Analysis of Nestles Position in India

Nestle is one of the most significant companies in the world. It produces different kinds of products and was established in different parts of the world. It was were only available in 1868 by Henri Nestle, who create a sales office in London. The company gone under the new ownership when Henri Nestle retired in 1875. Nestle exposed its first stock in 1901 in UK and received merged with the Anglo-Swiss milk company which was founded by Charles and George web page. It has obtained its own brand image through the years by innovating services and bringing in people around the globe with its quality products. Nestle became one of the leading companies in the world when it started producing chocolates. The chocolate production commenced at Hayes in 1913 and the famous white chocolates Milky Bar premiered in to the market in 1937. The other products of Nestle are caffeine, milk, chocolates etc. The business has its branches in 86 countries like India, Pakistan, US, South Africa, brazil, Sri Lanka, France, Midsection east countries etc all over the world and nearly employs 283, 000 people. It includes over 250, 000 shareholders, while the majority of them are from Swiss. Nestle products are popular in the whole word for his or her wide selection of products such as coffee, infant diet, 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 making the company to release wide range of products in the market across the complete world. Nestle is the earth leader in the types of coffee, infant diet, chocolates etc. The company respects the thoughts of its customers and makes sure that the products are manufactured relating to their hobbies.


BASIS: the environmental factors that are to be considered as the essential record for the organisation's HR strategies. These factors can be analysed by using SWOT or PESTLE research.

CONTENT: the facts of the proposed HR strategies of an company must be included

RATIONALE: the business case for the strategy.

IMPLEMENTATION: finding the ways and programs to put into practice the proposed HR strategies.

COST AND Gain Research: analysing the benefits and costs of putting into action a strategy and acting according to the outcomes that may occur.

NESTLE comes after the strategies like determination strategy, growing trust, culture management etc. By pursuing and implementing these kind of strategies, NESTLE has innovated and developed itself throughout the years.

Let us evaluate the HR strategy of NESTLE company using Michael Armstrong's model for the strategy's design.

BASIS: the environmental factors of the NESTLE company are assessed using the SWOT examination.


The company has a great support from its parent or guardian company which has a great influence all around the globe. It offers huge brand power all over the world. The brands like NESCAFE, MAGGI and CERELAC which can be generic to their product categories are extremely strong in the Indian market. Around 67% of the populace use Nescafe, Maggi and Cerelac because of their daily uses.

Another main Durability of the business is, it consistently introduces new products into the market with ground breaking thoughts and appeals to people towards it. It makes sure its products are manufactured with quality. There are nearly 3500 scientists in the company's R&D office to innovate new thoughts and ideas. It is a truly global company which is managed in 77 countries. Your competition from other organisations doesn't have an effect on Nestle as a result of low priced and high quality it retains. It has an extremely strong employees unlike the other organisations.


Because of the uneven aspect of the Indian market, the things get more complicated. It is very much important to keep good hygiene requirements, talented staff in the meals market sectors like Nescafe. It is very difficult to maintain these specifications in the best countries like India that includes a complex supply string management.


There are tons of opportunities to the company in the huge country like India. There are several towns in India where in fact the products of Nescafe are not available. It can extend to prospects cities and villages and can increase its market. The company can extend its product folio by producing new products into the market.

As India is a huge country with a lot of resources and manpower, it could be made as the export hub to accomplish better results. Everyone is learning to be a health freak now days, including the USA. So, health centered products are experiencing great opportunities in the global market.


The main menace for any company is its competition. There is a huge competition among the list of organisations. Nestle encounters huge competition from the organised and unorganised sectors. In addition, the Indian federal has lowered the import duty of foods, making the items worst. The company doesn't have any threats from the tiny scale sectors but it has hazards from the organisations which are set up with large investment funds and big brand value.

The performance of FMCG sector is very less before 2-3 years, even though there's a decent speed of growth in the economy of the company. Some of the markets where the company is about to enter, are already mature regarding these products.


The main process of HR strategies of the NESTLE organisation is its product's growth through innovation and restoration. The other important strategies are

Attracting vibrant employees and providing training to them

Developing the management

Respecting other cultures and traditions

Providing training to the new comers

Some other key points of suggested HR strategies are preserving diversity in the developing of products, despite of adding several products into the organisation.


Let us have a look on the business case of proposed HR strategies of NESTLE company.

