Role of Operational Management in Nestle

This report explores the role and value of operational management in the growth and success of Nestle. It discusses the approaches used in operational management, the roles of leaders and managers, and the factors influencing decision-making. Gain expert insights on management and operations at Desklib.

Management and operations

TABLE OF CONTENTS
INTRODUCTION..........................................................................................................................3
MAIN BODY..................................................................................................................................3
Operation management approach and roles that leaders play in an organization........................3
Importance and value of operation management.........................................................................5
Factors influencing operational management and decision-making............................................7
CONCLUSION...............................................................................................................................9
REFERENCES.............................................................................................................................10

INTRODUCTION
Operational management perform various function and activities to plan, organise,
manage, control manufacturing process of company to reduces cost and profit of company.
Operational management plays an important role in operational of business by ensuring standard
of quality product and their deliver with limited time to various customers. There are various
approached that are used by Operational management of Nestle to gain competitive position in
the market. This report explains about Nestle that is a public limited company which was
established in 1866, 154 year ago that deals in baby food, medical food, coffee and tea. It has
477 factories, 339000 employees that are working in the organisation for achievement of
company goals. This report covers about role and value of operational management in growth
and success of business. It also explained various internal and external factors that impact on
operational management and decision-making of leaders and manager.
MAIN BODY
Operation management approach and roles that leaders play in an organization
Operation management is a practice of various business activities that takes place within
an organization and producing the products according to the needs of the consumers. It is done to
create the highest level of efficiency within an organization (O’Neill, Sohal and Teng, 2016). It
includes utilizing resources from raw material, staff, technology and equipment’s which is
enhancing an organization to fulfil its goal. Operation management is important to improve the
productivity of the organization.
Approaches used in operation management are as follows: -
Business process redesign
Business process operation is a process which is used to measure the performance of the
organization on the basis of return on equity, quality of services and cost return. Its main
objective is to restructure the organization according to their customer needs. Nestle has been
restructuring its products according to their customer needs, that is the reason nestle products are
available in every home.
Six sigma
Six sigma is a technique or tool used in operation management to eliminate the errors,
reducing cost and saving time. The statistical representation of data shows the performance of
nestle. Regarding six sigma company can take guidance from outside consultants. Every

department of nestle has to be trained regarding six sigma. Its main objective is that to
implement the strategy that focuses on improvement of process.
Lean manufacturing
This is the method used to minimize the waste in terms of money, time and quantity of
resources used in production which increases productivity and efficiency. Production takes place
by efficient use of space, machinery, materials and labours. At nestle this approach is called
Nestle Continuous Excellence.
Role of leader in operation management
A leader has to lead the organization to achieve its aims and goal. They motivate the
employees, increase their skills and inspire them to reach the goal of the organization. Leader
plans to provide training to their employees regarding the operation they are going to use in the
future. They also motivate employees by interacting with them to improve their work. Before
implementing the strategy, leader must make sure that all employees are properly trained for
their next step (Buch, Thompson and Kuvaas, 2016). Nestle leaders influence their employees to
give best work. A leader has to manage all the management functions because they affect the
operations of the organization,
Role of mangers in operational management
An manager is a person who has proper skills, abilities and who leads the task, design
method of an organization. The main function of manager is to develop the plan and implement
the strategies into operation according to the goal of the organization. Nestle managers provide
resources for training of employees. Managers improve standard of performance of their workers
and leaders bring the best outcome from the employees. Managers analysis the consumer needs
and preference and then strategies are prepared for the operational work.
Thus, it can be evaluated from above analysis that manager and leader plays an important
role in success and growth of business by using various approaches of operational management.
Such as Business Process redesign is used by Nestle to get the best return on its equity and to
minimise cost of production (Kovalev and Loban, 2018). Manager of company will plan various
ways to reduce cost of production and enhance profitability such as organize training and
development programs. Bring new technology to bring economic of scale and reduce waste
production whereas leader of Nestle company motivate and influence employees to work
effectively and minimise waste production for achievement of common goals of company.

