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Case Study of Nestle: Training and Development

Nestle is world’s leading food company, with a 135-year history and operations in virtually every country in the world. Nestle’s principal assets are not office buildings, factories, or even brands. Rather, it is the fact that they are a global organization comprised of many nationalities, religions, and ethnic backgrounds all working together in one single unifying corporate culture .

Culture at Nestle and Human Resources Policy

Nestle culture unifies people on all continents. The most important parts of Nestle’s business strategy and culture are the development of human capacity in each country where they operate. Learning is an integral part of Nestle’s culture. This is firmly stated in The Nestle Human Resources Policy, a totally new policy that encompasses the guidelines that constitute a sound basis for efficient and effective human resource management . People development is the driving force of the policy, which includes clear principles on non-discrimination, the right of collective bargaining as well as the strict prohibition of any form of harassment. The policy deals with recruitment , remuneration and training and development and emphasizes individual responsibility, strong leadership and a commitment to life-long learning as required characteristics for Nestle managers.

Training Programs at Nestle

The willingness to learn is therefore an essential condition to be employed by Nestle. First and foremost, training is done on-the-job. Guiding and coaching is part of the responsibility of each manager and is crucial to make each one progress in his/her position. Formal training programs are generally purpose-oriented and designed to improve relevant skills and competencies . Therefore they are proposed in the framework of individual development programs and not as a reward.

Literacy Training

Most of Nestle’s people development programs assume a good basic education on the part of employees. However, in a number of countries, we have decided to offer employees the opportunity to upgrade their essential literacy skills. A number of Nestle companies have therefore set up special programs for those who, for one reason or another, missed a large part of their elementary schooling.

These programs are especially important as they introduce increasingly sophisticated production techniques into each country where they operate. As the level of technology in Nestle factories has steadily risen, the need for training has increased at all levels. Much of this is on-the-job training to develop the specific skills to operate more advanced equipment. But it’s not only new technical abilities that are required. It’s sometimes new working practices. For example, more flexibility and more independence among work teams are sometimes needed if equipment is to operate at maximum efficiency .

“Sometimes we have debates in class and we are afraid to stand up. But our facilitators tell us to stand up because one day we might be in the parliament!” (Maria Modiba, Production line worker, Babelegi factory, Nestle South Africa).

Nestle Apprenticeship Program

Apprenticeship programs have been an essential part of Nestle training where the young trainees spent three days a week at work and two at school. Positive results observed but some of these soon ran into a problem. At the end of training, many students were hired away by other companies which provided no training of their own.

“My two elder brothers worked here before me. Like them, for me the Nestle Apprenticeship Program in Nigeria will not be the end of my training but it will provide me with the right base for further advancement. We should have more apprentices here as we are trained so well!” (John Edobor Eghoghon, Apprentice Mechanic, Agbara Factory, Nestle Nigeria) (adsbygoogle = window.adsbygoogle || []).push({}); “It’s not only a matter of learning bakery; we also learn about microbiology, finance, budgeting, costs, sales, how to treat the customer, and so on. That is the reason I think that this is really something that is going to give meaning to my life. It will be very useful for everything.” (Jair Andres Santa, Apprentice Baker, La Rosa Factory Dosquebradas, Nestle Columbia).

Local Training

Two-thirds of all Nestle employees work in factories, most of which organize continuous training to meet their specific needs. In addition, a number of Nestle operating companies run their own residential training centers. The result is that local training is the largest component of Nestle’s people development activities worldwide and a substantial majority of the company’s 240000 employees receive training every year. Ensuring appropriate and continuous training is an official part of every manager’s responsibilities and, in many cases; the manager is personally involved in the teaching. For this reason, part of the training structure in every company is focused on developing managers own coaching skills. Additional courses are held outside the factory when required, generally in connection with the operation of new technology.

The variety of programs is very extensive. They start with continuation training for ex-apprentices who have the potential to become supervisors or section leaders, and continue through several levels of technical, electrical and maintenance engineering as well as IT management. The degree to which factories develop “home-grown” specialists varies considerably, reflecting the availability of trained people on the job market in each country. On-the-job training is also a key element of career development in commercial and administrative positions. Here too, most courses are delivered in-house by Nestle trainers but, as the level rises, collaboration with external institutes increases.

“As part of the Young Managers’ Training Program I was sent to a different part of the country and began by selling small portions of our Maggi bouillon cubes to the street stalls, the ‘sari sari’ stores, in my country. Even though most of my main key accounts are now supermarkets, this early exposure were an invaluable learning experience and will help me all my life.” (Diane Jennifer Zabala, Key Account Specialist, Sales, Nestle Philippines). “Through its education and training program, Nestle manifests its belief that people are the most important asset. In my case, I was fortunate to participate in Nestle’s Young Managers Program at the start of my Nestle career, in 1967. This foundation has sustained me all these years up to my present position of CEO of one of the top 12 Nestle companies in the world.” (Juan Santos, CEO, Nestle Philippines)

Virtually every national Nestle company organizes management-training courses for new employees with High school or university qualifications. But their approaches vary considerably. In Japan, for example, they consist of a series of short courses typically lasting three days each. Subjects include human assessment skills, leadership and strategy as well as courses for new supervisors and new key staff. In Mexico, Nestle set up a national training center in 1965. In addition to those following regular training programs, some 100 people follow programs for young managers there every year. These are based on a series of modules that allows tailored courses to be offered to each participant. Nestle India runs 12-month programs for management trainees in sales and marketing, finance and human resources, as well as in milk collection and agricultural services. These involve periods of fieldwork, not only to develop a broad range of skills but also to introduce new employees to company organization and systems. The scope of local training is expanding. The growing familiarity with information technology has enabled “distance learning” to become a valuable resource, and many Nestle companies have appointed corporate training assistants in this area. It has the great advantage of allowing students to select courses that meet their individual needs and do the work at their own pace, at convenient times. In Singapore, to quote just one example, staff is given financial help to take evening courses in job-related subjects. Fees and expenses are reimbursed for successfully following courses leading to a trade certificate, a high school diploma, university entrance qualifications, and a bachelor’s degree.

International Training

Nestle’s success in growing local companies in each country has been highly influenced by the functioning of its International Training Centre, located near company’s corporate headquarters in Switzerland. For over 30 years, the Rive-Reine International Training Centre has brought together managers from around the world to learn from senior Nestle managers and from each other.Country managers decide who attends which course, although there is central screening for qualifications, and classes are carefully composed to include people with a range of geographic and functional backgrounds. Typically a class contains 15—20 nationalities. The Centre delivers some 70 courses, attended by about 1700 managers each year from over 80 countries. All course leaders are Nestle managers with many years of experience in a range of countries. Only 25% of the teaching is done by outside professionals, as the primary faculty is the Nestle senior management. The programs can be broadly divided into two groups:

• Management courses: these account for about 66% of all courses at Rive-Reine. The participants have typically been with the company for four to five years. The intention is to develop a real appreciation of Nestle values and business approaches. These courses focus on internal activities.
• Executive courses: these classes often contain people who have attended a management course five to ten years earlier. The focus is on developing the ability to represent Nestle externally and to work with outsiders. It emphasizes industry analysis, often asking: “What would you do if you were a competitor?”

Nestle’s overarching principle is that each employee should have the opportunity to develop to the maximum of his or her potential. Nestle do this because they believe it pays off in the long run in their business results, and that sustainable long-term relationships with highly competent people and with the communities where they operate enhance their ability to make consistent profits. It is important to give people the opportunities for life-long learning as at Nestle that all employees are called upon to upgrade their skills in a fast-changing world. By offering opportunities to develop , they not only enrich themselves as a company, they also make themselves individually more autonomous, confident, and, in turn, more employable and open to new positions within the company. Enhancing this virtuous circle is the ultimate goal of their training efforts at many different levels through the thousands of training programs they run each year.

