BUS 520: Organizational Behavior & Management

1. Introduction 1.1 Origin

Our esteem faculty Mr. Dr. Abdur Rab asked us to choose a manufacturing company of reasonable size in any industry and complete a study that covers all-important factors of the concerned organization. After a brain storming session with in the group we decided to study Nestl Bangladesh Limited.

1.2 Objectives
Followings were the objectives of the study: Broad objective: To develop profile of Nestl Bangladesh Limited. Following were the related topics to reach the broad objectives: Vision, Mission Objectives / Goals SWOT Strategies Products Customers, Markets Volume and value of sales Organization Chart Number of employees Financial performance Location of the factory Production process Floe chart from order receiving, production to delivery Major problems faced by the company

Our major objective was to find out the following: Observation, evaluation, suggestions and conclusion Learning from the visit

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1.3 Methodology
Nature of the study: Exploratory Sources of information: Both primary and secondary information sources were used to complete this study.
Primary sources:

a. Factory visit & interview: Name of the employee

Secondary sources: Secondary information was collected from the local company

Nestl Bangladesh and web site of the parent company.

Preparation and submission of report: A report is prepared and submitted to the respective course teacher Mr. Dr. Abdur Rab for evaluation.

1.4 Limitations
Several problems were arises to complete this study. They were: 1. Some of the respondents failed to answer the requested information. 2. The management of Nestl did not want to reveal all the information about the product. 3. The website is not perfectly satisfactory and complete. 4. Time constraints to prepare a better report.

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Nestl S.A. was established in 1866 at Switzerland.

2. Nestl Bangladesh Ltd.

Heinrich Nestle is the founder of this company. In 1867, at age 53, Nestl invented his own infant formula in powder form. It has operation almost in everywhere of the world. It has 449 factories in 83 countries. Nestl Bangladesh Limited is a wholly owned subsidiary of Nestl S.A. Switzerland. The factory is located 55 k.m. from Dhaka at Gazipur and produces instant noodles, chocolate drinks & repacks milks & infant nutrition products. The Company wants to be recognized as the most successful food and drinks company in Bangladesh, generating sustainable, profitable growth to the benefit of shareholders and employees. To achieve these goals the Company places significant emphasis on the efficient and effective utilization of their three key resources:

Nestl Bangladesh Limited is a wholly owned subsidiary of Nestl S.A. Switzerland.

People Brands Products.

To achieve their vision of becoming the largest food & drinks company in Bangladesh, Nestl Bangladesh Ltd. shall take the following actions: Renovation and Innovation: Continuous improvement of business processes, brands, and products as well as prioritizing and launching successful new products that drive consumer needs. Consumer Communication: Improving effectiveness of communication to increase awareness, to drive consumer demands and strengthen brands. Low cost, highly efficient operations: Follow a disciplined continuous improvement process that facilitates ability to promote growth initiatives by improving delivered product costs and reducing sales and
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general administration expenses. The factory is located 55 km from Dhaka at Gazipur, Sreepur with the Head Office located in Gulshan 2 Dhaka. Product Availability: Whenever, wherever, however: Invest to ensure that company brands and products are in the widest distribution possible while maintaining costs within given targets.

The principles of the Company Culture are as follows:

People: People (employees) are the most important asset and source for competitive advantage. All operations are undertaken in teams with a strong leader where in the norm is to expect and reward creativity, integrity, sincerity, and responsible risk taking. Brands:
Strong brands ensure continuity of company growth and profitabilitytheir success is every employees responsibility.

Consumers: Companys source is competitive advantage is to understand, anticipate and best fulfill consumers needs. Distributors, Wholesalers, and Trade Outlets: Working closely together to achieve mutual value and benefits. Quality: Dedication to continuous improvement in the quality of products to achieve a 60/40 advantage over competition. Performance: Company is committed to achieving business and financial objectives while adhering to the core values. The achieved performance levels are used as a measure of companys success.
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3. Vision & Mission 3.1 Vision:

Nestl vision is to be the worlds leading nutrition, health and wellness company. Recognized as the most successful food and drink Company in Bangladesh, generating sustainable, profitable growth and continuously improving results to the benefit of shareholders and employees.

