Analysis of Nestles Position in India

Analysis of Nestles Position in IndiaNestle is one of the largest companies in the world. It produces different types of products and was based in different part of the world. It was started in 1868 by Henri Nestle, who set up a gross sales office in London. The friendship went under the recent ownership when Henri Nestle retired in 1875.Nestle undecided its first factory in 1901 in UK and got merged with the Anglo-Swiss draw confederation which was founded by Charles and George page. It has acquired its own brand image over the years by innovating new products and attracting people all over the world with its quality products. Nestle became one of the leading companies in the world when it started producing chocolates. The chocolate production began at Hayes in 1913 and the famous white chocolate Milky Bar was released into the market in 1937. The other products of Nestle argon coffee, milk, chocolates etc. The company has its branches in 86 countries exchangeable India, Pak istan, US, South Africa, brazil, Sri Lanka, France , Middle east countries etc all over the world and nearly employs 283,000 people. It has over 250,000 sh arholders, while most of them are from Swiss. Nestle products are well cognise in the whole word for their wide range of products which include coffee , infant nutrition, baby products ,chocolates , milk products etc. Nestle products are cheaper when compared to other milk products and chocolates and the reputation in the market is good which makes the company to release wide range of products in the market across the whole world. Nestle is the world loss leader in the categories of coffee, infant nutrition, chocolates etc. The company respects the opinions of its customers and makes certain(a) that the products are manufactured according to their interests.FIVE COMPONENTS OF ARMSTRONGS MODEL pedestal the environmental factors that are to be taken into account as the essential background for the organisations HR strategies. Th ese factors cigaret be analysed by using SWOT or PESTLE analysis. content the exposit of the proposed HR strategies of an organisation must be includedRATIONALE the business case for the strategy.IMPLEMENTATION finding the ways and plans to implement the proposed HR strategies.COST AND derive ANALYSIS analysing the benefits and costs of implementing a strategy and acting according to the outcomes that may occur.NESTLE follows the strategies like commitment strategy, developing trust, culture management etc. By following and implementing these type of strategies, NESTLE has innovated and developed itself throughout the years. allow us evaluate the HR strategy of NESTLE organisation using Michael Armstrongs specimen for the strategys design.BASIS the environmental factors of the NESTLE organisation are evaluated using the SWOT analysis.STRENGTHSThe company has a great support from its parent company which has a great function all over the world. It has huge brand strength all ove r the world. The brands like NESCAFE, MAGGI and CERELAC which are generic to their product categories are truly strong in the Indian market. Around 67% of the population use Nescafe, Maggi and Cerelac for their daily uses.Another main Strength of the company is, it continuously introduces new products in to the market with mod thoughts and attracts people towards it. It makes sure that its products are manufactured with quality. in that location are nearly 3500 scientists in the companys RD department to innovate new thoughts and ideas. It is a truly global company which is operated in 77 countries. The competition from other organisations doesnt affect Nestle because of the low cost and high quality it maintains. It has a very strong form wedge unlike the other organisations.WEAKNESSBecause of the un level(p) nature of the Indian market, the things get more complicated. It is very some(prenominal) important to maintain good hygiene standards, knowing personnel in the food in dustries like Nescafe. It is very difficult to maintain these standards in the big countries like India which has a complex supply chain management.OPPURTUNITIESThere are lots of opportunities to the company in the huge country like India. There are lots of towns in India where the products of Nescafe are not available. It contribute melt to those towns and villages and dissolve increase its market. The company can extend its product folio by introducing new products into the market.As India is a huge country with lots of resources and manpower, it can be made as the export hub to achieve better results. Everyone is becoming a wellness freak now days, including the United States. So, health based products are having great opportunities in the global market.THREATSThe main threat for any organisation is its competitor. There is a huge competition among the organisations. Nestle faces huge competition from the coordinate and unorganised sectors. Moreover, the Indian government has change magnitude the import duty of food products, making the things worst. The organisation does not have any threats from the small scale industries provided it will have threats from the organisations which are established with large investments and big brand value.The performance of FMCG sector is very less in the past 2-3 years, compensate though there is a decent pace of growth in the economy of the organisation. Some of the markets in which the company is about to enter, are already mature regarding these products.CONTENTThe main principle of HR strategies of the NESTLE organisation is its products growth through innovation and renovation. The other important strategies areAttracting dynamic employees and giving training to them developing the managementRespecting other cultures and traditionsProviding training to the new comersSome other principles of proposed HR strategies are maintaining diversity in the manufacturing of products, despite of introducing several product s in to the organisation.RATIONALELet us have a look on the business case of proposed HR strategies of NESTLE organisation.NESTLE has its Kit Kat manufacturing plant in York England. Ian Jobson is the trough of that plant. For manufacturing