External Links:

• Employee and Career Development (Nestle Global)

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• Training and Development – Meaning, Definition and Need
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Connect with us, the nestlé academy: a blueprint for a strengths-based learning experience.

by HRD Connect | Case Studies

• Date published: Jul 17, 2023
• Talent Development

Corporate learning has shifted from the traditional and static brick-and-mortar academy model , reflected in a new generation of commercially available learning platforms: “There’s a new breed of platforms focused in this area, and I call them Capability Academy systems ,” explains Josh Bersin . Moreover, many organizations are now upgrading their corporate academy to reflect the changing expectations of workers.

Employees now expect learning-centric programs that offer a diverse range of content. Organizations such as Nestlé are evolving their academies to create an on-demand, skills-based, or strengths-based learning experience. The UK division of the world’s largest food and beverage company formed The Nestlé Academy in 2011. In the past twelve years, the Academy has continually evolved to better achieve its core objective: Building the skills and strengths of its people for the future.

The current Head of the Nestlé Academy, Evelyn Bate, speaks to HRD to explore the evolution of the program and how it has become a driving force for employee engagement , retention , and inclusion.

The Nestlé Academy: A future-focused talent solution

Each year in October, Nestlé opens applications to hire graduates, apprentices, and interns at sites in the UK and Ireland across job roles in product development, marketing, and more. Nestlé enrolls these hires in the Academy to help each employee gain momentum with upskilling . But each stream of talent also offers a long-term solution to skills-based hiring. Bate describes how the Academy meets business needs

“I speak to each department across the organization to understand what is happening in their area from a skills perspective. What challenges are you having in terms of developing, retaining, or recruiting a skill? Based on our business direction, what skills might you need in the future? And how can the Academy help you build those skills?

“The Academy is one stream in our overall talent strategy which looks to build the skills and capabilities that we require for our business now and for the future.”

From Bate’s conversations with peers across the business, the Academy forms demand signals that translate to job requisitions. Historically, Bate admits, this has been through bringing in new talent. “But we’re now trying to build and bring upskilling into the conversation,” she explains.

An academy built on strengths-based hiring

Whether candidates are part of the Graduate Scheme, Apprenticeship, or Internship and Placement tracks, they follow the same hiring process. Further to conversations with hiring managers about job-specific skills, Bate and her team have also conducted organization-wide research to understand the attributes and skills applicants would need to thrive in the Nestlé business. Accordingly, the team developed a strengths-based assessment that scores candidates on resilience, adaptability, drive, learning agility, collaboration, accountability, and integrity. “We assess these skills in three stages during an online assessment, and then in an assessment center. But it’s all strengths-based,” Bate adds.

“We don’t use competency-based recruitment in this case because the predominant focus of our Academy is early careers. From an inclusivity perspective, we want people to bring in their natural strengths.”

Impact on diversity and inclusion

The Academy has served as a driving force for the DE&I agenda at Nestlé. “We’ve seen real success in attracting diverse talent to apply to our schemes and bringing them into the organization,” Bate notes. The statistics from the most recent cohort to complete the program, in 2021-2022 reflect this assessment. There has been a three-fold increase in candidates from an ethnically diverse background and a doubling of offers to candidates from a low social mobility background.

Graduate schemes

The Nestlé Academy hires roughly 30 candidates per year into its graduate program. Support for each graduate begins, explains Bate, from the offer stage. “They would get feedback in terms of their assessment center. Where we saw strengths and opportunity areas.”

Each division also has a graduate champion. The graduate champion contacts the graduates to set up a support network from the point of offer to when they join. Moreover, Nestlé sets up a Facebook group to interact with graduates, conducts monthly calls, and runs a welcome day before they join the business. Upon starting their role, graduates go through an induction period with a mixture of face-to-face and virtual sessions.

Beyond these initial touchpoints, Nestlé has created a structured development program that lasts two years. It puts graduates through six modules across this period as part of a cohort that becomes a support network. “Interestingly, the first module we put them through is all about leading themselves,” notes Bate. “It’s about helping them understand who they are, both at home and in their role at work, and what they want from a career.” This initial module forms a learning contract that guides them through their graduate program and beyond.

Bate also notes the third module that graduates experience, which focuses on working with others. “We use a profiling tool to understand how they interact with others and what their natural preferences are. It covers emotional intelligence, coaching, and influencing. We also get them involved in community activity and volunteering.”

Nestlé augments this structured support with individualized and relevant functional development based on the individual’s role, alongside their learning contract.

Apprenticeships

Since it formed the Academy in 2011, Nestlé has supported 602 apprenticeships in the UK. It hires apprentices into roles including in engineering and manufacturing. In recent years, it has placed an increased focus on the importance of hiring and upskilling apprentices. Identical to the graduate program, the Academy aims to help each apprentice understand their current strength and skillset, and what they need to learn whilst on the program. Bate discusses the support network around each apprentice:

“They work alongside people in their function, including the champion, to develop their knowledge, skills, and behaviors. They also have a buddy. There’s a huge amount of training on offer from technical skills to soft skills, as well as third-party training including on mental health.

“We want to make sure our Chartered Manager Degree Apprenticeship (CMDA) program is brought to life. We want to give them a clear picture of the reality of business. If it’s a module that talks about sustainability, we’ll use an expert from our business to talk about the sustainability story. We’re trying to avoid it becoming purely theoretical.”

Impact on The Nestlé Academy

The apprenticeship scheme has yielded some outstanding results. One of the first CMDA-qualified apprentices has now been in the business for nine years. “She emphasizes the career acceleration, speed of progression, and the immediate level of responsibility,” Bate shares.

In the Chartered Manager Degree Apprenticeship (CMDA) program, apprentices rotate across different functions including supply chain, sales, and marketing, thereby increasing their opportunity for internal mobility. Bate also shares the experience of someone who has taken part in an upskill apprenticeship within learning and development.

“She’s truly developed the expertise within her current role. It’s given her more confidence and the ability to challenge her peers more effectively. She’s an expert in the field she is in. But she’s also able to share that learning across the team, so the benefits aren’t just for the individual.”

The increased focus on apprenticeship schemes has enhanced the accessibility of a viable career path for applicants of all backgrounds. By focusing on removing as many barriers to entry as possible, Nestlé has created a structured program that helps not only achieve aims for diversity but fosters inclusion through a supported and long-term career path.

Internships and T-Level placements

Each Summer, Nestlé runs an internship scheme runs for ten weeks. It also runs year-long placements as part of degree programs. If a candidate is successful in the internship or placement, Nestlé aims to enroll them into the graduate program for the following year. “They would secure a great opportunity, and we know we’re hiring someone with an experience and understanding of Nestlé,” explains Bate. The interns and placement participants benefit from the same onboarding program and development material as the graduates and apprentices.

T-Level placements are a part of T-Level training courses that require participants to complete a minimum of 45 days working in industry. Targeted at 16-19-year-olds, they represent another opportunity to access skills for the organization.

“T-Level training courses are a low-risk way to support someone. Although we’re just dipping our toe in the water, in the future, we hope to use T-Level placements as a possible pipeline for apprenticeship programs.

“They give a meaningful experience for someone who delivers something back to the business. Participants have been very positive about the experience and impact they had, and how supportive their line manager was.”

The future of Nestlé’s corporate Academy

Despite over twelve years of outstanding progress, Bate is keen to ensure continuous improvement to the Nestlé Academy.

“Firstly, and most importantly, we must make sure we anchor what we do back to business needs. We have to demonstrate the impact it is having. Are we delivering what we set out to do?

“Secondly, we want to continue to have DE&I at the heart of everything we do. Over the past three to four years, we’ve tried to improve the accessibility and inclusivity of the Academy. We’ll continue to build that work. It’s not just about retention or promotions, it’s about the diversity of perspective, opinion, and thinking that people bring.”

By creating an accessible, on-demand, and inclusive corporate Academy, Nestlé is building an institution that is adapting to the needs of the modern workforce. It is proof that investing in a long-term solution to talent management is the future of corporate talent academies and employee development.

_______________

Learn more about the training and education schemes used by Nestlé

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Training Industry

Nestlé’s journey toward learning effectiveness.

Published in Nov/Dec 2016

What is the value of training?   This simple question heralded the start of Nestlé’s learning effectiveness journey.

