career planning and development at nestle.doc

8/10/2019 Career Planning and Development at Nestle.doc

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CHAPTER 1

INTRODUCTION


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INTRODUCTION

Human resource management is the management of employee skills, knowledge, abilities,

talents, aptitude and creative abilities etc.

a) Employee in HRM is treated not only as economic man but also as social and

psychological man. Thus the complete man is reviewed under this approach. Employee is

also treated as a resource.

b) Employees are treated as a profit center and therefore capital for Human Resource

c) Development and future utility.

d) Human resource management is a strategic management function.

career is a se!uence of positions"#obs held by a person during the course of his

working life. ccording to Edwin B. Flippo $a career is a se!uence of separate but related

work activities that provide continuity, order and meaning to a person%s life&.

Employees 'of all categories( want to grow in their careers as this provides more

salary, higher status and opportunity to use knowledge, education and skills effectively. n

individual with potentials #oins a firm not for #ob but for career development. n organi)ation

has to provide better opportunities to its employees in their career development and also use

their efficient services for the benefit of the organi)ation.


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*areer planning essentially means helping the employee to plan their career in terms

of their capacities within the content of organi)ational need. +t is a management techni!ue for

mapping out the entire career of young employees in higher skilled, supervisory and

managerial positions. Thus it is the discovery and development of talents, and planned

deployment of their talent.

or an employee, career planning provides him an answer as to where he will be in

the organi)ation after - or / years or what are prospects of his growing in the

0rgani)ation.

*areer planning is not an event or an end in itself but a process of Human Resource

and Development.

The term career planning and development is used e1tensively in relation to business

organi)ations. +t is argued that if the organi)ations want to get the best out of their employees,

they must plan the career development programs in their organi)ation effectively. 2uch

programs offer benefits to employees and also to the organi)ations. The employees will

develop new skills will be available to the organi)ation. This type of career planning can be

described as organi)ational career planning

*areer planning and development is the responsibility of the HR department of the

organi)ation. s already noted, every person #oining an organi)ation has a desire to make

career as per his potentiality, ability, skills and so on.


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NEED AND IMPORTANCE OF THE STUDY

To map out careers of employees as per their ability and willingness and to train and

develop them for higher positions. To attract and retain the right type of persons in the

organi)ation. To utili)e available managerial talent within the organi)ation fully. To achieve

higher productivity and organi)ational development. To provide guidance and assistance to

employees to develop their potentials to the highest level. To improve employee morale and

motivation by providing training and opportunities for promotion.

*areer planning helps an employee to know the career opportunities available in an

organi)ation. *areer planning encourages him to avail of the training and development

facilities in the organi)ation so as to improve his ability to handle new and higher

assignments. *areer planning anticipates the future vacancies that may arise due to

retirement, resignation, death, etc. at managerial level. Therefore, it provides a fairly reliable

guide for manpower forecasting. *areer planning facilitates e1pansion and growth of the

enterprise. The employees re!uired to fill #ob vacancies in future can be identified and

developed in time.


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OBECTI!ES OF THE STUDY

actors that employee focus on while career planning.

To study career planning process in nestle.

To study the effectiveness of various career development programmes conducted

by the nestle.

To know in what way the training given by the organi)ation is effecting on an

employee and what way it is helpful for their *areer 3lanning and Development.

To suggestions.


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SCOPE OF THE STUDY

The following activities"areas are covered within the scope of organi)ational career planning

a) HUMAN RESOURCE FORECASTIN" AND P#ANNIN"Here, efforts will be made to identify the number of employees re!uired in future. +n addition,

the selection procedure will be ad#usted with the overall strategic goals of the organi)ation.

b) CAREER INFORMATION

Here, information relating to career opportunities 'promotions, training for self development,

etc( will be supplied to employees. 2upplying career information"opportunities has special

significance as this motivates employees to grow and reach to higher position.

c) CAREER COUNSE##IN"

2uch counseling is ne1t to supplying career information. *areer counseling is possible by

senior e1ecutives through periodic discussions with their subordinates. 2uch career guidance

encourages subordinate employees to take interest in certain areas where suitable

opportunities of career development are available. +t is a type of internal guidance and

motivation of employees for the selection of possible career paths. 2uch counseling is needed

when employees have to plan their own careers and develop themselves for career progress.

d) CAREER PATHIN"

Management now plans #ob se!uences for transfers and promotions of their employees. This

makes transfers and promotions systematically with advance information to employees.

*areer pathing creates suitable mental makeup of employees for self development.

$) S%I## ASSESSMENT TRAININ"

Training is essential for career planning and also for manpower development. long with #ob

analysis, organi)ational and #ob manpower re!uirement analysis should be undertaken by the

management. This prepares proper background for the introduction of career planning

programs for employees.


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RESEARCH METHODO#O"Y

AREA OF THE STUDY

The study was mainly concentrated towards the career planning 4 development in 5E2T6E.

RESEARCH DESI"N

The research design used for this purpose is both e1ploratory and Descriptive. E1ploratory

research includes collection of 2econdary data,

Descriptive Research7 Descriptive research includes survey and fact8findings en!uire of

different kinds involving a detailed survey by a !uestionnaire issuing to employees of

5E2T6E.

DAT

A CO##ECTION

The study is based on the data collected through primary and secondary sources.

PRIMARY DATA

n interview schedule was designed to collect primary data from direct personal interviews

from the customer%s general public and sales men by a !uestionnaire survey.

SECONDARY DATA

2econdary data was collected from #ournals, maga)ines, web sites and from other relevant

publications.

SAMP#IN" DESI"N

The sampling design mainly consists of the sample taken for the study along with the samplesi)e, sample frame and sampling method.

SAMP#E UNI!ERSE

ll employees of 5E2T6E were taken as the sample universe.

SAMP#E SI&E

rom the universe, sample si)es of // employees were selected for the purpose of the study.


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SAMP#IN" METHOD

Random sampling method was used based on the willingness and availability of the

employees.

Methodology does not set out to provide solutions but offers the theoretical

underpinning for understanding which method, set of methods or so called $best practices&

can be applied to a specific case.

+t has been defined also as follows7

. The analysis of the principles of methods, rules, and postulates employed by a

discipline.

9. :The systematic study of methods that are, can be, or have been applied within a

discipline:

;. :The study or description of methods
http://en.wikipedia.org/wiki/Analysishttp://en.wikipedia.org/wiki/Analysis


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#IMITATIONS OF THE STUDY

- days in which the collection of data, interpretation, analysis,

conclusion and the ob#ectives of the study should be #ustified.

2ometimes respondents were not co8operative in answering a few !uestions which affects

the accuracy of the research.

Time actor

?nsuitable for 6arge @orkforce,

6ack of 0b#ectivity

E1ternal +nterventions

6ack of Anowledge and wareness

6ack of le1ibility

Difficulty in Measuring *areer 2uccess


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OR"ANISATION OF THE STUDY'

1. INTRODUCTION' The first chapter gives the detail introduction on the lending.

(. RE!IE OF #ITERATURE' The second chapter states the ob#ectives scope, source

of data, research methodology.

*. COMPANY PROFI#E OF THE OR"ANI&ATION' The third chapter gives the profile

of the organi)ation where the pro#ect is conducted. +t also e1plains about the future

plans of the company.

+. DATA ANA#YSIS AND I NTERPRETATION' The chapter gives detail regarding the

analysis and interpretation of data after collection. +t comprises of brief notes

regarding analysis and various methods through which they may be carried out. +t

also consists of the data in form of tables, graphs and pie8charts and its interpretation

.

,. SUMMARY OF FINDIN"S- CONC#USIONS AND SU""ESTIONS' The chapter

concluded the pro#ect report it comprises of the findings and conclusion draw from

the above analysis based on the data collected and also includes suggestion.


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CHAPTER (RE!IE OF #ITERATURE


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SUR!EY1

Title7 *areer 3lanning and Development

2ource7 5estle ood 3roducts

5estle ood 3roducts, senior loan officer conducted a survey on increasing demand

for 3roducts. The survey found that about 9-B of 3roduction reported increase demand for

commercial and industrial 3roducts from large and middle market firms. bout /B reported

stronger loan demand from small business.

The career potential development is improved. More than half of domestic

3roduction help the employee t for development in market productions applicant had

improved while ;-B said the nestle business borrowers had improved.

