Health And Fitness Structure

Health And Fitness Structure To-day health and fitness or wellness services industry is also a fast growing sector in India. In the previous unit we have discussed about the hospitality industry wherein offering health club services are considered as an additional feature of a hospitality business. Now, in this unit let us discuss exclusively about the health and fitness industry that is booming in India. This segment includes a number of services such as beauty treatment services, therapy based treating products, personal health counselling, rejuvenation such as yoga, spas and last but not least the fitness developing centres viz. various gymnastic clubs or centres. In fact the field is experiencing a healthy growth rate and currently has an estimated market size of USD 120 million. The visible trend of surge in wellness business is the increased range of wellness books, products, and wellness holidays on the offer of the concerned person or that particular product manufacturing company. India has emerged as a big player not only in medical, tourism industry but also in developing domestic fitness and health centres in addition to the supply of the fitness product made to the individual by the manufacturing company for doing the exercises with those products to keep them fit. As on 2008, there were 765 fitness clubs in India with total membership of 2.3 million members. (Source: Statistics of the IHRSA Asia Pacific Market Report, 2008) In fact the Indian fitness industry is an immensely under penetrated market compared to several developed and developing countries in the world. For example, 16.0% of the US populations have fitness club membership whereas in India, a survey taken in seven metro cities shows that it is only 0.4%. On the other hand you know that India has the highest incidence of diabetes in the world. That is 40 million people are affected and it is likely to go up to 70 million by 2025 if left unchecked. This sudden increase is due to the changes in the lifestyle. You can notice some major changes in the areas of food consumption, lack of physical activities, longer commutation, lesser or change in sleeping time etc. among the working class population. The point is most of them in this class are well aware of the correction they need to necessarily make in their living styles. Therefore, there is a huge emphasis on regular exercise to prevent obesity and diabetes. An entrepreneur can start a business of fitness centre with the equipments and tools which are being sold by many manufacturers. The habit of people living in main metro cities like Chennai, Hyderabad, Mumbai, Delhi etc, ladies in particular utilise these centres to make them fit for a healthy live. Some of the equipments are Aerobic stepper, forearm flexor, anti microbial speed rope, resistance bands, skipping rope and many more equipments and products are available for doing exercises. The equipments like treadmill, stretch, and rovers, elliptical are also available to do exercises safely for everyone who wishes to keep their body fit in all aspects. There is a scope for the entrepreneurs to start this type of health institutions, gyms, fitness centres etc. Since these equipments are given to customers on a fixed time basis they come to the centres regularly, and the entrepreneur can earn a considerable amount. http://www.healthkart.com/sports/fitness-accessories/aerobics-general-fitness?pre=pageNo=3 Example: AC Nielsens global online consumer survey findings released in Feb 2009 said that 54 percent Indian respondents think they have issues with their weight. About 80% people said that they exercise at least once a week. Going to a gym is second most preferred option for exercise after walking. Objectives: After studying this unit, you will be able to explain the concept of health and fitness list the types of health and fitness activities classify the types of health and fitness services describe the business opportunities list the advantages starting a health and fitness centre list the challenges of managing a health and fitness centre commencing a health and fitness business 10.2 Concept Health is defined in the WHO (World Health Organisation) constitution of 1948 as a state of complete physical, social and mental well-being, and not merely the absence of any disease or infirmity. Health is optimal well-being that contributes to quality of life. Being free from ailments alone cannot be considered as healthy although it is essential to good health. Optimal health includes high-level mental, social, emotional, spiritual, and physical wellness within the limits of ones heredity and personal abilities. Health is the state of being and wellness depicts the quality of life or the state of living a healthy life style. Wellness reflects the positive aspects of health that can help expand your potential to live and work effectively. Wellness is possible for everyone, regardless of whether you have a diagnosed disease Fitness refers to being fit enough to perform our personal and social obligations in an active manner. To achieve this, sufficient energy and strength levels are important. Being fit need not mean being an athlete or sport person but a capable and independent human being in general.(http://www.mhhe.com/hper/physed/clw/01corb.pdf) The concepts of health and fitness are related. If you are fit, you have a higher chance of being healthy. For example, if we observe the people who go for a walk or jogging every day, we can notice that they enjoy a healthy life, free from stress and illness. This is because their persistent walking improves their physical fitness, and also their mental well-being. Well being refers as an organised set of activities fabricated to help the individuals and families and maintain the behavioural pattern which in turn help to reduce the risk of them and simultaneously enhancing the ability of them in order to perform the tasks. The health and fitness industry is focused on the supervision of exercise and physical activity either in an individual capacity or within a group in a controlled environment. The industry provides various services and facilities that encourages and promote physical activity and the general concept of promoting wellness. In health and fitness industry, you also need to know the five major health related physical fitness components, namely: Cardio -respiratory endurance Body composition Flexibility Muscle endurance Muscular strength Let us now discuss each of these in detail. Cardio respiratory endurance: This refers to the ability of the heart, its functions, blood, and blood vessels including the total respiratory system. The required power and oxygen will be supplied to the muscles and allow them to do the exercises. Any person who does the muscle exercises can be bodily fit and can do physical activities for a longer period of time without any stress. Cardiovascular exercise offers the individual major benefits to the health and to those who are regular and constant with their exercises. The exercises for cardiovascular activities are swimming, cycling, jogging, and swimming, and pedalling and riding a machine which is elliptical in shape used in health institutes and fitness centres. (http://www.livestrong.com/article/502099-recommended-total-duration-for-cardiovascular-endurance-exercise/#ixzz1wbJEGORh) Source: http://healthplux.com/intense-cardio-workouts/ Body composition: It comprises of bones, muscles, fat and tissues etc. An individual who perform regular exercises will have normal percentage of fat. Body composition refers to your percentage fat in the body. The bone, connective tissue, muscle and internal organs are fat-free and termed lean mass. This mass is superior to fat mass and should be checked and maintained by taking healthy foods and regular exercises. Everyone who wants to keep the fat in control can improve body composition by losing fat, increasing lean muscle or a combination of both. For example, weight training adds both muscle mass and bone density. Flexibility: It is refers to the movement of joints in a body. The movement range may vary from person to person. There should be a free movement of such joints to have the flexibility. It is affected by length of the muscle, the structure joints etc. An individual can move his joints to the maximum level and full range for engaging himself in his duty and play as well. Source: http://eugenept.blogspot.in/2009/07/if-it-looks-like-duck-flies-like.html Muscle endurance: This refers to the repeated usage and ability of the muscles. An individual can repeatedly move his muscles for a longer period of time without any tiredness. Muscular strength: This refers to the ability of the muscles to carry out the external works such as lifting the weights and keeping the arm and shoulders in good shape and strength. You can perform this for maintaining the external force and lifting of weight and controlling of your body. Source: http://www.ehow.com/list_6967692_good-weight-training-exercises-beginners.html A health and fitness professional must be able to measure the components to advise clients about their health related fitness, and to use data obtained from the tests to design appropriate exercise programs which can then be evaluated. It is intended that all 5 components contribute evenly to make up a holistic health related physical fitness. Self Assessment Questions Fill in the blanks: _________ reflects the positive aspects of health that can help expand your potential to live and work effectively. The health and fitness industry is focused on the supervision of _____________ and physical activity either in an individual capacity or within a group in a controlled environment 10.3 Categories of Health and Fitness Activities You have learnt that being healthy and staying fit means meeting all our personal and social needs independently and actively. Let us now discuss more about general health and fitness scenarios. Wellness incorporates all aspects of health, including the physical, mental, spiritual and environmental. Wellness programs are those that work to positively influence these areas of a persons life to improve overall health and well-being. The term wellness program is most often associated with corporations and work-sites however wellness programs may also be offered through community organizations such as schools, Cooperative Extension Offices or public health departments However, as we are going to discuss about fitness industry more, let us also have a closer look on the health related issues in this section. The fitness centres differ from the nature of exercises they offer. Some of these are; Meditation and yoga therapy centres for deriving peace and pleasure and keeping good health Fitness centres and health spas for keeping the health fit and rejuvenated. Gym and dance 10.3.1 Meditation As we are from the land of Buddha we are not new to many of his thoughts though we do not practice them in our real life. Meditation is considered to be a way for attaining spiritual bliss and peace, ultimately for healthy living. Every culture and tradition has its own distinct and exclusive styles of practicing meditation. The basic concept and understanding i.e. to concentrate and focus towards one issue or object for a longer duration may not be feasible for all. But once we get habituated to do this in a systematic way the result is there. In India there are many missions conduct programs and classes on various captions involving meditation to teach this. Here, all you can attach yourself as a member and practice meditation for individual benefit to attain the ultimate benefit which the modern science proves true. There are many groups in all the main areas of the cities and they are teaching the meditation to group of people at different timings. This meditation controls the anger of a person and it induces us to concentrate on what we do. As per Michael J.Baime the meditation educates to have an emotional stability which allows the meditator to experience the intense emotions. One can gain insight and proper understanding of his thoughts. If you do the meditation regularly you can conquer your emotional intense and can get rid of the emotional imbalances. This helps in full relaxation of the body. The entrepreneur may get the knowledge about the meditation from the leading group of institutions and in turn this meditation will help to fell comfort and confidence including self control in his life. And he can also conduct such training centres for the benefit of the residents and can earn money with the knowledge of meditation. Meditation gives a sense of calm and acceptance of oneself and the others as well. This technique is being done for many years. Irrespective of caste and creed many people practicing the meditation for their wellness. Hence there is much scope for an entrepreneur to start such centres or visit s chools and colleges etc to teach the meditation. 