That’s not to say there had not been considerable efforts to demonstrate the value of training and learning before 2014, when this question was asked. Indeed, training and learning had always diligently reported Kirkpatrick Level 1 (reaction) with some Level 2 (learning) measures. While there is no doubt that such measures were valuable in delivering engaging learning experiences, this learner-centric, event-focused view no longer satisfied the business.

Starting with a high-value pilot

Overlooking Lake Geneva is Rive Reine, Nestlé’s International Learning & Development Centre. Being a participant in a Rive Reine program is a high-profile, high-value, sought-after opportunity. Learners are exposed to executive board members and make connections and establish networks that span the entire organization and their careers.

For these reasons, Nestlé selected a Rive Reine program for the learning effectiveness pilot early in 2015. The pilot was comprised of a dashboard of effectiveness-focused training and learning measures:

• Competency Gaps
• Net Promoter Score

This dashboard and supplementary report were well received by senior leaders. However, reporting was still essentially focused on events. The next challenge was to provide insights beyond this level. Was learning applied on the job or did it become scrap learning? To what extent were competency gaps closed?

Finding common ground with a common definition

Nestlé was starting to talk about learning effectiveness .  But did this term mean the same thing to everyone? It needed to mean more than learner reactions and assessing events … but what?

Learning effectiveness came to be known as   learning that delivers tangible business value.   This definition repositions learning as a business enabler, not a training tick box or way to reward and retain people.

Tangible business value needs more than a dashboard

The learning effectiveness initiative was now anchored and driven by a clear “why . ”   A workshop of business and training and learning stakeholders explored the what, how, when   and who.

Key workshop outcomes included:

• A definition of the learning effectiveness framework
• A definition of a 100-day learning journey based on the framework
• Roles and responsibilities
• “What” measures: gaps, gap closure and learning application on the job
• “Why” measures: opportunities, obstacles to applying learning and action plan status
• Learning effectiveness requires the right business context and conditions.
• Creating context and conditions requires business accountability and action.

From Workshop to Workplace

As of 2016, all Rive Reine learners undertake a learning journey that starts before the formal learning event and formally concludes 100 days afterward. Reaching this milestone has been characterized by three main areas of change and challenge.

1. Redefining the Roles of Training and Learning and Business

Training and learning has always worked hard to deliver meaningful and engaging learning events based on their best understanding of business requirements, but the training organization has worked without much involvement from the business. Training and learning has typically had little to no visibility or influence over what happens before or after learning events.

The learning effectiveness initiative necessitates that training become co-pilots throughout learning journeys, engaging the business stakeholders from design through on-the-job application and behavior change. With the value of learning now denoted by a business perspective, business sign- off of learning is not enough; they must buy in.

It has taken time to find and ask business stakeholders the right questions in the right way. It’s critical to be flexible in the medium and to leave space for reflection and context-specific thought. Design collaboration activities range from short workshops to forms and conversations asking questions focused on tangible business value:

• Why this learning experience? What does success look like?
• Six months from now, when you are asked if this learning has delivered tangible business value, what will you consider before answering (KPIs, feedback, etc.)?
• What opportunities and challenges are learners likely to experience on the job?

This approach is leading to increased business engagement and sponsorship. Business input has been invaluable to creating holistic, pragmatic, 70:20:10 learning based on success in the real world.

When it comes to delivery, new measures provide a new level of transparency, which in turn has raised some concerns. For example, if reporting provided by training and learning shows low application of learning, who is responsible? Will training and learning be tasked with “fixing the problem”? To address this challenge, measures are reported as actionable insights, combining measures of what happened   and why it happened   alongside suggested follow-up activities.

2. Placing Learners and Their Managers at the Heart of Learning Journeys

Understanding learners’ “what’s in it for me?” (WiiFM) is training 101. Without learner motivation, there is unlikely to be learner action. Without learners acting to apply their learning, training cannot deliver value of any kind. Satisfying WiiFM requires tacit support from managers.

When asked, learners and their managers almost unanimously agree that clear expectations and focused application of learning is necessary. However, sampling shows that Nestlé is in line with industry research: Only one in 10 learners arrives at events having discussed expected outcomes with their manager.

More help is needed with the “how.” Enablers are used at key points throughout the learning journey: pre-, during and post-learning for both learners and their line managers.

These tools are designed to engage, enable and foster ownership by   creating clear, specific context. Language is deliberately first-person and learner-centric to encourage personal reflection and foster accountability for action.

Learners indicate that knowing there will be a follow-up prompts action and therefore reduces scrap learning. Follow-up also drives engagement and ownership by demonstrating that learning is important and valued.

In line with the chief human resources officers’ calls for increased “human touch” from all HR personnel, communications are becoming personalized, sent from high-profile sponsors. Technology such as videos with familiar, important or inspirational faces help bring the messages to life.

However, it is imperative that learning effectiveness activities are neither arduous nor lengthy. The best of intentions do not always result in action, especially since learners and their managers continue to be as busy as ever.

3. Managing Data to Create Meaningful Insights

The combination, variety and volume of:

• Line managers
• Facilitators
• Data collection points
• Reporting requirements
• Reporting stakeholders

…has significantly challenged technical and processing capabilities. Neither the current LMS nor survey tools can fully meet requirements. A significant amount of work is required to download and process data and prepare reports in Excel.

Early results are positive

• Steady increase in completion rates pre-, during and post-event
• Exponential increase in expectation setting
• Low scrap learning rate
• Business buy-in for design continues for both new and existing programs
• Business buy-in for delivery continues, with leaders acting on their newly acquired insights to influence learning outcomes
• Pull for extension of the learning effectiveness initiative beyond Rive Reine

Learning effectiveness is a never-ending journey

Tools, process and measures have been reviewed and refined throughout 2016 and will offer improved clarity and accessibility in 2017. As it turns out, the simple question “What is the value of training?” does not have a simple answer. However, as Nestlé’s journey toward learning effectiveness continues, we are finding ways to ensure   that   learning delivers tangible business value.

• #business impact
• #case study
• #measurement
• #user experience

Vanessa Blewitt

Vanessa Blewitt is the learning effectiveness lead for corporate T&L at Nestlé.

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Case Study : Transforming the way how Nestle learns

The challenge, the quest for engaging training program: nestle’s journey to interactive elearning.

Renowned worldwide for its high-quality products, Nestle faced a critical challenge: its outdated training modules no longer met the needs of its employees. In order to keep them informed and up-to-date, Nestle required a fresh approach to training.

The existing training program relied heavily on Instructor-Led Training (ILT), PowerPoint slides, and online courses, lacking the necessary engagement and creativity to captivate learners. ILT courses consisted of introductory PowerPoint presentations featuring pictures, diagrams, and text. However, the global nature of Nestle’s operations meant that trainers had to travel extensively, incurring significant costs, consuming valuable time, and impacting the trainers’ well-being.

Language barriers further complicated matters, potentially hindering clear communication between trainers and learners, and impeding the learners’ ability to fully comprehend the course content and raise questions.

Considering Nestle’s diverse business interests and the growing shift to online sales via platforms like Amazon, it became evident that their existing training approach was outdated, lacked interactivity, and failed to address the challenges at hand. Recognizing the importance of effectiveness and efficiency, we undertook the task of devising a solution that would effectively engage employees across the globe, while addressing language barriers and the need for comprehensive training

At TalentQuest, we’re committed to transforming how organizations develop their employees. When Nestle faced training program challenges, we stepped in. Our team used technology to revamp Nestle’s ILT courses. Through a thorough Needs Analysis, we understood Nestle’s eLearning requirements and filled gaps in their training. Working closely with Nestle’s experts, we created over 150 tailored eLearning modules covering their various segments.

From pioneering the world’s first automobile in 1886 to emerging as an icon of quiet luxury, Mercedes-Benz has come full circle in its quest for dominating universal motorization – the hidden meaning behind the three-pointed star of its widely recognizable logo.

More than a century later, Mercedes-Benz Group AG, formerly known as Daimler AG, remains one of the most successful automotive companies in the world and a leading supplier of premium luxury cars and vans. The company offers a multitude of services for its global customers, including financing, leasing, car subscription and rental, fleet management, insurance brokerage, innovative mobility solutions, and digital services for charges and payments.