3.2 Mission:
The mission statement that drives Nestl is "Good Food, Good Life". They commit 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.

4. Objectives
Nestls objectives are to be recognized as the leader in Nutrition, Health and Wellness, trusted by all its stakeholders, and to be the reference for financial performance in its industry. They are seeking to achieve leadership and earn the trust by satisfying the expectations of consumers, whose daily choices drive their performance, of shareholders, of the communities in which they operate and of society as a whole. They believe that it is only possible to create long- term sustainable value for the shareholders if their behavior, strategies and operations are also creating value for the communities where we operate, for our business partners and, of course, for our consumers. Keeping it in mind, the think tank for Nestl has designed a road map that is intended to create alignment for their people behind a organized set of strategic priorities that will accelerate the achievement of the objectives. These objectives demand from their people a combination of long-term inspiration needed to build for the future and short-term entrepreneurial actions, delivering the necessary level of performance.

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Competitive Advantages

Unmatched product and brand portfolio Unmatched R&D capability Unmatched geographic presence

True competitive advantage comes from a combination of hard-to-copy advantages throughout the value chain, built up over decades. There are inherent links between great products and strong R&D, between the broadest geographic presence

People, culture, values and and an entrepreneurial spirit, between great people and attitude strong values. Growth Drivers

Nutrition, Health and Wellness Emerging markets and PPP Out-of-home leadership Premiumisation

These four areas provide particularly exciting prospects for growth. They are applicable across all our categories and around the world.

Everything they do is driven by their Nutrition, Health and Wellness agenda, Good Food, Good Life, which seeks to offer consumers products with the best nutritional profile in their categories Operational Pillars

Innovation & Renovation Wherever, whenever, however Consumer communication Operational efficiency

Nestl must excel at each of these four inter-related core competences. They drive product development, renewal and quality, operational performance, interactive relationships with consumers and other stakeholders and differentiation from their competitors.

If Nestl excels in these areas, then they will be consumer-centric; which will accelerate their performance in all key areas and they will achieve excellence in execution. Figure: Nestl Roadmap to Good Food .Good life
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5. SWOT analysis 5.1 Strengths

Brand Strength: Nestl has some very strong brands like Nescafe, Maggi and Cerelec. These brands are almost generic to their product categories. Product Innovation: The Company has been continuously introducing new products for its Pakistani patterns on frequent basis, thus expanding its product offerings. Research & Development: Nestl has a worldwide network of centers in 17 locations on four continents. An international staff of 3500 engaged in the search for innovative new products and the renovation of existing ones. Market Share: Another thing is high level of market share and that people all over the world trust and recognizes Nestl as a big brand name. Low Cost: They are low cost operators which allow them to not only beat competition but also edging ahead operating excellence, innovation, renovation, product availability and communication are major strengths.

5.2 Weaknesses
Mature Markets: One major weakness of Nestl is that it is entering into markets that are already mature and can give a tough competition to new entrants. Plain Yogurt: Nestl Plain Yogurt has proved to be a Nestl weakness because it has been unable to make its market place in USA. But Nestl by analyzing the sensitive areas can overcome its weaknesses. Lack Of Research: Less consumer research in few areas. Exports: The Companys exports stood at Rs 2,571 m at the end of 2003 (11% of revenues) a major portion of this comprises of Coffee (around 67% of the exports were that of Nescafe instant to Russia). This constitutes a big chunk of the total exports to a single location. Supply chain: As business of Nestle is growing so faster so supply chain management is facing challenges to support extra demand.

5.3 Opportunities
Expansion: Potential to expand to smaller towns and other geographies. Which its parents are famed for like breakfast cereals, Smartest Chocolates, Carnation, etc.
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Product offerings: The Company has the option to expand its product folio by introducing more brands. With Pakistan's demographic profile changing in favor of the consuming class, the consumption of most FMCG products is likely to grow. Global hub: Since manufacturing of some products is cheaper in ASIA than in any other continent. Countries, Nestl Pakistan could become an export hub for the parent in certain product categories.

