3 Nestler
3 Nestler
3 Nestler
BACHELOR OF COMMERCE
By
POOJA.J
39740166
(DEEMED TO BE UNIVERSITY)
Accredited with Grade “A” by NAAC I 12B Status by UGC I Approved by AICTE
Jeppiaar Nagar, RAJIV GANDHI SALAI, CHENNAI – 600119
MAY 2022
This is to certify that this Project Report is the bonafide work of POOJA.J(39740166) who has done the Project work
entitled A STUDY ON THE IMPACT OF NESTLE under my supervision from December 2021 to February 2022.
Dr. R. THAMILSELVAN
Internal Guide External Guide
Dr. BHUVANESWARI G.
PLACE: CHENNAI
POOJA.J
ACKNOWLEDGEMENT
I am pleased to acknowledge my sincere thanks to Board of Management of SATHYABAMA for their kind
encouragement in doing this project and for completing it successfully. I am grateful to them.
I would like to express my sincere and deep sense of gratitude to my Project Guide Dr. THAMILSELVAN
.R, M.Com, M.B.A, MPhil, B.Ed., Ph.D., Associate Professor of the Department, School of Management
Studies for his valuable guidance, suggestions and constant encouragement paved way for the successful
completion of my project work.
I wish to express my thanks to all Teaching and Non-teaching staff members of the School of Management
Studies who were helpful in many ways for the completion of the project.
POOJA.J
TABLE OF CONTENTS
ABSTRACT i
LIST OF TABLES ii
1 INTRODUCTION
1.2 Governance 2
1.3 Stragegy 6
1.5 Communication 10
3 RESEARCH METHODOLOGY
5.2 Suggestions 55
5.3 Conclusion 56
REFERENCES 57
ANNEXURE (Questionnaire) 59
ABSTRACT
Nestle is an internationally reowned MNC which has acquired its Position in the market through
rigorous strategy making and product innovation . It has developed and changed dynamically with
the changing times and the demand . Preference and taste of the consumers . The focus product
differentiation strategy is not only satisfying the changing generation needs but is also coming up
with products which work on a variety of bases. Nestle as a company wants its consumers to learn
about their products , product aspects , potential customer benefits , how to use maintain or even
dispose of maximising their satisfaction levels . The major objective of this research is to analyse
nestle of the company . Throughtout the this project we have evaluated the founding the
establishment of this mega industry . Nestle never fails to project its value , purpose and ambitions.
A Good marketing is the art of finding , development and profiting from its given opportunities.
effective first-line relief from symptoms of cow’s milk protein allergy (CMPA) and/or
Halal certified
i
ii
CHAPTER - 1
INTRODUCTION
1.1 MANAGEMENT
NESTLE’s relationship with india dates back to 1912 , when it begin trading as the NESTLE Anglo –
swiss condered milk company (export) Limited , importing and selling finished products in the
Indian market .
After India’s independence in 1947 , the economic policies of the Indian government emphasised
the need for local production . NESTLE responded to india’s aspirations by forming a company in
india NESTLÉ has been a partner in India's growth for over a century now and has built a very
special relationship of trust and commitment with the people of India. The he Company
continuously focuses its efforts to better understand the changing lifestyles of India and
anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through
its product offerings. The culture of innovation and renovation within the Company and
access to the NESTLÉ Group's proprietary technology/Brands expertise and the extensive
centralized Research and Development facilities gives it a distinct advantage in these efforts.
It helps the Company to create value that can be sustained over the long term by offering
consumers a wide variety .
1.2 GOVERNACE
Corporate governance is defined, described or delineated in diverse ways, depending on the writer's' purpose.
Writers focussed on a disciplinary interest or context (such as accounting, finance, law, or management) often
adopt narrow definitions that appear purpose-specific. Writers concerned with regulatory policy in relation to
corporate governance practices often use broader structural descriptions. A broad (meta) definition that
encompasses many adopted definitions is '“Corporate governance” describes the processes, structures, and
mechanisms that influence the control and direction of corporations'.
1
The Nestlé Corporate Business Principles
Our Corporate Business Principles form the basis of our culture, our values and our Creating Shared
Value (CSV) strategy. The principles are available in various languages, and we have a formal
commitment to provide all employees with training on them. The ongoing implementation of relevant
business codes, policies, processes and tools ensures compliance. We monitor their application and
effectiveness through various channels, including our CARE audits.
The Corporate Business Principles are reviewed by our Executive Board and aligned with
international best practice and standards such as the UN Global Compact (UNGC) Principles.
Members of the ESG and Sustainability Council include Executive Board Members:
Bernard Meunier
Laurent Freixe
2
STRATEGY
Nestle’s pricing strategies
Nestle Price skimming. Price skimming is a pricing strategy in which a company charges a high
price initially and lowers...