10.3.2 Yoga therapy India was the origin of Yoga. It is a simple but useful technique for doing exercise which works as union among our body, mind and soul. It consists of gestures and postures. It is called Asna in Sanskrit. Yoga helps you to keep your body fit and maintain the balancing and to get self enlightenment. And it helps to control the emotions of the mind. As you know yoga is simply one sort of physical exercise involving stretching and balancing. This is mainly to keep the physique fit thereby derive fitness. But ancient legend would speak much about this theory and there are therapies developed in modern days to either prevent or cure various illnesses. However, you must appreciate that a right postures play a very important role for health fitness. As said above Yoga means union and aims at the realisation of the unity of our whole being. It is a Hindu discipline aimed at achieving a state of perfect spiritual insight and tranquillity. In the West, the term is most commonly understood as the physical exercises that are practiced as part of this discipline. Human health fitness depends not only on the general physical fitness but mental peace. The entrepreneurial company can do the business of teaching Yoga to the people in and around in his area. He can also conduct group wise and offer packages of services of Yoga and there is a scope for him to earn money out of it. 10.3.3 Nature cure Naturopathy is a science of healthy living and a drugless system of healing. Nature Cure is rightly defined as a system of man building in harmony with constructive principles of nature on physical, mental, moral and spiritual. This is a technique for keeping you fit by using herbals and other naturally grown food. In nature therapy green vegetables, spinach and fruits etc are given to the people who want to cure their disorders. Since it is also a simple technique the entrepreneurial enterprise can invest money in this business and can earn some return from the investments made. Naturopathy deals with treatment of disorders by balancing the condition of homoeostasis and up-keeping the equilibrium through addition and deletion of substances. This type is available only in some places and the entrepreneur can opt for this business. Now-a days the public are fully aware of these techniques and they are known about the facts of maintaining wellness. Yet they know that these are inexpensive and there is no side effect for these techniques. For the entrepreneur it is a good chance for them to start the business as there is no much competition in India. He can start many branches across India even in abroad also. The public are eager to know about their health conditions and they want to learn more and more about the nutrition, diet and exercises to be followed etc for maintaining their wellness. Physical Exercise There are many institutions which deal with physical fitness for the wellness of the people concerned. You have already learnt that fitness is about being in shape or in good physical condition. Wellness refers to being free from illness. Living fit requires not only consuming healthy diet but doing some regular exercises along with diet. Exercising can be done by means of special equipment for lifts, squats presses or in various other ways like aerobic exercises viz. cycling, running, biking, swimming, rowing, gymnastics such as pull-ups and push-ups. Doing all these exercises in different combinations will increase our withstanding power and stamina. In USA there are more fitness and recreational sports centres which are equipped with latest machineries. These are running as a successful business unit. Some of them are: aerobic dance and exercise centres athletic club and physical fitness health spas exercise fitness centres gymnasiums health studios weight training centres nutrition strength development centres (http://www.census.gov/epcd/naics02/def/ND713940.HTM) Hence, in this unit we discuss about catering to the ever increasing demand of people in the field of fitness by setting up commercial units such as gymnastic centre or centre for yoga and other related therapies. Many publications are also available for the people to do exercises which are re commended in that. People in India use the fitness centres to do exercises. These centres have instructors and trainers to teach the people how to do exercises or meditation etc. They are conducting group exercise classes with audio and video facilities for making the people to grasp the techniques. Various fitness centres in India are: spice world fitness centre -New Delhi fitness flash- New Delhi fitness studio- New Delhi fit line- New Delhi Ozone fitness N spa- New Delhi Satguru machine fitness-Mumbai Proline fitness- Mumbai Herbal life- Mumbai Body grace- Mumbai Park health club-Kolkata Enkon body gym- Kolkata Source: http://business.mapsofindia.com/fitness-centres/ The entrepreneur can very well start his fitness centre in any place. It is undoubtedly a good business for him as people are very much interested in maintaining their body, mind and soul to survive as a fittest. Self Assessment Questions State true are false: Pathology clinics are meant for diagnosing and analysing various biological factors. To concentrate and focus towards one issue or object for a longer duration is very easy and feasible for all. Naturopathy deals with treatment of disorders by balancing the condition of homoeostasis and up-keeping the equilibrium through addition and deletion of substances. 10.4 Classification of health and fitness services The health and fitness services are classified according to the nature and technique provided in the centres. There are more services available for the entrepreneur to chose. It is required by the entrepreneur to gain knowledge about these health fitness and wellness products. There are facility and service providers who are mushrooming in India across the urban areas. Let us now broadly classify them. The classifications are: Gymnasiums with workout areas (fitness building): The Bodybuilding is always unique; it joins the unknown elements of human nature with nutritional science, exercise and psychology. Your workout in the gym will vary from other Bodybuilders. You have to determine the goals such as lose fat and tone up or gain weight or doing both at the same time. But it will be difficult and can lead to zigzag diets. Some workouts will provide good results and other workouts will be a waste of time. Aerobic dance and exercise centres (Physical fitness): At first, the main aim of the step-aerobic dance exercise was to achieve a heart rate of 50-60% as per the age of the individual. This was raised to 70-80% of the heart rate. The step-aerobic dance exercise was performed by all in the experimental group for the total of eight weeks time. These were choreographed by a professional step-aerobic coach. The movement were simplified and was to learn, required the use of both the upper and lower extremities and the back. Verbal and tactile prompts were given during each step-aerobic dance exercise class. The subjects in the experimental group participated in three groups of 40 minute sessions per week for four weeks initially, followed by three 50-minute sessions per week for another four weeks. Athletic club facilities, (Physical fitness keeping the sport in mind): Athletics club are offering mind body programming and facilities which can help you to obtain new level of goals of the fitness and wellness. These clubs are having a management team and provide childcare enrichment programs, nutrition and private training etc. Exercise centres and fitness salons (Physical fitness and stress relieving): These are providing the regular exercise programs. They are equipped with modern equipments which are necessary for the wellness. To remove the stress they teach meditation along with the exercises. This stress leads to unnecessary problems of the individual. Hence the technique to overcome the stress is being taught and training is given by these clubs. Fitness Spas (health building): These spas offers house spa, hydro spa, and massages etc. They provide phenomenal facilities to their customers. In addition they are providing group class training programs, including personal training. Ice skating rinks or roller skating (fitness as well as entertaining in sport): It is a place of ice skating where high tech plastic is used to skate on. And they use synthetic ice skating rink surface for easy skating. They provide ice skating and play hockey, figure skating and public skating. Squash club facilities: These squash club provides the facilities of viewing gallery for men and women in addition to the coaching given for the indoor games. There are trainers and at some clubs these training are given free for the members. Swimming pools: Constructing of such swimming pools will yield a good income to the entrepreneur as many products are to be supplied along with the construction of pool. They are to be provided with cleaning chemicals, swimming pool covers and rollers, pumps and fittings, lightings and ladders, safety equipments , separate room for men and women for their urgent needs etc. Tennis club having court facilities: These sports club is used by some people only in the society. Since this game is not that much popular and do not attract the viewers only a few are using this to play to keep them fit and proper, Tai chi studio: Tai chi referred to as meditation in movement. It is a martial art which combines physical movement and stretching technique. It teaches and promotes the health, well being and longevity. GYM: An entrepreneur can opt for this business as it is attracted many youngsters including the women. The regular exercises practices in gym help the individual to build the body and the structure including shaping. A gym is an integrated part of a health club or leisure centre which allows the users whether members or non members to exercise effectively using a wide range of resistance and cardiovascular machines. Presently many gym centres provide necessary classes on aerobics, body buildings and the ways to use the available equipments and fixtures to prevent a loss or