5.4 Threats
Competition: Immense competition from the organized as well as the unorganized sectors. Off late, to liberalize its trade and investment policies to enable the country to better function in the globalised economy, the Indian Government has reduced the import duty of food segments thus intensifying the battle. Changing consumer trends: Increased consumer spending on consumer durables resulting in lower spending on FMCG (fast moving consumer goods) products. In the past 2-3 years, the performance of the FMCG sector has been lackluster. International marketing standards: Nestl is facing the threats by worldwide community due to its violation of international marketing standards. Many conferences and campaigns have been held against Nestl in this regard which can damage the name and trust of its customers. Sectoral woes: Rising prices of raw materials and fuels, and intern, increasing packaging and manufacturing costs but the companies may not be able to pass on the full burden of these onto the customers.

6. Strategy
Nestl describes itself as a food, nutrition, health, and wellness company. Recently they created Nestl Nutrition, a global business organization designed to strengthen the focus on their core nutrition business. They believe strengthening their leadership in this market is the key element of their corporate strategy. This market is characterized as one in which the consumers primary motivation for a purchase is the claims made by the product based on nutritional content. In order to reinforce their competitive advantage in this area, Nestl created Nestl Nutrition as an autonomous global business unit within the organization, and charged it with the
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operational and profit and loss responsibility for the claim-based business of Infant Nutrition, HealthCare Nutrition, and Performance Nutrition. This unit aims to deliver superior business performance by offering consumers trusted, science based nutrition products and services. The Corporate Wellness Unit was designed to integrate nutritional value-added in their food and beverage businesses. This unit will drive the nutrition, health and wellness organization across all their food and beverage businesses. It encompasses a major communication effort, both internally and externally, and strives to closely align Nestls scientific and R&D expertise with consumer benefits. This unit is responsible for coordinating horizontal, crossbusiness projects that address current customer concerns as well as anticipating future consumer trends. Nestl is a global organization. Knowing this, it is not surprising that international strategy is at the heart of their competitive focus. Nestls competitive strategies are associated mainly with foreign direct investment in dairy and other food businesses. Nestl aims to balance sales between low risk but low growth countries of the developed world and high risk and potentially high growth markets of Africa and Latin America. Nestl recognizes the profitability possibilities in these high-risk countries, but pledges not to take unnecessary risks for the sake of growth. This process of hedging keeps growth steady and shareholders happy. When operating in a developed market, Nestl strives to grow and gain economies of scale through foreign direct investment in big companies. Recently, Nestl licensed the LC1 brand to Mller (a large German dairy producer) in Germany and Austria. In the developing markets, Nestl grows by manipulating ingredients or processing technology for local conditions, and employ the appropriate brand. For example, in many European countries most chilled dairy products contain sometimes two to three times the fat content of American Nestl products and are released under the Sveltesse brand name. Another strategy that has been successful for Nestl involves striking strategic partnerships with other large companies. In the early 1990s, Nestl entered into an alliance with Coca Cola in ready-to-drink teas and coffees in order to benefit from Coca Colas worldwide bottling system and expertise in prepared beverages.

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European and American food markets are seen by Nestl to be flat and fiercely competitive. Therefore, Nestl is setting is sights on new markets and new business for growth. In Asia, Nestls strategy has been to acquire local companies in order to form a group of autonomous regional managers who know more about the culture of the local markets than Americans or Europeans. Nestls strong cash flow and comfortable debt-equity ratio leave it with ample muscle for takeovers. Recently, Nestl acquired Indofood, Indonesias largest noodle producer. Their focus will be primarily on expanding sales in the Indonesian market, and in time will look to export Indonesian food products to other countries. Nestl has employed a wide-area strategy for Asia that involves producing different products in each country to supply the region with a given product from one country. For example, Nestl produces soy milk in Indonesia, coffee creamers in Thailand, soybean flour in Singapore, candy in Malaysia, and cereal in the Philippines, all for regional distribution.