Inexpensive pricing strategy. Amongst its wide range of brands, Nestle offers a fair price for
quite a few of its brands...
Bundle price strategy. With time Nestle has understood that people do not usually do their
groceries every day, instead,...
Penetration pricing strategy. Penetration pricing is a pricing strategy that an organisation uses to
offer new products...
Nestlé s Swiss sales is only % of their total global sales Global brand strategy Nestle has products that
resonate all over the world under a unified brand. These brands are unified under the Nestle banner, which
delivered a value and reputation of a global food company while the products delivered Its own specific
attributes
Therefore, in terms of operational efficiency, Nestlé can be seen to be sustainably competitive. Secondly,
Nestlé’s current strategy was focused on renovating and innovating its product line through reorganizing its
R&D. Lasserre (2012) suggests that organizations such as Nestlé could be trying to gain a critical mass
advantage.
Apply our expertise in nutrition, health and wellness - developed over more than 150 years -
to help people, families and pets live happier, healthier lives.
Bring distinctive, premium innovations to market fueled by creative exploration and
consumer insights, pioneering nutrition science and culinary excellence.
Meet the needs of the modern consumer with healthy, delicious, convenient products for
conscious, time-constrained lifestyles.
Offer more plant-based food and beverage options to be consumers' first choice as they
diversify their diets.
Produce affordable, safe and high-quality nutrition for everyone, regardless of their income
level, taking advantage of our long-standing presence around the world.
Strive to package and deliver our products in ways that are safe and protect the environment.
Commit to ambitious sustainability goals to advance the health of the planet, drive societal
progress and support sustainable, healthy food systems.
3
Our long-term value creation model is based on the balanced pursuit of top- and bottom-line growth
as well as improved capital efficiency. We create value guided by three strategic pillars:
Some of the key actions we’re involved with include transforming our portfolio to launch more products
with a better environmental impact that contribute to a healthier diet, scaling-up initiatives in agriculture to
support regenerative agriculture and reduce emissions, and using 100% electricity on all Nestlé sites.
4
The Nestlé
COMMUNICATION :
Nestle has developed a huge amount of downward communications, but upward communications is more
welcomed. Upward communication is perfectly combined with an open culture of Nestle, and it is
particularly encouraged in the cases of redressal and grievance. Horizontal communication is also
encouraged in Nestle.
5
1.3
Organizational communication is working extremely efficient in such a global food producer as Nestle. The
company has multiple branches all over the world, and it has managed to work effectively through the help
of Web communication. The process of communication is not only effective within the company’s workers,
but also between customers and food suppliers, as the possibility to order products on-line has been enacted.
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Communication in Nordstrom
The other part of the following paper includes an interview that was conducted with a shop assistant in
Nordstrom in order to get an insight on how the communication is built in their company and what are the
similarities and differences with Nestle. Jenny has been working for Nordstrom as a sales assistant for more
than two years, and she claims that “Nordstrom is the company that puts its customers above everything!”.
No one can dispute that, as this company is famous for its refund policy and special treatment of customers.
Thus, this company does not work as Nestle does, and employees do not usually benefit from upward or
horizontal communication. “In majority of cases we are being informed what changes are coming”, – said
Jenny during the interview. Thus, she is happy with performance appraisals, as open communication is
encouraged within the company. Jenny considers the communication in Nordstrom as “formal, because its
appeals to customers”.
Thus, one suggestion to improvement can be made. The problem is that sometimes communication is
broken in everyday business activities due to the fact that the company operates all over the world in
multiple cultural surroundings and areas (Carollo). Thereafter, the suggestion to improvement may be
related to further investment in electronic communication channels that would make it more efficient. The
proposal is to build telepresence rooms in all locations. Communication in Nestle does not need other
improvements, except for more focus.
In conclusion, it is important to mention that Nestle has improved its communication channels since
nowadays it is done via mails. Feedback and other messages are sent electronically, and the company has its
own prototype of a Messenger System. Actually, informal and horizontal communications, as well as
upward, add the most of value to Nestle Company as they resemble its vision and principles. People feel
free to talk with colleagues, subordinates and managers; they are welcoming feedback and try to improve;
communication is open and transparent. All these factors motivate employees to work efficiently, generate
new ideas, and improve their skills as well as get new knowledge. Simple workers have no fear to
communicate with top management as they know that the honest feedback can only help to make the
company better.
don
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However, demand for the commodity is likely to witness a sharp downturn due to the global
pandemic situation. U.S. is among the worst hit countries due to coronavirus with the
unemployment rate reaching all time high by the end of first quarter of FY2020. The country has
observed its worst unemployment rate since the great depression era. The unemployment rate
climbed to nearly 14.7% in April 2020 with nearly 20.5 million people losing their jobs. Amid this
sharp declining trend, the precious metals industry of the country is likely to witness stagnant
growth in the short term.
pandemic. The new aid packages, specifically directed to jump start the manufacturing, may act as
a positive sign for the industry participants in the near future.
