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Business background and overview of Nestle

Paper Type: Free Essay Subject: Marketing
Wordcount: 3281 words Published: 1st Jan 2015

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The Nestle is almost 140 years old company providing the vast variety of the products across the world. The company as it is very old and senior in its category have its roots in almost every country across the world. Nestle is very famous nutrition and food products company it is very vast as far as their products are concerned. In UK is also have a very much reputation and reorganization of its brands are good enough. The employment in the UK of Nestle company is almost 7,000 at the various sites across the country.

The Nestle has almost 6,000 different brands which are across the globe showing the reputation and appreciation of its products and brands worldwide.

The quality of the product is the symbol of the organization’s commitment to build a product with care and dedication.

It is a universal fact that it is the quality which retains a company in the market. Nestle always kept in mind this principle because it knows very well that customers have no tolerance for the quality of product. Nestle efforts are to maintain highly customer satisfaction products. The Company implements a system approach that insure products of highly quality. It time to time integrated its system of manufacturing producing quality products. In its research system that data is entered by the researches to visualize the quality of product. Previous researches conducted by the company shows that when quality is produced with fixed cost, a high quality form like Nestle can undercut its rivals pricess and may find it profitable to invest more on quality according to market size. This is the reason that Nestle has been remained concentrated despite market growth. In the recent years Nestle products which are produced with fixed cost, the average quality of produces increases with market size and the market does not fragment as it grows large. In the global markets only those products are survived which are batter in quality and in competitive pricess. The Nestle always keeps in view that market trends and international quality standards are maintained. Nestle receives a great response from the investors because of its highly reputed products and quality management. As a result of it’s highly fame products it’s market size increased manifold. Its relationship strengthens between product quality and market size. Whereas outcome of a relationship between product quality and market size familiarity of the products. In this report we examined all aspects of the nestle products.

Nestle’ Standards

The nestle quality standards ensures its products acceptance and believe of the consumers in the product. The wide range of the supply of the Nestle products through out the world is presently working as the standards of the quality are maintained by the Nestle Product management team.

Quality Assurance

The quality means the purity in the product manufacturing by applying the applicable and necessary tools/ techniques which is good for health. The quality ensures the first step of product popularity as the purity/quality of the product is most likely to appreciate by the consumers.

The quality of the products ensures the following.

popularity of the product

Acceptance of the product by the consumers.

Health and environmental health factors are satisfied

Build organization reputation in the market

Gives tough competition to the competitors

Nestle has come to realize that current economic down term and keen market competition it is not easy to attract customers without maintaining product quality. Other competitors of Nestle under estimates the enormous significance of seeking and recognizing consumers view and opinions regarding product improvements and service quality besides pricing managements. Nestle given importance the areas focuses on consumer’s perceptions of product and service quality as well as the product prize. Nestle used to study the data which is collected through the use of questionnaires, personal interviews, observations and data obtained from the market.

The Need for the Change

The need for the change in any of the company or organization is very much on the cards and necessary for any of the organization to keep itself at the high standards and up to date presentation and working of the company.

The quality control is a process to ensure a level of acceptable quality of product. The department of quality control of Nestle keeps a closed watch to maintain the quality according to international standards. The quality control department needs to be changed time to time to get the latest equipments available for the process of quality assurance of the products t various stages of its production.

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The various products of Nestle go thorough the complex process after many laboratory examination and tests. Quality control involves the examination of product at various levels and after passing all the stages it is approved to be marketed. The Nestle knows very well that it is not possible for a single one but it is the collective responsibility of entire team. The Nestle engaged a team of professionals who work hard to maintain the quality of nestle products. The team work needs to be developed in the workable environment to gain the goal at the neutral grounds. The goal of quality control team of Nestle is to identify the products which do not meet specific standards of quality.

The products of the Nestle need the proper advertisement and its presentation in front of the target market to get the appreciation from the market. The change in the policy of the advertisement of the various products is becoming more necessary and vital for the product appreciation and acceptance towards the customers.

The change in the management policies and the employment enrollment process is also needs a revision in the company.

The cultural and the race difference should be eliminated and the equal opportunity employment should be needed to be structuralized in the organization.

