Business Report: An In-Depth Analysis of the Nestle Corporation

This report offers a comprehensive analysis of the Nestle Company, a major player in the food and beverage industry. It begins with an introduction and proceeds to a detailed SWOT analysis, examining the company's strengths, weaknesses, opportunities, and threats. The report then delves into ethical considerations, applying utilitarian and instrumental approaches to Nestle's decision-making processes, and discusses corporate social responsibility (CSR) initiatives. Further, it covers the planning process, outlining objectives, actions, resource allocation, and implementation strategies. The report also explores Nestle's organizational culture, emphasizing core values and their impact. It analyzes the company's organizational structure, including unity of command, centralization vs. decentralization, span of control, and formalization, recommending a hierarchical structure. The report concludes with an examination of leadership and motivation theories, including contingency and charismatic leadership, providing recommendations for improvement. The report also highlights motivation theories. Finally, the report suggests various recommendations to further enhance the company's performance and concludes with a summary of the key findings.

1.0 Introduction
In this paper the discussion will be made on the different aspects in relation to the Nestle
Company. Nestle is one of the biggest Swiss trasnational food and drink company. In terms
of revenue and metric, the company is one of the largest in the food sector. Headquarter of
the company is in Vevey, Vaud, Switzerland. The founder of the company was Henri Nestle
and the company was incorporated in 1866. It is examined that there are different subsidiaries
of the company such as Nespresso, Nestle Purina Pet Care Company. The tagline of the
company is “Good food Good life” (Galalae & George, 2017).
2.0 S.W.O.T Analysis
2.1 – Strengths
 a.) Good brand image
 b.) large brand portfolio
 c.) Large workforce
 d.) extensive distribution channel
2.2 - Weaknesses
 a.) brand structure
 b.) Legal and consumer issues
 c.) technological change
2.3 - Opportunities
 a.) expanding market
 b.) enhancement in the income
level.
2.4 - Threats
 a.) High competition level
 b.) Buyers power
2.1 Strengths
a.) It has been examined that one of the strength possessed by the company is related
with brand image. The company is the largest food company that is measured by revenue.
b.) Large brand portfolio: the company has more than 8000 brands in relation to the
different products related with beverages such as Coffee, soups and sauces.
c.) Large workforce: there are more than 340000 employees who are managing the work.
d.) Extensive distribution system: the company is penetrating in urban and rural market. .
2.2 Weaknesses
a. Brand structure: there are different brands under the one group so it is difficult to
manage the products.
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b. Legal and consumer issues: there are various issues faced by the company such as
baby formula boycott.
c. Technological change: It also affects the production process of the company
(Ramesh, 2018).
2.3 Opportunities
a. The company has the chance to penetrate in the rural areas.
b. Increase in the income level: due to stable political range the company can boost the
demand of the products.
2.4 Threats
a. High competition level: Competitors are: Hershey, Kraft foods and danone.
b. Buyer power: The Company has a high diversified market that helps to boost the
price.
c.
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3.0 Ethics
Utilitarian Approach helps to attain what is good for the large number of the people. It should
be considered by the Nestle Company as it helps to focus on the actions in relation to the
overall outcome. So, the company should make the ethical decision by offering the products
which are beneficial for the customers and also for the company. This theory states that the
decision should not harm the other people. So, it can be stated that promotions should be
offered by the company to boost the market share. It will be the right approach that can help
in maintaining the large customer base (Peters, 2015).
The instrumental approach should be considered by the company. This is the approach that
focuses on preserving the interest of the prime stakeholders. This theory has been given by
Edward Freeman who describes the organization ethics and also emphasizes on boosting the
stakeholder value. This approach can be used by the company to manage the interest of the
stakeholders. By offering accurate information to the stakeholders the interest of the
stakeholders can be preserved. Right information helps the stakeholders to consider the
decision which is beneficial for them and it boosts the satisfaction level and retains them
towards the organizational activities of the company (Crane, Matten & Spence, 2019).