9
• Self-assessment; • Simple and flexible; • Multi-functional team; • Risk
owned
Company level: The Nestlé Group Enterprise Risk Management Framework (ERM) is used to
identify climate change risks and opportunities (CCRO) in order to minimize/seize their potential
impact on the Group. A top-down assessment is performed at Group level once a year to create a
good understanding of the company’s mega-risks, to allocate ownership to drive specific actions
around them and take relevant steps to address them. CCRO identified are assessed in relation to
their magnitude of impact and likelihood. The identification includes an assessment of external
and internal environment in which the organization operates. This may include business, social &
physical, 9 regulatory, reputational environment and key business drivers. To identify material
CCRO at company level, we use opinion-leader reputation research; surveys involving
sustainability experts and consumers; feedback from stakeholder convening; extensive media
scan; internal business impact survey; and our corporate risk map. E.g. outcomes of stakeholder
meeting are used to better understand potential gaps between internal and external perception
on CCRO and their impact on reputation. Asset level: Site specific assessments use ERM. The CCRO
identification process includes use of structured techniques, e.g. flow-charting, system analysis,
Fault Tree studies or operational modelling, or more general techniques e.g. 'what-if' and scenario
analysis. The identification of issues that may pose a risk/opportunity are documented, including
the trigger effect, controls in place and their level of efficiency. This is supported by an expert
team of engineers. Potential CCRO e.g. floods, droughts, interruption of supply caused by climate
changes are assessed. The Nestlé Global Property Loss Prevention Program provides an in depth
identification of our exposure to property risks around the world climate change risks. This
enables us to form decisions about the future standards of prevention and protection. Nestlé
determines priorities with regards to climate change risks and opportunities based on the
assessment of the materiality and priority based on combined analysis of likelihood and impact.
Likelihood has six levels: almost certain, highly probable, probable, fairly likely, unlikely, almost
impossible, coded as A, B, C, D, E, F. Four impact ranges are defined: major, significant, moderate,
negligible, coded as 4, 3, 2, 1. In addition to threats (negative impact/contribution), we also
analyze the impact of opportunities (positive impact/contribution). With assessment of likelihood
and impact, all threats and opportunities are coded, like (C, 3). A likelihood/impact matrix (with
both threats and opportunities) determines the different levels of priorities the company will take
to mitigate risks and enhance the opportunities, including climate change. For example, all the
risks coded (A,2), (A,3), (B,3), (C,3), (A,4), (B,4), (C,4), (D,4) are categorized as top priorities (high
exposure) which are reported and concrete action plans to mitigate these threats must be in
place. Based in part on a media and competitive scan, we have identified global megatrends,
assessed their relevance to our Creating Shared Value focus areas and economic, environmental
and social issues, and prioritised issues on a materiality matrix based on level of stakeholder
concern and level of potential impact on Nestlé. In 2013, climate change mitigation remains a
central concern; stakeholder interest in climate change adaptation is rising as the effects of
climate change begin to make themselves felt, particularly in rural communities.
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Nestlé in Society Alignment Board We have also established a
quarterly Nestlé In Society Alignment Board, chaired by our Chief
Executive Officer, Paul Bulcke. This board is an umbrella
organisation that oversees the strategic implementation of
Creating Shared Value across all our businesses. It leads the
development and evolution of our CSV and sustainability
objectives and strategies at Group level including climate change,
while reverting to the Executive Board for input and confirmation.
It also liaises with and ensures coherence with our CSV Council,
which gives external input to our activities. It helps ensure
consistency with our overall climate change strategy and foster
alignment between Nestlé activities that influence policy. CSV
Council The Nestlé Creating Shared Value council, created in
2009, brings together external experts in corporate strategy,
nutrition, water and rural development and climate change to
assess our progress and discuss CSV opportunities and challenges.
The CSV Council currently has 11 members. They are appointed
for three years, and meet annually. In addition to advising the
Chairman and CEO on our CSV agenda, the Board members also
participate in our annual CSV Global Forum and select the winner
of the Nestlé Prize in Creating Shared Value. To ensure that all
engagements are consistent with the overall Nestlé strategy on
climate change, position statements are available and reflect
Nestlé's official position on specific issues that may prompt
questions from external stakeholders, such as the media and
NGOs. The Nestlé Policy on Environmental Sustainability and The
Nestlé Commitment on Climate Change are available to all
employees and used them internally to align our position vis-à-vis
climate change.
1.Persons, society, beliefs, and attitudes are all factors to consider.