Identification for the change

If we are looking for the positive change in the organization and making the performance of the organization more and more better. The first step towards this is to create a team which identifies the various areas and spots on which the positive changes can be made and implementation of such changes are logical and applicable for the company.

The identification of the changes requirement of the company at various levels is very much inevitable to create the understanding the future of the company and the future of the strategy of the company in the short and the long term basis.

The identification can be made possible by making the proper evaluation process and analysis of the history of the various products selling and the future expected demands and trends of the organization’s various products and brands in the international market.

The change is not only the requirement in the development and the strategies of the brands and the products of the company it is also necessary in the management, employment and in the workforce of the company.

The identification of the change in any organization requires the following steps to be taken

The evaluation of the brands strategy and acceptance among the consumers

The evaluation of the employment satisfaction and performance inside the organization.

The evaluation of the consumer management relationship and its outcomes.

The analyzing of all the evaluation data and figuring out the malfunctioning parts and brands of the organization

Making a effective proposal for the elimination of the problems and the implantation strategy presentation.

the possible ways to get the solutions of the ongoing problems and threats that can cause the damages to the origination

Areas and Techniques/Methods for Evaluation

The company management can adopt various methods and tools to analyze and evaluate its different areas for e.g. they can evaluate brands, consumer management relationship, employment satisfaction and performance etc.


Business Environment

The analyzing the business environment is very much necessary for the organization. The Nestle maintain the good business environment however the changes according to the passing of time are also on the cards and should be taken time to time to maintain the healthy business environment.

Management Performance

The management has multi-dimensional responsibilities and should present the sense of responsibility to perform their duties with full commitment and dedication. However the management done their part in the company’s work performance and done with responsibility but the evaluation of the performance of the management of the organization is also very important as they should might be fully committed but should be committed enough to meet the needs of the organization in the long run.

Employee’s Participation

The employee’s participation in the change and n the acceptance of the changes is also a big thing to worry about, they are the one which I reality implement the change in any origination. The employment of the organization should be well aware and prepared to accept and implement the change in the origination to get the full participation of the organization.

Product Marketing And Delivery

The product marketing and delivery is also a very key issue to discuss if we discuss the changes and need to be made the changes in the organization. The review in the marketing and the marketing strategy of the various products should also be a part of the change.

Product Appreciation

The evaluation form the customers will make the company analyze the appreciation of the product among the consumers of the products especially when the company is launching the new products the customer’s evaluation should be taken in account as a priority in evaluation.

Employment Satisfaction

The employment satisfaction to the new changes adopted and the expected changes to be adopted in the future should be analyzed and studied. The evaluation from the employment of the organization is good enough to get the view that the employment of the company is indented to the change or satisfied from this kind of the change or not.


Evaluation Performa’s:

The evaluation Performa’s are made to get the customer’s opinion for a particular product and there should be another for the employment that either they need the changes if yes which areas they require changes. This is the best source of getting the direct evaluation from the customers or the employment of the company at a short period of time.

Product profit/loss ratio:

The product acceptance in the market will get a good business for the company and gives the profit if not so it gives the loss. The analyzing the statistical reports on the profit or loss of the particular products individually will enable the management of the company to make an opinion that the product is doing well enough for the company or not.

Market trend:

The market trends should also be analyzed by the management of the company to make any decision for the brand or a product.

Consumer Behavior:

The consumer behavior is the also very must effective stimulus for the change strategy of any organization the consumers are those which can cause the changes in the products and branding of the organization.

Diagnostic Change

After the brief identification and getting the clear picture of the needs for the changes in the organization the very next step of the management is to diagnose the strategy an effective strategy that can be adopted in the future for the implementation of the changes in the organization.

Change Management Process

To maintain the quality of the product the Nestle Change management team follows proper outline provided by the Nestle Company.

The process involves the following steps

Analyzing the available resources of Raw Material.

The change management team analyses the different available resources from where the raw material can be collected and utilized in the product manufacturing. The Analyses is done by the team of experts which apply different tools/techniques to test. The quality of the raw material in available resources. The best and purest resources are selected to manufacture a product.

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Collecting methods for Raw Material

The selection of method of collection of new material is as important as the decision to select a source of raw material. The collection of product raw material is done with proper care and by utilizing hygiene tools/ Techniques to make the product look good taste good and it should also be good for health also.