damage to both the operator and the users. In the case of health club it may be necessary to equip a spacious fully equipped gym facility, exercise area, giving initial training, constructing a swimming pool, steam room, sauna and a club room for various social activities and a small snack cum juice bar. By adding more facilities such as internet access etc. the founders of the club will initially arrange for membership enrolment to have more viability in its operation. Gyms with workout areas Some of the health clubs have a main workout area, which primarily consists of free weights including dumbbells, barbells and exercise machines. This area often includes mirrors so that exercisers can monitor and maintain correct posture during their workout. A gym which predominately or exclusively consists of free weights (dumbbells and barbells), as opposed to exercise machines, is sometimes referred to as a black-iron gym, after the traditional colour of weight plates. Gyms with cardio facility theatre A cardio theatre or cardio area involves many types of cardiovascular training-related equipment such as treadmills, rowing machines, stationary exercise bikes etc. These areas often include a number of audio-visual displays (either integrated into the equipment, or placed on walls around the area itself) in order to keep exercisers entertained during long cardio workout sessions. Health Clubs offering various exercising facilities Most of the new health clubs offer group exercise classes that are conducted by qualified fitness instructors. Many types of group exercise classes exist, but generally these include classes based on aerobics, cycling (spin cycle), boxing or martial arts, high intensity training and muscle training. Health clubs with swimming pools sometimes offer aqua aerobics classes in addition to their coaching on various swimming styles. Health Clubs offering only sports facilities Some health clubs offer squash courts or boxing areas in addition to swimming facilities. In those cases, additional fees are charged for the use of these facilities. In addition to the above larger health clubs generally include health-shops, snack bars, restaurants, child-care facilities, member lounges etc. Where these facilities are available it is not unusual for a sauna, steam shower or wellness areas to be made available. These clubs generally charge a fee to allow visitors to use the equipments, courses and other available services. A fairly new trend is the advent of eco friendly health clubs which incorporate principles of green living in its fitness and in their systematic way of giving therapies. Due to the influences of all the above factors it results in the monthly or annual membership fees varying differently. 10.5 Equipments Accessories Now let us see the various fitness equipments and its classifications. Cardiovascular Equipments: Treadmills, stationary bicycles and stair climbers etc. comes under this category. In some places it is common to see rowing machines also. Weight Training Equipment: Weight lifting machines, barbells, various types of benches bars and racks are considered as weight training equipments. These are meant for body shaping and buildings especially for the sport communities. Weight Reduction Equipment: Weight reduction or weight loss equipment consists of more methods than any specific equipment in any particular formation. Still there are small tools like jumping rope and other handy products etc. for the needy to do exercises as all the above models of equipments mostly involve weight reduction. The exceptional ones are that you use for body buildings that too with specific in takes. The fitness industry has a huge growth potential as only 1.5% of the urban Indian population regularly practices workout. When we talk about the points of end-user segment, they are divided into two. 1) Residential or Home Segment 2) Institutional Segment Equipments for Home Segment The entrepreneur can manufacture the equipment needed for maintenance of the wellness of the people. He can supply to these clubs and fitness centres. Apart from that he can supply these equipments to the individuals who want to do exercises at home. For this he advertises in media and informs the features of the products including its spares. He sends the equipments by VPP or courier to his customers. New products with additional features are being introduced from many countries like Japan and China. The entrepreneur can deliver the equipments for residential usage some equipment. If the entrepreneur buy them for the usage in his fitness centres it is called institutional segment. The entrepreneur can save cost if purchases additional quantity of the different equipments. He can get quantity discount from his supplier. Cost The followings are the top and the entrepreneur can supply or lend them on rent to the individuals those who are not able to make use of the gym facilities are the following ones. 1. Treadmills, this will cost approximately Rs.30,000/- 2. Bikes for exercising will cost approximately four thousand to forty thousand depending upon the models and amenities available in it. 3. Small multifaceted gymnastic machine will cost Rs.18,000/- For example Home Leaper 16H, Pro Leaper 16P etc. Equipments for Institutional Segment There is a vast requirement for these equipments. The fitness equipment markets there are opportunities for the entrepreneur to start the fitness centre for the maintenance of the wellness. In India it is estimated to be worth Rs 12.5 billion in the year 2008 and is expected to reach Rs. 63.3 billion by 2012. The annual growth rate is expected to be around 50%. Hence the entrepreneur can start this fitness centres in many places of a city and can control all the branches through effective management system. The following equipments are generally installed in the fitness centres and the entrepreneur can purchase considerable quantities for meeting the demand in his centre. The important requirement for the entrepreneur is the knowledge about the equipment and the way they are to be utilised. The company which manufactures these fitness equipments are conducting training for the entrepreneurs and teaches them how to use those equipments including the trouble shooting process. Treadmill The cardio equipment in a gym is among the most popular equipment because it is the most effective equipment available there to help people lose weight and the treadmills are also of that category. Cardio equipment has one main purpose i.e. to get your heart pumping and functioning normally. Treadmill is important equipment and now-a-days insisted by many insurance companies to have the facility of treadmill even in diagnostic centres. If the necessary equipment is available with the entrepreneurial for the wellness he can earn more revenue out of it and this will be fetching for ever as this industry is growing day by day. Elliptical Machines An entrepreneur can include these Elliptical machines in his fitness centres since they used by many for performing cardiovascular exercise. Like a treadmill, this machine will be in an elliptical shape and is stationary but allows to simulate running or walking by using a rolling or gliding ramp that are moved by feet. Many elliptical machines also have handlebars that move, allowing you to get an upper-body and lower-body workout at the same time. Weight training equipment These can also be found in most gyms and generally comes in two varieties. One is for free weights such as barbells and dumbbells that can be moved around from place to place in the

Human Resource Management and Nestle

Project Report of SHRM On Nestle Topic: Study of SHRM at Nestle Table of Contents 1 S. No. 1. 2. 3. 4. 5. 6. 7. 8. Description Introduction to Company Mission, Vision & Goals of Company SWOT Analysis of the Company SHRM at Nestle Impact of Recession on Nestle Changing role of HR at Nestle VRIO Analysis and 5P’s approach HR Strategies that company should follow Page No. 3-5 6-7 8-10 11-21 22-23 24-25 26-29 30 1. Introduction of the company 2 Nestle is the world’s leading nutrition, health and wellness company. The company employs more than 280,000 people and has 456 factories in 84 countries. Nestle products are sold in almost every country in the world. Founded in 1866 in Vevey, Switzerland, where it is still based, Nestle has often been called â€Å"the multinational among multinationals†. Only about 1. 5 percent of its sales are generated in its home country, and all but 12 of its factories are situated abroad. The CEO is Paul Bulcke, and the General Management includes a Belgian, two Canadians, one Dutch, a Frenchman, a German, a South African/British, three Spaniards, one Swiss, one American and a SwissAmerican. Nestle is a truly public company with over 250,000 shareholders of which around one third are Swiss. No single shareholder owns more than 3% of the stock. US investors, who, together, hold over 30% of the capital, can purchase ADRs through a sponsored program. As the world’s leading nutrition, health and wellness company, Nestle is the worldwide leader in product categories such as soluble coffee, infant nutrition, bottled water, condensed and evaporated milk, ice cream, as well as chocolate and malt drinks, and culinary. The Group is also a co-leader in pet care. The Company is committed to delivering shareholder value through sustainable, capital efficient and profitable long-term growth. Over the past years it has concentrated on furthering organic growth and performance improvement HISTORY OF NESTLE Nestle was the result of a series of mergers of many small companies. In the mid-1860s, Henri Nestle, merchant, chemist and innovator, experimented with various combinations of cow’s milk, wheat flour and sugar. The resulting product was meant to be a source of nutrition for infants, who could not be breast-fed by their mothers. In 1867, his formula saved the life of a prematurely born infant. Later that year, production of the formula, named Farine Lactee Nestle, began in Vevey and the Nestle Company was formed. Henri Nestle wanted to develop his own brands and decided to avoid the easier route of becoming a private label. Henri also wanted to make his company global. Within a few months of the launch, Henri began to sell his products in many European countries. In the company’s initial years, Henri took various steps to facilitate research, improve product quality and develop new products. Meanwhile in 1866, two Americans, Charles and George Page had founded the Anglo-Swiss Condensed Milk Company. The company launched a milk based infant food, which competed with Nestle’s products. In 1875, Daniel Peter, a friend and neighbor of Henri developed milk chocolate. Peter became the world’s leading chocolate maker, and later merged his company 3 with Nestle. The rivalry between Nestle and the Anglo-Swiss Condensed Milk Company intensified but ended in 1905, when the two companies merged under the Nestle banner. World War I created a new demand for dairy products. Nestle grew mainly by executing government contracts. The end of the war created a crisis for the company as people started using fresh milk again, instead of condensed and powdered milk. In 1921, Nestle recorded its first loss, which was partly due to the worldwide postwar economic slowdown. Louis Dapples, a Swiss banking expert restructured the company, streamling its operations and reducing the debt burden. In 1930, the Brazilian Coffee Institute approached Dapples, seeking new products. After eight years of research Nestle developed a soluble