THE SOLUTION

From Outdated to Engaging: TalentQuest’s Transformation of Nestle’s Employee Training

We ensured our courses were compatible with all devices and accessible in multiple languages, promoting ease of use and understanding for learners. By incorporating interactive elements and captivating visuals, we enhanced engagement for both trainers and learners. Recognizing Nestle’s venture into the online realm, we went the extra mile, implementing gamification and simulations to create an enjoyable and educational online experience.

At TalentQuest, we take pride in our personalized approach to solving challenges.

In Project 1- Role of Optifast, we developed e-Learning modules for Nestle, leveraging image and text-based animation, 2D/3D animation, interactivity, and simulations. Our aim was to create an effective course, so we incorporated quizzes, interactive exercises, and applied educational theories like Bloom’s theory, cognitive learning theory, and Merrill’s principles. By adding high-impact audio and an intuitive user interface reflecting Nestle branding, we ensured an engaging [earning experience that improved Learners’ retention of the subject matter.

In Project 2 – Nestle EBiz Academy, we transformed Nestle’s existing PowerPoint training materials into a vibrant e-Learning curriculum. We began by creating a comprehensive storyboard and then enhanced the content by incorporating graphics, animations, 3D models, and interactive elements. This resulted in the development of 40 captivating e-Learning modules tailored to the Global eBusiness curriculum. Our approach was focused on delivering an immersive and informative learning journey that aligned with Nestle’s specific objectives. Through our targeted approach in both projects, we aimed to provide Nestle with engaging and effective e-Learning solutions that enabled their employees to acquire knowledge, enhance skills, and achieve optimal performance.

Further, to ensure effective communication and consistency across Nestle’s global workforce, we translated the eLearning modules into multiple languages. The translated versions included Spanish, Portuguese (BR and PT), French, Chinese (Mandarin), Italian, German, Hungarian, Russian, English (US and UK), and Arabic. This comprehensive approach enabled Nestle to effectively deliver essential information to all employees worldwide, regardless of their location or native language. Our new eLearning courses combine gamification and interactive simulations, offering an immersive and entertaining learning journey.

Driving Engagement and Productivity: TalentQuest’s Multilingual and Self Paced eLearning Solution for Nestle

TalentQuest’s team accomplished a remarkable transformation of Nestle’s training program through their cutting-edge eLearning solutions. The impact was astounding: Nestle’s employees became engaged, motivated, and enthusiastic learners, resulting in enhanced productivity, improved performance, and heightened overall job satisfaction.

TalentQuest’s state-of-the-art eLearning modules empowered Nestle’s workforce to learn at their own pace and convenience. These interactive and customized courses catered to the diverse needs of Nestle’s business. Accessible on various devices such as desktops, laptops, tablets, and mobiles, the courses ensured global accessibility and user-friendliness.

Language barriers that once impeded effective communication and comprehension between trainers and learners were now overcome. Nestle’s employees could access the courses in multiple languages, enabling them to learn and understand the content in a manner that suited them best.

Furthermore, Nestle’s successful transition to online sales was facilitated by TalentQuest’s eLearning solutions. Employees gained the knowledge and skills required to thrive in this evolving business landscape, enabling Nestle to maintain a competitive edge.

The outcome was a comprehensive revamp of Nestle’s training program, resulting in heightened engagement, increased productivity, and improved retention of knowledge. TalentQuest’s innovative approach propelled Nestle to become a leader in the online sphere and adeptly adapt to the ever-changing times.

Effective skills development in minutes!

How Nestlé Became The World's Largest Food Company

Table of contents.

Let’s trace the origins of Nestlé and its exceptional legacy of 150+ years that have led it to become a company with:

• Market cap of $326.07 Billion as of Feb 9, 2023
• Over 2000 brands worldwide
• Monumental presence in 186 countries
• A workforce of nearly 276,000 employees
• Revenue of CHF 87.1 billion in 2021
• 354 factories in 79 countries

Grab a Kit Kat or sit back with a cup of freshly brewed Nescafe, and let’s go back to 1866 , the year it all began.

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A Merger Lays The Foundation Of Nestlé’s Success

The story of Nestlé begins with Henri Nestlé of Vevey, a namesake of the company, and unsurprisingly, its founder. But it is also linked with two brothers, Charles and George Page, who were located far away in America at the time.

While the world of business was not a global village back then, perhaps it was fate, the love for milk, or sheer successful marketing strategy that brought the businesses of the two together to form the Nestlé we see today.

The creation of Anglo-Swiss Condensed Milk Company

Charles Page was a U.S. consul who visited Switzerland and became intrigued by its Swiss cows and beautiful meadows. The country had been a primary milk production center since the 19th century due to its available resources of high-quality cows and attracted people with a passion for milk production from far and wide. 

Page was one such individual with a different aspiration: he wanted to create condensed milk. Easy to store and transport, condensed milk, according to him, was the next big thing in the entrepreneurial world. 

Therefore, with his brother George Page, he created the Anglo-Swiss Condensed Milk Company and opened the doors of the first-ever condensed milk factory in Switzerland, in the town of Cham, in 1866.

Henri experiments

Meanwhile, Henri Nestlé was a local pharmacist in Vevey who loved experimenting with anything and everything he could get his hands on. This meant creating incredible food fusions was right up his alley.

During the 1860s, infant mortality rates remained a grave problem in Switzerland. As a man with 13 siblings, Henri understood the woes of infants. Yet, the turning point came when he saw that premature babies faced difficulty in consuming breast milk.

Invoking his creativity, he combined available resources and his scientific knowledge to produce “ Farine Lactee ” in 1867, an infant formula made with cow’s milk, wheat flour, and sugar.

This proved to be a breakthrough, and soon, sales increased to 1000+ cans in 1871 and more than 2000 in 1873. Two years later, Nestlé’s products could be found worldwide, including but not limited to Indonesia, Egypt, and the U.S.

As sales increased exponentially, Henri gave his company a logo symbolizing his family name that meant “Little Nest”. The logo, therefore, contained a bird’s nest.

Today, the logo has been simplified but remains its original idea and charm as an ode to the founder.

A rivalry emerges

In 1875, Henri retired, and the company was led forth by three local businessmen in Vevey. However, simultaneously, the Anglo-Swiss Condensed Milk Company expanded to newer markets in Europe, and upon discovering Nestlé’s infant formula and its success, it developed a rival product and floated it into the market.

To Nestlé, this was nothing less than a declaration of industry war, and soon after, Nestlé added a new product to its portfolio: a Farine Lactee condensed milk. Fierce competition developed, followed by price wars and predatory market strategies.

As both companies competed for a greater market share and ROI on their rival products, it did not come as a surprise when both began generating lower revenues and making losses.

The price war lasted roughly for about 30 years until the death of all three – Henri, George, and Charles.

In 1905, the current directors of the companies agreed to halt their rivalry and combine their businesses for greater market share, revenues, and expanded reach over the globe.

As a result, Nestlé and Anglo-Swiss Condensed Milk Co. was founded – that eventually became Nestlé.

Certificate for 100 shares of the Nestlé and Anglo-Swiss Condensed Milk Co., issued 1. November 1918

Key takeaway 1: leave emotion out of strategy

For many years, Henri and the Page brothers went head to head in the milk industry, expanding into European markets, creating substitute rival products, adopting predatory pricing strategies, and undercutting price benchmarks. 

All this only yielded the worst for both businesses in the form of reduced revenues, higher price elasticity of demand, and a confused clientele.

Their saving grace was the strategic decision of the directors to call a truce and join forces – shared winners over lone losers. With the main competition becoming the same company, the focus was brought back to improving operations and opting for practices the business could sustain. Resultantly, the only path now was onwards and upwards.

This means foresight, strategy, and impartial business sense take priority over emotional responses, especially in the business world.

World War I, Government Contracts, & Innovative Strategies

Most companies take a few years to establish themselves in their local markets, minimizing risks. Only once they are comfortably settled and have enough brand appeal and resources to expand do they risk entering the global market.

But Nestle is not like most companies, is it?

