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UEH UNIVERSITY
BUSINESS COLLEGE
SCHOOL OF MANAGEMENT

FINAL TERM ESSAY

ORGANIZATIONAL BEHAVIOUR
Lecturer: Trần Trọng Thùy
Course code: 22C1MAN50209102
Full name: Bùi Thị Ý Lan
Class: ADC02
Student’s ID: 31211023703
Thành phố Hồ Chí Minh, ngày 3 tháng 11 năm 2022

NESTLÉ
A. General view about Nestlé

 History
It all started in 1866, there was a Anglo-Swiss Condensed Milk Company, producing
condensed milk and marketing it as a safe, long-life alternative to fresh milk. In 1867,
Henri Nestlé - a German pharmacist and founder of Nestlé, launched a breakthrough
infant food, called ‘farine lactée’ (‘flour with milk’) in Vevey, Switzerland. He developed
it for consumption by infants who cannot be breastfed. In 1905 the company he had
founded merged with Anglo-Swiss, to form what is now known as the Nestlé Group.
Being through many successes and fluctuations, Nestlé Group is now a global leader in
Food and Beverage, with an extensive global production and sales network. Nestlé
operates nearly 500 factories in 186 countries worldwide, employs more than 270,000
employees, and markets more than 2,000 brands with 30,000 products. The head office is
located in Vevey, Switzerland. Nestlé's current products range from mineral water, baby
food, coffee and dairy products.
 Vision
Vision of Nestlé is to be a leading, competitive, Nutrition, Health and Wellness Company
delivering improved shareholder value by being a preferred corporate citizen, preferred
employer, preferred supplier selling preferred products
 Mission
Nestlé is the world's leading nutrition, health and wellness company. It has a strong
mission statement “Good Food, Good Life”. Their mission of "Good Food, Good Life" is
to provide consumers with the best tasting, most nutritious choices in a wide range of food
and beverage categories and eating occasions, from morning to night. Share business
profits with the development of people's lives in the country where the company does
business.
 Purpose of business
Nestlé's purpose is to unlock the power of food to enhance quality of life for everyone,
today and for generations to come. Driven by this purpose, they focus their energy and
resources where unlocking the power of food can make the greatest difference to the lives
of people and pets, protect and enhance the environment, and generate significant value
for their shareholders and other stakeholders alike.
 Profit growth
During the past nine months in 2022, total reported sales increased by 9.2% to CHF 69.1
billion (9M-2021: CHF 63.3 billion)(CHF is Swiss franc, 1 CHF equals more than 1
USD). Net acquisitions had a positive impact of 1.2%. Foreign exchange decreased sales
by 0.6%.
 Current situation
Nestlé still has been developing well after the pandemic. Just in last month - October
2022, Nestlé has been recognized by Fortune and Great Place to Work as one of the top 25
workplaces amongst multinational companies. This award builds on work by Nestlé teams
to drive innovation, inclusion, and impact, as shown by other external recognition Also, as
to be mentioned above, it aslo recorded an increase in nine-month sales for 2022
comparing to that for 2021. Besides that, Nestlé is making efforts to protect the
environment and advance people’s life. For instance, Nestlé just launches Nescafé Plan
2030 to help drive regenerative agriculture, reduce greenhouse gas emissions and improve
farmers' livelihoods. Or one of its candy brand - Quality Street - just announces move to
recyclable paper wrappers.
B. Future workpace framework