powder that revolutionized coffee drinking around the world. The product was launched under the brand name Nescafe and became an instant success. The onset of World War II speeded up the introduction of Nescafe. The beverage also became a popular drink among American servicemen in Europe and Asia. The end of World War II triggered off a new phase of growth for Nestle. Many new products were added as the company grew through acquisitions. After 1974, Nestle’s financial position deteriorated. Oil prices rose and growth in industrialized nations slowed down. The Swiss franc appreciated and the price of coffee beans and cocoa shot up. This situation was partially offset by Nestle’s rapid growth in emerging markets. In 1981, Helmut Maucher took over as CEO. His policies had a significant impact on Nestle’s style of functioning. Maucher pursued a two-pronged strategy to improve the company’s financial situation: First he embarked on internal restructuring and divestments; second he decided to continue with strategic acquisitions. Between 1980 and 1984, he divested a number of non-strategic or unprofitable businesses, amounting to nearly SFr8 bn. The divestments included certain food products that were not consistent with Nestle’s emphasis on high value added segments. To improve the company’s financial situation, he embarked on a cost-cutting exercise. While the employee strength was reduced significantly, the inventory and outstanding debt were brought down. In 1990, Nestle formed a joint venture with General Mills called Cereal Partners Worldwide to promote Nestle breakfast cereals. It covered 70 countries accounting for about 75 per cent of the breakfast cereal consumption outside the US and Canada. Nestle also formed a joint venture with Coca-Cola, called the Coca-Cola Nestle Refreshment Company, to market tea and coffee-based ready-to-drink beverages under the Nestea and Nescafe brands. In 1996, Nestle decided to end its 50-50 Clinic Nutrition joint venture with Baxter Healthcare and established Nestle Clinical Nutrition to provide orally consumed nutrition products to hospitals and nursing homes. Nestle opened the 20th century by merging with the Anglo-Swiss Condensed Milk Company to broaden its product range and widen its geographical scope. In the new millennium, Nestle is the undisputed leader in the food industry, with more than 470 factories around the world. Nestle 4 launched a Group-wide initiative called GLOBE (Global Business Excellence), aimed at harmonizing and simplifying business process architecture; enabling Nestle to realize the advantages of a global leader while minimizing the drawbacks of size. The Company’s strategy will continue to be guided by several fundamental principles. Nestle’s existing products will grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential will never be sacrificed for shortterm performance. The Company’s priority will be to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives. 2. Mission, Vision and Goals of Nestle VISION OF NESTLE â€Å"Nestle’s aim is to meet the various needs of the consumer everyday by marketing and selling foods of a consistently high quality. † MISSION OF NESTLE 5 We strive to bring consumers foods that are safe, of high quality and provide optimal nutrient to meet physiological needs. Nestle helps provide selections for all individual taste and lifestyle preferences. † BUSINESS OBJECTIVES OF NESTLE†¢ Nestle’s business objective is to manufacture and market the Company’s products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners. †¢ Nestle does not favor short-term profit at the expense of successful long-term business development. Nestle recognizes that its consumers have a sincere and legitimate interest in the behavior, beliefs and actions of the Company behind brands in which they place their trust and that without its consumers the Company would not exist. †¢ Nestle believes that, as a general rule, legislation is the most effective safeguard of responsible conduct, although in certain areas, additional guidance to staff in the form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organization. Nestle is conscious of the fact that the success of a orporation is a reflection of the professionalism, conduct and the responsible attitude of its management and employees. Therefore recruitment of the right people and ongoing training and de velopment are crucial. †¢ CORE VALUES †¢ A prerequisite for dealing with people is respect and trust. †¢ Transparency and honesty in dealing with people are a sine qua non for efficient communication. This is complemented by open dialogue with the purpose of sharing competencies and boosting creativity. †¢ †¢ To communicate is not only to inform; it is also to listen and to engage in dialogue. The willingness to cooperate, to help others and to learn is a required basis for advancement and promotion within our company. 3. SWOT Analysis STRENGTHS †¢ Parent support – Nestle India has a strong support from its parent company, which is the world’s largest processed food and beverage company, with a presence in almost every 6 country. The company has access to the parent’s hugely successful global folio of products and brands. †¢ Brand strength – In India, Nestle has some very strong brands like Nescafe, Maggi and Cerelac. These brands are almost generic to their product categories. Product innovation – The Company has been continuously introducing new products for its Indian patrons on a frequent basis, thus expanding its product offerings. Operated factories in 77 countries (all six continents), a truly global company. Considered the innovation leader in the global food and nutrition sector(3500 scientist in company R&D network) Low cost operators (beat the competition by producing low cost products, edging ahead with low operating costs) Offering thousands of local products. Have a great CEO, Peter Brabeck, and a very strong workforce. †¢ †¢ †¢ †¢ †¢ †¢ WEAKNESSES †¢ Exports – The company’s exports stood at Rs 2,571 m at the end of 2003 (11% of revenues) and continue to grow at a decent pace. But 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. Historically, Russia has been a very volatile market for Nestle, and its overall performance takes a hit often due to this factor. Supply chain – The Company has a complex supply chain management and the main issue for Nestle India is traceability. The food industry requires high standards of hygiene, quality of edible inputs and personnel. The fragmented nature of the Indian market place complicates things more. Some of their product were positioned as too scientific, and consumers didn’t quite understand (i. e. LC-1 was a food and not a drug) †¢ †¢ OPPORTUNITIES 7 †¢ †¢ †¢ †¢ †¢ Expansion – The Company has the potential to expand to smaller towns and other geographies. Existing markets are not fully tapped and the company can increase presence by penetrating further. With India's demographic profile changing in favor of the consuming class, the per capita consumption of most FMCG products is likely to grow. Nestle will have the inherent advantage of this trend. Product offerings – The Company has the option to expand its product folio by introducing more brands which its parents are famed for like breakfast cereals, Smarties Chocolates, Carnation, etc. Global hub – Since manufacturing of some products is cheaper in India than in other South East Asian countries, Nestle India could become an export hub for the parent in certain product categories. Health-based products are becoming more popular in the world, including in the United States Unaffected by current economic conditions (its share of the UK confectionery market rise to 15. 6 per cent with a 0. 5 per cent growth this year) THREATS †¢ †¢ †¢ †¢ †¢ †¢ Competition – The Company faces 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 – Trend of increased consumer spends on consumer durables resulting in lower spending on FMCG products. In the past 2-3 years, the performance of the FMCG sector has been lackluster, despite the economy growing at a decent pace. Although, off late the situation has been improving, the dependence on monsoon is very high. Sectoral woes – Rising prices of raw materials and fuels, and inturn, increasing packaging and manufacturing costs. But the companies’ may not be able to pass on the full burden of these onto the customers. Some markets they are entering are already mature Global competitors. There are intense competitions in the United States, especially yogurt market (General Mills) 4. SHRM at Nestle NESTLE – A HUMAN COMPANY 8 Nestle is a human Company providing a response to individual human needs throughout the world with specific concern for the well-being of both its consumers and its employees. This is reflected in its attitude and its sense of responsibility towards people. Nestle aims to increase sales and profits but, at the same time, to raise the standard of living everywhere it is active and the quality of life for everyone. Nestle is also convinced that it is the people who form the strength of the Company and that nothing can be achieved without their commitment and their energy, which makes people its most important asset. Involvement of people at all levels starts with appropriate information on the Company’s activities and on the specific aspects of their work. Through open communication and active co-operation, everyone is invited to contribute to improvements enhancing Company results and personal development. Therefore, we can conclude that the models that Nestle follows are: – High Performance, – High Involvement & – High Commitment. NESTLE’S SPIRIT â€Å"Making Big Investments in People† At Nestle India we make big investment in people, they are our top priority. For us, our people are the key drivers for our success. Nestle India provides its employees a dynamic professional environment bound by one spirit,’ The Nestle Spirit' and that makes Nestle India a great place to work. Nestle India is a vibrant company enhancing the quality of life of its consumers by offering them world class food products driven by Nutrition, Health and Wellness. At Nestle India your integrity, professional skills and performance is what matters. We trust our people and believe in giving early responsibilities and encourage them to actively contribute to the log term sustainable growth of the business. At Nestle India we believe in building leaders who can take on challenges, innovate and write success stories. Nurturing starts from day one on the job. Business dynamics and need directed training programs offer employees with opportunities to acquire and develop desired functional, people management and decision making skills enabling success at work. 9 As we achieve milestone after milestones we invite you to be part of this exciting journey and assure you that the exposure and experience would be unparalleled. NESTLE’S CORPORATE LEVEL STRATEGIES †¢ Product’s growth through innovation and renovation (while maintaining a balance in geographic activities and product lines). Long-term potential Build business based on sound human values and principles. Long-term commitment to the health and well being of people in every country in the scope of their operations. Business should be conducted by adhering to the values and management principles of the organization. †¢ †¢ †¢ †¢ BUSINESS LEVEL STRATEGIES †¢ Low cost – less price transparency is followed. Differentiation – to reduce the risk of complexity of supply chain and lower attractiveness for discounters. †¢ COMPETITIVE ADVANTAGE †¢ †¢ †¢ †¢ Research and development (R&D), Its product range Global reach and 280,000-strong workforce FOUR GROWTH PLATFORMS †¢ †¢ †¢ Nutrition Emerging consumers Premium goods and 10 †¢ â€Å"Out-of-home† goods. ALIGNMENT OF BUSINESS STRATEGIES AND HR PRACTICES Nestle is a company whose HR strategies or practices are developed by keeping in mind the Business objectives of the company and the strategies devised to run the business. The HR strategies are always in alignment with the business goals. Nestle is unique in the sense that it has been able to successfully inculcate its business objective as well as its core values, consistently in its employees day-to-day activities starting from recruitment till continuous performance appraisals. Product’s Growth through innovation and renovation To increase the product growth i. . productivity human resource strategies are adopted such as flexible, dynamic employees are attracted, selected and then trained and motivated to be more productive than the competition. One case in point is the Kit Kat manufacturing plant in York England, under the managership of Ian Jobson and, ultimately, Nestle CEO Peter Brabeck. In 1998, Time magazine reports, it took 38 man-hours to produce a ton of chocolate. This year, using a combination of robotics, automated packaging, and production-line improvements, the forecast production time is 23 hours. This decrease in production time was feasible because of process innovation. Adherence to the values and management principles of the organization †¢ Respect for other cultures and traditions Nestle embraces cultural and social diversity and does not discriminate on the basis of origin, nationality, religion, race, gender or age. Furthermore, Nestle believes that its activities can only be of long-term benefit to the Company if they are at the same time beneficial to the local community. In short, global thinking and strategies can best be expressed through local action and commitment. Diversity From creating hundreds of the world’s leading brands to offering an amazing variety of career options to our employees, it’s clear that Nestle’s businesses are exceptionally diverse. So it should come as no surprise that Nestle values diversity in the people working them just as much as they have diversity in their products. 11 It’s Nestle’s policy to p rovide an environment where respect is shown to all individual employees and where employees are valued, recognised and rewarded on the basis of their talent and their contribution rather than any consideration of age, gender, race, sexuality, religion or disability. As an organisation, Nestle is opposed to any form of unfair discrimination and believe that an inclusive approach will be of maximum benefit to all our employees as well as our wider business goals and the society in which we live. This ethos can be summed up in the following statement: We believe that to succeed we must recruit and retain talented individuals and value and respect the differences each of those individuals brings with them. In addition, we have a strong ongoing commitment to developing policies, procedures and practices that will actively promote equality of opportunity and optimise the abilities of our workforce. Decisions relating to the recruitment, employment, training, progression, assessment and retention of our people will always be supported by these principles of equality of opportunity. †¢ Nestle’s Culture Nestle is committed to a number of cultural values. These values come partly from its Swiss roots and have been developed during its history. They are also evolving so as to support the permanent reshaping of the Company. They can be described as follows: o Commitment to a strong work ethic, integrity, honesty and quality. o Personal relations based on trust and mutual respect. This implies a sociable attitude towards others, combined with an ability to communicate openly and frankly. o A personalized and direct way of dealing with each other. This implies a high level of tolerance for other ideas and opinions, as well as a relentless commitment to co-operate proactively with others. Openness and curiosity for dynamic and future trends in technology, changes in consumer habits, new business ideas and opportunities, while maintaining respect for basic human values, attitudes and behavior. o Like, open and flexible culture is ensured by way of providing training programs to employees at all the levels. 2 TRAINING From the factory floor to the top management, training at Nestle is continuous. And because it is mainly given by Nestle people, it is always relevant to the professional life. Throughout the world, each country runs its own training programmes (e-Learning, classroom courses, and external courses). Nestle provides the followingo Literacy training-to upgrades essential literacy skills, especially for workers who operate new equipment. o Nestle Apprenticeship Programmes. o Local Training Programmes-on issues ranging from technical, leadership, and communication and business economics. This kind of culture is also supported by decentralized structure of Nestle: Nestle is as decentralized as possible, within the framework imposed by fundamental policy and strategy decisions requiring increasing flexibility. Operational efficiencies, as well as the group-wide need for alignment and people development, may also set limits to decentralization. Decentralization: Nestle recognizes that its consumers have a sincere and legitimate interest in the behaviour, beliefs and actions of the Company behind brands in which they place their trust and that without its consumers the Company would not exist. Nestle believes that, as a general rule, legislation is the most effective safeguard of responsible conduct, although in certain areas, additional guidance to staff in the form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organization. o Nestle is conscious of the fact that the success of a corporation is a refl ection of the professionalism, conduct and the responsible attitude of its management and employees. Therefore recruitment of the right people and ongoing training and development are crucial. Nestle continues to maintain its commitment to follow and respect all applicable local laws in each of its Transparent performance appraisal systems and the freedom given to them to question their seniors benefit not only the employees but even the organization as a whole. 13 PERFORMANCE MANAGEMENT o Formal assessment by Line Managers and HR once in a year with feedback. o Subordinate can question an unfair evaluation. o Specific Key Performance Indicators have been enlisted by the HR department. o One of the important key performance indicators is achievement following the Nestle management and leadership principles. Remuneration structure and promotion criteria take into account individual performance. Emphasis on individual achievement Nestle’s emphasis on individual achievement is e vident from the kind of pay structure HR has designed for its employees and the company also incorporates practices like Job Enrichment and Job Enlargement, to motivate employees and to break the monotony of their job tasks. The correspondent herself works in both sales and brand management departments, which is an example of job enlargement. PAY STRUCTURE o Nestle strives to offer fair remuneration. Remuneration level is above the average in industry. The variable component of the salary is comparatively big to reward individual performance. In case of higher management level, the variable part is linked to individual & team target achievements. o o Nestle expertises in Recruitment Services, Talent Management and International HR, Learning and Development, Information and Administration, and Reward and Employee Relations. Nestle is recognized as recognized one of the most advanced HR functions within Nestle globally. Before implementing the HR practices/policies, Nestle get to the crux of the business issue and then find an HR solution. While practicing the HR policies, Nestle is focused more on people and organization strategies. RECRUITMENT SERVICES The Recruitment Services team in Nestle UK is recognized within Nestle globally as the benchmark in leading recruitment practices. That’s because at Nestle they don’t just fill jobs. 14 Instead, they work with the business to proactively identify and fill their talent gaps. Nestle Recruitment teams constantly stand back and work out new ways to attract the very best talent and keep ahead of the competition, but it isn’t always easy. The recruitment process at Nestle is clearly defined and is always in synchronization with the changing business needs. o People with qualities like dynamism, realism, pragmatism, hard work, honesty and trustworthiness are looked for. o Match between candidate’s values & company’s culture are recruited. o Recruitment for management levels take place in the head office by top management and all others at the branch level. The existing employees are promoted to higher posts as per the requirements. There are no lateral recruitments. Another source of recruitment is campus placements and human resource consultancies to look for the enthusiastic, motivated and fresh pool of talent. Decision to hire a candidate is finally taken by HR professionals only and no preference is given to external consultant. This is done to finally have the discretion power in the hands of Company. o People management policies, basic values & principles as elaborated in- Nestle management & leadership principles- The Nestle Management and Leadership Principles describe the management style and the corporate values of the Nestle Group, specifically in the area of interpersonal relations. Nestle human resources policy- This policy encompasses those guidelines which constitute a sound basis for efficient and effective HR Management in the Nestle Group around the world. – Nestle people development review-this policy throws light on Nestle’s culture and core values, different training programs and life of employees after work. R EWARDS AND EMPLOYEE RELATIONS TEAM It consists of two expert sub-teams, each with specific responsibility for business-wide strategic and operational remits. Employee Relations sub-team provide business-wide advice and guidance to line managers and the HR community on individual employee relations matters and to HR Business 15 Partners on broader employee relations and change management issues, as well as developing and implementing Nestle’s policies and procedures in this area and undertaking relevant project work. EMPLOYEE RELATIONS Nestle provides a very healthy working environment which is one of the reasons why Nestle’s employees state their commitment level to be very high. o Employee turnover is less than 5%. , which is considered to be very low for a multinational corporation. Nestle has an open culture & upward communication especially in case of grievance redressal is encouraged. o Work/Life balance is given importance, as illustrated in the Nestle Human Resource Policy document. o ‘Nestle Family’ annual events are organized by their HR department whereby employees along with their families are invited . o Emphasis is laid on safety of employees (Nestle Policy on Health and Safety at Work). CHANGE MANAGEMENT o Nestle has adjusted to the ever-changing external environment for the last 140 years since its inception 1866 without losing its fundamental beliefs and core values. It manages Change and drives sustainable profitable growth by following the policy of making gradual changes instead of making drastic and risky changes. o ERP implementation- In June 2000, Nestle SA signed a much publicized $200 million contract with SAP and additional $80 to install an ERP system for its global enterprise to help centralize a conglomerate that owns 200 operating companies and subsidiaries in 80 countries. While the ERP system was likely to have long-term benefits, the project touched the corporate structure and culture. The structure was decentralized, and it tried to centralize it. This was initially opposed by employees but with subsequent measures taken by the HR like training etc. , this has been successfully implemented. Reward sub-team; on the other hand focus on maximizing return on investment to deliver Reward that will motivate the employees to perform at the highest level as well as managing the overall Reward principles and processes including base salary, incentives and Flexible Reward. 