Saturday, 21 July 2012

Explain about primary and support business process. Choose a business entity and give example on each of the primary and support business process.


In past Accounting Information System class, we have been assigned to do a presentation about business process of a company and we have decided to choose Nestle Malaysia.  


Basically there is 2 type of business process which is :-
·                     Primary business process
·                     Supporting business process

Primary business process
1.         Marketing
Most of Nestle Malaysia products have been widely advertise on television, radio, and newspaper. As we can see every day on television, there are Koko Krunch advertisement, Milo advertisement. Besides, Nestle have made very good marketing decision by sponsoring and join most of Ministry of Youth and Sport’s programs and events. This is one of main factor why Nestle have a strong base in Malaysia. They also place their promoters at Hot Spot Place to give out free sample to consumer.



  • Nestle Milo free sample
2.         Service

As we all know, Nestle provided many events from time to time. This is to make sure they are connected with consumer. One of the events have done by Nestle is “Parent – Child Nutrition Workshop”. This event is an opportunity to ask the nutritionists and psychologists present on any issues related to your child’s nutrition and dealing with the challenges.

  •  Activities held in Parent Child Nutrition Workshop
3.         Inbound sales logistics

Nestle Malaysia receive most of their material from their HQ in Switzerland. This because they wanted to maintain the quality of their product. The raw material received will be distributed to Nestle’s factories all over Malaysia to change the raw material into product. There are 9 Nestle’s factories in Malaysia.
·                     Petaling Jaya, Selangor
·                     Batu Tiga, Shah Alam
·                     Section 15, Shah Alam
·                     Rembau, Negeri Sembilan
·                     Rembau, Negeri Sembilan ( Nestle Ice Cream)
·                     Bukit Raja, Klang
·                     Kuching, Sarawak
·                     Kuching, Sarawak (Nestle Ice Cream)
·                     Batu Gajah, Perak

4.         Outbound sales logistic
After they finished the production, all the products will be distributed to Hypermarkets and Wholesaler. Because of having good marketing plan and high demand, Nestle products can be found at any hypermarkets, supermarkets and also at any grocery store all over Malaysia.

5.         Operation
After received the raw material from Switzerland, they transfer raw material from HQ to product at Nestle’s factories. Then after production process, all the products will be send to Nestle’s National Distributon Centre which is located at Bukit Raja Klang to be distributed to their selling agents like hypermarkets, supermarkets, wholesalers, and also grocery store.

Supporting Business Process
1. Technology Development 
-> Research and Development is a key competitive advantage for Nestlé. Without our R&D Nestlé could not have become the food industry leader in nutrition, health and wellness. Every year Nestle do their research and development to improvise the quality of their product. The Company invests more than RM6 billion annually on R&D and has undertaken constant Innovation and Renovation to ensure that its products meet the needs of consumers.The Nestlé Research Centre in Lausanne, Switzerland employs Scientists, Experts and Technical support staff serving a network of 27 R&D Centres worldwide.



  • Nestlé Research Centre in Lausanne, Switzerland
-> mobile application for iphone
providing recipes, kitchen tips and cooking guide

2.         Human Resource

Employees are the lifeblood of a business. Every employer wishes they could have the very best people for the job. Nestle has hire accountant, lawyer, admin and expertise in health and nutrition to support their business process.

3.         Purchasing and Procurement
For Nestle Malaysia, almost 90 percent of their raw material were supplied by the Nestle Switerland. So they only purchased such as packaging material to carry out entity primary activities.

4. Firm Infrastructure
Hire accoutant, lawyer and food expertise especial in health nutrition to support business process.


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