Nestlé

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Case Study : Nestl (Malaysia) Berhad

In this case study, the company chosen is Nestl (Malaysia) Berhad. In this
chapter, writer will cover the brief history of the company, detailed and clear
description of the organization, its industry, ownership, market size and products
were given. Furthermore, writer also will discuss the elements of its macro
environment and how these elements affect towards Nestl growth and success.
Company Overview
Nestl (Malaysia), a part of Nestl Group, is engaged in the manufacturing,
marketing and sale of food, confectionery and dairy products in Malaysia. The
company is headquartered in Petaling Jaya, Malaysia, and employs around 5,000
people.
During the year ended December of 2015, sales at Nestl (Malaysia) Berhad
were 4.84 billion Malaysian Ringgits (US$1.15 billion). This is a very small increase
of 0.6% versus 2014, when the company's sales were 4.81 billion Malaysian
Ringgits. This was the third consecutive year of growth at Nestl (Malaysia) Berhad.

Company

Head Office

Web Address
Business Size (Employees)
Bursa Malaysia Securities
Berhad Ticker

Nestl (Malaysia) Berhad


Nestl House 4
22-1 22nd Floor Menara Surian
1 Jalan PJU 7/3 Mutiara Damansara
Petaling Jaya 47810
Selangor, Malaysia
http://www.Nestl.com.my
5000
NESTL

Table 2: NESTL key fact

Figure 1: NESTLs official logo

Company History
Nestl's commitment to providing quality products to Malaysians dates back
almost 100 years ago. Having gained the trust of generations of Malaysians, Nestl
is one of the oldest brands in the country. Nestl (Malaysia) was established by
Nestl Group (Nestl) in 1912 as the Anglo-Swiss Condensed Milk Company, based
in Penang. By 1939, they growth and expand their business and made a move to
Mutiara Damansara, Kuala Lumpur. Their company's first factory was built in
Petaling Jaya in 1962 and was listed on Bursa Malaysia in 1989. The Nestl group
consolidated all of its manufacturing activities into Nestl (Malaysia), with the
exception of the confectionery operations, which remain under Nestl Asean
(Malaysia), in 2005. Until now Nestl manufactures its products in 7 factories around
Malaysia.
Today, the Company employs more than 5000 people and manufactures as
well as markets more than 300 Halal products in Malaysia. Its brand name such has
MILO, NESCAFE, MAGGI, NESPRAY, LACTOGEN and KIT KAT have become trusted
household names and enjoyed for generations.
Major Products and Brands
Nestl is engaged in the manufacturing, marketing and sale of food products in
Malaysia. Their key products and brands include the following:
Products
Brands
Coffee and beverages
MILO
Prepared foods
NESCAFE
Milks Liquid drinks
MAGGI
Junior foods
NESPRAY
Breakfast cereals
LACTOGEN
Chilled dairy and Ice Cream
KIT KAT
Chocolate and confectionery
Healthcare nutrition
Performance nutrition
Table 3: Nestl major products and brands

Figure 2: Major brands and logos


Objective of Nestle
Nestle business objective is to manufacture and market its products in a way that
creates value that can be sustained over the long term for shareholders, employees,
consumers, business partners and national economies in which Nestl operates. The
aim of the creating values for the company include with improve business condition
for the firm. To obtain more reliable and high qualify source of raw materials,
improved government functioning and regulatory, employed skill and loyal
workforce and superior quality products which successfully complete.
Nestle Corporate Philosophy

Be the leading multinational company in food, nutrition and wellness.


Produce and sell world-class products of the highest consistent quality,
reliability and convenience based on business excellence principles
throughout our operations.
Maximizes the use of good quality local raw materials.
Be an exemplary employer with a progressive human resource and social
policy; with a management style that is based on "Management Commitment
and People Involvement"
Be a responsible corporate citizen, fulfilling all obligations to Government,
shareholders, customers, communities and consumers.
Protect the environment by being committed to environmentally sound
business practices and taking into account the need to preserve natural
resources and save energy.
Guarantee that all products manufactured, imported and distributed by
Nestl Malaysia are certified HALAL by authorized Islamic certification bodies.
Deliver shareholder value through the achievement of sustainable and
profitable long-term growth.

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