NESTLE has its Kit Kat manufacturing plant in York England. Ian Jobson is the manger of this plant. For making a huge amount of Kit Kat chocolates, it used for taking like 38 man time. It is a waste of time and man power and even it costs a lot of money to the company. To overcome this problem, they have implemented new strategies in the making of the chocolates. They may have innovated and renovated their strategies and came up with a new strategy.

They have reduced the human being labour and unveiled robotics to make the work easier. They used robotics, robotic packaging, and creation line improvements plus they have reduced the manufacturing period to 23 hours.


NESTLE makes certain that the suggested strategies are put in place without any failing. It provides the required resources and necessary money to the HR division to implement their strategies. It employs different strategies and principles to reach the better heights and to preserve in this competitive world. It includes a study & development section, who works on advancement of the services and renovating the available products of the business.

It starts new branches yearly to attain a larger grip on the marketplace.

It commits to a solid work to accomplish better results

NESTLE makes sure that it follows all the local laws and legislations, as trustworthiness of the company impacts the sales of the organisation

It gives rights to the employees to question their superiors about an unfair evaluation

It motivates its employees, teach them in preserving teamwork, cooperate and integrate with the organisation's strategies.


NESTLE tries to decrease the extreme usage of natural resources. Using this method, it benefits in increasing the recruiting, expands contact to the money.

The managers and the average person employees are very benefited by the HR strategies of NESTLE. The company believes in the individual achievements of the employee's works a major role in the introduction of an organisation. To encourage its employees, the HR office has designed a pay structure to its employees. The company even introduced practices like job enhancement to encourage their employees and also to break the limits of their work.

Let us evaluate the pay framework of the NESTLE organisation:

NESTLE suggests reasonable remunerations to the employees. The level of remuneration is taken care of above the average on the market.

The unpredictable part of salary is relatively big in rewarding an individual performance.

The adjustable part of salary for higher management is based on the performances and accomplishments of the individuals and their team.


The employees can apply up to particular quantity leaves either personal or medical.

They can contain the assistance scheme for their children's education.

The organisation offers provident fund with their employees.

The other benefits for the employees include old age gratuity scheme, conveyance repayments, insurance for crashes etc.

The other ideas that can be included are providing recruitment services, talent management and international HR etc. The recruitment services of NESTLE are incredibly much recognised around the globe for their ways of recruitment. They don't really just try to fill the careers but makes sure that the right person is preferred for the right job. They choose the individuals who are vibrant, hard working, versatile and honest. Those individuals are determined whose values are similar to the business's culture. The HR officers are the person who takes the final decision in selecting a person.

The company even maintains a Rewards and Employee relations team, which gives guide lines to the employees in necessary situations. They offer information to the lines managers, HR professionals, research and development team etc. It offers a health environment to its employees. In a very multi-national company like NESTLE, the worker turnover is significantly less than 5%.

EMPLOYEE Relationships:

Nestle gives importance to the personal life of their employees. So, it creates sure that the task life and personal life of their workers is well balanced. It maintains a separate policy in which work/life balance is given importance.


Nestle encourages its employees by giving rewards and incentives. Using this method, the employees who are wanting to win awards will work hard for the development of the company.

Competitiveness one of the employees will cause the growth of the organisation. So, the organisation even offers a competitive incentive deal to its employees.

The company prizes 'NESTLE idea award' every quarter to the employees who produce innovative ideas. These are the different ideas and theories of NESTLE.


Michael Armstrong gave a brief description on the components that are to be included in the Human Reference strategies of an company. He covered all the important aspects which play a major role in the introduction of an company. By evaluating the HR strategy of NESTLE using Michael Armstrong's strategy model, we can recognize that NESTLE is very keen and careful about the strategies it acquired implemented which is going to put into practice in the future. NESTLE concentrated on its talents, its weaknesses, the opportunities they have and the risks it has to face and organized strategies to face these problems. From the Michael Armstrong five components model the HR strategies are assessed.

In the first component basis for the organisation, HR strategies are projected using SWOT research and the strengths and weaknesses are evaluated and future opportunities and hazards are analysed. In the second component content the creativity and reconstruction of the Nestle organisation are discussed where in fact the strategies state the necessity for development in the management and opportunities for the skilled employees. In the third part, Rationale shows the reduced man capacity to increase production by using robotics as a strategy which gave great results by lowering man power to 23 hours from 38 hours. Inside the fourth component execution stated that the necessity for urgency for the development of organisation by increasing the branches of nestle each year. Within the fifth component cost and benefit analysis suggests the remuneration of the employees it depends on the individual performance which displays the NESTLE organisations expansion.

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