Management Practices And Issues

This article explores the management practices and associated issues in Nestle. It discusses the leadership framework, challenges faced by the company, and solutions implemented. It also highlights the strategic issues affecting Nestle's competitiveness.

RUNNING HEAD: MANAGEMENT PRACTICES AND ISSUES 0
Management Practices And Issues

MANAGEMENT PRACTICES AND ISSUES 1
Contents
Introduction...........................................................................................................................................2
Management Practices...........................................................................................................................2
Associated Issues In Nestle...................................................................................................................6
Recommendations.................................................................................................................................8
Bibliography...........................................................................................................................................9

MANAGEMENT PRACTICES AND ISSUES 2
Introduction
The incorporation of Nestle in year 1866, with its foundations named as Anglo-Swiss
condensed milk Company. Nestle is a multinational company which is corporates since the
establishment of headquarter is located in Switzerland, but business operations in many
different countries across the nation. It operates in more than 84 countries across worldwide
and is largest food company with main international headquarters at Switzerland. Founder of
Nestle is German boy named as ‘Henry Nestle’ and was spending his life in small town of
Switzerland named as ‘Vevey’. As Nestle is termed to produce more infant product, it has
also produces different type of products as yogurt drinks, ice-creams, chocolates, cornflakes
etc. and these can be found in all the supermarkets all over the world. Nestle is more
decentralised for its own operations and it rises to perfect autonomy in its operations (The
Nestle Company History, 2019).
Nestle with its long historical development with its small town operations to its world
leading nutrition, wellness and Health Company; there has been demonstration of exceptional
capability to adapt ever changing of external environment. The main core values, principles
that are guiding this long journey with its success are taking more part in Nestle management
and all the leading principles and practices in the organisation are first issued in year 1997
and continuously revising from time to time in its functioning of the management. It
emphasises the main importance of related behaviours that supports the continuous
improvement with the latest practices by leaders in the organisation. The company focuses on
the total performances of leaders and managers that take action and implement the practices.
Nestle owns the brand and that include kitkat, Gerber baby food, Butterfinger, hot pockets
and of course the candy brands for children (Taylor, 2017).
Management Practices
The Nestle management and the practices which are connected with the principles in
the management are also in full alignments with Nestle Corporate business principles in
which operational principles are single out to establish leadership and responsibilities of
personal attributes. Leadership is defined as an art of directing and influencing people in the
workplace in such way that they all focus to win their obedience, loyalty, confidence and
trust in achieving its all common objectives. The best practices of leaders starts with planning
the goals and direct them to achieve the targets. The main occurrence comes when the leader
induces others to be in practices of the organisation to work towards some predetermined
goals and objectives (LEADERSHIP, 2019).
All Nestle people are responsible to take pride in adhering for company values and
implement them with enthusiasm and conviction. The managers and leaders are regularly
practice for the transparency and engagement that to care for the climate an take actions on
the same. The leadership practices which are followed by Nestle in competitive world and
making stand to its practices in organisation is the biggest way to sustain in market. The

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leadership practices starts from no consistency in the market to one consistency standard
across the whole country. The main focus was on ‘what’ people achieved to how they do to
achieve and what is the employee perception of the products. The practices which are flexibly
adopted and have flat structures, inspiring management, focus in long term development,
lifelong learning’s and dynamic compensation in the leadership practices (Transparency and
Engagement, 2019).
The main leadership framework constitutes with inspiring people by leading them,
develop their potential and practices for what you preach. The main addition of value results
in focus, take initiatives with innovation and renovation to latest leadership practices. The
opening up of the different practices that is to know you with insight and service orientations
are adopted for its smooth operations. Behaviour competencies that are provide the point of
difference between good performers and average one who contributes in the functioning at
Nestle. The Nestle leadership framework suggests and provides direction on the behaviours
that matters at Nestle. This practice they always apply to its leadership and management
structures of the organisation (Hicks, 2019).
Source: (Burndred, 2018).
Nestle products builds such products that have confectionary to research and
development that translate the ideas into marketable products. The major leadership practices
believe in adding vegetables, pulses and nuts in their food items as people can buy more of
them and those results in positive health of a person (Creating Shared Value and Meeting our
Commitments, 2019). The biggest factors that drive the success of strong leadership practices
in the company is the natural driver that cultivate changes and tools that are used with
empower teams. Nestle builds the strong competition in the market with other brands and
specially acceptance of latest leadership practices in the company is the core objectives of
Nestle. The effective leadership practices and the guiding principles of Nestle Company are
as follows ( Zintel & Büchel , 2019).