16 REWARDS & INCENTIVES o ‘Passion to Win’ awards- These quarterly awards have been institutionalized to reward those who over-achieve their targets. Long-service Awards- To recognize employees who have been with the company for more than 30 years. o ‘Nestle Idea Award’- It was found from the correspondent that the company institutes Nestle Idea Award every quarter to recognize and award employees who come up with relevant and innovative ideas which have the potential of being implemented at Nestle. For all aspects of Reward Nestle apply the fundamental principles outlined below. Reward Principles †¢ Performance Driven – The level of your Reward is linked to your performance, hence the highest performers will see the greatest Reward. There is also a direct link between the performance of the business and the Reward we're able to offer Competitive – We benchmark all aspects of Reward to ensure we offer all our employees a competitive Reward package Inclusive – Our Reward programme is designed to reflect the valuable contribution which every employee makes, not just senior managers Flexible – We've made it our top priority to allow you to tailor the Reward you receive to your circumstances, whenever possible or practical †¢ †¢ †¢ BENEFITS The following benefits are provided to all employees, with no discrimination- Leave-Personal & Medical (fixed no. er year) – Children Education Assistance Scheme – Provident fund – Retirement Gratuity Scheme – Group Insurance & Accidental Insurance Scheme – Conveyance Reimbursements 17 – Residential Accommodation – Monthly health check-ups & free consultation for self & family etc. Talent Manageme nt and International HR Talent Management and International HR Team, on the other hand, focuses on developing the potential and careers of all the employees at Nestle, particularly those with high levels of performance and potential who are likely to be Nestle leaders of the future. The main task of this talent management program is to develop the framework and processes which will enable the company to identify and develop the potential of employees at Nestle. This program supports individuals with a clear career development plan to go on international assignments out of the respective locations such as Nestle’s international headquarters in Vevey, Switzerland, or to other Nestle markets around the globe. Learning and development Learning and Development Team is involved in development of cutting-edge interventions and supporting change through far-reaching development programmes such as our ‘Lead2Win’ programme. This team also helps the company to create and implement functional development programmes across the business, covering everything from manufacturing to supply chain. At Nestle Learning and Development means Continuous Improvement and Creativity and Innovation. Learning and Development is carried out by Continuous Improvement that leads directly on to Creativity and Innovation. This process generally involves two stages: i. A team of passionate and professional development experts is formed to create Core Skill Development Strategies that will enable continuous personal and professional growth across the business. After that, the strategies are tailored for each business area with the help of HR Business Partners and Business Directors. The next stage is to go online, where the trainees are able to take advantage of our vast learning and development intranet. This resource has been specifically designed to help trainees manage their own learning in an easy to use virtual environment. Once you're up and running there, you'll be able to focus on picking up new skills particular to your job and career ambitions with the help of our leadership development programmes, designed to create the leaders of tomorrow. i. Differentiation 18 Nestle follows differentiation strategy and to make it a success it has HR strategies aligned accordingly. To support the differentiation strategy, Nestle practices following HR strategies to support differentiation: †¢ †¢ †¢ †¢ †¢ They favour long term performance measures. Nestle does not favor short-term profit at the expense of successful lo ng-term business development. They believe in extensive trainings of their employees to keep the pace with changing environment and keep them updated with latest innovations At Nestle, equal and fair pay practices are followed. Nestle’s pay structure, rewards & incentives systems are also designed in such a way so as to promote creativity. Recruitment process is also totally based on hiring and recruitment of people who bring in new ideas. Broad career paths are provided to employees by a continuous process of career development and high employee participation prevails in the organization. 19 5. Impact of Recession on Nestle During this phase of recession, Nestle has faced a little bit of tribulations in terms of: †¢ †¢ Shipment growth: It has slowed down as shoppers switch from branded foods to retailers' private labels. The volume of goods sold: The volume of goods sold rose 2. 8 per cent in 2008, but, down from 4. 4 per cent in 2007, after Nestle relied on price increases to pass on higher raw-material costs. The whole onus of these two problems could not be bullied upon recession. Since the actual reason behind the second problem was increasing inflation. Even though it has been hurt by the weak dollar and tough competition in the United States. But, if we talk in general, then, Nestle has been labeled as a Recession proof company. Nestle, announced that they had a 69. 4percent profit in the year 2008. The year 2008 and the beginning of the year 2009 so far are considered as the worst recession the world is facing today. Each company around the world, no matter what they produce or what services they provide was having the greatest downfall on the sales and services. But even during the phase of recession, Nestle has a different story to tell. Nestle announced record breaking profit during the year 2008. The sales of Nestle products jumped up in huge numbers. †¢ †¢ †¢ †¢ †¢ The net profit of Nestle in year 2008 was 15billion US Dollars. Net income rose to 18 billion Swiss francs in 2008 from 10. 5 billion francs. The profit was 69. 4 percent jump from the last year Sales rose 2. 2 per cent last year to 109. 9 billion francs, and organic revenue increased 8. 3 per cent in 2008, the fourth year that Nestle beat its forecast. Further, Nestle expects to carry on seeing growth in earnings over 2009 despite the global recession, using its strong 2008 results as a springboard for growth. 20 †¢ †¢ Nestle has granted an investment of 300 crore in the Indian market in 2008 and is about to double its investment in 2009. The goal of Nestle further is o achieve organic growth of close to 5 per cent, and to improve the EBIT margin in constant currencies further. Nestle would be able to achieve this goal through company’s internal strength. Nestle, which makes Nescafe coffee, Maggi soup and KitKat chocolate bars, also raised its global outlook for the year and its forecast for 2008 organic growth – which is to say from existing businesses – to â€Å"about 8 percent† from a previous target of at least 7. 4 percent. Nestle shares rallied from a near two-year low, jumping 5. 4 per cent. Nestle will spend four billion francs buying back stock this year after purchasing 8. billion (Dh27. 16 billion) francs worth in 2008. Nestle also said it will increase its dividend for the year by 15 per cent to 1. 40 francs a shar e. †¢ †¢ †¢ †¢ Reasons behind the strong survival of Nestle even during the Recession Nestle amazingly survived the greatest and disastrous recession period of the world which gives the hope and message to many other companies. Some of the reasons have been pointed out that seems to have worked for Nestle to fight the recession: †¢ Innovation and â€Å"renovation of its brands and products† It seems to be a big driver in keeping Nestle afloat. In 2008 Nestle’s investment in research and development for food and beverages was up 15 per cent. Nestle survived recession because it was able to capitalise on â€Å"a wide variety of market conditions†, and that this gives it a competitive advantage. India is not in a downturn but probably a slowdown. The liquidity squeeze hasn’t affected the demand of consumer goods in the price range that Nestle sells. Therefore, Nestle was able to survive in India. The company survived recession and is now positioned for profitable growth both now and in the long term, because of its â€Å"defensive qualities as well as its strong growth credentials. If recession grips the world and despite the war in the Middle East, everyone will continue to need food. This means millions of people will continue to buy Nestle products, which include Nestle infant formula, Taster's Choice coffee and Stouffer frozen foods. †¢ †¢ †¢ †¢ 21 †¢ †¢ â€Å"The key t o Nestle’s short-term performance is the degree to which the markets want to be in a safe haven situation. â€Å"Beyond that, over the longer term, there is a pretty positive earnings story in Nestle. Nestle is able to ride out the recession easily than its rivals due to its comprehensive range of products and wide geographical reach. 6. Changing role or HR The importance of the human resource function has become evident especially with the onset of global competition. Not only do human resource managers have to think more strategically and in step with corporate planning managers, they have had to address real and hard issues about the impact of intense competition on employment stability. It is one thing to think with executives on how the human resource section can support corporate activities. It is another to actually implement cost-savings policies with regards employment. To guard against the downside of global competition, the human resource managers must be more proactive in recruiting and maintaining a responsive and efficient work force. Planning should start at the early stages so that organizations do not bloat needlessly. Human resource managers must be able to map out human resource strategies such that flexible, dynamic employees are attracted, selected and then trained and motivated to be more productive than the competition. Human resource managers are no longer administrators or simply implementers. They should be recognized as strategic partners. Only then can they function well to help top management especially in a climate of economic uncertainty. Although, Nestle being a Human Company itself possess many of the above mentioned qualities that are supposed to be present in the managers of today’s time. But, according to the changes in the business patterns, globalization, and diverse business of Nestle and rapidly changing ups and downs in the economy. There are certain factors on which the role of the HR at Nestle is changing. The HR managers at Nestle along with professional skills, practical experience and result focus must possess the following qualities: †¢ †¢ They should be capable to motivate and to develop people, addressing all those issues that allow others to progress in their work and to develop their capabilities. They should be able to inhibit curiosity and open-mindedness as well as a high level of interest in other cultures and life-styles. This also includes a commitment to continuous learning and improving, as well as to sharing knowledge and ideas freely with others. 