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Nestlé's unmatched success, per Harvard University, is due to its multi-cultural mentality. This multi-
cultural mindset contributes to the product's and value chain's added value.
asts the world's greatest assortment of food and beverage goods. Nestlé goods are consumed by people of all
ages, from infants to the elderly. Nestlé goods have a strong track record of generating high levels of
consumer loyalty.
5.Decentralization
Nestlé is a firm believer in sourcing local raw resources for their goods. It not only benefits the town's local
farmers but also promotes the economy, leading to the area's general growth.
7.Digital Transformation
Nestlé's commitment to digital transformation in areas such as marketing, social networking sites, e-
commerce, production, and supply-chain management has enabled them to become data-driven. This allows
them to cater to the specific demands of their customers and enhance customer satisfaction. Nestlé used
artificial intelligence to alter 70 ecosystems in 2019 and customize 20% of their customer interactions.
Nestlé's Weaknesses
The shortcomings of a firm prevent it from reaching its full potential. A poor brand, elevated turnover,
excessive debt levels, an insufficient supply chain, or a lack of cash are all areas where the firm must
develop to remain competitive.
Has been chastised for selling tainted food, wasting a lot of water, and other unethical methods.
Nestlé has recently received a lot of unfavorable press. They have lately been chastised for utilizing lead in
the making of Maggi. The following are some of the claims leveled against Nestlé:
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Unfair infant formula marketing
Nestlé still controls several well and successful food brands in the world. Regrettably, it must contend with
a rapidly changing supermarket industry in which old brands are rapidly losing their effectiveness. Nestlé
may face a stronger challenge from changing consumer behavior, such as the demand for more organic
produce in Europe and the United States, as well as rising expenditure on take-out and restaurant meals. To
achieve competitive advantages, it may have to develop new items or refurbish existing brands.
1References
SWOT Analysis of Nestle
Extensive SWOT Analysis of Nestle
PESTLE ANALYSIS
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Our methodology to assess the impacts of climate-related risks on Nestlé
This is how automotive executives must have felt in the 1970s and '80s, when they
made the difficult choice to invest billions of dollars to make smaller and more
fuel-efficient cars that were also going to be less profitable. This is how
IBM's CEO must have felt in the early '80s, when they decided to invest massively
in smaller and less profitable PCs instead of just clinging to the immensely
profitable mainframe computer business. This is how media executives must have
felt as they poured money into digital assets over the past two decades even
though their printing presses were not yet fully written off.
Personally, I was not exactly an early adopter when it comes to addressing climate
change. In the early 2000s, when I had just become CEO of a global healthcare
company, I was agnostic and wanted to see more proof that the massive
investments required to address global warming were really needed. However, as
more and more evidence has arrived, the need for action has become quite clear to
me. Not all the facts are in today, but we know enough to act with a sense of
urgency to address what is contributing to droughts and causing oceans to rise.
Business leaders can no longer afford to be skeptical and interminably patient,
waiting for every theory to be vetted or every climate model to be proven. The
overall mechanism of action and direction of travel is clear. We should not expect
comprehensive public policy and unanimity to do the job for us.
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This is a moment of truth for industry leaders.
A company like Nestlé has been able to thrive for more than 150 years by always
looking around the corner and anticipating the world's needs. This foresight is a
key ingredient of our success. To my fellow CEOs and leaders across other
industries, I would respectfully suggest that contemplation is not a viable strategy
to address climate change or a sensible way to run a business. Let's come together
and commit to a shared future so that we will be able to look back at this moment
in history not with regrets of how we failed, but with admiration for what we
achieved.
We have more than 2000 brands ranging from global icons to local favourites, and we are present in 190
countries around the world. Nestlé's purpose is enhancing quality of life and contributing to a healthier
future. We want to help shape a better and healthier world. We also want to inspire people to live
healthier lives. This is how we contribute to society while ensuring the long-term success of our company.
Our values are reflected in the way we do business, always acting legally and honestly with respect both
for our own people and those we do business with. Creating Shared Value remains the fundamental
guiding principle for how Nestlé does business. CSV is the strategy tool that Nestlé uses to operationalise
and manage all the actions it takes to ensure it creates value for shareholders and for society. Our focus
areas are firmly embedded in our purpose of enhancing quality of life and contributing to a healthier
future. Individuals and families, our communities and the planet as a whole are interconnected, and our
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efforts in each of these areas are supported through 36 specific commitments towards 2020. These
commitments will, in turn, enable us to meet our ambitions for 2030 in line with the timescale of the
Sustainable Development Goals (SDGs). Our 2030 Ambitions are to: help 50 million children live healthier
lives; to help to improve 30 million livelihoods in communities directly connected to our business activities;
and to strive for zero environmental impact in our operations. The Nestlé Corporate Business Principles
rule the way we do business and form the basis of our culture and values. The 10 principles, which provide
the foundations for our commitments and our Create Shared Values strategy, incorporate the 10 United
Nations Global Compact’s (UNGC) Principles and are divided into five areas - consumers, human rights and
labour practices, our people, suppliers and customers, and the environment. Climate change is one of the
most important global issues of our time. It causes extreme weather events that impact a range of factors,
from water availability and growing conditions to migration patterns. As a global food and beverage
company, we are also impacted by climate change. We are determined to help our farmers build resilience
to these changes as well as reducing our impact on the climate.