4. CSR
CSR approach relates with the contribution that is made by the business to maintain
sustainable development by offering economic, social and environmental benefits to the
stakeholders. It is important for the Nestle Company to focus on this approach so that it could
be easy to provide advantages to the stakeholders. This approach can be used by the company
to manage its stakeholder by emphasizing on the nutritional values. The company should
provide quality products to the customers as in the present era the customers are more
conscious about their health. So, in this way the company should maintain the approach
related with CSR (Grayson & Hodges, 2017).
5.0 Planning
Planning is related with a concept that helps to attain the specific goals and objectives of the
organization. This can also be considered by the Nestle Company to enhance the market
share of the company in the highly competitive market. To make a plan it is important for the
company to emphasize on these 4 objectives:
5.1 Objectives
In this first step, the company should emphasize on setting the objective at the time of
planning. Suppose the company has the objective to be the leader in Nutrition and health
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wellness. So, in this phase, the company determined the objectives that should be attained by
the company. The objective should be set by the company through which it could be easy to
manage the organizational activities.
5.2Actions
The next step in the planning process that should be determined to attain the objective is to
focus on the actions or the steps that will be considered by the company to attain the
objectives. To maintain the quality of the products, it is necessary for the company to take the
decisions related with quality management tools. The company should plan to consider the
quality management tools such total management and six sigma. These tools will help to
maintain the quality of the products that are offered in the market.
5.3Resources
In this step, the company will focus on accessing the resources that are required at the time of
taking into consideration the quality management tools. In this the emphasis will be given on
human resource capability such as the experience off the employee will be considered. The
employees who have the experience to manage the tools will be given the task of quality
management. The next resource on which the focus will be given is the financial status, these
tools incur high cost so the company will emphasize on maintaining the financial ratio. Te
last factor relates with the updated technology. The emphasis will also be given on the
updated technology that should be used to manage the quality of the products.
5.4
Implementation
This is the stage in which the emphasis will be given on the overall implementation of the
plans that are designed by the Nestle Company to maintain the quality of the products. In this
step the higher authority will focus on implementation by managing the human resources and
also by purchasing the latest technology that will be used to produce quality products
according to the set standards of the company (Kerzner & Kerzner, 2017).
6. Culture
Core values are one of the important factors in relation to the cultural factor. This aspect
emphasize on maintaining honesty, integrity and ethics in the workplace. To maintain the
culture in the workplace it is important that there should be honest, integrity among the
employees and the higher authority. In relation to the Nestle Company, it is important for the
company to focus on maintaining equality among the employees. The higher authority should
ensure that equal rules and regulations are made for the employees in the workplace so that
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the issue related to biasness cannot be raised. The core values are important to be considered
as it helps to boost the engagement level of the employee’s towards their work.
7.0 Designing Organizational Structures
It is important for the companies to design the organizational structure as it helps to manage
the overall activities in the workplace..
7.1 Unity of Command
Unity of command offers the employee to take direction from only one supervisor. The
Nestle can maintain it by dividing the groups and for each groups there should be one
supervisor who is responsible for the individual. It will help to boost the coordination and
maintain clarity in the working pattern. The company should design the organizational
hierarchy the employees of the sales department have one supervisor to maintain command
over the employees. The sales department should only contact the manager of the supervisor.
So, Nestle can maintain the organisational hierarchy by focusing on appointing each
supervisor under the employees in the workplace
7.2 Centralization vs Decentralization
Centralization is considered as the authority that simply means the power of planning and
decision making that is in the hands of management. The Nestle Company can maintain the
activities by giving the power of decision making and planning to the management only. The
employees should not be involved at the time of making any organizational decision or at the
time of planning the activities.
Decentralization is the term that is used to describe the power that is also offered to the lower
level employees. The company can maintain the decentralization process by emphasizing on
the giving the opportunity to the employees to share their views and opinions with each other
and then the employees should take the decision in the workplace (Schmitt, Sun, Snyder &
Shen, 2015).