Through the first seven months of fiscal year, C'a( loan program was introduced and

was soon up by -;B when compared with the same period a year ago. +n the fiscal year, more

than ; billion C'a( 3roducts had been approved and it is also e1pected that program could

hit the authori)ed limit of C.- billion before the end of fiscal year. Therefore as a result it

was found that here was an increasing demand for 3roducts.


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SUR!EY(

Title7 +nvestor%s strong support for fair value of productions

2ource7 5estle +nstitute

5estle +nstitute head of financial reporting policy at 5estle +nstitute conducted a

survey to ascertain investor8member views on the fair value measurement of 3roducts.

The survey found that 5estle +nstitute members strongly desire higher !uality, more

transparent and more relevant information about asset values contained in fair value

measures. The small number of banking analysts !ueried through other surveys pales in

comparison to the board based investor8member feedback before, during and after the

financial crisis.

gain in 2eptember, more than C/B or appro1imately /// out of // respondents,

stated that they want fair value as the primary measurement basis for financial 3roducts and

needs strong support for the fair value of 3roducts.


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RE!IE OF #ITERATURE

CAREER DE!E#OPMENT ACTIONS

a) OB PERFORMANCE

Employee must prove that his performance on the #ob is to the level of standards

established, if he wants career progress.

b) E/POSURE

Employee%s desire for career progress should e1pose their skills, knowledge,

!ualifications, achievements, performance etc., to those who take the decision about career

progress.

c) RESI"NATIONS

Employees may resign the present #ob in the organi)ation, if they find that career

opportunities elsewhere are better than those of the present organi)ation.

d) CHAN"E THE OB

Employees who put organi)ational loyalty above career loyalty may change the #ob in

the same organi)ation are better than those in the present #ob.


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STEPS IN CAREER P#ANNIN"

1. ANA#YSIS OF PESONNE# SITUATION

(. PROECTION OF PERSONNE# SITUATION

*. IDENTIFYIN" CAREE

+. SE#ECTION OF PRIORITIES

,. DE!E#OPMENT OF CAREER P#ANS

0. RITE UP OF FORMU#ATED CAREER P#ANS

. MANA"ERIA# P#ANNIN"

2. IMP#EMENTATIO

3. RE!IE AND E!A#UATION

14. FUTURE NEEDS

1. ANA#YSIS OF PERSONE# SITUATION

This is the first step which needs to be completed before the introduction of career

planning programme. This relates to a time from which career planning is to be introduced.

Here, the base line will be prepared to help the planners to make pro#ections for the planning

period and to help in the evaluation of plans. +n order to analy)e the present career situation,

the following information will be re!uired'


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To5al n67b$8 o9 $7plo:$$;


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The length of time re!uired the achieving the goals

0. RITEUP OF FORMU#ATED P#AN

fter deciding the priorities of career development plan, the ne1t ma#or step is to

prepare a write up 'brief report( of the career plan. This writ8up should contain all necessarydetail such as schedule 'time se!uence of plan(, procedures and other details so that the

evaluation of the plan will be easy and meaningful.

. MONITORIN" OF CAREER DE!E#OPMENT P#AN

Monitoring of the plan is essential for its effective e1ecution. E1pected

results"benefits will be available only when the plan is implemented properly. 3lanned

'e1pected( targets and targets actually achieved can be compared through suitable monitoring

of the plan. The gap between the two 'i.e. short falls( can be located !uickly. +n addition,

suitable remedial measures can be taken to rectify the shortfalls.

2. IMP#EMENTATION >OF CAREER DE!E#OPMENT P#AN)

+mplementation"e1ecution of the plan is an integral aspect of planning process itself.

or effective implementation, co8operation and co8ordination at all levels is necessary. The

implementation needs proper monitoring so as to avoid possible shortfalls.

3. RE!IE AND E!A#UATION OF CAREER P#ANS

plan needs periodical review. 2uch evaluation avoids mistakes, deficiencies, etc

during the implementation stage. +t is built8in device to measure the effectiveness of the plan.

ctual benefits available will be known only through such review and evaluation. 2uch

evaluation should be done by e1perts. +t should be conducted systematically and also

impartially.

14. FUTURE NEEDS

This is the last step"stage of the current career development plan and the first

step"stage of the ne1t plan. Here, on the basis of the achievements of the current plan, the

career needs of the future period 'of employees and also of the organi)ation( are estimated.

The new priorities are decided and the details of the new career development plan are

prepared. 3lanning is a continuous process"activity. This rule is applicable to career

development plans of an organi)ation.


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Many populations do not have career development services readily available. +f one

does not have access to career assessments, reflecting on one%s hobbiesand natural

inclinations can be a beneficial area to begin brainstorming ideas

'6ewis 4 2abedra, 9//(.

or instance, if a client loved making potteryGloved working with her hands, working

independently and then sharing her work, creating new ideas and implementing themG

perhaps she could open up a shop in a large city, work as a florist, or become an instructor for

a senior art class at the community center, and so on. 0ne often hears that there is a time for

work and a time for play 'i.e., hobbies(. However, they do not have to be distinct and

mutually e1clusive from one another weaving one%s avocation into one%s career can create a

compatible, interesting, and fulfilling combination for some.

ssessments are not foolproof but they are often the starting point when working with a

client who is trying to make decisions for the future. +t is also important to reali)e that career

development is not #ust about tests or !uick fi1es it takes time and effort for the client to

learn about themselves and their interests.

Dream #ob scenarios can be helpful in terms of promoting client awareness of what

duties, work schedules, and so on one could en#oy, but students should understand that the

term $career& is not referring to one specific #ob but rather a lifetime of various #ob roles,

learning, and growth opportunities.

'Ioodman, 9//J(.

+t is not enough to ask a person a few !uestions about his or her interests in life and hope

to steer the person into a complimentary field. +t is essential to reali)e that $not only are our

careers central to one%s identity, but they affect and are affected by, all of the other areas of

our lives& 'Ioodman, 9//J(. Thus, it is very beneficial for career development professionals

to have not only an awareness of current available career and economic opportunities, but

also a background in interpersonal communication and individual counseling.


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*areer services professionals can be a key for individuals to find career fields that are

meaningful, fulfilling, and in keeping with how they would en#oy spending a large portion of

their day. *ounselors must understand that clients are coming from a variety of backgrounds

and influences and, conse!uently, will have very different views about work and even about

the very career services they seek. *ounselors must be willing and able to listen actively to

what their clients are saying and sense what they are not saying. *ounselors should also be

aware that many clients do not believe that they have the necessary skills, aptitude, and"or

abilities to enter or succeed in a certain profession. *ounselors can assist individuals in

finding ways to increase their skill and knowledge levels as well as provide encouragement

for the client to work toward their aspirations.

+t is critical that children and young adults, perhaps even beginning at the elementary age, are

e1posed to career8related discussions and opportunities. The more an individual is familiar

with brainstorming and considering career options, the easier it should be for him or her to

e1press talents, interests, and skills when trying to decide on a career path. Many children are

e1posed to only a small fraction of available careers, usually those that they see repeatedly on

television and the media, and those positions held by parents and family members. This

minimal e1posure can limit the children%s awareness of opportunities and does not e1pose

them to the thousands of specialties and intricacies of various careers needed in a global

economy. Therefore, it is e1tremely beneficial to bring career development awareness into the

schools at an early age and help students e1pand their career hori)ons by e1posing them to a

wide array of career opportunities.

*areer service professionals and clients should not stop after they receive the career

assessment results, but use them as a starting point for further reflection, discussion, and

discovery. 0ne has the opportunity to benefit from career interest, skill, and personality

assessments however, one must reali)e that interests and skills do not necessarily reflect

actual abilities.

'2mith 4 *ampbell, 9//; Miller, KKK(.

or e1ample, perhaps a student decides to become a doctor because she loves helping

people however, she cannot endure the sight of blood and has failed biology and anatomy.

Despite the student%s interests, her abilities reflect a need to pursue a different profession.


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The abundance and variety of career choices can lead individuals into a state of

confusion, frustration, and $career indecision&.

'0sipow, KKK(.

These clients may not know where to begin. +t is important to note that career

assessments can also be a helpful way to narrow down possibilities for an individual who is

choosing among several career options.