7. Main Brands
Soluble coffee: Nescaf, Taster's Choice, Ricor, Ricoffy Roast & ground coffee: Nespresso, Bonka, Zogas, Loumidis Water: Nestl Pure Life, Nestl Aquarel, Perrier, Vittel, Contrex, S. Pellegrino, Valvert, Panna, Levissima, Vera, Frst Bismarck, Viladrau, Arrowhead, Poland Spring, Zephyrhills, Santa Maria, La Vie Other beverages: Nestea, Nesquik, Nescau, Milo, Carnation, Libby's, Caro Dairy products (shelf stable): Nestl, Nido, Nespray, Ninho, Carnation, Milkmaid, La Lechera, Moa, Klim, Gloria, Svelty, Molico, Nestl Omega Plus, Bear Band,

Cofee-mate / (chilled): Nestl, LC1, Chamyto, La Laitire, Sveltesse, Yoco, Svelty,

Molico

Breakfast cereals: Nestl Infant foods: Nestl, Nan, Lactogen, Beba, Nestogen, Crlac, Neslac, Nestum,
Guigoz

Performance nutrition: PowerBar

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Clinical nutrition: Nutren, Peptamen, Modulen, Build-up, Nesvita Culinary products: (bouillons, soups, seasonings, prepared dishes, canned food,
pasta, sauces): Maggi, Buitoni, Crosse & Blackwell, Libby's, Thomy, Winiary

Frozen foods: Magi, Buitoni, Stouffer's Ice cream: Nestl, Frisco, Motta, Camy, Savory, Peters
Refrigerated products: (yogurts, desserts, pasta, sauces): Nestl, Buitoni, Herta

Chocolate and confectionery: Nestl, Crunch, Cailler, Galak/Milkybar, KitKat,

Quality Street, Smarties, Baci, After Eight, Baby Ruth, Butterfinger, Lion, Aero, Polo, Frutips, etc.

FoodServices and professional products: Chef, Davigel, Minor's, Santa Rica Pet care: Friskies, Fancy Feast, Alpo, Mighty Dog, Gourmet, Mon Petit, Felix Flavours for the food industry: Food Ingredients Specialities (FIS) Pharmaceutical products: Alcon, Galderma Cosmetics: L'Oral 8. Customers and Markets
Nestl Bangladesh Limited is strongly positioned to grow with its policy of constant innovation and renovation, concentrating on its core competencies and commitment to high quality. The aim of Nestl Bangladesh Limited is to provide the best quality food to the people of Bangladesh. . Nestl is always committed to the concept of continuous improvement of its activities and customer satisfaction. They have categorized and divided their customers and markets in Bangladesh based on the following factors: Social economic factors: The main focus is the socio-economic class, which is the companys wide target. Nestl products are centered on upper class and middle class families. The concerned Nestl authorities should cut down the price of their products. They should expand their target market by making their products available to all with affordable prices. If they put on this strategy, there will be a growth in their market. With a relatively easy to their food amongst the bottom line

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consumers, Nestl Bangladesh can do a world of good for poor people. This kind of initiative will also help an increasing number of children to get foods that contain nutrition.

Demographic Situation: Nestl Bangladesh Limited also segment their customer

according to demographic situation. Customer consumption depends on income level, Education, Age Quality realization. If we are considering about regular Nescafe Coffee mate, then we realize it depends on these factors. Consumers of Nescafe are huge variety of crowd, which can be actually described as a mixture of youth, corporate, diplomatic and family. Another very popular product of Nestl is Maggie Noodles. It is for various age people. But this is one of the favorite foods for children who are between 3-15 years. Maggie Noodles are very easy to make. It is mostly for school going children mothers make this for their Tiffin.

Brand loyalty pattern: Nestl seeks to earn consumers confidence, loyalty and preference and anticipate their demands through innovation and renovations. The consumer's awareness and associations lead to perceived quality, inferred attributes, and eventually, brand loyalty. Therefore Nestl is driven by an acute sense of performance adhering to quality and customer satisfaction. Nestl is more people, product and brand oriented than system oriented. Nestl favors long-term successful business development and even to grater extent, customer life-time value. At the same time Nestl does not loose sight of the necessity to improve in terms of quality, price and distribution. However, Nestl remain conscious of satisfying the wants needs and demands of its consumers. To reach to more consumers and to better satisfy the needs, NIDO is trying to implement some of the exceptional promotional programs such as Ashun NIDO Pushti Jagate and NIDO Growth Program. This research is being carried out with an intention to evaluate the effectiveness of these programs into two different regions of Bangladesh. By talking with the mothers before and after attending the programs and also by interviewing them personally whenever it was convenient, it was being tried to find out whether there is any differences between the pattern of choices between this two region. Apart from that Nescafe is also conducting different programs for its targeted group e.g Nescafe Campus day etc.