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The major challenges which are faced by company is lack of integration, design
challenges, implementation failure, lack of leadership support, communication barriers, lack
of monitoring and there is lack of evaluation of the concerned results.
 There is an issue of child labour and they develop their cocoa production by
engaging child who are below 18 years of age. But Nestle with the continuous
improvement introduces nestle supplier code, monitors the participants in
supply chain and set the labour standards. The solution which Nestle had
changed in way of managers led their people. To develop the Nestle leadership
program and develop the initiative of people.
 There is a respect of other cultures, traditional and leaders motivate the people
to create personal relations within the company that makes the trust and
mutual respect.
The leadership style of Nestle believes in styles of comprehensive leadership that
includes lead to win, compete with proactive nature, managing of upcoming results and
growing teams and talents of the company to overall development. There are various
approaches as authoritative, democratic styles of leadership and coaching that trains
employees in the organisation through continuous practice and development. With the
different situations, there is a creation that builds emotional bonds and makes positive
collaboration with the team and its members. There is evaluation of best techniques to help an
employee importance and develop long term strength to motivate the employees in its
functioning.
 Nestle is committed to be a safe leader in workplace health and safety. The
major occupational with health and safety management are revised in the line
of slandered in its Nestle operations. The dynamic changes in the environment
always affect the internal as well external criteria of the strategies with the
requirements.
 In Autocratic leadership style, to manage the effective and critical role that
play significantly for the workplace new leadership practices, it ensures the
overall structure to manage things. The practices which are being developed
by nestle managers through consultations and communications with staff at all
the levels in the organisation. Democratic style of leadership enhances the
consensus through participation and there are positive responses to the
process.
 The effective democratic leadership style is flexible to work and there is to
think on company vision and mission. That is being operated by Nestle in the
entire organisations is to ensure the sustainability of all the related programs
independently that took changes in the management. There is an elimination of
duplication of the efforts and that eventually enable to share the learning on
implementations.
 The implementation of the foundation success had to be in place with further
taking of the activities. The Nestle operates around the world with most of the

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vision of the NCE model that serve to ensure the health and quality guidelines
compiled delivery to high quality products.
Nestle continuous excellence is the practice model which is managed by leaders and
managers for the continuous improvement in Nestle leadership framework and there are
various practices that are results of these. Nestle leadership development activities includes
practices and the various development programs like Yong talent development program
offers career in early stages that are experience based and with education based
interventions. This program is for 12 months and has talent that handpicked across the
regions to participate in it. The participants gets the overall opportunities to mentioned and
attend the workshops with relevant functioning trainings in the organisation structure. The
major role of the method adopted in practice of the Nestle management as (Quality and
safety, 2019).
 Innovation for the changing World – Nestle believes in adapting innovation at its best
as it is the part of the DNA. This practice is led by cornerstone of the successful
programs and matched expertise to understand the relationship between health and
nutrition. To identify the global and local trends that translates the innovations to meet
the customers’ needs at its best (Innovation, 2019). There is presence of weakness
with the innovation as employees are not so much interesting to adapt the innovation
techniques.
 Connecting through brands – There is a practice that connects the methods of top
authorities to connect with the outside brands that is taking their places in the market.
The brand is for creating experiences beyond all its products that may be powdered
and liquid beverages, confectionery, pet care and nutrition products. The leaders are
practicing the concept where adapting with technology is the new concept that guides
the effective methods. When connecting with the other brands, there is gap of
communication that leads to wrong development of strategies and methods to
overcome these.
 Creation of Shared values – It is a fundamental practice which provides the
framework that how to do internal business in Nestle. The leaders make the plan that
contributes the company to create values for shareholders and society. The major
activities and products should also make a positive difference to society where Nestle
has going for the real success.
 Supporting activities- Nestle believes in getting human resources, strategy and
research development area to be best way departments as when they all are connected
they support the positive activities with updated technology where online recruitments
and one fit program are the best to have in the organisation.
So, these are some of the practices in Nestle that provides the fair and appropriate responses
and requests for verification of market rumours. To ensure that analysts and leaders are more
practicing towards making leadership practices and implement them. There is a practice of
leadership styles to be approach in the functioning, analysis of main strength and weakness
related to these practices. The leadership styles are the styles which are followed bu leaders in

