which specialized in medical
nutrition for patients.
CORPORATE GOVERNANCE:
The system of rules, practices and processes by which a firm is directed and controlled.
Nestle governance provides the base for our many actions leading to sustainable value
creation. We continue to balance the pursuit of top-line and bottom-line growth with capital
efficiency. Our science- and consumer-driven innovations meet fast-changing consumer
needs. At the same time, we use our scale, resources and expertise to create shared value for
all our stakeholders.
STRUCTURE AND SITUATION:
Nestle has a geographical divisional structure with operations segmented into five geographic
divisions include:

 Zone North America (NA) includes the United States and Canada.
 Zone Latin America (LATAM) includes Brazil and Mexico
 Zone Europe (EUR) – in Europe
 Zone Asia, Oceania, and Africa (AOA) is a broad geographic region that also
includes the Middle East and North Africa.
 Zone Greater China (GC) a rapidly expanding market that offers
significant growth potential for the company.
The Nestle executive board is responsible for the day to day management of the company.
There are 14 Executive and Deputy Executive Vice Presidents. Five of these lead the
geographic divisions, while the remaining nine manage functional groups with the following
titles Chief Financial Officer.
 Head of Operations.
 Chief Technology Officer
 Global Head Human Resources & Business Services.
 General Counsel, Corporate Governance and Compliance.
 Head of Strategic Business Units and Marketing and Sales.
  Chief Executive Officer Nestlé Health Science
 Head of Group Strategy and Business Development.
 Head of Nestlé Coffee Brands
The company’s Board of Directors is responsible for:
 Supervision of the Group.
 Long-term strategy development, and
The Group’s environmental, economic, and social sustainability initiatives Nestle Board of
Directors consists of 15 members which include Mark Schneider and Nestlé Chairman (and
former CEO) Paul Bulcke. Other board members bring experience from companies such as
Amway, Apple, Credit Suisse, Inditex, AXA, and Harman International

STRATEGY OF NESTLE:
Objectives are to be recognized as the world leader in nutrition, Health and Wellness, trusted
by all it's stakeholders and to be the reference for financial performance in it's industry.
The Corporate believes that leadership is not just about size, it is also about behaviour. Trust,
too is about behaviour and they recognized that trust is only earned over a long period of time
by consistently delivering on their promises. these objectives and behaviours are encapsulated
in the simple phrase " Good Food, Good Life"
 The Nestle roadmap is to create alignment for workers behind a cohesive set for strategic
priorities that will accelerate the achievement of company objectives. these objectives
demand from workers a blend of long term inspiration needed to build for the future and short
term entrepreneurial actions, delivering the necessary level of performance.
The Nestle model is securing progress today and ensuring success in the future.
 achieving simplicity
 investment for growth
 sale benefits
The Nestle roadmap include three main parts
 competitive advantages
 growth drivers
 operational pillars
All this may be describe with one clear and simple chart

The Nestle has its own local companies in most countries. The Head office in Switzerland
works very closely with them and sets the overall strategy which is managed through
management and strategic business units. Geographically Nestle three Zones. ( Europe,
America,Asia,Oceania, Africa, and the Middle east) work closely with the local markets and
the strategic business units. their primary role is that enablers acting as the voice of the
headquarters to the markets, and the voice of markets to the headquarters. All Zones and
Units share Nestle vision so that everyone around the world understand the direction to take
and how to get there with common tools, common strategies and common values. this ensures
that people around the world know how to act and that there is a very strong frame work of
values and a clear reference point for fast and efficient decision making.
The strategic business units specialize in given category for example, coffee and beverages,
or chocolate and confectionary. Corporate works with research and development ( R&D) to
ensure that every thing the corporation produces is led by consumer insights and relevant
innovation. and they help the market to achieve their business and brand objectives.
PURPOSE AND VALUES:
Nestle purpose is to unlock the power of food to enhance quality of life for everyone, today
and for generations to come.
CORE VALUES
 Respect
 Full Legal Compliance
 Boosting Health
 Improving Lives
 Fair Dealings
 Honesty and Integrity
IMPACT OF COVID:
The US is the most affected country by COVID-19, followed by India and Brazil. Some
countries in Asia are struggling with a rising number of coronavirus cases and present not so
optimistic outlook for the company’s sales in 2020. As the COVID-19 pandemic is estimated
to have a severe adverse impact on the non-alcoholic business compared to the food business,
the company’s overall sales in North America are at risk of contraction. However, the food
business contributed more than half of Nestle’s sales in Latin America in 2019.
With customers stockpiling or buying more food products, the company’s sales in the region
are estimated to grow despite the pandemic.
In Europe, Nestlé’s sales have been affected by the lockdowns and social distancing measures
in the first six months of the year. The company has reduced recruiting in most of its streams
except artificial intelligence and e-commerce. The company has launched its immunity-
related probiotic products in China to capture the growing demand for these products in light
of the pandemic. It also increased the use of augmented reality (AR) technology to renew and
establish production lines during the ongoing pandemic