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9. Volumes and values of sales: 10. Organizational chart

Managing Director

PA to MD

Director Human Resource

Finance & Control Director

Supply Chain Director

Manufacturing Director

Sales Director

Nutrition Director

Factory Manager

Human Resource

Quality Assurance

Engineering

Production

Finance & Control

Supply Chain

Application Group

Industrial Performance

HR Officer

Sr. Officer / Officer

Project Manager (Temporary Noodle)

Executive / Sr. Officer / Officer

Costing Manager Officer

VAT Executive Micro-biologist & Hygienist Electrical Officer Plant Engineer Officer Supplier Dev Manager

Utility Officer

Purchase Officer (Vacant / Foreseen)

Warehouse Officer

Figure 1: Organizational chart

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11. Numbers of employees:

Right now Nestl has 280000 employees worldwide and Nestle Bangladesh Limited currently has around 440 employees.

12. Financial performance:

Financial performance of Nestle Bangladesh Limited is as below:

Organic growth +4.1%, EBIT margin 14.6%, +30 basis points Sales of CHF 108 billion, 4.1% organic growth, 1.9% real internal growth EBIT of CHF 15.7 billion, margin up 30 basis points, up 40 basis points in constant currencies Underlying earnings per share increase by 9.6% to CHF 3.09, +16.3% in constant currencies Operating cash flow rises by 67% or CHF 7.2 billion to CHF 17.9 billion Return on invested capital including goodwill up 90 basis points to 15.6%.

13. Location of the factory:

The factory is situated at Sreepur, 55 km north of Dhaka. The factory produces instant noodles, cereals and repacks milks, soups, beverages and infant nutrition products. Today Nestl Bangladesh Ltd. is a strongly positioned organization. The Company will continue to grow through their policy of constant innovation and renovation, concentrating on the core competencies and the commitment to high quality, with the aim of providing the best quality food to the people of Bangladesh.

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14. Production Process: 14.1 Product types:

In the production process area the focus is on ready to eat Maggi noodles within 2 minutes and technology parameters of various components for preparation and submission of the product on the market. Noodles are made with the help of many ingredients with major input being wheat flour. Other materials required are corn and rice flour, protein isolates, salt, spices, edible oil, Preservatives etc. There are many pasta products like vermicelli, macaroni, instant noodles etc.

14.2 Manufacturing process

Mixture of Various Ingredients

Roller Process

Through out the whole process Metal Detections

Processing

Cutting & Packaging

Figure 2: Manufacturing Process

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14.3 Production Line

In case of two line productions process there will be two persons in Mixture Unit, for

Roller processing unit one person is assigned, for Processing Unit two persons will be assigned one person for Fryer and one person for cooler and in the Cutting & Packaging Unit eight persons are assigned. The whole unit is observed by one production line manager. In case of Packaging unit there are two sections one is Offline and another is Online. The offline is basically produces two Packs at a time and the online produces four packs at a time.

Mixture Unit

Two Persons

Roller Process Unit

One Person

Wasted or Remedies are recycled

Processing Unit

PM Two Persons

Cutting & Packaging Unit

Eight Persons

Figure 3: Production Line The wasted or remedies are recycled by sending in to soak system which washes all the mixture of the noodles and the process continues.

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15 Challenges and Problems 15.1 Nestls Major Challenges

Here are some the common challenges which all the organizations face around the world and Nestl Bangladesh Ltd is also facing all of these challenges more or less.

Aging workforce and retirements

As most of the upper level positions are filled with aged personnel and each year some of them are going to retirement, Nestl has to go for continuous recruitment process to fill those positions when succession is not possible and finding the right person is also a challenge as well.

Less experienced and smaller younger generations

Our current job market is filled with new graduates who lack experience which Nestl seeks to maintain the standard in their workplace.