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CHAPTER *

COMPANY PROFI#E


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E/ECUIT!E SUMMARY

5estlL has been a leading food manufacturer and ma#or purchaser of agricultural raw

materials for over ;/ years. ood and agriculture are an integral part of the social cultural,

economic and political conte1t of every community. Today, 5estlL is the world%s largest and

most diversified food company, with nearly -// factories in CC countries, producing healthy,

en#oyable food products for every stage of life. The present study has been carried out with

the ob#ective of studying 5estle, their brand e1ercises, the use of celebrity endorsement as a

tool of brand building by firms and the consumers perception about the brand image of 5estle

The research was carried out with the help of primary as well as secondary sources ofdata 3rimary Data has been collected through consumer survey, among the e1isting and

potential consumers of 5estle 3roducts. However secondary dats has been collected through

=ooks, 3eriodicals and ournals in the field of marketing, branding and 5ewspapers and the

+nternet. The only limitation in this survey was that + could not conduct a survey on a big

scale, due to the time constraint. fter all the literature and market research, and analysis +

wish to conclude that the philosophy behind the branding strategy of 5estle has been to

develop the brand so as to attract and retain the consumers. The branding strategies adoptedhave resulted in building a sustainable and differential advantage over its competitors.


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ABOUT NEST#E

P8o9il$ o9 5?$ co7pan:

5estlL with head!uarters in Nevey, 2wit)erland was founded in JJ by Henri 5estlL and istoday the worldOs biggest food and beverage company. 2ales at the end of 9//> were *H C

bn, with a net profit of *H J.C bn. @e employ around 9>C,/// people and have factories or

operations in almost every country in the world.

The *ompanyOs strategy is guided by several fundamental principles. 5estlLOs e1isting

products grow through innovation and renovation while maintaining a balance in geographic

activities and product lines. 6ong8term potential is never sacrificed for short8term

performance. The *ompanyOs priority is to bring the best and most relevant products to

people, wherever they are, whatever their needs, throughout their lives.


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Bac@8o6nd

5estle was promoted by 5estle limentana, 2wit)erland, a wholly owned subsidiary of

5estle Holdings 6td., 5assau, =ahama +slands. 5estle is one of the oldest food M5*

operating in +ndia, with a presence of over a century. or a long time, 5estle +ndia%s

operations were restricted to importing and trading of condensed milk and infant food. 0ver

the years, the *ompany e1panded its product range with new products in instant coffee,

noodles, sauces, pickles, culinary aids, chocolates and confectionery, dairy products and

mineral water.

5estle was incorporated as a limited company in K-K. +n KC, the *ompany issued shares

to the +ndian public to reduce its foreign holdings to >/B. +ts name was changed from oods

2pecialties 6td. to the current name in K.The parent held -B stake in the company as at

9/// end. +t has +3= approval to hike stake by /B and has been gradually ac!uiring shares

from the open market. 3arent stake in the company as at 9// end stood at -;.B. The parent

plans to continue hiking stake through open market purchases.

5estle +ndia 6td, -B subsidiary of 5estle 2, is among the leading branded food player in

the country. +t has a broad based presence in the foods sector with leading market shares in

instant coffee, infant foods, milk products and noodles. +t has also strengthened its presence

in chocolates, confectioneries and other semi processed food products during the last few

years.

The company has launched Dairy 3roducts like ?HT Milk, =utter and *urd and also

ventured into the mineral water segment in 9//. 5estle%s leading brands include *erelac,

5estum, 5escafe, Maggie, Aitkat, Munch and 3ure 6ife.

Co7pan: Mi;;ion

t 5estle, we believe that research can help us to make better food, so that people live a

better life.Iood food is the primary source of good health, so we are trying to make good

food. To provide fresh and pure products to the customers, we introduced '2HE( 2afety,

Health and environment policy to protect health of our employs and keep clean our

surrounding environment


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Co7pan: !i;ion

Nision of 5estle Milkpak *ompany is to e1pand business according to the increasing

demand of market.

s per our company vision in 9/9/ production capacity of all plants working in 3akistan

is being increased. 2o e1tension of Aabirwala 3lant is the e1ample of our company

vision.

Plan5 loca5ion;

5estle started its manufacturing operations with Milkmaid in KJ9 at Moga factory.

Manufacturing of 5escafe started in KJ> at the same factory. The company set up another

factory at *herambadi in Tamil 5adu, for manufacture of infant foods, coffee etc. or almost

two decades there were no new additions of manufacturing facilities due to restrictive policy

environment. The company set up its 5an#angad 'Aarnataka( factory in KK and the

2amlakha 'Haryana( factory in KK9. The 3onda 'Ioa( factory started operations in KK-.

The *ompany set up its si1th manufacturing unit in KKC at =icholim in Ioa

B6;in$;; o9 5?$ N$;5l$

5estle is the largest food company in the world. +t is present in all five continents, has an

annual turnover of C>.C billion 2wiss rances. There are -/K factories are running in ;

countries, having 9;,/// employs


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HISTORY OF NEST#E

5estlL was the result of a series of mergers of many small companies. +n the mid8J/s,

Henri 5estle, merchant, chemist and innovator, e1perimented 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 breast8fed by their mothers. +n JC, his formula saved

the life of a prematurely born infant. 6ater that year, production of the formula, named arine

6actee 5estlL, began in Nevey and the 5estle *ompany was formed.

Henri 5estle 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. @ithin a few

months of the launch, Henri began to sell his products in many European countries. +n the

company%s initial years, Henri took various steps to facilitate research, improve product

!uality and develop new products.

Meanwhile in JJ, two mericans, *harles and Ieorge 3age had founded the nglo82wiss

*ondensed Milk *ompany. The company launched a milk based infant food, which competed

with 5estlL%s products. +n C-, Daniel 3eter, a friend and neighbor of Henri developed milk

chocolate. 3eter became the world%s leading chocolate maker, and later merged his company

with 5estlL. The rivalry between 5estlL and the nglo82wiss *ondensed Milk *ompany

intensified but ended in K/-, when the two companies merged under the 5estlL banner.

@orld @ar + created a new demand for dairy products. 5estle grew mainly by e1ecuting

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. +n K9, 5estlL recorded its

first loss, which was partly due to the worldwide postwar economic slowdown. 6ouis

Dapples, a 2wiss banking e1pert restructured the company, streamling its operations and

reducing the debt burden.

+n K;/, the =ra)ilian *offee +nstitute approached Dapples, seeking new products. fter eight

years of research 5estlL developed a soluble powder that revolutioni)ed coffee drinking

around the world. The product was launched under the brand name 5escafe and became an

instant success. The onset of @orld @ar ++ speeded up the introduction of 5escafe. The


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beverage also became a popular drink among merican servicemen in Europe and sia. The

end of @orld @ar ++ triggered off a new phase of growth for 5estlL. Many new products were

added as the company grew through ac!uisitions.

fter KC>, 5estlL%s financial position deteriorated. 0il prices rose and growth in

industriali)ed nations slowed down. The 2wiss franc appreciated and the price of coffee

beans and cocoa shot up. This situation was partially offset by 5estlL%s rapid growth in

emerging markets.

+n K, Helmut Maucher took over as *E0. His policies had a significant impact on 5estlL%s

style of functioning. Maucher pursued a two8pronged strategy to improve the company%s

financial situation7 irst he embarked on internal restructuring and divestments second hedecided to continue with strategic ac!uisitions. =etween K/ and K>, he divested a

number of non8strategic or unprofitable businesses, amounting to nearly 2r bn. The

divestments included certain food products that were not consistent with 5estlL%s emphasis

on high value added segments. To improve the company%s financial situation, he embarked on

a cost8cutting e1ercise. @hile the employee strength was reduced significantly, the inventory

and outstanding debt were brought down.

+n KK/, 5estlL formed a #oint venture with Ieneral Mills called *ereal 3artners @orldwide

to promote 5estlL breakfast cereals. +t covered C/ countries accounting for about C- per cent

of the breakfast cereal consumption outside the ?2 and *anada. 5estlL also formed a #oint

venture with *oca8*ola, called the *oca8*ola 5estlL Refreshment *ompany, to market tea

and coffee8based ready8to8drink beverages under the 5estea and 5escafe brands.

+n KKJ, 5estlL decided to end its -/8-/ *linic 5utrition #oint venture with =a1ter Healthcare

and established 5estlL *linical 5utrition to provide orally consumed nutrition products tohospitals and nursing homes.