Another approach of operational management used by Nestle is six sigma managers by using this
approach is able to maintain quality of products and services and satisfy needs of customers
effectively. Whereas leader by providing good working environment and building strong
relationships among employees is able to enhance workers performance and productivity.
Manager of Nestle use lean manufacturing approaches to arrange resource of company in
effective manner for removing confusion and overlapping of works. On the other-hand leader
helps employees by explaining them about roles and responsibilities to be performed by each
individual in the organization (Burmann and et.al., 2017). Therefore, it helps in timely
completion of various function and activities that helps Nestle in gaining competitive position in
then industry and achievement of organisational goals. Thus, it can be concluded that leader and
manager plays an important role in enhancing efficiency of operational management.
Importance and value of operation management
Operational management is the planning, organizing, managing and controlling process.
It includes those all activity that are necessary for turning production from raw material into
finished goods in ensure time. Productivity is a relationship between input or output of business
system (Shu, 2018). With the help of operation management Nestle use there resources easily
such as labour, material and money. Generally, it focuses on the managing measuring,
distribution and analysing of product quantity and services.
Operation management is the heart of Nestle. It plays an important role to improve the
overall productivity of Nestle product. OM is simple costly part of management. It solves all the
issues that are related with product design, maintenance of production and that are using in
manufacturing of goods and services. It has three major function marketing, finance and
operational function and operation function is important for an organization. Finance department
concerned the cost consideration and make project statement.
Operation management can help in find out the long term and short term perspective
requirement. As per record of Nestle, it increases the future production by giving there resources
and future profitability from that Nestle can survive in the market. Operational management is
responsible for fulfilling the customers needs, requirement and customer satisfaction of the
Nestle and the management can help for reducing the cost of production and increasing the
future income, efficiency and profit (MITSDE,2018). This is also responsible for increase
economic growth and provide higher living standard of the people in the economy. Due to

Operational management awareness are spreads among the public sector. Production is related
with day to day organization activities It includes that things which are necessary for production
of their product. The main importance of operation management is to find out customer want in
terms if cost, area and timing. It makes business strategy that can controlling the cost of product,
amount of investment in the product and increasing the production of nestle. Managing operation
is nothing it is all about right work (Grote, 2018). Operation management provide the base for
the creation of the nestle by building a hard base of business activity and knowledge.
Nestle is face many competitors in the market with a similar product of service that also
affect marketplace so operational management can help to make marketing plan for fighting with
organization competitors. This is the common thing that there are many competitors in the
market so must be find out the competitors' area for build business strength competitor will
consistence try to offer good service.
The concept of techniques of Operational management are used in managing other
function of organization for achieving their goals and objectives. Operation management set
wages, security for improving employees working condition and increase job satisfaction of
workers. If company's operational approaches are not working properly then it can have bad
impact on the organization. Customer may not satisfy with the company's products. If
operational approaches use high cost of product, then customer demand falling down in the
market and customers would not like buy higher cost of product.
Therefore, it can be illustrated that operational management plays important role in
achievement of Nestle goals and objectives by building strong brand image in the industry.
Operational manager of Nestle continuous supervise and monitor productivity and performance
of employees to improve their effectiveness to perform a particular function. It is also helps in
building strong brand image of Nestle by providing qualitative coffee or product at reasonable
price to its customers (Panaitescu and Panaitescu, 2017). Company is able to reduce its cost and
wastage of raw material due to effectively functioning of operational management to check all
activities and resources are utilised effectively. Employee of nestle are highly motivated towards
roles and responsibilities to be performed by each individual as better environment and attractive
competition is provided by manager of company. Thus, it can also be stated that operational
management has high value in grow of company by continuous monitoring various process such
as procurement of raw material and their effectively utilisation through minimum wastage of