7.3 Span of Control
Span of control focuses on the number subordinates the supervisor has in the team. Nestle
company can achieve spa of control by dividing the equal team members in the team. There
should be equal distribution of the employees in each team so that it could be easy for the
human resource to maintain the activities effectively and efficiently (Thompson, Buch &
Glasø, 2019).
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7.4 Formalization
It is a function in which the managers manage the activities by setting the rules and policies
in the workplace. The Nestle Company can achieve formalization in the workplace by
assigning the responsibility to the managers to set the policies for their teams that should be
strictly followed at the time of managing the organizational activities.
7.5 Organizational structure
The organizational structure that should be considered by the Nestle Company is hierarchical
organizational structure. In this structure there should there is one supervisor for every
employee or for teams. This is beneficial or the company i different ways such as a.) It will
help to boost the productivity. B.) it will help to solve the queries of the employees easily. C.)
will maintain clarity in the work. D.) Provide assistance in reviewing the performance of the
employees (Foss & Weber, 2016).
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8.0 Leading & Motivation
8.1 Traditional Leadership theory
Contingency theory
It is one of the popular theories that state that there is no best way to manage the company or
to make the decisions. But the optimal course of action should be considered as internal and
external situation. In this the leaders should search about the kind of leadership style that he
or she should consider (Alexander, 2017). In relation to the nestle company, the leaders
should consider the contingency theory to boost the motivation level of the employees and to
lead the employees. The leaders in the workplace should have basic qualities so that it could
be easy to consider any style of leadership according to the situation. It will help to enhance
the satisfaction level of the employees towards the work and it is because their leader has the
skill that helps to manage the activities effectively (Simon, 2018).
8.2 Contemporary Leadership theory
Charismatic leadership
It is the leadership concept that boosts the particular behaviour of the employees in terms of
communication, personality and persuasion. It is important for the Nestle company leaders to
emphasize on motivating the followers by getting things done or they should focus on
improving the certain things of the employees. The employees can be motivated if the leaders
communicate with them effectively. So, the leaders of the company should focus on
communicating with the employees and also they should emphasize on giving freedom of
sharing their views and opinions with the management. By giving an opportunity to the
employees to share their views and opinions can help to boost the motivation level of the
employees towards the work (Sy, Horton & Riggio, 2018).
8.3 Motivation theory
Maslow hierarchy of needs theory
The motivational theory that should be considered by the management of NESTLE IS
Maslow hierarchy of needs theory. This theory should be considered so that it could be easy
to satisfy the basic needs of the employees. In this theory there are five stages that are
important to be considered such as physiological needs in which the focus should be given on
fulfilling the biological needs such as food and shelter. The next is safety needs in which
focus should be given on job security and stability. The third is love and belongingness needs
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in which interpersonal relations should be maintained. The next stage is esteem needs in
which the employees should be offered respect and dignity in the workplace. The last is self
actualization needs in which focuses should be on personal growth and experience of the
employees (Bouzenita & Boulanouar, 2016).
9.0 Recommendations
It is recommended that for achieving growth in the next 5 years the company should focus
on the different such as training and development. It is one of the methods that can help the
management to attain the positive outcome in the future. By giving training to the employees
the skills can be developed of the employees that help them to give their best towards the
assigned work. Also, by giving training t the employees the retention rate of the talented
employees can be maintained which helps to boost the level of productivity in the highly
competitive market.
9.0 Conclusion
It is concluded that Nestle have a good brand image in the market that can help to boost the
market share but the threat can be from the competitors present in the market. So, to compete
in the market, it is important for the company to consider innovative approaches so that it
could be easy to reduce the competition level. Nestle also have the opportunity to expand its
market share, so the company should emphasize the diversification strategy as it will help to
enhance the profits and also build the brand image which will be beneficial in context to
manage the work.
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