5estlL opened the 9/thcentury by merging with the nglo82wiss *ondensed Milk *ompany

to broaden its product range and widen its geographical scope. +n the new millennium, 5estlL

is the undisputed leader in the food industry, with more than >C/ factories around the world.

5estlL launched a Iroup8wide initiative called I60=E 'Ilobal =usiness E1cellence(, aimed

at harmoni)ing and simplifying business process architecture enabling 5estlL to reali)e the

advantages of a global leader while minimi)ing the drawbacks of si)e.


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The *ompany%s strategy will continue to be guided by several fundamental principles.

5estlL%s e1isting products will grow through innovation and renovation while maintaining a

balance in geographic activities and product lines. 6ong8term potential will never be

sacrificed for short8term performance. The *ompany%s priority will be to bring the best and

most relevant products to people, wherever they are, whatever their needs, throughout their

lives.

BUSINESS PRINCIP#ES

2ince Henri 5estlL developed the first milk food for infants in JC, and saved the life of a

neighbor%s child, the 5estlL *ompany has aimed to build a business based on sound human

values and principles.

@hile our 5estlL *orporate =usiness 3rinciples will continue to evolve and adapt to a

changing world, our basic foundation is unchanged from the time of the origins of the

*ompany, and reflects the basic ideas of fairness, honesty, and a general concern for people.

People frst

Employees, people and products are more important at 5estlL than systems. 2ystems and

methods, while necessary and valuable in running a comple1 organi)ation, should remain

managerial and operational aids but should not become ends in themselves. +t is a !uestion of

priorities. strong orientation toward human beings, employees and e1ecutives is a decisive,

if not the decisive, component of long8term success.


29/77

Quality products

0ur focus is on products. The ultimate #ustification for a company is its ability to offer

products that are appealing because of their !uality, convenience, variety and price 88

products that can stand their ground even in the face of fierce competition.

Long-term view

5estlL makes clear a distinction between strategy and tactics. +t gives priority to the long8

range view. 6ong8term thinking defuses many of the conflicts and contentions among groups

this applies to employment conditions and relations with employees as well as to the conflicts

and opposing interests of the trade and the industry. 0f course, our ability to focus on long8

term considerations is only possible if the company is successful in the struggle for short8

term survival. This is why 5estlL strives to maintain a satisfactory level of profits every year.

Decentralization

2wit)erland is home to 5estlLOs 2wiss subsidiary, its international head!uarters and the

registered office of 5estlLOs holding company, but 5estlL does not regard its 2wiss

head!uarters as the center of the universe. Decentrali)ation is a basic principle of 5estlL. 0urpolicy is to adapt as much as possible to regional circumstances, mentalities and situations.

=y decentrali)ing operational responsibility, we create strength and fle1ibility and are able to

make decisions that are better attuned to specific situations in a given country. 3olicies and

decisions concerning personnel, marketing and products are largely determined locally. This

policy creates stronger motivation for 5estlLOs e1ecutives and employees and a greater sense

of identification with 5estlLOs business. +t is not 5estlLOs policy to generate most of its sales in

2wit)erland, supplemented by a few satellite subsidiaries abroad. 5estlL strives to be an

:insider: in every country in which it operates, not an :outsider.:

Uniormity

very important concern at 5estlL has to do with uniformity7 how consistent 5estlLOs

principles, policies, rules of conduct and strategies should be, and to what e1tent they should

differ depending on the country, subsidiary, region, branch or group of products. +n general,

5estlL tries to limit the uniformity of its policy to a re!uisite minimum. This minimum is then


30/77

systematically enforced, unless there are compelling reasons in a given market that #ustify

deviation from policy.

Diversifcation

5estlL does not want to become either a conglomerate or a portfolio manager. 5estlL wants to

operate only those businesses about which it has some special knowledge and e1pertise.

5estlL is a global company, not a conglomerate hodgepodge. @e regard ac!uisitions and

efforts at diversification as logical ways to supplement our business, but only in the conte1t

of a carefully considered corporate marketing policy. 5estlL is committed to the following

=usiness 3rinciples in all countries, taking into account local legislation, cultural and

religious practices7

5estlLOs business ob#ective is to manufacture and market the *ompanyOs products in such

a way as to create value that can be sustained over the long term for shareholders,

employees, consumers, and business partners.

5estlL does not favour short8term profit at the e1pense of successful long8term business

development.

5estlL recogni)es that its consumers have a sincere and legitimate interest in the

behaviour, beliefs and actions of the *ompany behind brands in which they place their

trust and that without its consumers the *ompany would not e1ist.

5estlL 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 organi)ation.

5estlL is conscious of the fact that the success of a corporation 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 development are

crucial.

5estlL continues to maintain its commitment to follow and respect all applicable local

laws in each of its


31/77

Research and Development

The 5estlL research and development centers have two main tasks7 to create new products

and manufacturing processes and to improve those that already e1ist. These centers play a

key role in product safety and !uality and also have their role in conserving resources and

protecting the environment. Environmental concerns are an integral part of any development

process to ensure that our future commercial operations meet the desired criteria. The 5estlL

Research *enter provides the scientific support needed to prevent and solve environmental

problems arising in the development groups as well as manufacturing. +n addition, studies are

carried out to find new ways of using industrial residues to create value added byproducts.

This will reduce total emissions and effluents. The 5estlL development centers prepare

environmental impact studies for new products and manufacturing processes. These cover all

aspects, from raw materials, through processing, to the final packed product. These analyses

provide additional elements for use in deciding whether to commerciali)e a new product, or

to introduce a new or modified process.

Foresight

t present, the world faces daunting !uestions about its ability to provide enough wholesome

food for everyone. Malnutrition and poor eating habits are still serious problems in many

developing countries. =y 9//, the worldOs population will double. @ill it be possible to feed

a world with so many inhabitantsF t 5estlL, the big picture is all about feeding the world

and providing food and nutrition for an ever8growing population. 0ur response to this

situation is to intensify research, strive for innovations and improve !uality.

Flei!ility and simplicity

The publicOs sense of the power and si)e of a corporation is often inaccurate, for a companyOs

power is limited by a host of factors including legislation, competition, regulatory bodies and

publicity. rom a business point of view, it is desirable for a firm to achieve the si)e best

suited to a specific industry or mode of production. To be competitive internationally and

make significant investments in research and technology, a larger company has an advantage.

rom a strictly organi)ational point of view, fle1ible, simple structures work best and

e1cessively large units should be avoided whenever possible. +n both respects 5estlL has a


32/77

natural advantage7 lthough it is a big company, it is spread out over many countries and

each of 5estlLOs factories has its own management and responsibility.

"andling o raw materials

The 5estlL Iroup is in principle not directly involved in primary production of raw materials

and other food ingredients. +n general we use locally available raw materials and purchase

them either directly from producers or through e1isting trade channels. Raw materials have to

meet clearly established !uality criteria and are checked for possible contaminants including

environmental contaminants. 0ur purchasing specifications comply not only with legal

re!uirements but go further to ensure highest safety and wholesomeness of our products.

@henever possible we give preference to those goods for which environmental aspects havebeen taken into consideration. +n those cases where the re!uired agricultural raw materials are

not available locally, but the natural production conditions e1ist, we encourage local

production and provide assistance for cultivation and dairy farm management. @e support

plant growing and livestock husbandry methods which7

preserve and improve natural soil productivity and economi)e and protect water

resources

allow the lowest, most appropriate and safe use of agro8chemicals

use the least energy.

Pac#aging

Manufacturing comprises all unit operations necessary to transform perishable raw materials

into finished products, with the aim to make them safe and convenient for the consumers. The

manufacturing activities of the 5estlL Iroup7

respect natural resources by efficient use of raw materials and energy

minimi)e waste generation and emissions

ensure environmentally safe disposal of all waste which cannot be recycled.

Regular assessments of processing practices are carried out. These assessments include7

evaluation of individual plant performance with regard to operations which have an

impact on the environment


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definition of targets for improvement

review of plant compliance with local government regulations, company environmental

standards, as well as results achieved in comparison with targets for improvement

full investigation of incidents which may affect the environment.

+nformation on developments in environmental protection technology and practices is

disseminated as re!uired to ensure that all plants are using the most effective environmental

practices for their type of processing. This applies also for co packers.