Henri Nestle had become a big player in the Western Europe Market, and Page Brothers were leading the way in Britain. Thus, the merger already allowed Nestle to be the go-to condensed milk brand.

From there, it was always going to spread itself and capture as much of the global share as it could, and so it did. Within a decade, this newly merged company had taken its operations around the world, establishing factories in the UK, Europe, the United States, and Asia.

An unexpected opportunity

WWI broke out in 1914, and the scale of disruption around the globe was huge.  Almost every industry was affected. Some thrived and grew, but many collapsed or barely survived.

Nestle also faced an initial period of hardship where it was difficult to maintain its supplies due to severe shortages, and maintaining a smooth distribution network in Europe was near impossible. Hence, most of their supplies ran out of catering to the needs of locals.

However, the war presented a unique opportunity. The demand for milk shot up, and consequently, governments around the world sought contracts with major milk producers and distributors.

Nestle acquired several of these contracts that enabled it to not only come out of the difficult situation it was in but also rapidly expand its operations. It developed most of its factories in the US, where supply and distribution were easier, and recovery began. In fact, by the end of the war, the company had over 40 factories in the world, nearly doubling Nestlé’s overall production.

Moving forward by embracing innovation

Of course, the circumstances around WWI were unusual and worked in favor of Nestle. But it wasn’t the only reason the firm grew at such a pace. Research and innovation had defined the companies that came together to form Nestle. Hence, the same qualities were inherited and ingrained in Nestle. At a time where global infrastructure was going through a phase of transformation, Nestle was at the forefront of it utilizing it and spreading it.

For instance, railways and steamships were the new business logistics, and they became the company’s ticket into established and untapped urban markets overseas. Print media became the main face of modern marketing. Nestle cleverly capitalized on it by projecting its brand through newspapers, magazines, and billboards. The adverts focused on what made the company stand out: quality, taste, nutrition, safety, and affordability – characteristics Nestle still proudly stands by.

All while these advancements were being embraced, Nestle didn’t lose sight of what they were truly about: their products. Hence, as far as production is concerned, they continued to introduce more efficient methods in their factories, expanding their capacity and boosting quality.

Key takeaway 2: growth follows the ambitious

Both World Wars were make-or-break events. From a decrease in demand to a disruption in supply, Nestle faced all sorts of challenges. But Nestle, even before it merged, was always looking for opportunities to grow, and the government contracts gained during the war were essentially the result of it. If Nestle didn’t have its operations worldwide, it would never have captured the governmental radar. It may have survived the shortage; it may not have.

These contracts allowed the company to grow, which worked perfectly with its innovative strategies, such as tapping urban markets and marketing using print media to enhance the brand appeal and create brand affinity. This highlights the importance of being proactive and always looking for potential opportunities, even in challenging times. 

World Wars & Expanding The Product Portfolio

1918 , the year WWI finally ended.

The fighting did stop, but the unstable economic situation the world was in couldn’t be fixed easily. Nestle’s government contracts were up, and it found itself amongst the many companies facing the force of the crisis. To add to their difficulties, consumers that had shifted to condensed milk during the war shifted back to fresh milk as supply resumed.

The company went into a loss for the first time in 1921 .

Timely response

At that point, sales were down, and production costs were high for Nestle. Its operations needed an overhaul to reach sustainability. For this purpose, Swiss banker Louis Dapples was handed the task of reorganizing the company.

Not only was he able to match production and sales, but the move also helped Nestle clear its outstanding debt. Thereafter, the company spent a good part of the decade staying afloat and focusing on sustaining its operations.

More than a milk company

First milk, and then condensed milk; despite having a global reach, Nestle hadn’t really made an effort to expand its product portfolio.

Perhaps, till the 1920s , it had never felt the need to. It had been growing at a rapid pace and adding several countries to its customer base. Now, as growth stagnated and consumer demand shifted to fresh milk, something different had to be done.

Thus, they made a series of acquisitions that opened their doors to new industries, the most notable of which was the Kohler Swiss Chocolate company in the mid-1920s . Consequently, chocolate became the second most important product of Nestle.

‍ Nestlé buys Switzerland's largest chocolate company Peter-Cailler-Kohler

Alongside chocolate, the company also introduced malted milk, a powdered beverage named Milo, and powdered buttermilk for small children.

Malted chocolate drink Milo launches in Australia

The Nescafe revolution

The chocolate business was going well for Nestle, but they were yet to launch the product that would change the company’s future forever.

In 1930 , the Brazilian Coffee Institute approached the company with a unique problem. Brazil had a huge surplus of coffee, but there was no real demand or use at the time. Nestle spent the next 8 years researching and experimenting with products to develop from this coffee.

While the Brazilians suggested coffee cubes, Nestle had a better idea instead.

Voila, in 1938 , Nestle launched “Nescafe” an instant soluble coffee solution, the first of its kind and one of the most popular Nestle products to date. This was later followed by Nestea, another incredibly popular product that continues to drive the tastes of many across the globe today.

Nestlé launches NESCAFÉ in Switzerland on 1 April 1938

The USA again becomes the helping hand

There was immense potential in Nescafe, but at the same time, Nestle began to experience the severe impacts of WWII even before it broke into a worldwide conflict. The company’s revenues nosedived from $20 million in 1938 to $6 million in 1939 .

Although Switzerland remained neutral in both world wars, the situation in Europe was highly volatile, and business could not be conducted normally. Again, Nestle looked towards America by shifting its base of operations to Connecticut, far away from the conflict.

Their previous experience during WWI had allowed the company to form healthy relationships with the states, which helped them settle in. Unfortunately, the USA could not stay away from the war for too long and joined the allies in 1941 .

For Nestle, it was a complete blessing; Nescafe became a staple food for the US military as it was easily preservable, and the taste has already become a hit. Hence, without having to spend a fortune on advertisements, the coffee product penetrated worldwide, and funnily, its first brand ambassadors were allied soldiers.

Nestle sent tons and tons of Nescafe to the frontlines and managed to turn around their sales completely. From making $100 million in 1938 to reaching up to $225 million in 1945 .

Key takeaway 3: diversify and innovate

The end of WWI and the economic depression brought by it made life difficult for almost every business, including Nestle. Plus, the fact that customers preferred fresh milk instead of condensed milk meant that Nestle found it difficult to sustain its business. 

Customers’ demands and preferences, as well as the market scenarios, can change drastically over time. Nestle learned that they needed to be flexible enough to adapt and bold enough to take risks. Otherwise, they will be left with no choice but to shut up shop. 

This is when the milk company gradually began expanding by introducing new products and exploring new markets. It, in turn, allowed the company to grow despite the difficult situation.

Hence, companies should never rest on their laurels and try to improve consistently, be it by innovating, branching out, and increasing the quality and quantity of products or services they offer.

Growth Through Acquisitions and Diversification

The end of the world war had set the perfect stage for Nestle to take its business to the next level. Sales were at an all-time high, Nescafe and Nestea were making waves, and through military and government supports, the company had opened up new markets for its products.

On top of it, the world did not go into a similar depression like WWI. Instead, it marked a period of stability and peace, one which firms everywhere looked to capitalize on. Likewise, Nestle did not waste any time in getting in on the action and making some very key and monumental moves. In fact, these post-war years are often termed as the most dynamic period in the company's history!

Seasoned Maggi Soups and Broadein Food Products

As the world recovered from the war, Nestle followed an aggressive acquisition policy acquiring multiple brands worldwide. The most significant name it added to its portfolio was fellow Swiss company, Maggi.

The journey for this soup and noodles company started somewhat around the same time as that of Henri Nestle. Its founder, Julius Maggi shared the same vision of serving nutritious yet convenient foods to the public.

After the war, in 1947 , Maggi went through a number of restructurings and changes in leadership. Resultantly, the best way for the company to move forward was to join hands with Nestle. Their established factories in numerous countries introduced the Maggi brand to the world, and it became a sensation. In fact, in many Asian regions, Maggi is synonymous with instant noodles.