Lack of investment in training and education

Still most of the companies are reluctant to invest on training and development sectors to increase the efficiency of the employees. Even though Nestl is offering its own training and education program to its employees but to be competitive in the market and increase efficiency, more focus on this field is mandatory.

Mismatch between training and education outputs vs. business skill needs
There is not enough capacity at educational institutions to keep up with corporate and student demands, and this will only worsen as technology and innovation increase the rate at which knowledge and skills become obsolete.

Lack of appropriate succession planning

It is not always possible to fill up all the positions internally but when Nestl go for headhunting, they face challenge in finding qualified managerial talent and skilled workers.

Recruiting from a narrow pool of potential talent

Because of rigid job descriptions and hiring requirements, Nestl recruit talent from a narrow pool of potential talent. It may make it difficult to select the best talent from the market.

15.2 Problems
While identifying the problems for Nestl Bangladesh Ltd we have divided it into two sections which are Internal and External problems to make it more specific.

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15.2.1 Internal Problems

Lack of proper Policy regarding talent acquisition
Nestl Bangladesh is following their international HR policy which is not always applicable in Bangladeshs perspective. Moreover they do not have any specific policy for talent acquisition.

Lack of motivation to keep the talents competitive.

After acquiring talents, they have to be given proper benefits and compensation. At the same time, regular training is also required to keep them competitive but Nestl has some shortcoming in keeping the talents competitive.

Talent costs this year are inflated

According to some recent analysis, the cost of retaining talent has been increased 25 percent. Executives and HR professionals from large and small companies overwhelmingly report that increased competition for talent is leading to higher compensation packages, slower time to new hires, strains on quality and customer service, and reduced business flexibility.

15.2.2 External Problems

Brain Drain
As a result of rising costs and time required to hire good new talent, organizations are increasingly looking inward to train, develop, maintain and evolve their existing workforces. However, after training employees are leaving after a moderate period.

Lack of efficient Human Resources

According to a survey, Bangladesh is the 7th largest country in term of man power, but we do not have sufficient potential talents to meet the need of the current market.

Competition with other MNC to get talents

Nestl has to compete with other renown MNCs to get the potential talent from the job market which is becoming more and more competitive day by day.
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Talent Gap
New comers often lack the practical experience and the creative and leadership skills that are required by the companies. The talent gap impacted business flexibility, expansion and growth.

16. Observation, Evaluation, Suggestions & Conclusion 16.1 Observation and Evaluation
Nestl Bangladesh has come up with many innovative and feasible Management policies which is new in Bangladesh. In addition, these policies has already been implemented in their other foreign subsidies and running successfully till today. It has also created a benchmark in the industry and brought competitive advantage for the organization. Some of their policies that have impacted them a lot are given below: Flexible HR philosophy: Nestl Bangladesh practices a flexible and dynamic HR policy in the country. Therefore its implementation is inspired by sound judgment, compliance with local market laws and common sense, and also taking into account the specific context. As a result, Nestl has some common grounds in Human Resource Policy which is set apart in all their subsidiaries like working environment, recruitment, expatriation policy etc. In addition, Nestl follows Corporate Business Principles that refers to all the basic principles which Nestl endorses and subscribes to on a worldwide basis. Perspective of Talent Acquisition: According to the international Human Resource Policy of Nestl, The best indicator of talent is achievement. Therefore their philosophy is to provide responsibility to allow people to prove themselves. For this, candidates for managerial positions are clearly demonstrated earlier and reviewed their willingness and ability to apply the Nestl Management and Leadership Principles. The Nestl Management and Leadership Principles include the guidelines inspiring all the Nestl employees in their action and in their dealings with others. Even when promoting employees intensively from within the organization, it is the role of management and HR to keep an eye on valuable candidates from outside and to benchmark internal skills with external offers.

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16.2 Consideration taken by Nestl Bangladesh

To comply with the changed business world, Nestl Bangladesh has been considered some of the factors to emphasize in their Talent Acquisition policy:

Human capital: Human capital is the major concern for Nestl Bangladesh.
To be more productive and efficient in operation, Nestl Bangladesh concentrates on their human resource. They thoroughly analyse the performance of their employees and act accordingly whenever there is lacking.