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Ma8@$5in and di;58ib65ion

Marketing is based on the principle of satisfying consumer needs. This is the foundation also

for the environmental marketing approach of 5estlL. Environmental product claims in

advertising, promotional material and on packaging are in accordance with legal

re!uirements, based on solid scientific evidence and used in a serious and reasonable manner.

0ur aim is to minimi)e wastage in communication, publicity and promotional material, in

particular through more precise targeting of marketing activities. *onsumer promotions and

merchandising material such as consumer offers, in store promotions, display material,

leaflets, printed matter, etc. take environmental aspects into account.

This means due consideration of environmental impact in selecting both materials andprinting methods. +n distribution, energy efficient and pollution controlled methods are

encouraged wherever possible.

$normation% communication and education

5estlLOs policy is designed to provide correct and coherent information on the activities of the

Iroup. ctivities related to the environment benefit from the same treatment and their

communication is secured through all currently available means inside and outside the Iroup.

+t is furthermore 5estlLOs duty to create awareness, to train and motivate employees on their

personal responsibility with regard to the protection of the environment.

Legislation and Regulations

+t is the policy of the 5estlL Iroup to strictly comply with all laws and regulations relevant to

our activities. @e participate in discussions on food legislation and regulations between

international organi)ations, government representatives, industry, the scientific world and

consumer associations. @e also apply this policy to environment related matters. +n doing so,

we cooperate with legislators through local industry associations in order to promote laws

and regulations in the field of environment which are reasonable, rational, realistic,

applicable and enforceable. @e oppose un#ustified bans and any other discriminatory

measures. @e favor the harmoni)ation of food regulations in order to remove e1isting trade

barriers and to avoid the creation of new ones. This applies also to environmental issues. @e

favor the e1change of information, of e1perience and of knowledge between the various


35/77

interested parties. Thanks to all these synergies, we can contribute to valuable discussions and

be recogni)ed as an active partner in helping authorities to formulate comprehensive

strategies in the field of the environment.

NEST#E UA#ITY PO#ICY

Everyday, millions of people all over the world show their confidence in us by choosing

5estlL products. This confidence is based on our !uality image and a reputation for high

standards that has been built up over many years.

,.1 6ali5: i; 5?$ co8n$8;5on$ o9 o68 ;6cc$;;

Every product on the shelf, every service and every customer contact helps to shape this

image. 5estlL brand name on a product is a promise to the customer that it is safe to

consume, that it complies with all regulations and that it meets high standards of !uality.

*ustomers e1pect us to keep this promise every time. ?nder no circumstances will we

compromise on the safety of a product and every effort must be made to avoid ha)ards to

health. 6ikewise, compliance with all relevant laws and regulations is a must and is not

negotiable. 3eople, e!uipment and instruments are made available to ensure safety and

conformity of 5estlL products at all times. The effort is worth it. *ompanies with huge

!uality standards make fewer mistakes, waste less time and money and are more productive.


36/77

They also make higher profits.


37/77

product segments. 5estle has also achieved a significant 9-B share in the

chocolate"confectionery market. The company has recently e1panded its dairy products

portfolio to include, milk, curd and butter. The company also forayed into the bottled water

segment with the launch of its 3errier brand in the premium mineral segment and 3ure 6ife in

the purified water segment.

Quality is a competitive advantage

@e live in a competitive world and must never forget that their customers have a choice. +f

they are not satisfied with a 5estlL product, they will switch to another brand. Their goal,

therefore, is to provide superior value in every product category and market sector in which

we compete. The pursuit of highest !uality at any price is no guarantee for success, nor is asingle8minded cost8cutting approach. 6asting competitive advantage is gained from a

balanced search for optimal value to customers, by simultaneous improvement of !uality and

reduction cost. 2uccess can never be taken for granted. @e must watch and learn from our

competitors. +f they do something better, we must improve our own performance. @e can

achieve competitive advantage through


38/77

Quality is made !y people

de!uate e!uipment, procedures and systems are needed to make


39/77

ll 5estle functions across our value chain are fully responsible to follow mandatory

norms.


40/77

$a@n$;;'

E1ports P The company%s e1ports stood at Rs 9,-C m at the end of 9//; 'B of revenues(

and continue to grow at a decent pace. =ut a ma#or portion of this comprises of *offee

'around JCB of the e1ports were that of 5escafe instant to Russia(. This constitutes a big

chunk of the total e1ports to a single location. Historically, Russia has been a very volatile

market for 5estle, and its overall performance takes a hit often due to this factor.

2upply chain8 The *ompany has a comple1 supply chain management and the main issue for

5estle +ndia is traceability. The food industry re!uires high standards of hygiene, !uality of

edible inputs and personnel. The fragmented nature of the +ndian market place complicates

things more.Oppo856ni5i$;'

E1pansion 8 The *ompany has the potential to e1pand to smaller towns and other

geographies. E1isting markets are not fully tapped and the company can increase presence by

penetrating further. @ith +ndiaOs demographic profile changing in favour of the consuming

class, the per capita consumption of most M*I products is likely to grow. 5estle will have

the inherent advantage of this trend.

3roduct offerings8 The *ompany has the option to e1pand its product folio by introducing

more brands which its parents are famed for like breakfast cereals, 2marties *hocolates,

*arnation, etc.

Ilobal hub8 2ince manufacturing of some products is cheaper in +ndia than in other 2outh

East sian countries, 5estle +ndia could become an e1port hub for the parent in certain

product categories.

T?8$a5'*ompetition 8 The *ompany faces immense competition from the organised as well

as the unorganised sectors. 0ff late, to liberalise its trade and investment policies to enable

the country to better function in the globalised economy, the +ndian Iovernment has reduced

the import duty of food segments thus intensifying the battle.

*hanging consumer trends 8 Trend of increased consumer spends on consumer durables

resulting in lower spending on M*I products. +n the past 98; years, the performance of the


41/77

M*I sector has been lacklustre, despite the economy growing at a decent pace. lthough,

off late the situation has been improving, the dependence on monsoon is very high.

2ectoral woes 8 Rising prices of raw materials and fuels, and inturn, increasing packaging and

manufacturing costs. =ut the companies% may not be able to pass on the full burden of these

onto the customers.

NEST#E PRODUCTS


42/77

Milk based products and baby food contributes to >;B of 5estleOs turnover. or ensuring

regular procurement of good !uality milk, 5estle has developed a network around its Moga

factory for collection of fresh milk everyday from the farmers. 5estle has a dominating CB

market share in the baby weaning foods with its *erelac and 5estum brands. +nfant milk

powder is sold under the 6actogen and 5estogen brands. =rand loyalties are very high in

categories such as infant food and weaning cereals, enabling the company to command a

price premium 0ther milk products include dairy whiteners '9B market share( sold under

the EveryDay and Tea Mate brands, sweetened condensed milk and ready to cook mi1es for

traditional +ndian sweets sold under the Milkmaid brand. The company also markets ghee

'JB market share( under the EveryDay brand. 5estle has e1panded its milk product portfolio

with the launch of new dairy products such as ?HT milk, *urd and =utter. Huge investments

are being made in building a diversified dairy business and the distribution infrastructure for

the same. Milk products sales registered a /.JB yoy growth .

The production of infant food goes right back to the origins of the 5estlL *ompany. Henri

5estlLOs Oarine 6actLeO was the first product to bear the 5estlL name.

+n JC a physician persuaded Henri 5estlL to give his product to an infant who was very

ill G he had been born prematurely and was refusing his motherOs milk and all other types of

nourishment. 5estlLOs new food worked, and the boy survived. rom the very beginning,

5estlLOs product was never intended as a competitor for motherOs milk. +n JK, he wrote7

:During the first months, the motherOs milk will always be the most natural nutrient, and

every mother able to do so should herself suckle her children.:

The factors that made baby foods success in the early days of the 5estlL company G !uality

and superior nutritional value G are still as valid today for the wide range of infant formula,

cereals and baby food made by 5estlL. The @orld Health 0rgani)ation '@H0( recogni)es


43/77

that there is a legitimate market for infant formula, when a mother cannot or chooses not to

breast feed her child. 5estlL markets infant formula according to the principles and aims of

the @H0 +nternational *ode of Marketing =reast Milk 2ubstitutes, and seeks dialogue and

cooperation with the international health community and in particular with the @H0 and

?5+*E, to identify problems and their solution. 5estlLOs e1pertise as the worldOs leading

infant food manufacturer, gained over more than 9- years, is put at the disposal of health

authorities, the medical profession and mothers and children everywhere.