The Magic of Maggi

Following Maggi’s acquisition, Nestle took over several other firms in the food industry, including:

• 1960 : Crosse & Blackwell, a British can and preserved food manufacturer
• 1963 : Findus, a Swedish frozen food company
• 1971: American fruit juices company Libby
• 1973: Stouffer, a frozen and prepared foods brand

With these moves, Nestle extended its product range and established a stronghold in the preserved foods industry.

Developing new & improving existing “convenience” products

While Nestle spread its wings by bringing other brands under its umbrella, it did not lose sight of the products it developed itself.

For instance, the Nescafe coffee, which had been a huge success during the war, continued its astonishing path upwards. From 1950 to 1959 , its sales almost tripled, and with the development of an anti-freeze version in 1966 , its sales quadrupled in the next decade.

Simultaneously, Nestle also worked on launching new products. In 1948 , it further embedded itself in American households with Nesquik, a chocolate powder that would instantly mix in cold milk. 

Owing to the product’s success, they even introduced the Nesquik Bunny to win over both adults and children.

During the same time, Nestle rebranded its infant cereals as Cerelac while launching an extensive range of canned foods under Maggi.

Diversifying beyond the food industry

By the 1970s , Nestle had well and truly occupied a dominant position in the food industry. It was now time to step out of the comfort zone and venture into new industries.

The big break came in 1974 when Nestle made a move for a Parisian hair care company, L'Oréal. Established in 1909 , this company had gone from making hair dyes to a full range of cosmetic care products. It has also formed a loyal customer base in France.

With big plans, Nestle offered the family owners of L'Oréal a 3% stake in Nestle in return for a 50% share. The offer was too attractive to refuse, and the two companies entered into a new partnership. This merger reaped multifold returns for both parties, and by the 1980s , the brand was the leader in its industry.

The cosmetic arena wasn’t the only one Nestle aimed to capture. There was an economic slowdown and general volatility between the French and Swiss markets. The price of cocoa and coffee went up more than three times. Nestle decided to take a risk and leap into waters it had never been in before.

In 1977 , it also became the owner of the American pharmaceutical company, Alcon. This, too, was a success with the brand operating in 75+ countries and being sold more than twice that number.

Merger to remember & the future of coffee

Nestle never looked to slow down despite its numerous acquisitions and diverse brand offerings.

In 1984 , it offered a mind-blowing $3 billion to buy out the food company, Carnation. Many believe this to be one of the largest acquisitions outside the oil industry – at least at the time. The scale of the deal was such that it took a year for it to be approved and finalized.

It wasn’t just being in the same industry that sparked Nestle’s interest; it was also the fact that Carnation had a diverse portfolio, including a profitable pet food brand, Friskies, and Contadino tomato products.

Nestle also added UK confectionery company Rowntree Mackintosh to its list of acquisitions in 1988 , giving it ownership of popular chocolates, Kitkat and Smarties. In the same year, it also included Buitoni-Perugina, a major Italian pasta and confectionery company to its mix.

Alongside the mergers, Nestle was also actively working on making a comeback with its coffee products. Thus, in 1986 , it rolled out Nespresso, a premium version of its coffee, different from the previous freeze-dried budget version. The idea behind it was simple: present a DIY system for any person who wanted to enjoy luxury coffee.

Key takeaway 4: seek opportunities in both new and existing industries

Many firms that plan to diversify their portfolios lose grip on their main industry. Nestle wasn’t one of them. Its initial strategy for growth post-WWII was to cement its hold in the food industry with a series of acquisitions and new product offerings. Then, it made its move in other industries while still improving on its basic offerings of food, coffee, and chocolate-related products.

Nestle grew exponentially by tactfully merging and acquiring companies it thought would add value to its brand. This paid off handsomely and turned Nestle into a force to be reckoned with. It highlights the need for brands to enhance their value offerings, using whatever means they have at their disposal, right from diversifying to collaborating with others.

International Force - Nestle's Global Strategy

With the fall of the Berlin wall in 1989, markets in Central and Eastern Europe, as well as China opened up. Trade barriers disintegrated, liberalization picked up the pace, and economic markets around the globe started to integrate well.

This proved to be quite beneficial for Nestle. There were new diverse markets to expand to and favorable policies that encouraged them – not that they needed any second invitation. 

Onwards & upwards with tactful acquisitions

From the late 1990s to the late 2000s, Nestle went on an aggressive acquisition spree and acquired the following companies:

• San Pellegrino group , the leading Italian mineral water business, in 1998 paved the way for Nestle to launch Nestle Pure Life and lead in Europe while making a way into developing countries worldwide.
• Spillers Petfoods in 1998 enabled Nestle to cement its position as a key player in the pet food business around the globe and Europe in particular.
• Ralston Purina , U.S.'s pet food business, in 2002 and merged with Nestlé Friskies Petcare, creating a market leader in the pet care industry, Nestlé Purina Petcare.
• The U.S. ice cream business merged with Dreyer's in 2002, establishing Nestle as the leader in the U.S., the world's largest ice cream market. 
• Movenpick Ice Cream in 2003 to complement Nestle's super-premium ice cream brands portfolio in North America and Italy.
• Delta Ice Cream in 2005 as Nestle's realized that the ice cream business was a profitable opportunity and the company could make inroad in the growing Greek and Balkans ice cream market.
• Chef America Inc in 2002 as Nestle continued with its horizontal integration and expanded into the frozen foods market, which was growing.
• Jenny Craig and Uncle Toby's in 2006 as Nestle wanted to stay true to its commitment to nutrition, health, and wellness and reinforce its presence in the U.S., the world's largest nutrition and weight management market.
• Medical Nutrition division of Novartis Pharmaceutical in 2007 as it was complementary to Nestle's Healthcare Nutrition Business and enhanced Nestle's capabilities to cater to the needs of its customers with special nutritional requirements.
• Henniez in 2007 to augment its position in the competitive Swiss bottled water market, leveraging the solid industrial capacity and distribution network of the company.
• Gerber , the iconic U.S. baby food brand, in 2007 became the number 1 player in the U.S., the world's largest baby food market, transforming Nestle Nutrition into a global leader.

A number of other partnerships were also made, such as the one with Belgian chocolatier Pierre Marcolini , helping Nestle augment its position in the food and nutrition industry while allowing it to diversify in health, wellness, and beauty.

Now, why did Nestle do that?

The answer is to remain attuned to the changing consumer tastes and remains ahead in a market that never stays still.

Sure, continuous innovation is essential, but Nestle didn't just rely on that and continued to acquire businesses and benefit from synergies to become the undisputed leader in the business world.

All this while, Nestle has remained true to its roots and continued to delight its customers worldwide.

Realizing that with expanding its global footprint, there was bound to be an array of issues that it needed to deal with effectively, Nestle launched a Group-wide initiative called GLOBE (Global Business Excellence) .

The primary purpose behind this initiative was to harmonize and simplify business processes and empower Nestle to make the most of its competitive advantage while alleviating the risks and drawbacks.

Key takeaway 5: growth & diversification through acquisition

From San Pellegrino in 1997 to Henniez and Gerber in 2007, Nestle's relentless strategy to acquire an array of businesses in different markets, ranging from pet care and baby food to ice cream and bottled water, strengthened its overall position and breathed new life into the company.

Nestle not only wanted to expand to new product lines but also become the market leader in all of them, in different parts of the world. The fastest and most effective way to do just that was through strategic acquisitions. 

In an ever-evolving market, staying still or focusing solely on a select few activities is risky for large businesses. The key, at times, to grow is to embrace an external growth strategy by acquisitions in different industries with distinctive lines of business.

Commitment To Innovation

Nestle stays firmly committed to its goals of helping people, families, and pets around the globe live happier and healthier lives. From meeting the ever-evolving needs of the modern consumer to providing safe and premium-quality of food on-demand, Nestle does it all.

However, it understands that dramatic shifts are happening in the market with consumer demands dynamically changing, new entrants offering endless choices, and people living and shopping in ways never seen before.

Winning in such an environment requires disruption and a hybrid-growth model. No one understands that better than Nestle, and here’s how it is driving value from its base portfolio while embracing new ventures to scale up.

