FACULTY OF COMMERCE

PRINCIPLES OF COMMERCE
“McDONALD’S”

SUBMITTED TO:

PROF.Aamir Nouroze
SUBMITTED BY:

“THE DECENT BOYZ”

“BS.COMMERCE”
Submitted Date: 12/12/2018
 FACULTY OF COMMERCE
PRINCIPLES OF COMMERCE
BS.COMMERCE

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 DEDICATION

It’s Start in the the name of Allah Almighty, who is

over creator and my strong pillar, my source of
inspiration, wisdom, knowledge and understanding. He
Has been the source of my strength and on His wings
only have I soared.

I dedicate this Report to the founder of Shaukat

Khanum.
“Imran Khan Niazi”
“May ALLAH PAK grant him a long
life of obedience to ALLAH
PAKISTAN”

“AMEEN”

ACKNOWLEDGEMENT
 First and foremost, we would like to thank Almighty Allah for giving us the

ability and strength to complete this project report. Secondly, we are also

thankful to our respective parents for providing us with the opportunity to

receive higher education in such an accomplished institution (UCP) that

required us to carry out such projects that expand the dimensions of our mind.

We are definitely not forgetting to recognize the efforts and support of our

Respected Teacher SIR Aamir Nauroze, without whom this project would not

have been possible. Who give us the opportunity to work on a project, which

not only enlarged our vision but also show, us the real picture of the market

Management. Our special thanks to the group members, who have whole-

heartedly work for the completion of this report. All of us have earned a

valuable and worthy experience during the project.

PREFACE
This Project Report has been prepared in fulfilment of the
requirement for the Task. The Project Report starts with the basic
success of McDonald’s, history of McDonald’s and also covers the
product & services offered by the company visited and its functional
departments like business, marketing strategy and human resource
developments policies. The information presented in this Project
Report is obtained from sources like Company Personnel, Company
Websites, Other Websites, Company Reports, and Other Literature.
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HISTORY,VISION,MISSION,OBJECTIVES,VALUES 20%
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20%
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SWOT ANALYLSIS 15%
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Contents
History...................................................................................................................................................7
Vision....................................................................................................................................................8
Mission..................................................................................................................................................9
Objectives............................................................................................................................................10
Product Portfolio.................................................................................................................................13
Interesting Facts About Nestle.............................................................................................................20
Swot Analysis......................................................................................................................................23
Major Competitors In The Market.......................................................................................................27
Conclusions.........................................................................................................................................32

History
Nestlé Pakistan Ltd is a subsidiary of Nestlé S.A, - a company of Swiss
origin headquartered in Vevey, Switzerland. It is a food processing
company, registered on the Karachi and Lahore stock exchanges and
operating in Pakistan since 1988 under a joint venture with Milk Pak ltd
and took over management in 1992. For ten years in a row, the company
has won a place among the top 25 companies of the Karachi Stock
Exchange. Headquartered in Lahore, the Company operates four
production facilities. Two of its factories in Sheikhupura and Kabirwala
are multi product factories. One factory in Islamabad and one in Karachi
produce bottled water. The factory in Kabirwala is the largest milk intake
plant in the Nestlé world. Through its effective marketing and a vast sales
and distribution network throughout the country, it ensures that its
products are made available to consumers whenever, wherever and
however. Nestlé Pakistan operates in many ways but people, products and
brands are the main flag bearers of the Company’s image. Nestlé Pakistan
now operates the biggest milk collection system in Pakistan, Currently;
Nestlé Pakistan collects milk from an estimated 190,000 farmers spread
over 146,000 sq Km’s in the province of Punjab and Sindh. Nestlé
believes in creating shared value and is committed to the communities it
works and lives with. In Pakistan, the company is working closely with the
communities in areas related to Nutrition, Water and Rural Development
and continues to enhance the quality of life of people throughout its value
chain. Till date (in 22 years) Nestlé Pakistan has invested over 50 Billion
PKR and had an annual turnover of Rs 51 Billion PKR in 2010. Nestlé is
committed to Pakistan and will continue to invest and work in the future as
well.

Vision
Nestlé’s vision is to be the globally recognised
leading Nutrition, Health and Wellness (NHW)
Company. Nestlé Pakistan subscribes fully to this
vision and the values that come with it.
In particular, we envision:
• Leading a dynamic, passionate and
professional workforce, proud of our heritage and
positive about the future
• Meeting the nutritional needs of consumers of
all ages – from infancy to old age, from nutrition
to pleasure, through an innovative portfolio of
branded food and beverage products of the highest
quality
• Delivering shareholder value through
profitable long-term growth, while continuing to
play a significant and responsible role in the
social, economic, and environmental sectors of
Pakistan.