C?ocola5$ Con9$c5ion$8:

5estle forayed into chocolates 4 confectionery in KK/ and has cornered a fourth share of the

chocolate market in the country. The category contributes >B to 5estle s turnover. +t hase1panded its products range to all segments of the market The Aitkat brand is the largest

selling chocolate brand in the world. 0ther brands include Milky =ar, Marbles, *runch,

5estle Rich Dark, =ar80ne, Munch etc. The sugar confectionery portfolio consists of 3olo,

2oothers, rootos and Milkybar Eclairs. ll sugar confectionery products are sold under the

umbrella brand llenOs. 5estle has also markets some of its imported brands like


44/77

strong 9.-B yoy growth in 9// aided by good volume growth in Munch, Aitkat and

*lassic sales. 5estle relaunched =ar80ne during the year.

rom the beginning, turning raw, bitter cocoa beans into what one Cth century writer called

:the only true food of the gods: has been a fine art, a delicate mi1ture of alchemy and

science.

Ic$ C8$a7

There are many myths and stories as to the invention of ice cream7 was it Marco 3olo who

brought it back from *hina 'along with pasta(F 3robably not, considering the most likely

never visited *hina.

The story of its popularity is however connected with the invention of technology to make it

on an industrial scale, and to keep it cold once made. =efore refrigeration techni!ues, food

was fro)en with the aid of ice, mi1ed with salt, which was either stored in ice houses or

shipped from cold countries. =ut then at the end of the Kth century, both making and

free)ing it became easier, and together with the invention of the ice cream cone, made the

product boom.

Today, the ?nited 2tates is the absolute leader in terms of volume consumed, but the highest

per head consumers are in 5ew Qealand. lavours youOd never have thought of and yet theyOre

commercially available7

2orbets 8 2moked 2almon, Tomato, *ucumber

+ce *reams 8 Iarlic, vocado, 2weet corn.


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The ice cream cone is the most environmentally friendly form of packaging. 2yrian from

Damascus, Ernest E Hamwi is credited with its invention. pparently, during the K/> 2t

6ouis @orldOs air, his waffle booth was ne1t to an ice cream vendor who ran short of dishes.Hamwi rolled a waffle to contain ice cream and the cone was born.

P8$pa8$d Food;

*onvenience foods G packaged soups, fro)en meals, prepared sauces and flavorings Gdate

back more than a century. @ith the +ndustrial Revolution came factory #obs for women and

less time to prepare meals.

The problem was so widespread that it became the ob#ect of intense study in 9 by the

2wiss 3ublic @elfare 2ociety, which offered a series of recommendations, including an

increase in the consumption of vegetables.

The 2ociety commissioned ulius Maggi, a miller with a reputation as an inventive and

capable businessman, to create a vegetable food product that would be !uick to prepare and

easy to digest. The results G two instant pea soups and an instant bean soup G helped launch

one of the best known brands in the history of the food industry. =y the turn of the century,

Maggi 4 *ompany was producing not only powdered soups, but bouillon cubes, sauces and

flavorings.


46/77

Maggi merged with 5estlL in K>C. =uitoni, the authentic +talian brand, which has been

producing pasta and sauces in +taly since 9C, became part of the 5estlL Iroup in K.

B$$8a$;

=everages like coffee, tea and health drinks contribute to about ;/B of 5estle s turnover.

=everage sales registered a -B yoy growth . @hile about >B of sales come from

=everages domestic market, e1ports contribute to about JB of sales. 5estleOs 5escafe

dominates the premium instant coffee segment. 5estle s other coffee brand S6n8i;$ has also

been relaunched under the 5escafe franchise to leverage on the e1isting e!uity of the brand.

5estle has focused on e1panding the domestic market through price cuts and product

repositioning. However it has been losing share in the domestic market, where it has a ;CB

market share. Milo, a brown8malted beverage was launched in KKJ. +t has an estimated

volume share of about ;B in the malted food drink segment. 5estle has launched

noncarbonated cold beverages such as 5estea +ced Tea and 5escafe rappe during 9//.

5estle is one of the larges coffee e1porter in the country. Aey e1port market is Russia,

besides Hungary, 3oland and Taiwan.

5estlL%s 5escafe dominates the premium instant coffee segment. 5estle%s other coffee brand

2unrise has also been relaunched under the 5escafe franchise to leverage on the e1istinge!uity of the brand. 5estle has focused on e1panding the domestic market through price cuts


47/77

and product repositioning. However it has been losing share in the domestic market, where it

has a ;CB market share. Milo, a brown8malted beverage was launched in KKJ. +t has an

estimated volume share of about ;B in the malted food drink segment. 5estle has launched

non8carbonated cold beverages such as 5estea +ced Tea and 5escafe rappe during 9//.

5estle is one of the largest coffee e1porter in the country. Aey e1port market is Russia,

besides Hungary, 3oland and Taiwan.


48/77

Ti7$lin$; 9o8 la6nc?$;

1200 oundation of nglo82wiss *ondensed Milk *o.

120 Henry 5estlLOs +nfant cereal developed

134, 5estlL and nglo 2wiss *ondensed Milk *o. 'new name after merger(13(3 Merger with 3eter, *ailler, Aohler *hocolates 2uisses 2..

13*+ 6aunch of Milo

13*2 6aunch of 5escafL

13+ 5estlL limentana 2.. 'new name after merger with Maggi(

13+2 6aunch of 5estea and 5es!uik

1303 Nittel 'initially e!uity interest only(

131 Merger with ?rsina8ranck

13* 2touffer 'with 6ean *uisine(

13+ 6O0rLal 'associate(

13 5estlL 2.. 'new company name(

lcon '9//97 partial +30 9//7 partial sale(1321 Ialderma '#oint venture with 6O0rLal(

132, *arnation 'with *offee8mate and riskies(

1320 *reation of 5estlL 5espresso 2..

1322 =uitoni83erugina, Rowntree 'with AitAat(

1334 *ereal 3artners @orldwide '#oint venture with Ieneral Mills(

1331 =everage 3artners @orldwide '#oint venture with *oca8*ola(

133( 3errier 'with 3oland 2pring(

133* *reation of 5estlL 2ources +nternationals '9//97 5estlL @aters(

133 *reation of 5utrition 2trategic =usiness Division '9//J7 5estlL 5utrition(

1332 2an 3ellegrino and 2pillers 3etfoods6aunch of 5estlL 3ure 6ife

(444 3ower=ar

(441 Ralston 3urina

(44( 2chller and *hef merica

Dairy 3artners mericas '#oint venture with onterra(

6aboratoires innLov '#oint venture with 6O0rLal(

(44* Mvenpick and DreyerOs

(44, @agner, 3rotLika and Musashi

(440*reation of ood2ervices 2trategic =usiness Division '9//K7 5estlL

3rofessional(6actalis 5estlL 3roduits rais 'associate(

enny *raig, ?ncle Tobys and Delta +ce *ream

(44 5ovartis Medical 5utrition, Ierber and Hennie)

(443 Nitality =everage business

(414 Araft 3i))a


49/77

COMPETITI!E ANA#YSIS

*ompetitive analysis, as the name implies, is an e1ploration of the companies in a

given industry sector or market niche that are competing with your company s products or

services for market share. The analysis may be an in8depth e1ploration of the top five

competitors, or a larger number of competitors could be e1amined 'typically with less depth

in the analysis(. +n most cases, the client will have identified the target competitors for you.

@hile this pro#ect focuses on competitive analysis in the for8profit arena, it is worth noting

that non8profit organi)ations can benefit e!ually from this analysis 'which they might term a

comparative analysis, if they viewed the other organi)ations as working toward a common

goal with them(.

Und$8;5and 5?$ co7p$5i5ion

The primary benefits of any competitive analysis are a better understanding of what

your competitors are doing, what they are offering to customers, and how to maintain your

competitive advantage. The findings from this analysis are likely to factor strongly into your

own company s strategic planning. However, this is definitely not the only take8away from

the process of analy)ing competitors. The analysis offers information about content and

functionality that they have probably not considered. This is especially true for newcomers to

your industry and should be fairly common not everyone will be a sub#ect matter e1pert.