Nestle: 150-year-old start-up innovating from within

Unlike other business entities that outsource the innovation part and fail to prepare for the future, Nestle has strategically decided to combine its scale and capabilities with the mentality and speed of a start-up.

InGenius , Nestlé's employee innovation accelerator, is the ultimate platform that encourages intrapreneurship within the company. Internal start-ups within the company are launched , and employees are encouraged to think big and creatively.

Moreover, Nestle’s global R&D accelerator program brings together scientists, students, and employees, empowering them to come up with new innovative products.

Lean designs, fast prototyping, quick testing, continuous hustling, and room for big risks make the incubator program a success. The goal of the internal start-ups is to help promptly develop new product lines from scratch within 9 months, paving the way for the future of food.

What’s more is that employees are given challenges to solve, ranging from improving the quality of food to helping achieve the net-zero target. On top of this, Nestle also helps young social entrepreneurs, outside its fold, by offering them holistic support, mentorship, and access to its R&D and innovation experts by partnering up with Ashoka – an organization that identifies and supports social entrepreneurs.

Rethinking & reinventing

To better tap into today’s consumer trends, Nestle goes the extra mile to revive the brands with modern innovation.

It does this by introducing new varieties of products and adding unique flavors to attract new customers and retain existing ones. For instance, in 2017 alone, Nestle launched 1000 new products. Yes, that’s right!

From bringing in new flavors of juices and milk to launching frozen organic meals and non-dairy desserts, among others, it tries its best to exceed its customers’ expectations.

Enhancing capabilities

Fueling growth through innovation and improving operational efficiency are two key components of Nestle’s value creation model.

While innovation is considered everyone’s job at Nestle , increasing operational efficiency is also stressed.

Each and every aspect of the business, be it hiring people, using data analytics to make decisions based on logic, optimizing supply chains, or deploying manufacturing solutions, is reviewed and revamped to increase efficiency and deliver desired business outcomes.

Future of food

Nestle, together with Swiss academic and industrial partners such as ETH Zurich, Ecole Polytechnique Fédérale de Lausanne (EPFL), and companies Bühler and Givaudan, announced a joint research program, Future of Food , that will help develop nutritious, tasty, sustainable, and trendy food and beverage products.

It's just another example of Nestle leveraging innovation and partnerships to move forward. Plus, it highlights Nestle’s commitment to providing healthy food while doing right by the environment.

The future is healthy, sustainable, and personalized

Nestle is actively working on providing healthier diets to people worldwide. It's even reformulating its popular products such as Kit Kat and Maggi, among others, to reduce the sugar, salt, and saturated fat in them while also transitioning its brands towards organic.

In addition to this, it is actively working towards ensuring its supply chains have zero environmental impact and reducing its carbon footprint by changing its plastic packaging.

Nestle has announced that it will phase out all packaging that’s not recyclable by 2025 and ensure the packaging it uses is eco-friendly.

Last but not least, Nestle, in its quest to stand out and scale, is emphasizing the need to please customers in every way possible. It aims to do that by delivering customers exactly what they want, how they want it, and in the taste, and shape they want it.

Meeting the needs of consumers on an individual level, according to Nestle will make all the difference. Hence, it is investing in it. Nestle acquired a start-up in UK, Tails.com, which provides tailored diets to dogs on a monthly basis based on age, breed, and weight among other factors.

Key takeaway 6: innovate, innovate, and innovate

Ascending to the top is one thing, but remaining at the top is the real challenge. Nestle’s strategy of launching incubators, experimenting with products, enhancing capabilities, and thinking ahead to create a new future highlights the importance the company places on innovation.

Nestle never hesitates to be bold and go out of its way to innovate to accelerate its growth and achieve scale. It realizes the value that can be derived from innovation and hence, leaves no stone unturned in thinking out of the box and putting its money where its mouth is.  More than anything else, this fundamental strategy has helped the company dominate and remain a customer favorite.

Nestle In The New Normal

Nestle: the multi-national company that adapts

A vital company in the challenging times of Covid-19, Nestle made many changes in its processing and manufacturing processes to continue supplying good food. As supply chain challenges intensified, Nestle focused its efforts on streamlining the supply chain end-to-end, from sourcing supplies to logistics. 

Nestle had 8.1% organic growth in the first half of its fiscal year 2022.

Nestle: the best employer

Making the health and safety of its employees a priority, Nestle implemented enhanced safety measures on and off its premises, including factories, distribution centers, labs, and offices.

Nestle responded to Covid-19 effectively and made sure its employees are protected and motivated by:

• Allowing working from home 
• Restricting travel and exposure to the virus
• Introducing the best hygiene practices
• Implementing effective social distancing measures
• Giving a special 14-day COVID-19 leave
• Offering financial support in the form of loans

Nestle: the company that gives back to the community

Nestle extended a helping hand to those in need in the crisis. It provided holistic support to medical institutions, food banks, food delivery organizations, and relief organizations in the local communities who are on the frontline. 

Not only did Nestle donate essentials such as food and bottled water but also money. Nestle joined forced with the International Federation of the Red Cross and Red Crescent Societies (IFRC) and donated  CHF 10 million . Plus, in order to speed up the vaccination and ensure fair distribution of vaccines, it partnered up with COVAX and donated  CHF 2 million. 

Key takeaway 7: stay resilient 

There’s no doubt that the Covid-19 pandemic disrupted the global markets and adversely impacted Nestle in ways more than one. However, Nestle managed to survive and thrive by continuously adapting, being proactive, and striving to do right by the people and the communities it served, as evident from its increased market share and growth during the period.

Nestle in a nutshell

Nestle products are recognized, consumed, and valued in all corners of the world. It is a company that has ingrained itself in the day-to-day life of people and continues to raise the bar higher. From innovation, people management, and a long-term strategic approach to the quality of products and services, social responsibility, and competitiveness, Nestle ticks all the boxes.

Here are the four main lessons derived from the growth of Nestle from a relatively small Swiss-based company established in 1866 to one of the most successful, admired, and profitable multinational companies in the world:

Key takeaway 1: globalize but also localize

A company as big as Nestle, which operates in almost all countries worldwide, has achieved success by localizing its offerings and catering to the needs of each individual market.

Sure, it could have made generalized global strategies and campaigns, but it took the difficult path by localizing everything from sourcing, product planning, production, marketing, and even its brand strategy.

It highlights the importance of being customer-centric regardless of who you are as a company and where you operate.

Key takeaway 2: innovate – change is an opportunity

Whether it be changing consumer demands, the evolving marketplace, or crisis situations, Nestle has never stopped innovating. Sure, it has paid the price of a few campaigns gone wrong, but one thing that it has been relentless at is continuing to strive to be a step ahead.

Nestle does it all, from committing to sustainability to coming up with new creative ways of providing more value to all stakeholders. It serves as a lesson for brands in this modern digital age. You can only survive and succeed if you innovate. Period.

Key takeaway 3: grow through acquisitions

Nestle has over 2000 brands. Yes, that’s right. Nestle has rapidly grown, gained a competitive advantage, increased its market share, achieved synergies, and enhanced efficiency in its business by acquiring companies.

It actively looks for potential acquisition opportunities and doesn’t hesitate to take risks. This showcases that if you want to grow as a company, you need to broaden your horizons and partner up with others. Foresight, strategic decisions, and impartial business sense are critical - now more than ever. 

The external growth strategy has worked wonders for Nestle by allowing it to expand into new industries and distinctive production lines - all of which have contributed immensely to its growth over the years. Simply put, if you can’t beat them, just join them, or well, in Nestle’s case, buy them.

Key takeaway 4: importance of brand & values

As a company, your values are bigger than your revenue. If you truly focus on and stick to your values, you can attract consumers and scale your company. Nestle has done just that by not only saying but becoming the “Good food, Good Life” company.

It firmly abides by its core principles of “ Unlocking the power of food to enhance the quality of life for everyone, today and for generations to come .”

Every decision that is made, every product that is launched, every customer that is served, is served to shape a better and healthier world. No wonder Nestle has become a global icon from a local favorite.

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Please note you do not have access to teaching notes, training is a never‐ending process at nestlé: company relies heavily on its own people rather than professional instructors.