Product Manufacturing

The product manufacturing is also a very vital and key factor for the quality of the product. The quality of the product can be affected if not manufactured under the good and hygiene standards of the products.

The Nestle Company has adopted the applicable methods followed by tools/techniques for the product manufacturing. The product is pure as come under the manufacturing process and the process is designed in such a way that it maintains the quality and purity is assured at the outmost and prime objective.

Product Packing

The product after manufacturing process is passed to the consumers for the purpose to maintain the quality of the product the packing of the product is done in standard packing which can insure that the quality can be maintained over a large period of time. The packing of product by Nestle is done in such high standard that when its products are used by the consumers the quality standards are maintained and build the image of the Nestle product in the eyes of the Consumers Specially food products are packed in such a way that there are no slide chances of Damage of Nutrition.

Implementating A Change

The implementation of the change in the organization is very important and the implementation of the change needs a well defined and organized strategy which brings the changes in the organization. The implementation should be done through best available resources and methods and techniques.

Criticism on the Change

Although the changes in the organization brings many positive developments and progress for the organization but it can face different type of the criticism at various levels by the customers as well as from the employment of the organization.

The customers will record or show their criticism if they are not likely to accept the changes in the brands, products or the other options provided by the organization.

The employment might also criticize the change in the organization if they are not use to implement such changes which they thought might not be good for them and the organization.


Nestle Tries it’s best to provide the products to there consumers keeping in view the total Change management ethics. Followings are the Strengths of Its products

The High Quality and Purity of the Products.

The Standard packing and high product image in the market.

Competitive quality products in the market.

Manageable pricess of the products.


It is said there is always remains space for the betterment so Nestle Products always needs improvement with regard to quality and pricing. Following are the Weaknesses of the Nestle Products.

Nestle Products are high priced as compare to other companies products.

The cost of packing sometimes incurred higher then the product.

Quality costs high and it becomes difficult for the company to compete in the market.

The prices of standard products changed the consumer behavior.


The Good will of the company attracted the consumers.

A wide range of the product captured the market

Standard of the products is pleasing the consumer and changing their preferences.

Attractive packing is providing health competition.

Packing is hygienically very suitable to maintain quality.


Expansion of the market is a major threat to maintain demand and supply.

High prices of raw material will effect the cost the products

Nestle has expanded the net work in other countries so administrative costs will increase.

Storage and supply will effect the market


The change is what which is required and necessary everywhere in the world and the change for the betterment or the apace for the betterment is always available.

Nestle makes packing decisions keeping in view the following reasons

Protection of Product -Due to expand marked of Nestle; International standard packaging is used to protect the product from damaging during transportation and minimizing spoilage.

Customer protection -A visible packaging design is used to attract customers. This is also important for customers who are not well-known with the Nestle Product. The Nestle tries it’s best to make its products prominent among thousands of other products of other companies. For which its packaging designs stand out more likely to be remembered future shopping.

Value added packaging -Though packing designs and structure and value of the product but benefits can be obtained from the package structure as it make the product easier to use where as stylistic designs catch more attraction of the customers. And looks beautiful in display in the stores as well as at home.

Distribution Beautiful and attractive packaging attracts the customers and facilitate the storing.

Pricing Affect – packaging can influence a significant of a product selling price. It is experienced that some time cost of some product increased to 40% of a product selling price yet people do not mind to purchase owing to high standard maintained quality. However smart packaging minimizes the actual price.

Research and Development department of Nestle continuously conduct surveys and research to improve the quality of products and its packaging. That’s why the company develops the revised packaging time to time according to the wishes of its consumers and desires of market. Whenever the company creates a new package it is most often with the intension of having the design on the market for an extended period of time. As changing packaging design for a short period can have negative effects as compare to long term. In order to locate the product and may not confused in the altered design.


By analyzing the facts and the history of the organization we can recommend the following

The change management strategy of the origination should be reviewed and restructured

The management and the customer’s relationship should be built by different scenarios.

The new opportunities for the employment and the product launching are required but the management change in terms of organizational behavior is important.

The advertisement of the products should be launched with the new strategies and promotional strategies should be developed.


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