6ooking longer8term, this educational process benefits not only the current pro#ect, but also

any future pro#ect in that same industry.


50/77

CHAPTER + DATA ANA#YSIS INTERPRETATION


51/77

1. I; ca8$$8 plannin and d$$lop7$n5 n$c$;;a8: 9o8 $ac? $7plo:$$

N$c$;;i5: o9 ca8$$8 plannin and d$$lop7$n5

INTREPRETATION'

ll employees feel that career planning and development is necessary factor for their growth.

S.NO PARTICU#ARS FREUENCY PERCENTA"E >)

SE2 -/ //

92 50 / /


52/77

(. Do$; ca8$$8 plannin and d$$lop7$n5 $Gi;5 in :o68 o8ania5ion

EGi;5$nc$ o9 Ca8$$8 plannin and d$$lop7$n5

INTREPRETATION'

K/B accepted that there is a career development in the organi)ation. @hile others felt that

there is no career development in the organi)ation

*. A5 w?a5 ;5a$ :o6 plan :o68 ca8$$8

S.NO PARTICU#ARS FREUENCY PERCENTA"E

. SE2 >- K/

9. 50 /- /


53/77


. E360RT0RS / 9/

9. E2T=6+2HME5T / 9/

;. M+D8*REER 9 >9>. 6TE8*REER C >

-. DE*6+5+2T+05 9 >

S5a$ o9 plannin ca8$$8

INTREPRETATION'

Most of the employees plan their career in the mid8career and establishment, least of them

plan their career in the declining stage.

+. In w?ic? a8$a :o6 plan 5o i7p8o$ :o68 ca8$$8


1. Sa7$ a8$a o9 wo8@ 1, *4

(. Mo8$ ;p$ciali$d a8$a *4 04

*. C8o;; 96nc5ional 4, 14


54/77

A8$a o9 plannin 5o i7p8o$ ca8$$8

INTERPRETATION'

6east of the employees plan to improve their career in the cross functional.

,. ?a5 @ind o9 oal :o6 ;$5 9o8 :o68 ca8$$8 plannin and d$$lop7$n5

S.NO PARTICU#ARS FREUENCY PERCENTA"E1. F6nc5ional 4, 14


55/77

(. P8o$c5 4, 14

*. S$l9 d$$lop7$n5 14 (4

+. All 5?$ abo$ *4 04

%ind o9 oal ;$55in

INTERPRETATION'

Mostly all the employees set their goal in all the three areas i.e unctional, 3ro#ect, and 2elf

Development area for their career planning and development.

0. A8$ R$i$w; 5a@$n in :o68 o8ania5ion ?$lp96l 5o :o6


1. Mo;5 o9 5?$ 5i7$; *4 04

(. Onl: 9$w 5i7$; 1* (0

*. !$8: 9$w 5i7$; , 14+. N$$8 ( +


56/77

T?$ ?$lp96ln$;; o9 8$i$w; in 5?$ o8ani;a5ion

INTERPRETATION'

Most of the times reviews taken are helpful in 5E2T6E.

. o6ld :o6 li@$ 5o ?a$ 7on5?l: o8 J6a85$8l: 8$i$w;


1. MONTH#Y 1, *4

(. UARTER#Y *, 4


57/77

T:p$; o9 8$i$w;

INTERPRETATION'


58/77

Con;id$8a5ion o9 :o68 9$$dbac@

INTERPRETATION'

Employee%s feedback and needs are taken into consideration by the higher authority.

3. I; :o68 ca8$$8 a;pi8a5ion ?$lp96l 9o8 ca8$$8 plannin and d$$lop7$n5

S.NO PARTICUA#RS FREUENCY PERCENTA"E1. YES ,4 144

(. NO 4 4


59/77

T?$ ?$lp96ln$;; o9 ca8$$8 a;pi8a5ion

INTERPRETATION' Mo;5l: the career aspiration of the employee is helpful for career

planning and development

14. Ha$ :o6 b$$n i$n oppo856ni5: 5o di;c6;; and cla8i9: 8$a8din

d$$lop7$n5 and 58ainin n$$d;


1. YES ** 00

(. NO 1 *+


60/77

Oppo856ni5: 5o di;c6;; cla8i9:

INTERPRETATION'

Ses most of the employees are given opportunity to discuss.

11. ?a5 @ind o9 58ainin p8o8a7 :o6 8$J6i8$ 9o8 :o68 ca8$$8 plannin and

D$$lop7$n5

S.NO Pa85ic6la8; F8$J6$nc: P$8c$n5a$

1 B$?aio8al 14 (4

( T$c?nical ( +

* All 5?$ abo$ *2 0


61/77

%ind o9 58ainin p8o8a77$

INTERPRETATION'

Employeesneed both behavioral and technical type of training program

1(. ?a5 i; 5?$ i7pac5 o9 58ainin p8o8a7 cond6c5$d b: o8ania5ion

S.NO PARTICU#ARS FREUENCY PERCENTA"E>)

1. I7p8o$7$n5 in 5$c?nical ;@ill; (2 ,0

(. I7p8o$7$n5 in b$?aio8al ;@ill; 14 (4

*. ?$lp96l in ac?i$in oal; 14 (4

+. No5 76c? ?$lp96l ( +


62/77

I7pac5 o9 58ainin p8o8a77$

INTERPRETATION'

Mostly there is an improvement in the technical skills and training program helped them to

achieve their goals.

1*. I9 5?$8$ i; i7p8o$7$n5 b: 5?$ 58ainin p8o8a7 5?$n w?a5 i; :o68 ac5ion plan

S.NO Pa85ic6la8; F8$J6$nc: P$8c$n5a$>)

1. Ba;$d on oppo856ni5i$; I $5 (* +0

(. To $Gc$l on 7: own (4 +4

*. Ac5ion plan ;$5 b: ;6p$8io8 1+


63/77

Ac5ion plan

INTERPRETATION'

?sually based on the opportunities the action plan will be set.

1+. I; 5?$ ac5ion plan ;$5 b: :o6 i; 8$all: ?$lp96l 5o :o6 in ca8$$8 d$$lop7$n5


1. YES +( 2+

(. NO 2 10

H$lp96ln$;; o9 ac5ion plan


64/77

INTERPRETATION'

The action plan set by the employee is very much helpful in their career development.

1,. I; ac5ion plan ;$5 b: :o68 ;6p$8io8 i; 8$all: ?$lp96l in :o68 ca8$$8 d$$lop7$n5


1. YES * +(. NO 1* (0

H$lp96ln$;; o9 ;6p$8io8; Ac5ion plan


65/77

INTERPRETATION'

C>B of the action plan set by their superiors is helpful in setting their career plan.

10. Do$; d$$lop7$n5 plan ;$5 b: :o6 7a5c? wi5? :o68 ca8$$8 a;pi8a5ion


1. YES +( 2+

(. NO 2 10

D$$lop7$n5 plan ;$55in


66/77

INTERPRETATION'

>B of the development set by the employee matches their career aspiration.

1. Do :o6 $5 ;6ppo85 and 7o5ia5ion 98o7 :o68 ;6p$8io8 and coll$a6$; 5o p65

:o68 ca8$$8 plan in5o ac5ion


1. All 5?$ 5i7$ 14 (4

(. F8$J6$n5l: 2 10

*. Ra8$l: *4 04

+. N$$8 ( +

R$la5ion wi5? ;6p$8i;o8


67/77

INTERPRETATION'

Rarely employees get their superiors support and motivation from their superiors to put their

career plan into action.

12. In w?a5 wa: :o6 acc$p5 5?$ 9$$dbac@ i$n b: :o68 ;6p$8io8

S.NO PARTICU#ARS FREUENCY PERCENTA"E >)

1. All 5?$ 5i7$ po;i5i$ 1, *4

(. Mo;5 o9 5?$ 5i7$ po;i5i$ 12 *0

*. ?al9 5?$ 5i7$ po;i5i$ 14 (4

+. Occa;ionall: po;i5i$ , 14

,. N$$8 po;i5i$ ( +

F$$dbac@ i$n b: ;6p$8io8

INTERPRETATION'


68/77

Most of the time the feedback given by their superiors is accepted positively.

