Topics: Milk, Food, Food processing Pages: 47 (12455 words) Published: October 25, 2011


2.0Introduction – Company Background3
2.1Nestlé Worldwide3
2.1.1Early History of Nestlé4
2.1.2Nestlé’s Business Principles Worldwide4
2.2Nestlé Malaysia6
2.3 Corporate Policy6
2.4Creating Shared Value7
2.5Corporate Governance8

3.0Nestlé Products9
3.1Halal Policy11

4.0Industry Analysis12

5.0Company Analysis14
5.1 SWOT Analysis14
5.2 Micro Environment Analysis16
5.3 Macro Environment Analysis18
5.4 Key Success Factor19
5.5 BCG Matrix20

6.0Product Quality Control21
6.1 Quality Control in Nestlé21
6.1.1 Quality Policy22
6.1.2 Halal Policy25
6.1.3 Supplier Policy29
6.1.4 Packaging33

7.0Recommendation & Conclusion



“Control of Product Quality :
A Case Study of Nestlé (Malaysia) Berhad”


This paper discusses how Nestlé being the largest food and nutrition company in the world has been successful in its business and stay ahead of its competitors for many years, focusing on the product quality control by the company. Specifically, the paper reviews the quality control over the company’s products by Nestlé (Malaysia) Berhad. Additionally, the paper reviews the history of Nestlé SA which includes Nestlé SA’s business principles. Nestlé’s strategy has always been to stick and follow the well-known principle of thinking globally but acting locally, which takes into account every country’s laws and legislations, cultural and economic environment. One of it can be seen from those Nestlé brand products that are sold worldwide has different flavours for different regions.

The paper continues to review the establishment of Nestlé (Malaysia) Berhad and all matter related thereto which includes the company’s Corporate Policy, Creating Shared Value and Corporate Governance. A brief information on the company’s brand products in Malaysia are also discussed which also includes the Halal policy which has been practiced by the company since 1996. The paper further examines the food industry in Malaysia as the country’s food industry is as diverse as the multi-cultures of Malaysia, with a wide range of processed food with Asian tastes. It also includes the extensive report on the company’s analysis which includes the Swot Analysis, Micro Analysis, Macro Environment, Key Success Factors and the BCG Matrix.

The paper further discusses extensively on the specific Quality issues and success of Nestlé (Malaysia) Berhad and how it relates to the Quality Control of Nestlé Worldwide which involves a set of examination process of the organization’s product, services and process, as well as the people, in order to achieve certain minimum level of quality to ensure that the specific requirements are met and are dependable, satisfactory and fiscally sound. This includes the examination of the Quality Policy as being practiced by the company.

Finally, the paper reviews on the Nestlé Policy on Environmental Sustainability, the Halal Policy and the Supply Policy. Each of the policies shall adhere to the local Malaysian regulations and additionally, Nestlé Malaysia has been complying with the ISO standards and local regulations as well as to the Company’s internal standards and guidelines. The certified Halal status for all Nestlé Malaysia products provides assurance that Nestlé products are manufactured, imported and distributed under the strictest hygienic and sanitary condition in accordance to the Islamic faith.



Nestlé S.A. (or “the Company”) is the largest food and nutrition company in the world. The company was founded in 1866 by Henri Nestlé. Nestlé’s headquarters is located in Vevey, Switzerland. It is a successful...
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