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Who is entitled to benefit from these incentives? The type of
incentives Incentivized performance indicator Comment
managers (nonmonetary) project Emissions reduction target
Energy reduction project Energy reduction target Efficiency
project Efficiency target Behaviour change related indicator that
lead to air emission reduction, including GHG. Energy managers
Monetary reward Emissions reduction project Emissions
reduction target Energy reduction project Energy reduction target
Efficiency project Efficiency target Behaviour change related
indicator Meeting GHG emission reduction targets including
Scope 1 & 2 emissions. The short term bonus payout is
determined by the degree of achievement of a number of annual
operating objectives, including the reduction of GHG emissions.
Energy managers Recognition (nonmonetary) Emissions reduction
project Emissions reduction target Energy reduction project
Energy reduction target Efficiency project Efficiency target
Behaviour change related indicator Recognition awards are given
for outstanding energy consumption reduction projects that lead
to air emission reduction, including GHG. For example, in 2014,
recognition awards were given for successful energy reduction
projects and savings in Germany, France, China and Chile. In
addition, in 2014 Chile has been awarded a Gold Certificate of
Appreciation in recognition of their well-prepared Environmental
Roadmap in the area of Manufacturing. Brazil has been awarded a
Energy saving Gold Award Certificate of Appreciation in
recognition of their outstanding Energy reduction achievement in
Zone America. Energy managers Other nonmonetary reward
Emissions reduction project Emissions reduction target Energy
reduction project Non-monetary rewards, based on star ratings,
are given to energy champions
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Percentag e of emissions calculated using data obtained from suppliers or
value chain partners Explanation
activity in each of the three respective sectors.
Determination of scope 3 emissions associated with capital goods expanded on the methodology
used for that of Purchased goods and services. Primary data was collected internally on 2014 total
spend for capital expenditure. The spend data was categorized into five categories followed by
identification of the NAICS industry sector associated with each category of spend data. Total
spend in each category was used as the indicator of economic activity and used as the input in the
EIO-LCA on-line tool.
100.00% Fuel-and- energy- related activities (not included in Scope 1 or 2) Relevant, calculated
12574
Owens Corning is referencing factors from U.S. Energy Information Administration (EIA) 1605(b),
IPCC 2006, and U.S. EPA eGRID where appropriate.
100.00%
Fuel and energy related activities, not accounted for in Scope 1 or Scope 2, are factored from
mobile energy sources which are directly related to production output. These emissions are
developed from energy use related to such items as on-site vehicles and forklifts.
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ENERGY IN NESTLE
Our bodies’ main sources of energy are carbohydrates and fats. We can also use protein and alcohol as
sources of energy. The energy content of food is measured in kilocalories (kcal) or kilojoules (kJ). One
kilocalorie is equivalent to 4.2 kilojoules. Not all types of food contain the same amount of energy. Of
all of the food types, fat provides the most energy. Alcohol is also very high in energy. Carbohydrates
and protein, on the other hand, have half as many kilocalories:
Energy requirements vary from person to person. The amount of energy we need each day depends
on many factors. In addition to our age and gender, body weight and physical activity also play a part.
The following overview shows the average amount of energy required across different age groups.
People who consume more energy than their body needs for an extended period will put on weight. It
is therefore important to eat in moderation to keep your body weight within a healthy weight range.
Are you carrying a few excess pounds? Then a combination of more exercise and reduced calorie
intake is the most effective way to get back to your ideal weight.
To maintain energy balance, input must equal the output, which corresponds to a steady state of
equilibrium which helps in maintaining good health.
The main source of energy in Indian diets are carbohydrates, fats and protein. But the main source is
carbohydrates derived largely from cereals present in them. These cereals constitute 80 % of our diet,
and provide 50-80% of daily energy intake.
When Our Bodies Become Energy-Savers
A calorie-controlled diet can also be helpful when losing weight. However, not every diet is recommended.
Make sure that your meals are varied and balanced and that the diet does not promise significant weight loss
over a short period of time. It is especially important not to let a weight-loss diet become a matter of habit.
While you are on this temporary diet, your body will adjust to receiving less energy. It becomes an "energy-
saver”. As soon as you start eating normally again, the energy stores will fill up quickly to prepare for the
next period of hunger. People's weight is often higher after they have been on a calorie-controlled diet than
beforehand.