a ton of Kit Kat chocolate, it used to take like 38 man hours. It is a waste of time and man power and even it costs a lot of money to the organisation. To overcome this problem, they have implemented new strategies in the manufacturing of the chocolate. They have innovated and renovated their strategies and came up with a new strategy.They have decreased the human labour and introduced robotics to make the work easier. They used robotics, automated packaging, and production line improvements and they have reduced the manufacturing time to 23 hours.IMPLEMENTATIONNESTLE makes sure that the proposed strategies are implemented without any failure. It provides the necessary resources and necessary funds to the HR department to implement their strateg ies. It follows different strategies and concepts to reach the better heights and to sustain in this competitive world. It has a research development department, who works on innovation of the new products and renovating the available products of the company.It opens new branches every year to attain a great grip on the market.It commits to a strong work to achieve better resultsNESTLE makes sure that it follows all the local laws and legislations, as reputation of the company affects the sales of the organisationIt gives rights to the employees to question their superiors about an unfair evaluationIt motivates its employees, train them in maintaining teamwork, cooperate and integrate with the organisations strategies.COST AND BENEFIT ANALYSISNESTLE tries to decrease the entire utilization of natural resources. By doing this, it benefits in increase the human resources, expands contact to the financial resources.The managers and the individual employees are very benefited by the HR strategies of NESTLE. The company believes in the individual achievement of the employees scarpers a major role in the development of an organisation. To encourage its employees, the HR department has designed a pay structure to its employees. The company even introduced practices like job enlargement to encourage their employees and to break the limitations of their work.Let us evaluate the pay structure of the NESTLE organisationNESTLE suggests rational remunerations to the employees. The level of remuneration is maintained above the average in the industry.The unpredictable part of salary is relatively big in rewarding an individual performance.The varying part of salary for higher management is based on the performances and achievements of the individuals and their team.BENEFITSThe employees can apply up to particular number leaves either personal or medical.They can have the assistance scheme for their childrens education.The organisation offers provident fund to their em ployees.The other benefits for the employees include retirement gratuity scheme, conveyance repayments, insurance for accidents etc.The other concepts that can be included are providing recruitment services, talent management and international HR etc. The recruitment services of NESTLE are very much recognised all over the world for their methods of recruitment. They dont just try to fill the jobs but makes sure that the right person is selected for the right job. They select the people who are dynamic, hard working, flexible and honest. Those candidates are selected whose values are similar to the companys culture. The HR officials are the one who takes the final decision in selecting a person.The company even maintains a Rewards and Employee relations team, which provides guide lines to the employees in necessary situations. They provide guidance to the line managers, HR managers, research and development department etc. It provides a health environment to its employees. In a mult i-national company like NESTLE, the employee turnover is less than 5%.EMPLOYEE RELATIONSNestle gives importance to the personal life of their employees. So, it makes sure that the work life and personal life of their employees is balanced. It maintains a separate policy in which work/life balance is given importance.REWARDS AND INCENTIVESNestle encourages its employees by giving rewards and incentives. By doing this, the employees who are eager to win awards will work hard for the development of the organisation.Competitiveness among the employees will result in the growth of the organisation. So, the organisation even offers a competitive reward package to its employees.The company awards NESTLE idea award every quarter to the employees who come up with innovative ideas. These are the different concepts and theories of NESTLE. remainderMichael Armstrong gave a brief explanation on the components that are to be included in the Human Resource strategies of an organisation. He covered all the important aspects which play a major role in the development of an organisation. By evaluating the HR strategy of NESTLE using Michael Armstrongs strategy model, we can understand that NESTLE is very keen and careful regarding the strategies it had implemented and it is going to implement in the future. NESTLE concentrated on its strengths, its weaknesses, the opportunities it has and the threats it has to face and planned strategies to face these problems. By the Michael Armstrong five components model the HR strategies are evaluated.In the first component basis for the organisation, HR strategies are estimated using SWOT analysis and the strengths and weaknesses are evaluated and future opportunities and threats are analysed. In the second component content the innovation and renovation of the Nestle organisation are discussed where the strategies state the need for development in the management and opportunities for the skilled employees. In the third component, Rational e shows the reduced man power to increase productivity by using robotics as a strategy which gave good results by fall man power to 23 hours from 38 hours. In the fourth component implementation stated that the need for urgency for the development of organisation by increasing the branches of nestle every year. In the fifth component cost and benefit analysis states the remuneration of the employees it depends on the individual performance which reflects the NESTLE organisations growth.