Globalisation: Nestl Bangladesh itself is an entity of globalization. Nestl

has been operating in many subsidiaries. To cope up with international business barriers, they most likely follow a common HR policy that helps to attain business profitability.

Technology: Nestl Bangladesh uses state of art technology in their

production floor. To adapt with the new technology and machineries, the organization have introduced training program for the workforce. In addition, they also bring technicians from their other subsidiaries.

Economy: Economy of the country is the most important demand of any

business organization to be profitable. Inflationary adjustment of the product price, unemployment rate, buying pattern are determinant of the business growth of Nestl Bangladesh. As a result, Nestl Bangladesh always tries to cope up with the economy.

Environment: Internal and external environment of the organization is the

determinant of business success for Nestl Bangladesh. For internal environment, Nestl Bangladesh has successfully demonstrated its philosophy for working environment, production floor safety caution etc. Moreover, they have identified their threats and opportunities successfully so that they can win over any interventions in the market. They have gained competitive advantage in Bangladeshi market for their consumer products against their other competitors.

16.3 Future Plan

Currently Nestl Bangladesh is following module 1 out of the 7 modules which are being practiced by the other countries. Module is a code word that Nestl uses for their own set of
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rules regulations and strategies that they have divided into seven parts naming them module 1, 2, 3 and so on. Now after the recent audit done by ISO 2200k using the 2007 module i.e. module 1 and after getting good remarks from the ISO, Nestl Bangladesh Limited is now planning to exercise 3 modules out of the seven in Bangladesh. Thus with the successful practice of three modules Nestl Bangladesh is hoping to have a more transparent well organized and efficient interlinked meshwork of skill, knowledge and commitments between its employees from the top level to the lower level.

Develop a new Talent Acquisition strategy

As an organizations benefit many organization try to create organizational image for their company to attract talented employees .they try to target universities and professional institutes to be acquainted with the under graduates. They also arrange seminars, job fairs and sponsoring event to get well known in the industry and to the people in general. By doing so Nestl also focuses on attracting promising talents to their organization. Before the search the organization must make sure that, they have the financial capabilities to negotiate and bargain with talents upon hire. Then the focus must be on how to improve the intake procedures on what ground the candidates will be evaluated upon and what will cost the organization to perform this entire task. After sorting, the numbers comes the part of approval from the HR department or the HR consultant, this approval is necessary because it will help the organization understand the competencies they have selected or designed with the compensation package are complementary to each other. After the endorsement form, the HR the company should co forward with the talent Acquisitions.

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Outplacement Consultants, Talent Acquisition, Recruitment Consulting

Focus on to build their brand image to attract new talents.

The current situation of the company is that they are not concerned enough to build their brand image. The company does not have a brand image in the country and there are very few people who knows about the company. When we asked them about their brand image, they told us that they do not have to build their brand image because they are already popular in the eyes of the international buyers. They are popular in terms of its Social Compliance Certificates. However, they mentioned that when they give job advertisements to newspapers and other media, then they get a very few number of

candidates from good universities. Therefore, the probability of the company to get talented persons decreases largely.
For these factors, we think that it is important for the company to start thinking to build their brand image. They may not need this for marketing their product but in order to get brilliant persons for the organization they have to go through this. There are some techniques that they can be used to make the corporate image more popular in the eyes of potential candidates. For example, they can organize talent programs like Battle of Minds from BAT, Seminars in different universities, sponsoring various programs of different universities and so on. In this way, the students of different universities will get to know that this time AST is doing some collaborative programs with their universities and when this will happen, they will be able to create a brand image in the minds of people.
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Well, the justification behind this recommendation is that when the name of this company will gain popularity in the minds of the students, then they will have a trust for this company and therefore the willingness to work for this particular company will emerge from the heart of the students. Therefore, in the process the company will get talented persons in their organizations, which they need now for competing internationally.

16.4 Conclusion
We found that the company knows a lot about appropriate Management practices and it performs some of the important functions like Recruitment, Selection, Induction, Coaching, Mentoring, Succession planning and some more. We were glad to see that in order to comply with the labor law they have incorporated some programs in their organization, which are modified to the needs and safety of the labors. These are Medical and Health Care Units, Day Care facilities for the children of the labors, Training program for labors to increase their skills and efficiency, Worker Awarding Program to reward the best performing worker and some more. However, we found Nestls need to improve in some areas. These are like when they recruit managerial employees for HR jobs, they should take care to select only them who have an HR background and also some experience despite the present practice of hiring HR executives from having degrees in other fields. Then they need to improve their brand image, their compensation package for the employees and should develop an HRIS system for the benefit of the company.