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Emissions trading
Emissions trading is a market-based approach to controlling pollution by providing economic incentives for reducing
the emissions of pollutants. The concept is also known as cap and trade (CAT) or emissions trading scheme (ETS).
Carbon emission trading for CO₂
The environment and/or public health concerns occur over a relatively large geographic area.
A significant number of sources are responsible for the pollution problem.
Emissions can be consistently and accurately measured.
Under the right circumstances, emissions trading programs have proven to be extremely effective. They can
achieve substantial reductions in pollution while providing accountability and transparency by making the
data available through systems
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1.13 LIMITATIONS OF THE STUDY
The study uses the data collected from respondents through survey. The data collected are
then analyzed to get results. The results can change according to the size of the sample
i.e., the number of people allotted to answer the questions. The size of the sample here is
140 respondents. when the sample size increases the results probably might also vary.The
study identifies and analyses only few factors which affect the Preferences of the
Investors in Chennai city whereas there might be many other factors that will also have an
effect on the Preferences of Investors. This leaves a research gap as there are factors that
need to be taken into consideration on a later period.
CHAPTER 1 : INTRODUCTION
This chapter consists of the introduction to the study , the various industry profiles,the
need , scope and objectives of the study along with its limitations and also includes the
chapter framework of the study.
This chapter consists of research paper of Authors who have conducted detailed research
study into the investment preferences of investors.
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CHAPTER 3 : RESEARCH METHODOLOGY
This chapter consists of research design , methods of data collection, sample size , period
of study,statistical tools used and the hypothesis of the study.
This chapter consists of the findings , suggestions and the conclusions of the study.
CHAPTER – 2
REVIEW OF LITERATURE
The secondary data was taken from various review of literature. Such literature review is given
below. Researchers have made studies on the factors that influence the investment decisions of
an individual. The focus has mostly remained on core factors such as age, gender, income,
profession, education and financial knowledge. Several studies have been done to identify the
investment behaviour of salaried class of people, retail investors and households.
Madhavi Karanam and R. Shenbagavalli, (2019), The study reveals a very high association
between the profession and the investment choices. Thus, we can conclude that occupation is a
major influencer with respect to risk-return perspective and the investment choice.
Jain Priyanka and Tripathi L.K. (2019), The outcomes of present study shows that any person’s
investment decisions are influenced by so many factors. Individual decides the aims according to
his own priorities would be of great relevance to investors, financial planners, policy makers and
wealth managers etc.
M. Rani Subathra and S. Bulomine Regi (2018), This paper focus towards elements of retail
investors to invest in stock market, obstacles of investment and their satisfaction after
investment. Based on stratified random sampling, samples were collected. The study reveals that,
post investment satisfaction is necessary for every investment mode. So, more awareness should
be made among the small and medium range investors regarding investment in stock market.
Neha S Shukla, (2016), Through this research paper, an analysis has been made about investor’s
preference towards investment avenues and the study focused on the salaried personnel only.
Savings are invested in assets depending on person’s knowledge of different investment options,
risk taking ability and demand of return. Savings form an important part of the economy of any
nation, with the savings invested in various options available to the people, the money acts as the
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driver for the growth of the country. It was found that there is no relationship between education
with investment while there is significant relationship between age and income.
Sathiyamoorthy C, (2015), The objective of the study is to understand the investment pattern and
awareness towards salaried class Investors and the findings suggested that majority of the
respondents are saving money as Bank deposits for the safety of an unpredictable future.
Apparao E. and Kishore Babu N, (2015), It was found from the study that urban people were
more aware of the different investment schemes than the rural. The perception of most investors
on the safety and liquidity of different investment avenues is unfavourable and more than 20
percent of respondents are not satisfied with after sale services of stock broking firms. The main
aim to invest was earning regular income.
Senthil.D, (2015), In this study on investment behaviour the author concludes that occupation is
dependent on all overconfident factors such as, Loss Aversion, representativeness and Price
anchoring factors while investor investing in capital market. Education level is dependent on
overconfident factors and representativeness factors.
Parimalkanthil K. and Kumar Ashok, (2015), The study brings out that the individual investors
hold on to Fixed Deposits, Policies of Insurance co., Postal savings Insurance, Growth oriented
funds. Investors prefer law risk investment like posts/FD etc. and avoid risky investment such as
mutual funds, corporate securities. This behavior may be because of lack of awareness, poor
investment climate, and lack of confidence.
Puneet Bhushan, (2014), in their paper they examine the awareness level and investment
behaviour of salaried individuals towards financial products. Results of the study suggest that
respondents are quite aware about traditional and safe financial products whereas awareness
level of new age financial products among the population is low. Also, majority of the
respondents park their money in traditional and safe investment avenues. It also finds that
financial literacy level was getting affected by gender, education, income, nature of employment.