Mission
To positively enhance the quality of life
of people of Pakistan by all that we do
through our people, our brands,
products and our Creating Shared Value
(CSV) initiatives. To be the leading
Nutrition, Health and Wellness
Company in Pakistan.
“Nestle is dedicated to providing the
bestfoods to people throughout their
day,throughout their lives, throughout
the world.With our unique experience
of anticipatingconsumers' needs and
creating solutions,Nestle contributes to
your well-being andenhances your
quality of life.”

Objectives
 Nestlé's business objective is to
manufacture and market the Company's
products in such a way as to create value
that can be sustained over the long term
 for shareholders, employees, consumers,
and business partners.
 Nestlé does not favour short-term profit at
the expense of successful long- term
business development.
 Nestlé recognizes that its consumers have
a sincere and legitimate interest in the
behavior, beliefs and actions of the
Company behind brands in which they
place their trust and that without its
consumers the Company would not exist.
So the needs & wants of consumers should
be considered.
 Nestlé 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
organization.
 Nestlé 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.
 Nestlé continues to maintain its
commitment to follow and respect all
applicable local laws in each of its
markets.

Values
 Integrity coupled with a strong work
ethic.
 The desire to do quality work.
 Friendly, open and honesty
communication .
 A spirit of cooperation and openness to
other ideas and opinions.
 A realistic approach to business.
 An openness to future trends and new
business opportunities.
 Pride in enhancing our company’s
reputation and a performance.
 A passion for our products an brands.

Product Portfolio
 List of Product line
Chilled dairy :
 NESTLÉ YOGURT
Rs 100 - 400 Grams
 NESTLÉ RIWAYATI MAZAA YOGURT
Rs 100 - 400 Grams
 NESTLÉ ACTIPLUS Yogurt
Rs 90 – 400 Grams
 NESTLÉ MILKPAK YOGURT
Rs 70 - 500 Grams
 NESTLÉ PODINA RAITA
Rs 75 - 250 Grams

Juices :
 NESTLÉ FRUITA VITALS (Each)Rs30
(Chaunsa, Red Grape, Apple, Kinnow,
Pineapple, Guava, and Peach)
 NESTLÉ NESFRUTA (Each)Rs 20
(NESTLÉ NESFRUTA comes in two most
loved flavours Mango and Apple)
Coffee :
  NESCAFÉ CLASSIC
Rs 310 - 100 Gram
 NESCAFÉ GOLD
Rs 660 – 100 Gram
 NESCAFÉ 3 in 1
Rs 20 – 20 Gram
 NESCAFÉ Dolce Gusto (4 delicious
flavours; Cappuccino, Latte Macchiato,
Chococino & Espresso.)

Breakfast Cereals:
 NESTLÉ KOKO KRUNCH
Rs 410 – 350 Grams
 NESTLÉ MILO Cereal
Rs 580 – 500 Grams
 NESTLÉ CORN FLAKES
Rs 150 – 150 Grams
 Bottled Water :
 NESTLÉ PURE LIFE
NESTLÉ PURE LIFE is available in the following
packaging formats:

0.5 Litre Rs 30
1.5 Litre Rs 50
5 Litre Rs 150
18.9 Litre (Home and Office Delivery) Rs 700

Culinary & Food : Each Rs 28

 NESTLÉ MAGGI NOODLES (CHATPATA ,
CHICKEN , PERI PERI ) (65 Grams )

Confectionery : Rs 35
 Kit Kat ( 20.5 Gram )
 Ambient Dairy :
 NESTLÉ NIDO
Rs 930 – 1000 Grams (powder)
 NESTLÉ MILO
Rs 210 – 200 Grams (powder)
 NESTLÉ MILKPAK
Rs 133 – 1000 ml (Tetra pack )
 NESTLÉ MILKPAK Cream
Rs 100 – 200 ml (Tetra pack)
 NESTLÉ EVERYDAY
Rs 725 – 1000 Grams ( powder)
 NESTLÉ NESVITA Calcium Plus
Rs 150 – 1000 ml (Tetra pack )

Baby Food :
 NESTLÉ CERELAC (Each) Rs160
(NESTLÉ CERLAC has a wide range for different stages
which includes Wheat,Rice,Banana,Apple and Strawberry,3
Fruits (Orange,Apple,Pear),Honey,Orange and Apple, Cerelac
Yogart (Apple and Banana,Mango and Orange) flavors).
[(175 Grams , powder)]
Interesting Facts About Nestle
1. The first product sold by the company was baby food: Henri
Nestlé’s Infant Cereal

2. Nestlé is one of the main shareholders of L’Oreal which is, in case

you forgot, the biggest cosmetics company in the world.

3. Even more impressive is the fact that 29 of those brands generate

annual sales of more than $1 billion. They include Nespresso,
Smarties, Nesquik and Kit Kat.

4. Nestlé employees more than 300,000 people worldwide.

5. In 2015, Nestlé sold gold-coated Kit Kats in Japan, putting Willi

Wonka to shame.