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the Nestle multinational company. So, in last these are some of the steps which are followed
by Nestle Company.
Associated Issues In Nestle
Nestle is an global multinational company which produce milk based baby foods and
condensed milk as its primary products in the food and beverage industry all over the world.
There are several issues that affect the internal structure as well as external environment
because of its competitors in the market place. Some strategic issues also measure the
competitiveness of the whole organisation as growing resistance of consumers against the use
of artificial infant foods. Increasing government rules and regulations worldwide that affects
whole scenario to implement change. Some of the most focussed issues are as follows (Nestlé
in society, 2019).
 Nestle is facing the problem of scarcity of water in many countries and that affects the
population growth and urbanisation in smaller countries also. The general issue is
changing in the climate and declining of natural capital results in losses to food in
whole planet in many countries. As water is the most important issue in many
countries where there is shortage of supply in water.
 The main focus is on increasing personalisation about the choices of the products with
taste and preferences of the customers. People made their perception of consuming
products which suits them best. Changing expectations of the customers as they want
products that are more organic and consumed beverages without artificial colours in it
is also the challenging issues (Global opportunities and challenges, 2017).
 The biggest problem is natural hygiene problem that is associated with Nestle. In
hospitals, the mothers provide the milk formula samples to new mothers, and this is
encouraged by financially medical practitioners. Not only mothers are facing such
issues the milk is also used in appropriate cooking equipment in can products.
Diarrhoea is the result of these and lots of sources have also suggested banning these
products as death is the final option left in the country (Moorhead, 2007).
 The issue highlights the concern of ‘Chinese milk based products’ which is used by
Nestle and melamine in their products made in China. Melamine is the substitute
which is being mistaken for protein. The toxic contamination is also mixed in such
milk based products. Taiwan banned the powdered milk and stop consuming milk
infant formula in China (Roberts, 2008).
 In India and in some other countries also, Maggi is among most popular brand of food
and people consumes Maggi in good numbers. But when there is investigation with
the food safety authorities, they have founded Maggi noodles contain more than seven
times of permissible limits of leads in it. Nestle India prices of share have slipped
precipitously with nine per cent plunge on the same day and Delhi government had
banned the Maggi products for 15 days (Rai, 2015).
Conclusions

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The report suggests there are several different learning practices in Nestle
organisation structure and related associated issues in the internal and external environments
that sometimes are positive and mostly negative issues. Leadership practices are different
from all its styles of leadership and they are most based on the new formation of strategies
and practices of such implementation results in organisation. Nestle builds it learning
practices from top authorities where there is involvement of leaders and managers in the
organisation. With the continuous management and leadership practices, Nestle has
increasing market share and captures large proportion of their consumers. There is
development of effective leaders which manages all the situations in the organisation and
made such practices that raise the overall development in internal pattern and external pattern
in Nestle organisation. There is need of such new style of leadership practices in the
organisation and various disputes and issues that are associated with Nestle.
Recommendations
 The prices of the Nestle products are little bit higher than other products and this
increases the major changes in the perception of the customers.
 There should be improvement in the advertising methods as other competitor’s brands
are taking more new techniques to grow in the market.
 Due to higher demands of Nestle milk in today’s time, there are people who are facing
the problem and this leads to shortage of milk in small shops. So, they should
consider this aspect too for the continuous improvement. And this should be
improvement that took place in all the countries.
 The main recommendations they face is lead in their food products as this causes the
death to person who is consuming it. There should be proper check on the quality of
the food items when left in the market for consumption for the easy distribution.

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