A.N. Paunikar, (2014), The study undertaken by the author was in relation to the financial aspects
of ELSS. The study pointed out that the salaried class is not much aware of the ELSS scheme and
other investment. Major trust for investment is in postal investment/PF, or towards LIC policy.
Maximum savings are invested as fixed deposits. Even within investors in mutual funds, which is
lower, majority of them prefer ELSS scheme, while only a few go in for other mutual funds.
Salaried class paid stress on good returns on investment.
Patil Sonali and Nandawar Kalpana, (2014), the study reveals that Investors are aware about
investment avenues yet they prefer to invest in bank deposit, real estate, and gold looking for
safety and security on investment. The study also revealed that there was no relationship
between income level and awareness of investment avenues, also the educational qualification
and awareness of investment are had no relationship. Investments made, are for safety and
guided by other factors like tax benefits and returns.
Archana Kanungo, (2014), This article conveys that the socio-economic factor of the investor has
an important role to play in the investment strategy of the investors. There is a direct relationship
between investors decision on investment and saving. The strategic position of the LICO’S for the
insurance, customer service and satisfaction has become a key to the success.
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Deerajen Ramaswamy, (2013), The paper took four fundamental aspects in financial literacy
which are, level and importance, definitions and theories, constraints and measures to improve
financial literacy. The study found that most of the students had a medium level of knowledge and
skills in savings and borrowings it also concluded that there is no significant difference in the level
of financial literacy between male and female respondents. The paper also found that age,
gender, language, race and income level was not having an impact on the level of financial
literacy.
Savita and Lokesh Gautam, (2013), It was observed that investment by way of premium paid for
life insurance policy, followed by provident fund contribution and fixed deposits savings were the
most popular forms of investment. The other forms of investment followed. The paper also
revealed that the savings for tax purpose was the maximum in age group 50-60 and least in age
group 20-30.
Bharathraj Shetty and M. Muthu Gopalakrishnan, (2013), The paper studied the investor’s
preferred towards various tax savings schemes as eligible under Income Tax Act 1961. It was
concluded that individual in order to reduce their tax burden through tax planning does resort to
tax saving investments. The tax savings investments does not give the same advantages to all
investor alike. It is also suggested by the researcher that the government and financial institution
& local people about various, tax savings Schemes, introducing attractive investment schemes,
organize investor education programme.
Basabi Deb, (2013), The study undertook study of factors affecting the choice of investors in
choosing a policy, types of benefits provided by life insurance policy.
Author concluded that people have now have got a choice beyond LIC and now have started
depending on private players. Investors have started viewing insurance as one which offers
protections. Buying behaviour depends on number of factors such as, psycho-graphical,
economical, social , political and legal etc. Investor look for more benefits from the company's,
and are largely satisfied with the insurance companies.
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CHAPTER-3
RESEARCH METHODOLOGY
The questionnaire has been framed and circulated to collect primary data. The questionnaire
contains
Direct questions
Close end questions
Dichotomous questions
Multiple choice questions
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3.4 SAMPLE SIZE
The population size is indefinite as the number of people investing in different investment options
is large in number. It is difficult to access the population. The sample size is 154. The respondents
are from various locations spread across Chennai City.
Sampling technique is the technique used to select the sample size. Convenient sampling
technique is used for this research. Investors were taken according to the convenience of the
research study. The respondents are from various locations spread across the country.
The study was conducted for a period of 3 months starting from December 2021 to February
2022.
3.7 HYPOTHESIS
• A culture that emphasizes employee wellness, and also helps
staffers minimize stress, will also reap benefits. This may be harder
during times of economic duress, when layoffs are a fact of life, and many
employees may be working harder and often for lower tips and fewer
benefits- but all the more reason to understand the importance of staff
recognition.
• According to the analysis for Nestle, the Nestle always takes these
5 top approaches to motivate:
• 2. Put it in writing
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Inferen
ce:
There is
significa
nt
influenc
e of
Gender
over
choice
of
Investm
ent with
respect
to
Shares,
Valuable
Metals,
Postal
Savings,
Real
Estate.
INTE
RPRE
TATI
ON:
Nestlé - Mission
Nestle's mission statement says, "Good Food, Good Life" which 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.
32
Nestlé - Business Model
Nestlé is a powerhouse of consumer brands spanning across baby foods, bottled waters,
powdered drinks, cereals, coffee, drinks, pet-care, and more. The company made almost
$92 billion in 2018, with high margins on its powdered and liquid beverages (coffee,
cocoa, and malt beverages and tea categories).