Human Resource Management International Digest

ISSN : 0967-0734

Article publication date: 1 October 2004

How does a company like Nestlé – the world’s largest food and beverage business with around 250,000 people employed in some 500 factories and offices across the globe – provide the targeted, consistent and continuous training and development needed to ensure that it maintains its market position globally, and continues to move forward? The challenge for human‐resource specialists in such an organization is not only in the geographically dispersed nature of the workforce, but also their different languages and cultures and, on an individual level, widely differing learning needs and styles.

• Food industry
• International business
• Multinationals
• Training techniques
• Learning styles

(2004), "Training is a never‐ending process at Nestlé: Company relies heavily on its own people rather than professional instructors", Human Resource Management International Digest , Vol. 12 No. 6, pp. 27-29. https://doi.org/10.1108/09670730410555765

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The Nestlé People Development Review

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vivek singh

Aparna Barik

effect of training and development in employees of Nalco

Arwen Raddon

IAEME PUBLICATION

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One of the main differentiators for companies, particularly the manufacturing industries, is training and growth. The manufacturing industry training and development system in Pune needs a comprehensive overhaul. There is a lack of a systemic approach to the current training and development programmes, particularly with regard to the design and planning approach. For example, there was no fixed training and development schedule and, moreover, no such schedule was disseminated or displayed. The average number of training programs representing the organization's current training strategy is only 2, reflecting the institution's apathy for training and growth. If the employees' evidence is to be believed, then there is a lack of a consistent training and development program for manufacturing sectors and seldom are employees identified to external organizations. The training approach practiced is on job training and the resource person is most commonly internal resource individuals or company workers on most occasions. The recognition of training and development needs is one of the serious grievances put forward by workers and it has been ranked as one of the most significant factors affecting their decision to engage in training and development programs. With all of the above, a systematic and empirical approach to training and development must be developed by all organizations.

Mariachiara Pacquola , Patrizia Magnoler

The need to address generational change and the challenges of a global market to maintain productivity requires Small and Medium Enterprises, mainly of an artisanal nature, to rethink training. The challenges mainly concern production capacity, which is increasingly problematic given that demand does not allow for long-term schedules and enhancement of human resources. There are many tensions and just as many needs for improvement and training is therefore the space in which to collect, and rework in order to restore a new perspective of sustainable and quality change. This study presents a process of collaboration between universities and businesses where the former provided the framework for the activation of mechanisms that make use of work analysis while the latter provided the appropriate support (time, opportunities for discussion) to allow for a review of the proposed training model and trainer functions in a dynamic and complex production environment.

International Journal of Recent Technology and Engineering (IJRTE)

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The purpose of this paper is to examine the effectiveness of the training program through the employees' productivity and quality of output. After identifying the training needs appropriate training methods are to be designed and executed. Empirical Research Design was used in this paper.Out of the total population, 100 respondents were identified to gather data using structured questionnaire method. It is found that, the appropriate training program will increase the self-confidence of the employees and the entire sample consists of only male members.It is identified that, the methods of training used, the content of the training program and the duration of the program were sufficient and upto the satisfaction of the employees. The sample respondents of the study consists of employees irrespective of their age, length of service and their annual income belonged to a particular Home Appliances production point in the southern region. The organisations should identify the training needs of the employees which are based on their productivity.The appropriate training method should be identified and executed subject to evaluation. Key Words: Employee Training, Effectiveness of the Training Program, Productivity, Level of Satisfaction. "Training is the act of increasing the knowledge and skills of an employee doing a particular job".-B.Flippo

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This part studies about the noteworthy contribution of past research on the viability of training in private organizations. The study will assess the factors affecting the training programmes, for example, Objective of the Program, Evaluation of Performance subsequent to Training, Trainee Evaluations of Trainer and Testing of Trainees on Content displayed and so on and propose enhancements to further build Return on Investment and Return on Engagement

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• Nestlé Continuous Excellence (C): Operations and beyond

José Lopez, Nestlé’s executive vice president of global operations, had convincingly demonstrated the benefit of NCE in operations. Now he wanted to see it rolled out to the rest of the organization. NCE’s sustainability, employee engagement and impressive financial returns convinced Lopez that if NCE were implemented in other functions, it could serve as the competitive driver for Nestlé. How should he present the program to his colleagues on the board? This is the final case in this four-part series.

In this session, participants consider how best to convince the top level of management of the benefit of rolling out a successful operations initiative across the entire organization. By asking participants to prepare a presentation to the board, the instructor can help convey the critical role played by the visual and spoken delivery of key arguments, as well as compelling data, in securing board level buy-in and approval.

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Case Study: A Deep Dive Into Nestlé’s Supply Chain

By michael wilson.

When it comes to the food and beverage market, Nestlé dominates over the competition as the world's biggest company of its kind. Established in 1866 by Swiss pharmacist, Henri Nestlé, the organization originally specialized in infant cereal. From these humble beginnings, Nestlé...

1. Profiling the Consumer

To create products that appeal to consumers, Nestlé believes in a strategy they call "Brand Building the Nestlé Way (BBNW)". One of BBNW's six founding principles is focused on profiling their brand's consumers. Indeed, Nestlé is very engaged with their customers, specifically over online venues. The company goes far beyond market research to reach their clientele, as they strive to see who their demographic is and what makes them tick.  As a company, Nestlé excels at interacting with real-life consumers on social media. For instance, their 850 Facebook pages for various brands carry a total of 210 million fans. It's an inspiring way to quickly and efficiently gather customer responses. To receive a high response level, the company posts around 1,500 new items per day across their online platforms! When it comes to supply chain analysis, having an intimate knowledge of what your customers want from your products is imperative in running a successful operation.

2. Focusing on Responsible Sourcing

During the supply chain analysis of Nestlé, it's immediately clear that responsible sourcing is a huge concern for the company. With 700,000 farmers working for Nestlé, the Swiss company puts a strong emphasis on acting respectfully toward the many families and agricultural communities who are dependent upon them. Consequently, Nestlé goes to great lengths to track their food product's origins, thus ensuring that they're compiling with ethical practices. This honorable attitude gains Nestlé loyalty from both their suppliers and their consumers.

3. Acquisition for Better Product Diversity

With over 2,000 unique brands and 10,000 products on the market, Nestlé certainly has its fingers in a lot of pies. Much of the company's supply chain relies on acquisition, as they're consistently bringing new companies into their fold. This wave of buyouts happened after the Berlin Wall fell in 1989, opening up the European and Chinese markets.

Nestlé's first major acquisition was Ralston Purina Company, a popular pet food maker, in 2001. They followed this purchase up with Dreyer's, Movenpick, Jenny Craig, and Gerber over the following years. Nestlé commitment to investing in other companies allows them to continuously put new, exciting products on the market. Plus, by buying former competitors, they're eliminating any threats and gaining access to these companies' suppliers in the process.

4. Transforming Into a Zero-Waste Company

After a media backlash in 2010 against Nestlé's environmental practices, the company moved quickly to revamp its policies. Their first change was implementing a "no deforestation" policy, in response to Greenpeace's allegations over Nestlé's methods for gathering palm oil. The company's current priority is to eliminate waste in their upstream supply chain. By 2020, Nestlé has committed to becoming fully zero-waste-to-landfill , according to Pascal Gréverath, Nestlé's Head of Environmental Sustainability. Through these practices, the company is invested in improving its supply chain's efficiency. It's clear that Nestlé will save itself money in the long run, since no amount of food will be wasted.

Overall, supply chain analysis shows that Nestlé's business model has a lot to offer all companies. Whether you're a fledgling start-up or a long-standing cooperation, this Swiss conglomerate displays the true importance of market research, responsible sourcing, product diversity, and going waste-free. After all, Nestlé didn't reach a $247 billion net worth by accident.

About Michael Wilson

Michael Wilson is AFFLINK'S Vice President of Marketing and Communications. He has been with the organization since 2005 and provides strategic leadership for the entire supply chain team. In his free time, Michael enjoys working with the Wounded Warrior Project, fishing, and improving his cooking skills.

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