products. It is main functioning of company as operational management of Nestle by providing
qualitative products and services to customers is able to gain competition position in the
industry. Operational management of Nestle also considered various macro factors such as
supplier of products, their delivery within limited time to attract large number of customers. It
provides benefits to customers by delivering qualitative product at reasonable rate within limited
time. Operational management of Nestle also ensure health and safety of its customers by
maintaining standardization of product manufacturing (Yİlmaz, Unal and Dursun, 2018). It
ensures that employees of Nestle provides better and qualitative services to customer in order to
maintain and retaining customer loyalty. Thus helps in attracting existing and new prospective to
make purchase of company products over other competitors.
Factors influencing operational management and decision-making.
Organization Structure — Organization structure of NESTLE includes the activities such as
composition of Board of Directors, level of professionalization, number of independent directors,
supervision, delegation of work, coordination which determines the way in which the activities
are directed to achieve the targeted goals of the organization. It can be divisional structure,
functional structure, matrix structure, etc. (Annarelli and Nonino, 2016). It plays a significant
role in decision-making process in the organization. Organizational structure should be that
much favourable in quick decision-making and it leads to efficient outcomes of operational
activities of organization. For the proper functioning and operations of the organization and for
achievements of its missions and objectives the managerial capability of Board of Directors is of
the greatest possible importance.
Human Resource — Human resource is the most valuable resource of the organization who
helps in the operational activities of the organization. The success or failure of the NESTLE
totally depends on the great extent on skills, quality, capability, attitude, and performance of the
employees working in it. In the organization various Human resource policies are to be followed
by employees. This also helps in decision-making, creating policies, productivity, training,
ability to perform their jobs and satisfy consumers. This is the main role of the managers to
decide select and manage efficient human resource in the organization to achieve the goals of the
organization. For better operational activities to be performed in the organization employees
need to be focused on their work and tasks which are assigned to them and show their positive
attitude towards them to accomplish the task (Chandra and Wella, 2017).

Organizational Objectives — The organization has its own set objectives, mission and vision to
accomplish its goals and maximize long-run profits. Missions are the overall purpose or reason
for its existence which guides and influences the economic activities and business decision. The
choice of Business strategy, plan, policies are all directed by the overall mission of the company.
The objectives of the company must be clear, ambitious and achievable. They are the basis of
managerial functions, organizational existence, various types of plans, coordination, decision-
making, etc. The activities of operational management includes organizing, analysing, planning ,
designing and supervising functions. To expands its operations the company needs to decide
about its capacity, layout, location, facilities, cost and quality to support the business objectives.
Also, it sets priorities in organizing resources in a particular way so that the operations are close
to the customer rate of use or demand of the various products of the organization.
Value System — The value system of the organization means the moral beliefs conforming to a
high standard that directs the organization to achieve its objectives and mission. It also
determines the behaviour towards its employees, customers and society. Value system provides a
good basis to the organization's operations for proper decisions, facilitates innovation to support
competitiveness and other operational activities. It also enhances efficiency of teamwork and
communication (Knyazeva, Chulkov and Abelev, 2017).
Different factors impact on business environment and wider community
From the above analysis it can be stated that various internal factor of Nestle impact on
functioning of operational management, decision-making by leaders and managers. Such as
Nestle has functional organization structure so each department of company is specialized in
performing particular task that helps in maintaining quality of products and services. Manager of
each department of Nestle can easily and closely supervise activities of people thus able to
manufacture specialize and qualitative products and services. Whereas leader can take decision
to motivate employees as per roles and responsibilities assigned to each individual. It also makes
effectively utilization of human resource of Nestle by continuous monitoring and evaluating
performance of individual thus reducing manager effort to enhance or improve performance of
individual. Thus, it impacts on decision-making of leader and manager. Operational management
helps in protection of various resource of environment by effectively utilizing them. It also helps
in satisfying needs of customers by providing qualitative services and product at reasonable
rates. Investors and owner of Nestle are also satisfied and happy because of effectively

performance of operational department that helps in achievement of company objectives.
Government is also happy by nestle as while operating or manufacturing products it ensures
health and safety of people and employees at the same time make effectively utilisation of
available resources. Thus, operational management of Nestle impact positively on business
environment.
CONCLUSION
From the above report it can be concluded that operational management of Nestle is
responsible for effective management and utilization of resource for enhancing company growth
and profitability. Leader and manager plays different role and responsibilities in increasing
efficiency of operational management to successfully meet company objectives. It can also be
illustrated from above report that operational management has high value in growth success and
expansion of business in the market. At last, it is explained that various internal and external
factors of environment impact on the functioning of operational management and decision-
making of company.

REFERENCES
Books and Journals
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Grote, G., 2018. On the Importance of Culture for Safety: Bridging Modes of Operation in
Adaptive Safety Management. In Safety Cultures, Safety Models (pp. 93-103). Springer,
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Operational Management of the Construction Organization. In Energy Management of
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further studies. Sudebno-meditsinskaia ekspertiza. 61(5). pp.3-3.
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Panaitescu, M. and Panaitescu, F. V., 2017. Operational Management with Application on
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Operation and Management of Non-Ferrous Metals Enterprises and its Risk
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Yİlmaz, Y., Unal, C. and Dursun, A., 2018. Impacts of operational management proficiency
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