A spokesperson for Nestlé said, "As the ‘Good Food, Good Life’ company, we enhance quality of life and
contribute to a healthier future. Winning with consumers is the source of our sustainable financial
performance and our way to earning trust and maintain our market leadership. Based on a compelling
Nutrition, Health and Wellness strategy, our company delivers sustainable value over the short term and the
long term."
In short, Nestlé focuses on generating demand for its current brands, while improving
its operational efficiency, and by allocating massive amounts of capital to buy and sell
relevant consumer brands, which help the company to keep its dominance in the
consumer food and beverage industry.
Nestlé - Investments
Nestlé has made 7 investments. Their most recent investment was on Nov 9, 2020,
when Prometheus Biosciences raised $130M.
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Nestlé - Acquisitions
Nestlé has acquired 30 organizations. Their most recent acquisition was Mindful Chef
on Nov 8, 2020.
Acquiree N
CHAPTER-5
5.1 FINDINGS
Findings of the investigation Acknowledging Nestlé’s efforts We want to thank IBFAN for acknowledging
our determination to cancel promptly an event in South Africa that was not compliant with our Policy after
it had brought it to our attention.
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35
5.2 SUGGESTIONS
RECOMMENDATION
For a company that will turn one hundred in a decade, Nestle has almost
36
tried all of the strategies there can be. Nestle company has expanded
internationally, helped countries’ economies grow, be environmentally
conscious and create joint ventures with other companies in which
enhanced Nestlé’s and these companies’ performance positively.
Followed are a couple of recommendations in which might enhance their
performance which are:
• Avoid actions that are bound to fail Even though there is no way that
someone can know the future, but a good management team should be
able to extrapolate if a plan they have might back fire such as the
scandalous event resulting from their oil practices, for cosmetics,
activities mentioned earlier. They should’ve expected that dealing with
such activities might result in leakage and that they should’ve taken
precautions before head.
• Invest on R&D Nestle should concentrate on that in order to come up
with new products. Since the company started out to serve infants in
need for nutrition, Nestle should enhance and find way to enrich their
product with substances and vitamins that will provide children their
daily needs of calcium and even mothers.
5.3 CONCLUSION
Nestlé is a multinational bundled sustenance organization established and headquartered in
Switzerland. It came about because of a merger in 1905 between the Anglo-Swiss Milk
Company for milk items set up by the Page Brothers in Cham, Switzerland, in 1866 and the
Farine Henri Nestlé Company set up in 1867 by Henri Nestlé to give a baby sustenance item.
Nestlé's trademark of winged animals in a home, got from Henri Nestlé's own emblem, inspires
the qualities whereupon he established his Company. A few of Nestle brands are universally
famous, which has made the organization a worldwide business sector pioneer in numerous
product offerings, including milk, chocolate, ice cream parlor, filtered water and pet
nourishment.
• These standards are to be regarded all over the place and under all circumstances. The
administration will actualize the important procedures to guarantee that these standards are
upheld at all levels.
group survey and research on Nestle Company in this Management Our Principles assignment has
definitely benefit us of the advantages and knowledge. Nestle is the largest company which is in
the world’s leading food manufacturer and the market leader in both coffee and mineral water,
produces a wide range of products including prepared dishes and cooking aids, milk-based
37
products, cereals, instant coffee and baby foods. Besides, Nestle is a organic model of
organizational design.
ANNEXURE
QUESTIONAIRRE:
1. AGE :
a. 18 – 30 years
b. 31 – 40 years
c. 41- 60 years
a. CADBURY
b. NESTLE
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6. DO YOU HAVE ADEQUATE KNOWLEDGE ABOUT THE VARIOUS INVESTMENT AVENUES
PRESENT :
a. YES
b. NO
b. MODERATELY AVAILABLE
c. RARELY AVAILABLE
f.OTHERS
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14. AS THERE ARE LIMITED FLAVORS AVAILABLE IN CANNED FRUIT PRODUCTS IF MORE
FLAVORS ARE MADE AVAILABLE ,WHICH OF THE FOLLOWING WOULD YOU PREFER?
a STRAWBERRY
b PEACH
c WATERMELON
D CHERRY
E GRAPE FRUIT
F GRAPE
G BLACK CURRENT
H OTHERS
15. RATE THE FOLLOWING FACTOR ACCORDING TO THEIR INFLUENCE ON YOUR BUYING
BEHAVIOUR WHEN YOU ARE GOING TO PURCHASE CANNED FRUIT ?
a. PRICE
b. AVAILABILITY
c. ATTRATIVE AND HYGENIC PACKING
d. QUALITY OF THE PRODUCT
e. BRAND NAME
f. OTHERS
POLITICAL
AND
ECONOMIC
IMPACT
NATURAL CAUSES
LACK OF
KNOWLEDGE
40
GOVERNMEN
T POLICY
CHANGES
41