17. Significant Learning

We are very grateful to Nestle Bangladesh Ltd. for having conducted an industrial visit. We had a great time in the factory for watching all the operations going on. On our one day trip, we had a look at varies sections in the industry and the most important part that we have learnt from Production process and Packaging assembly process. We have noticed and learnt from the starting point of our voyage at Nestle Bangladesh Ltd in case of following:

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Behavioral approach Nestle attributes the highest importance to peoples behaviours as the main factor for the prevention of accidents. We believe that every time an accident occurs, the root causes can be traced to someones behaviour. Therefore, Nestle implements programmes that encourage employees to engage in dialogue -with peers and management- about safe and at risk behaviours.
WHAT NESTL EXPECTS FROM YOU Three characteristics, which are closely inter-linked, are crucial for the selection of candidates:

Personality: Our candidates should be able to work in a team, integrating well with different disciplines and nationalities. We like candidates who show leadership qualities, people who can inspire others, who are self confident and realistic, with a positive attitude to work and the will to work hard - even under pressure. We seek people with good judgement and who can be objective in their assessment of themselves and or others. Motivation: Motivation should be driven by a long-term perspective and not result from a sudden fancy. We want people with purpose, people who are ambitious, not only for themselves and certainly not at the expense of others, but who derive job satisfaction as well as promote the interests of the Company. In this Company creativity is of paramount importance, even if your future job happens to be outside of the areas directly connected to the research, development or marketing of new products. We want people who take responsibility for their actions, people who consider Nestl as their own business and who can work as an individual entrepreneur works. Professional Knowledge: It means university or equivalent qualification achieved with good academic results. In a few positions other experience, training, extra-curricular activities are also important. They will be proof of your willingness to apply theory to practice. However, Nestl looks for people who are willing to team throughout their lives.
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Excellent command over English language is mandatory, since it is the most universally used language.

Creating Shared Value: Creating Shared Value is a fundamental part of Nestl's way of doing business that focuses on specific areas of the Company's core business activities namely water, nutrition, and rural development where value can best be created both for society and shareholders. From the farmers to the shareholders each and every step is being observed by Nestle Bangladesh Ltd.

Production Management: Each day there is a target for the Production manager which they have to archive not in daily basis but in weekly basis. Starting form the Mixture unit to Packaging assembly the whole process has been observed by varies employees. While production times the wasted or remedies are recycled by sending in to soak

system which washes all the mixture of the noodles and the process continues. If there is no electricity within 10 minutes then the Fryer materials and the Steamer materials are being dumped. Since electricity is the major problem in Bangladesh, so they have kept three backup systems to run the organization.
Packaging assembly starts with both these sections have a conveyor belt on which each process is carried on. The belt keeps on moving and the operator has to complete his designated job or else its nothing but an error, if any error generator on the system then the operator has to keep a record and sent the information to the Production manager. The production manager has to report to the system engineer for minimizing error.

Quality and Control Management: In case of quality assurance the nestle Q.C department has archived excellent till now from consecutive eight times which proves that the quality control department assure accurate measurements for the food.
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In the Q.C Lab there is a Sensory test are applied to ten factory people who will taste the product samples which are produced by the factory people. If eight persons vote yes then it is considered otherwise the materials of that product will be dumped by the factory.
It was really an exciting day for us in the industry. We once again express our gratitude to Nestle Bangladesh Ltd. for conducting such an astonishing industrial visit.

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18. Bibliography
http://www.careers.nestle.com/NR/rdonlyres/09DFA44E-2206-406ABF23-8EB09D5DE44E/81594/HumanResourcesPolicy.pdf http://www.scribd.com/doc/6041851/Nestle-Internship-Report http://www.linkedin.com/companies/nestle http://www.nestle.com http://nestle.bdjobs-server.com/

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