 Individual commitment
Since it was founded, Nestlé’s business practices have been built on integrity, honesty, fair
dealing and full compliance with all applicable laws. Thus, Nestlé’s employees must
uphold and live this commitment every day as corporate reputation remains one of
Nestlé’s most important assets. To “do the right thing” and to ensure the highest standards
of integrity is each employee’s personal responsibility that cannot be delegated.
The company would want personal commitment to what employees do, and their passion
for helping build and sustain an environment where everyone can do their best,
collaborating with colleagues and partners to grow and succeed together.
Good employee engagement is vital for maintaining commitment. Employee engagement

is the strength of the mental and emotional connection employees feel toward the work
they do, their teams, and their organization. At Nestle, people are considered the center,
determining the success of the company. The company always cares about its employees
in all aspects and creates conditions for them to develop their best. As part of Nestlé’s
commitment to providing employees with a secure work environment, Nestlé Group
Security, a global network of security professionals, has a mandate to help ensure a
protected work environment that facilitates high-level performance, support and respect
the protection of human rights. Nestlé provides full support to its employees for career
development and establishing best practices for enhancing their skills and
knowledge. Therefore, employees shoud have positive attitude and actively engage in
company’s activities while working.
 Group effectiveness
These following factors should be included to lead to effectiveness of a group:
 Values: when a group has a set of shared values, it becomes easier to integrate them
with the strategic objectives of the group. When there are moral values, there will be
a positive working environment, which may influence on organizational
performances.
 Leadership: group effectiveness is always determined by the capabilities of leader to
initiate sustainable success. Nestlé nurtures group culture by allowing the staff
members to interact within the group and does not impose any restriction within the
company environment. For that reason, the leader within a group must be willing to
listen other members’ ideas and make the best decision.
 Strategy: involves the scope and strategic direction that address the work and
operations of the group. The success of a group is always determined by the
strategies being made towards improving the performances. With clearly defined
strategies and setting a plan of achieving these strategies, the effectiveness of the
group will be seen by the outcome of the adopted and implemented strategies.
 Organizational productivity
Nestlé focused on: investment, people and technology, employee empowerment, talent
pipeline development, employee health and wellness and infrastructure. Nestlé recognises
that in order for their business to consistently prosper, they succeed by empowering their
people to identify improvements and drive efficiency. Productivity is multi-faceted and
affects every part of the business but when it comes to raising productivity, investment in
new technology and employee's skills should go hand in hand.
 Organizational citizenship behavior, and culture
Since Nestlé has built a culture based on respect, creating a climate of mutual trust and
open dialogue where the voice of the employee is heard, managers and employees need to
work together to create and maintain positive individual and collective relationships
throughout operations. There should be a direct and frequent communication in the
workplace, encouragement of a proactive two-way conversation with colleagues, efforts to
develop fair and constructive dialogue, overcome difficulties, reach sustainable
agreements and implement them, engagement with external stakeholders, continuously
seeking areas of dialogue, mutual understanding.
Nestlé developed a culture of establishing personal rapport of employees with each other.
That means, employees should listen and respect to different ideas and opinions from
others as well as relentlessy commit to cooperate proactively with them.
Nurturing a sense of quality and long term achievement of goals and feeling pride of work
as employees, maintaining quality and respecting human values are the main components
of Nestle culture.
C. Recommendations
As I mentioned earlier, Nestlé has been recognized as one of the top 25 workplaces
amongst multinational companies. It already has certain values in its current workplace.
Therefore, I merely recommend that Nestlé should keep the current workplace and then
may offer employees more good benefits or rewards, and invest more on new technology
to maintain the quality the current workplace; to boost good relationships, nice behaviour
and culture of employees and company, and enhace productivity as well.
References
Nestlé’s websites:
1. History
2. Vision
3. Mission
4. Purpose
5. “Nestlé reports nine-month sales for 2022”
6. “Nestlé Creating Shared Value Report 2011”
7. Code of Business Conduct

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UEH UNIVERSITY

FINAL TERM ESSAY

Lecturer: Trần Trọng Thùy

Course code: 22C1MAN50209102

Full name: Bùi Thị Ý Lan

Student’s ID: 31211023703

Thành phố Hồ Chí Minh, ngày 3 tháng 11 năm 2022

A. General view about Nestlé

B. Future workpace framework

Good employee engagement is vital for maintaining commitment. Employee engagement

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