22 †¢ It is responsibility of the HR professionals to create a climate of innovation and to think outside the box. This implies the right to make a mistake but also the readiness to correct it and to learn from it. HR professionals should now be able to inculcate the willingness to accept change and the ability to manage it. They should provide international experience and understanding of other cultures. This will prepare the employees to face the challenges in global markets. †¢ †¢ 7. VRIO and 5P’s Analysis VRIO ANALYSIS This VRIO framework is the foundation for internal analysis. In order to lead to a sustainable competitive advantage a resource or capability should be Valuable, Rare, Inimitable (including non-substitutable), and Organized. Valuable A resource is valuable if it helps the organization meet an external threat or exploit an opportunity. If a resource helps bring about any one of these four things then it is aluable: Efficiency, Innovation, Quality and Customer responsiveness. Valuable resources of Nestle are: †¢ †¢ Human Resources Brand Name †¢ Research & development processes Rare A resource is rare simply if it is not widely possessed by other competitors. Rare Resource of Nestle is their uniqueness in Infant food products. The processes they use and the ingredients they use are rare. Inimitable A resource is inimitable and non substi tutable if it is difficult for another firm to acquire it or a substitute something else in its place. This is probably the toughest criteria to examine because given enough time and money almost ANY resource can be imitated. Even patents only last 17 years and can be invented around in even less time. Therefore, one way to think about this is to compare how long you think it will take for competitors to imitate or 23 substitute something else for that resource and compare it to the useful life of the product. Inimitable resources of Nestle are: †¢ Corporate Culture †¢ Values followed at Nestle †¢ Reputation Organized A resource is organized if the firm is able to actually use it. Generally, organization is frequently neglected by strategy because it often deals with the inner workings of firm management. But generally, it rarely happens that firms are not organized to exploit their valuable resources. However, if you analysis does turn up a valuable, rare, and inimitable resource that the firm is not taking advantage of, then the resources of the firm are not said to be organized. 5P’s at Nestle Philosophy Nestle’s Philosophy on Code of Governance Nestle India Ltd. is a subsidiary of Nestle S. A. f Switzerland and over the years it has followed best practice of Corporate Governance and adhered to practices laid down by the Nestle Group. Nestle India’s business objective and that if its management and employees is to manufacture and market the Company’s products in such a way as to create value that can be sustained over the long term for consumers, shareholders, employees, business partners and the national economy. Nestle India is conscious of the fact that the success of a corporation is a reflection of the professionalism, conduct and ethical alues of its management and employees. In addition to compliance with regulatory requirements, Nestle India endeavors to ensure that highest standards of ethical and responsible conduct are met throughout the organization. The two most significant documents from the Nestle Group, which define the standard of behavior of Nestle India, are â€Å"Nestle Corporate Business Principles† and â€Å"Nestle Management and Leadership Principles†. Policy The Nestle policy is to hire staff with personal attitudes and professional skills enabling them to develop a long-term relationship with the Company. Therefore the potential for professional development is an essential standard for recruitment. 24 Each new member joining Nestle is to become a participant in developing a sustainable quality culture which implies a commitment to the organization and a sense for continuous improvement leaving no room for complacency. Therefore, and in view of the importance of these Nestle values, special attention will be paid to the matching between a candidate's values and the Company culture. Processes †¢ Administrative †¢ Training †¢ Recruiting †¢ Development †¢ Labor Relations †¢ Org Development †¢ Compensation and Internal Communication Programs Campus Recruitment Programs Internship Programs For graduate students, Nestle offer a summer internship in brand management for MBA students. Marketing Interns are challenged with leading integral aspects of our brands' marketing plans. This highly competitive program could also give you the opportunity to transition into a full-time position. Professional Development Programs Adequate training programs are developed at the level of each operating company capitalizing on the availability of local, regional or global resources of the Group. It is the responsibility of HR staff to assist the management in the elaboration of training programs. Following type of programs are conducted at Nestle: o Training programs enhancing the language skills of the employees. o Training programs aimed at developing and sharing best practices of the various management disciplines practiced in the Group. They also strive to strengthen corporate cohesion as well as to promote networking throughout the Group. o E-learning programs as a complement to or a substitute for formal training programs. Practices 25 The following HR practices take place at Nestle: †¢ Recruitment and Training Performance Management Rewards and Incentives Benefits Employee Relations Change Management Safety and Health The Nestle Operational Safety, Health and Risk-Management Strategy document illustrates that: – Nestle is dedicated to safe & healthy work environment. Regular safety assessments & audits take place by internal & external bodies. †¢ †¢ †¢ †¢ †¢ †¢ 8. Hr strategies that nestle should follow Nestle should practice following HR practices: i. Communication Strategy: Nestle should adopt an effective communication strategy because in today’s changing scenario and in a dynamic organization like Nestle employees should be educated and trained about the change s taking place in the organization. This can be done through open house meetings and bulletins etc. Effective Training and Development: Training and development forms an important part of the practices followed at Nestle. It is an integral part of the corporate strategies. Most of the training programs conducted at Nestle are conducted by In-house trainers, whereas for some specialized training programs external trainers should be called. And employees should also be given the opportunity to attend the training programs abroad so as to give them a feel of global markets. Entrepreneurship strategy: Every employee needs to be an independent entrepreneur, who can generate ideas and bring them to reality by using the existing resources and support of the organization to create innovative and creative products and services. ii. iii. 26 iv. Recruit purposefully – The anticipated global shortage of workers has not gone away: it has just been postponed. The reason? Baby boomers are choosing to work a little longer because their retirement savings have been deflated. Once the market comes back fully, you should expect a mass exodus as the boomers leave the workforce. Companies who make severe staffing cuts and don't keep their HR people connected to potential hires will be caught severely short staffed. Savvy companies have a great opportunity right now to hire talented people who have been down-sized by other organizations. Cut High HR operation costs Leverage real time information for HR decisions: This would enhance the decision making process. v. vi. 27

Policy Review And The Lucas Criticisms Essay - 919 Words

Policy Review and the Lucas Critiques Orthodox Keynesian economists believe that the change of the money supply will lead to the change of effective demand, and further result in the change of the economy. However, in the monetary economy cycle theories, the expected monetary supply changes will not influence the total economy; the unexpected money supply changes will impact the total economic in short term. In the long term, it merely impacts the changes of general price levels, instead of on the changes of total economy. Therefore, in the issues of controlling inflation, monetary economy cycle theory believes that the governments do not need to have to spend too many costs in the relative output and employment to control the inflation, only if the public trust that the monetary authorities will implement their monetary tightening policies. In addition, new classical macroeconomics further argues that political measures to improve the total output and reduce unemployment have to find ways in the supply part. Therefore, policies work only when they inspire the microeconomic units to provide more products and labors (Grabel, 2000). Under this background, the Luca critique drew attention from the world. Lucas (1976) argued in his article that changes in government policies would result in the changes of parameters in the macro econometric models. Therefore, it is ineffective to assess the effects of different policies based on large scale macro econometric model. It isShow MoreRelatedThe Relationship Between Inflation And Unemployment1662 Words   |  7 Pagesapproaches to point B, the unemployment rate tends to be low, but the price level goes up at the same time. According to the explanation, Samuelson and Solow believed that the policy used to intervene economy should be effective, because policymakers can chose a target point on the curve by conducting monetary and fiscal policy, which will be able to influence the aggregate demand. This model could well explain some past economic situations. For example, the US’ Great Depression, from 1929 to 1933,Read MoreA Brief Note On The Growth Theory And The Dual Sector Model Of Economic Development Essay3646 Words   |  15 PagesScience (Finance and Economics) KCA UNIVERSITY November, 2014 â€Æ' TABLE OF CONTENTS Page 1.0 Abstract.†¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦.†¦..3 1.1 Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.........................................4 2.0 Literature review: Models†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...†¦Ã¢â‚¬ ¦6 2.1 Migration and the Dual Sector Model of Economic Development†¦..