6. Nestlé is It’s the world’s largest food company in terms of

revenues.
7. Nestlé has 447 factories in 86 countries around the world.
8. The companies have 333,000 employers in 194 countries in the
world.
9. What is the meaning of Nestle logo?
Henri Nestlé was one of the first Swiss manufacturers to build
up a brand with the help of a logo. The original Nestlé
trademark was based on his family's coat of arms, which
featured a single bird sitting on a nest. This was a reference to
the family name, which means 'nest' in German.
10. Why bottle size changed ?
Because it is less then half ml bottle And can take less place In
pocket bottle.
11. Did you know that Nestlé sells over a billion products every
day.
12. The Nestlé Nutritional Compass which is being included on all
our packaging is user-friendly, easy to read andputs nutrition into a
wider context. It comprises three elements:
  Good to know : Which gives factual information on nutritional
content.
 Good to remember : Which gives tips for healthy lifestyle,
cooking and diet.
 Good to talk : Which invites the consumer to call our Consumer
Services teams or log on to our websites.
13. Since his name is German for “little nest”,Henri Nestlé decided
to use a bird’s nest as his trademark. Today it’s one of the best
known logos around the world, communicating Nestlé’s emphasis
on nutrition for a healthy life .
14. Kit Kat is the single largest chocolate brand in Japan.In the UK,
its country of origin, it sells around three million units each day.
15. Nestlé products are sold at more than two million outlets across
India.
16. In China, Nestlé buys milk from some 22,000 farmers and
contributes directly or indirectly to the welfare of about 100,000
people in the country.
 Swot Analysis
“STRENGTH”
 It’s a company that does not depend on
personalities.
 Leaders in Dairy Products.
 Long term experience.
 Innovative products.
 Designative packaging.
 Innovative planning and ideas.
 Wide variety of brands.
 “WEAKNESSES”
 Supply Chain
 Exports
 “OPPORTUNITIES”
 High credibility
 Ability to secure more credit.
 Available means for expansion.
 Improving trends
 Industry leadership.
 Consumer preference.
 Fewer competitors.

“ Opportunities”
 Increasing demand for healthier food
products.
 Acquiring start-ups specializing in
producing well-being products.
 Establishing new joint ventures
 “THREATS”
 Highly competitive market
(multinational companies are very
organized and financially strong).
 Increasing prices of raw materials.
 Competitors like Haleeb, Halla,
Askari, Pure water, Nurpur dairies,
and Prime yogurt.
 Rasing raw food price
Major Competitors In The Market
They have to face many hurdles in order to be the best
& deliver
because they cutthroat competition with all of the
competitors.
“Do not Compete with your Rivals just make them
Irrelevant”
Engro foods and Haleeb foods are the main competitors
of Nestle in Pakistan & the main strong competitor is
Shezan. Nestle produces wide range of food and
medical items.
Competition typically is defined as among forms within
an industry producing products that are substitutes for
one another. Therefore, the identification and evaluation
of marketplace competitors is a key element of strategic
marketing and a vital element of the corporate survival.
Nestlé is the market leader in the water industry. It is
the first company which launched bottled water for
first time in Pakistan and that’s why it has maximum
market share than others because of being pioneer in
this industry. It is also leading the other firms in new
product introductions, distribution coverage, and
promotional intensity. For different product categories
there are different competitors of Nestlé. Nestle pure
life (NPL) major competitors at this time who are also
offering their water product in market are following:

Pepsi is offering Aqua Fina.

There are also other small competitors as well e.g. Classic,
Nova etc which have very low
market segements.
 According to market view, competition is defined as:
The competition between the firms, which are satisfying the
same customer, needs.
So according to concept the competitors of NPL are all those
companies, which are
satisfying the need of thrust of the customers. Beverages
companies like unilever, Tapal
danedar, Pepsi, Coca cola etc. also come in this kind of the
competition.

Haleeb Ltd
Strengths
1.The thickest milk
2.Taste
3.Nutritious
4.Hygienic
5.Packaging
Weaknesses
1.Focus Shifted form Main Product to other products
2.Lack of Research & Development
3.Weak distribution
4.Low spending on advertisement

Engro Foods LTDStrenghts

1.PR with farmers
2.Positive response form customers3.Strong consumer
&products research4.Third generation plant5.Haing a
good reputation in the market by strong brand name .

Weaknesses
1.Packaging
2.Milk collection & distribution costs
3.Narrow brand portfolio
4.Under utilization of the capacity
5.Not yet ISO certified.
Conclusions
 Nestle has been earning well for itself
and offering ample returns to the society
over two decades now.
 Still growing it’s business and product
portfolio as no competitor has given
matching competition yet.
 Positioned as the provider of healthiest
and nutrient food in the market.
 Has a major product in good market
strength.
 Nestle should focus on developing
more new products and exploring more
new markets to retain it’s leading position
in the food industry of Pakistan .
of Nestlé