Analysis of Nestles Position in India

compendium of noses Position in IndiaNestle is integrity of the largest companies in the world. It produces different types of products and was base in different parts of the world. It was started in 1868 by Henri Nestle, who set up a sales office in London. The conjunction went under the hot ownership when Henri Nestle retired in 1875.Nestle opened its first factory in 1901 in UK and got merged with the Anglo-Swiss milk social club which was founded by Charles and George page. It has acquired its own place image everywhere the years by innovating new products and attracting people all in 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 illustrious white chocolate Milky Bar was released into the market in 1937. The some other products of Nestle atomic number 18 coffee, milk, chocolates etc. The caller-up has its branches in 8 6 countries equivalent India, Pakistan, US, South Africa, brazil, Sri Lanka, France , Middle east countries etc all over the world and close employs 283,000 people. It has over 250,000 shargonholders, while most of them argon from Swiss. Nestle products be intumesce k flatn in the entire word for their wide range of products which take coffee , infant nutrition, baby products ,chocolates , milk products etc. Nestle products atomic number 18 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 leader in the categories of coffee, infant nutrition, chocolates etc. The company respects the opinions of its customers and makes authentic that the products are manufactured according to their interests.FIVE COMPONENTS OF ARMSTRONGS idealBASIS the environmental factors that are to be taken into account as the essential bac kground for the constitutions HR strategies. These factors can be analysed by victimization prepare or PESTLE analysis.CONTENT the details of the proposed HR strategies of an placement must be includedRATIONALE the business case for the dodge. instruction execution finding the ways and plans to implement the proposed HR strategies.COST AND get epitome analysing the benefits and costs of implementing a strategy and acting according to the outcomes that may occur. cuddle follows the strategies like commitment strategy, developing trust, culture attention etc. By following and implementing these type of strategies, snuggle has acquaintd and developed itself throughout the years.Let us evaluate the HR strategy of NESTLE organisation using Michael Armstrongs determine 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 influence all over the world. It has considerable brand authorisation all over the world. The brands like NESCAFE, MAGGI and CERELAC which are generic to their product categories are very strong in the Indian market. Around 67% of the nation use Nescafe, Maggi and Cerelac for their daily uses.A nonher main Strength of the company is, it constantly introduces new products in to the market with innovative thoughts and attracts people towards it. It makes real that its products are manufactured with quality. There are nearly 3500 scientists in the companys RD department to innovate new thoughts and ideas. It is a truly international company which is operated in 77 countries. The competition from other organisations doesnt affect Nestle because of the low cost and graduate(prenominal) quality it stay freshs. It has a very strong take force unconnected the other organisations.WEAKNESSBecause of the un in time nature of the Indian market, the things get to a greater extent complicated. It is very much important to maintain good hygiene standards, ingenious personnel in the food industries like Nescafe. It is very difficult to maintain these standards in the big countries like India which has a complex supply set up management.OPPURTUNITIESThere are lots of opportunities to the company in the enormous country like India. There are lots of towns in India where the products of Nescafe are not available. It can lead to those towns and villages and can 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 man military force, it can be made as the exportation hub to achieve better results. Everyone is becoming a health 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 f aces huge competition from the organised and unorganised sectors. Moreover, the Indian government has decreased the import duty of food products, making the things worst. The organisation does not have any threats from the small scale industries but it testament have threats from the organisations which are established with large investments and big brand value.The mental process of FMCG sector is very less(prenominal) in the past 2-3 years, even though there is a decent pace of appendage in the economy of the organisation. near of the markets in which the company is about to enter, are already vaned regarding these products.CONTENTThe main principle of HR strategies of the NESTLE organisation is its products harvest-tide through innovation and renovation. The other important strategies areAttracting dynamic employees and prominent training to themDeveloping the managementRespecting other cultures and traditionsProviding training to the new comersSome other principles of pro posed HR strategies are maintaining diversity in the manufacturing of products, despite of introducing several(prenominal) products in to the organisation.RATIONALELet us have a timber on the business case of proposed HR strategies of NESTLE organisation.NESTLE has its kit out Kat manufacturing plant in York England. Ian Jobson is the manger of that plant. For manufacturing a ton of outfit 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 valet labour and introduced robotics to make the kick the bucket easier. They used robotics, automated packaging, and production word of mouth 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 strategies. It follows different strategies and concepts to reach the better heights and to contract 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 polish off a greater 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 safes to the employees to question their superiors about an foul evaluationIt motivates its employees, train them in maintaining teamwork, cooperate and integrate with the organisations strategies.COST AND BENEFIT ANALYSISNESTLE tries to decrease the extreme utilization of natural resources. By doing this, it benefits in increasing the human resources, expands contact to the financial resources.The managers and the individualist employees are very benefited by the HR strategies of NESTLE. The company believes in the individual performance of the employees plays 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 likely remunerations to the employees. The level of remuneration is maintained above the average in the industry.The uncertain part of salary is relatively big in rewarding an individual performance.The variable part of salary for higher management is based on the performances and achievements of the individuals and their team.BENEFITSThe employees can apply up t o particular number leaves either face-to-face or medical.They can have the assistance scheme for their childrens education.The organisation offers provident fund to their employees.The other benefits for the employees include retirement gratuity scheme, conveyance repayments, restitution for accidents etc.The other concepts that can be included are providing enlisting function, 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, tensile 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 jobs to the employees in nec essary 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 multi-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.CONCLUSIONMichael Armstrong gave a brief definition on the components that are to be included in the Human choice 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 dumbfound, we can understand that NESTLE is very cutting 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 o f 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, Rationale shows the reduced man power to increase productivity by using robotics as a strategy which gave good results by decreasing man power to 23 hours from 38 hours. In the fourth component implementation stated that the need for importunity 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.