†¦..6 3.0 Causes of Rural-Urban Migration in Kenya..................................................10 3.1 Issues Faced in10 3.2 Migrat11 3.3Read MoreThe Theory Of Growth And Development1499 Words   |  6 Pagescommunities and individual firms.According to Romer (1993), all increases in standards of living can be traced to discoveries of more valuable arrangements for the things in the earth‟s crust and atmosphere. No amount of savings and investment, no policy of macroeconomic fine-tuning, no set of tax and spending incentives can generate sustained economic growth unless it is accompanied by the countless large and small discoveries that are required to create more value from a fixed set of natural resourcesRead MoreTheories Of Growth And Growth Models2257 Words   |  10 Pagespremium over a fixed average subsistence level of wages in the traditional agricultural sector. At the constant urban wage, the supply curve of rural labour to the modern sector is considered to be perfectly elastic Todaro and Stephen (2011). 2.3 Review of Related Literature There exists a vast body of literature on the Phillips Curve. Research studies on the topic began appearing as early as in the 1960s. Samuelson and Solow (1960) examined the relationship between unemployment and inflation inRead MoreGrowth Theories Of Growth And Growth Models2256 Words   |  10 Pagespremium over a fixed average subsistence level of wages in the traditional agricultural sector. At the constant urban wage, the supply curve of rural labour to the modern sector is considered to be perfectly elastic Todaro and Stephen (2011). 2.3 Review of Related Literature There exists a vast body of literature on the Phillips Curve. Research studies on the topic began appearing as early as in the 1960s. Samuelson and Solow (1960) examined the relationship between unemployment and inflation inRead MoreEssay about Professional Issues3311 Words   |  14 PagesIntroduction In this assignment, I will review the debate on professionalism. Looking at the teacher as a professional and discussing their professionalism. I will highlight the differences and the similarities between professionalism in education and several other professional vocations. I will discuss the shifting views of professional status of both mainstream teachers and FE teachers, and developments and where I see the FE sector heading. I will go on to review conceptions of reflective practiceRead MoreThe Successes and Failures of the Mission1135 Words   |  5 Pagesfailed to make post-war Libya situation better. Such insecurity could not only create a humanitarian disaster but also could lead to the appearance of new authoritarian leaders or the disintegration in Libya. In addition to harsh international criticism, UN’s effort to intervene into Libya showed some bright outcomes. The operation of NATO in Libya has been hailed as model interference. There are two major successes in this mission. Firstly, the alliance had rapid reaction with the strategic plansRead MoreEconomic Growth Theories and Models, A section of a Research Paper1524 Words   |  6 PagesLiterature review Classical Theory of Economic Growth Harrod Domar Growth Model The Neoclassical growth Model Empirical literature 2.1 Theoretical Literature The long history of ideas on economic growth started from the classical economists like Adam Smith, Robert Malthus, Ricardo and Marx. For more than three decades the Neoclassical and the Endogenous Growth theories were arguing and forwarding economic reasons on trend of economic growth through investment as a general and private investmentRead More Henry VIII and his Reformation of the Church in England Essay2434 Words   |  10 Pagesstandards. Lollards, who aimed much criticism at the Church, and Evangelicals, who actually had very little support in England, were fundamentally opposed to the Church because they were ideologically different, which is why they criticised it. Heresy was not commonà ¢? ¦it would seem that Englishmen were well enough satisfied with the traditional faith as far as its teachings were concerned. (Henry S. Lucas). The Hunne case, which caused much criticism to be levelled at the ChurchRead MoreImplementing A Leadership Position At A Graduate Program Offers Opportunity For Young Professionals1928 Words   |  8 PagesStudent-led program 7. Opportunities for reflection and ongoing evaluation of efforts A lack of clear goals and objectives has been cited as one of the key reasons why peer education programs fail (Partners Against Hate, 2002). To avoid this failure, a policy and procedures was written to clearly outline the duties of the position (Addendum A). An area of focus gives the leader a specific focus in which they can practice leadership skills and accomplish their goals (Partners Against Hate, 2002). Multiple

The Death Of A Girl - 1236 Words

Imagine this. There is a fifteen-year-old girl walking into first block at her high school. She is trying to remember what is due today for her first class and the rest to follow. Today is a different day though; it is the one-year anniversary of her stepbrother committing suicide. Not everyone knows that today is the day, but she doesn’t want to talk about it. She is stressed about the homework she might not have done and her mind is in so many different places. The first bell rings so she takes her seat and looks at the board. A worksheet was due and she hadn’t completed it. Swiftly walking around the room, the teacher comes to collect the worksheet, but she hadn’t completed it. The girl doesn’t pass her worksheet forward and tries to explain to the teacher it was a rough day, but the teacher does not care. Sitting there blankly, the girl is still thinking about her brother instead of school. The day carries on, but still the girl is not mentally in scho ol. Her grade book reflects the bad day and the teachers that didn’t care enough to listen to the student. The student is more stressed out than before and her mind is going crazy. Sinking deeper and deeper into a whole that cannot be climbed out of she tries to forget about the couple bad grades. Its just one bad grade, that wont hurt right? Until next week when she has family problems at home and one bad grade turns into two bad grades. The stress once again rises and no one is willing to listen. Teachers, parents,Show MoreRelatedThe Death Of The Girl747 Words   |  3 Pagesthe sorrows of death. The bells chimed again. Inside were the faces of grief and mourning. Flowers surrounded the dark place to bring a shard of hope and brightness. The girl was sleeping there peacefully as the light from the coloured stained glass brilliantly reflected on her ivory skin. The clock ominously ticked away at each second. Quiet chatter filled the air. Cries that seemed very far away were uttered. In another realm the soul lived on. I watched. I heard. In death the girl was beautifulRead MoreThe Death Of The Girl1435 Words   |  6 PagesThe girl ran as fast as she to escape them. The dark air made her blind and the rustle of leaves under her feet only made her more frantic. Those dangerous monsters that were following her were vampires. Yes vampires, those blood suckers of the night who feasted on the blood of humans. Their fangs as sharp as diamonds, able to pierce through anything, noses as powerful as a of bloodhound, and hands able to crush metal like a celery stick. The air was burning the girl s lungs and her legs wereRead MoreThe Death Of The Girl Jig1197 Words   |  5 Pages I got to an important point in the story when the girl Jig wants to have the baby, but the American person is convincing her that he only wants her not anybody else. He also wants to continue the relationship as it was before. I think Jig will not do this abortion because in 1920’s in Madrid where they were going to have an abortion was illegal, dangerous, and socially unacceptable in the community. It seems like the setting of the story was Catholic and conservative. In 1920, abortion was illegalRead MoreThe Death Of The Teenage Girl1040 Words   |  5 Pagesteenage girl cried throughout the ER. Apparently, she was about to give birth and she did not even know she was pregnant. The doctor immediately got to work. She had delivered a healthy baby girl. Soon the teenager’s father rushed into the room. The father had a look of shock and anger all over his face. â€Å"Amber, how could you? What is this? Why didn’t you tell us?† the father asked the teenage girl. â€Å"Dad, I’m not pregnant. I couldn’t be,† the girl replied. The doctor was curious to why the girl did notRead MoreThe Death Of The Young Girl1758 Words   |  8 PagesGroaning in relief, the young girl squatted behind a huckleberry thicket and emptied her bladder; the tart odor of pine straw saturated with urine filled the air around her. Inhaling deeply, she smiled; not so much from the aroma of the urine, but from the other scents in the crisp October air. Waking along the watershed usually meant another bland beginning to another bland, uneventful day. And most days, the young girl, whose name was Charity, hated getting out of bed in the mornings; she preferredRead MoreThe Death Of A Young Girl2082 Words   |  9 PagesIn the year 1997 on the 28th of October, a young girl is born. She is small and knows nothing of the world. But, her parents, they know she will do great things. What they are, they have not a single clue, but even so, they want to see where she will go. What they don’t foresee though, is the pain she will have to go through first to get there. She is different from most kids. She isn’t attracted to the boys girls in her class fawn over. She finds drawing characters in the shows she watches withRead MorePublic Health Nurses : The Leading Cause Of Death Among Girls Essay1709 Words   |  7 PagesComplications from pregnancy and childbirth are the leading cause of death among girls ages 15-19 in LMICâ€⠄¢s (Morris Rushwan, 2015). The primary reason for these preventable death-causing complications is that teenagers are not properly supplied with contraceptives. Due to these unplanned and unwanted pregnancies approximately 4.5 million teenage girls undergo an abortion each year, with an estimated 3 million of them being performed unsafely (Morris Rushwan, 2015). Some detrimental complicationsRead MoreTheme Of Something Rich And Strange940 Words   |  4 PagesEveryone is destined for death from the second he or she is born. It seems dark, but living people are so busy prospering in their life, they cannot completely comprehend the idea of their own passing. With death comes the mysterious transition from life to death, which though is fated is incomprehensible. In Something Rich and Strange by Ron Rash, the story focuses on this mystery and how different people go about comprehending it. The literary elements are used to support and clarify the centralRead MoreAnalysis Of The Po em Death Valley 1165 Words   |  5 PagesDeath Valley Katilyn Patterson It was a hot day in Death Valley. In Death Valley there was Donna, Gina, Jenny. They couldn’t leave Death Valley because their car ran out of gas. So they saw,found a campsite with three trailer’s their and one trailer there was beer, and old can food. Another trailer had old strawberries, and a radio and they touched the radio and strawberries. The last trailer they found a sink and drunk the water first they said â€Å"it was hot water.†Then they say â€Å"it is the worstRead MoreWe Are Seven By William Wordsworth1321 Words   |  6 Pagesthe countryside. â€Å"We Are Seven† was published in Lyrical Ballads, a volume marketed toward the upper class who had the money to spend on books of poetry. The poem’s audience is similar to the reader demographic. The diction used to describe the young girl is very naà ¯ve and pastoral. This will later play into the young girl’s characterization as the speaker’s description of her contrasts her intellect and emotional capacity. The speaker describes her as â€Å"simple,† which implies innocence and harmlessness