CHAPTER0

FINDIN"S SU""ESTIONS

CONC#USION


69/77

FINDIN"S OF THE STUDY

Ma#ority of the employees feel that career planning and development is a neccessary

factor for their growth.

Most of the employees plan to improve their career in the more speciali)ed area.

+n general there is a positive trend towards the career planning and development.

Employees are moderately satisfied with career planning and development program in

the organi)ation.

Rarely employees get their superiors support and motivation from their superiors to

put their career plan into action.

The action plan set by the employee is very much helpful in their career development.

Mostly there is an improvement in the technical skills and training program helped

them to achieve their goals.

Employeesneed both behavioral and technical type of training program


70/77

SU""ESTIONS

The needs of career must link to the need with the intervention, an ideal career

development known as the N+2+05, the need of intervention. n action plan should be formulated in an order to achieve the vision.

*areer development program should be integrated with an organi)ation ongoing

employee training and management development program.

+t should be evaluated from time to time in order to review the program.

E1amine the individual self setting techni!ues and opportunities for improving.

Mostly employee lack information about career choices and opportunities, identify the

career path.

+nformation should be made available all employee concern.

*ompetency based training are best for career development.


71/77

CONC#USION

*areer planning and development programs as we find from the study plays crucial

role in employee as well as organi)ations development. *areer planning is an integral part of

every organi)ation. +t motivates and inspires employees to work harder and keeps them loyal

towards the organi)ation. *areer planning helps an employee know the career opportunities

available in organi)ation. This knowledge enables the employee to select the career most

suitable to his potential and this helps to improve employee%s morale and productivity. 0n

the basis !uestionnaire .+t was also found that promotion is the ma#or reason that sticks them

with the current #ob. Employees also prefer sound recognisation as well as proper training.

2o for conclusion, the ob#ectives of the study, to get the overall knowledge about

actually what the career planning and development is, the scope of such programs in the

telecom industry are ade!uately fulfilled. nd study concludes that in telecom industry

because of its monotonous task and due to tough pressure as well as more stress and

frustration, need to be handling the careers of most valuable asset that is the 3eople.

*onclusively that was worthwhile to choose such topic as pro#ect, which is not only

important for an employee and employer. =ut for the researcher also to select the career, a in

particular line and may be a particular industry in which one wants to make the career and getenough chances of advancement in career.


72/77

BIB#IO"RAPHY


73/77

BOO%S

A. swathappa, Human resource and 3ersonnel Management, TMH, >thedition.

2ubba Rao, Human Resource Management H3H, ; rdedition.

N 2 3 Rao, Human Resource Management, E1cel, 9ndedition.

* 2 Nenkataratnam, Management of +ndustrial Relation, 01ford ?niversity

press, >thedition.

OURNA#S AND MA"A&INES

. =usiness line

9. =usiness Today

;. =usiness @orld

>. The Economic Times

N$w; pap$8;

T?$ Hind6, 3ublished by 5. Ram at *hennai and printed by 3. Ranga Reddy at 3lot

5o.Q8J to , +DE ?ppal, Hyderabad -// //C on behalf of Aasturi4 2ons 6td.,

*hennai J// //9. Editor8in8*hief7 5. Ram 'Editors responsible for selection of 5ews

under the 3ress Regulation =oard '3R=( ct. www.the Hindu .com

T?$ Econo7ic; Ti7$;, 3ublished by nil Aumar for the proprietors =ennett,

*oleman 4 *o. 6td at Times House, 898;-, Road 5o. ;, =an#ara Hills, Hyderabad

-// /;>, 3h7 9;;--;;-, a17 />/89;9->>//, 3rinted at Times 3ress, 3lot 5o. -,

Road 5o., +D, 5acharam, Hyderabad -// /CJ. www. .the economics times.com

EBSITES

www.nestle.co.in

www.chrome.com

www.businessweek.com

www.topresult.com

www.pepitone.com
http://www.nestle.co.in/http://www.chrome.com/http://www.businessweek.com/http://www.topresult.com/http://www.pepitone.com/http://www.nestle.co.in/http://www.chrome.com/http://www.businessweek.com/http://www.topresult.com/http://www.pepitone.com/


74/77

ANNE/URE


75/77

UESTIONNAIRE

1. I; ca8$$8 plannin and d$$lop7$n5 n$c$;;a8: 9o8 $ac? $7plo:$$ > )

1 .Y$; (. No

(. Do$; ca8$$8 plannin and d$$lop7$n5 $Gi;5 in :o68 o8ania5ion > )

1 .Y$; (. No

*. A5 w?a5 ;5a$ :o6 plan :o68 ca8$$8 > )

1. EGplo8a5o8: (.E;5abli;?7$n5

*. MidCa8$$8 +.#a5$Ca8$$8

+. ?a5 a8$a :o6 plan 5o i7p8o$ 9o8 :o68 ca8$$8 > )

a) Sa7$ a8$a o9 wo8@

b) Mo8$ ;p$ciali$d a8$a

c) C8o;; 96nc5ional

,. ?a5 @ind o9 oal :o6 ;$5 9o8 :o68 ca8$$8 plannin and d$$lop7$n5> )

1. F6nc5ional (. P8o$c5

*. S$l9 d$$lop7$n5 +. All 5?$ abo$

0. R$i$w; 5a@$n in :o68 o8ania5ion a8$ 5?$: ?$lp96l 5o :o6 > )

1. Mo;5 o9 5?$ 5i7$; (. Onl: 9$w 5i7$;

*. !$8: 9$w 5i7$; +. N$$8

. o6ld :o6 li@$ 5o ?a$ 7on5?l: o8 J6a85$8l: 8$i$w; > )

1.MONTH#Y (. UARTER#Y

2. I; :o68 9$$dbac@ and n$$d; 5a@$n in5o con;id$8a5ion > )

1. YES (. NO


76/77

3. I; :o68 ca8$$8 a;pi8a5ion ?$lp96l 9o8 ca8$$8 plannin and d$$lop7$n5

> )

1. YES (. NO

14. Ha$ :o6 b$$n i$n oppo856ni5: 5o di;c6;; and cla8i9: 8$a8din d$$lop7$n5 and

58ainin n$$d; > )

1. YES (. NO

11. ?a5 @ind o9 58ainin p8o8a7 :o6 8$J6i8$ 9o8 :o68 ca8$$8 plannin and

d$$lop7$n5 > )

1. B$?aio8al

(. B$?aio8al

*. All 5?$ abo$

1(. ?a5 i; 5?$ i7pac5 o9 58ainin p8o8a7 cond6c5$d b: o8ania5ion > )

1. I7p8o$7$n5 in 5$c?nical ;@ill; (. I7p8o$7$n5 in b$?aio8al ;@ill;

*. H$lp96l in ac?i$in oal; +. No5 76c? ?$lp96l

1*. I9 5?$8$ i; i7p8o$7$n5 b: 5?$ 58ainin p8o8a7 5?$n w?a5 i; :o68 ac5ion plan

> )

1. Ba;$d on oppo856ni5i$; I $5

(. To $Gc$l on 7: own

*. Ac5ion plan ;$5 b: ;6p$8io8

1+. I; 5?$ ac5ion plan ;$5 b: :o6 i; 8$all: ?$lp96l 5o :o6 in ca8$$8 d$$lop7$n5

> )

1. YES (. NO


77/77

1,. I; ac5ion plan ;$5 b: :o68 ;6p$8io8 i; 8$all: ?$lp96l in :o68 ca8$$8 d$$lop7$n5

> )

1. YES (. NO

10. Do$; d$$lop7$n5 plan ;$5 b: :o6 7a5c? wi5? :o68 ca8$$8 a;pi8a5ion

> )

1. YES (. NO

1. Do :o6 $5 ;6ppo85 and 7o5ia5ion 98o7 :o68 ;6p$8io8 and coll$a6$; 5o p65

:o68 ca8$$8 plan in5o ac5ion > )

1. All 5?$ 5i7$

(. F8$J6$n5l:

*. Ra8$l:

+. N$$8

12. In w?a5 wa: :o6 acc$p5 5?$ 9$$dbac@ i$n b: :o68 ;6p$8io8> )

1.All 5?$ 5i7$ po;i5i$

(. Mo;5 o9 5?$ 5i7$ po;i5i$

*. Hal9 5?$ 5i7$ po;i5i$

+. Occa;ionall: po;i5i$

,. N$$8 po;i5i$

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