Organizational Effectiveness of Nestle: Analysis and Evaluation Report

This report analyzes the organizational effectiveness of Nestle, a global food and beverage manufacturer. The report examines Nestle's purpose, scope of operations, and evaluates its effectiveness based on several criteria, including decision-making, change and learning, teamwork and cooperation, and self-organizing systems. The author provides a personal perspective on these criteria and recommends improvements, particularly emphasizing the importance of teamwork and cooperation. The report also considers the perspectives of different stakeholder groups, such as owners, employees, and customers, to evaluate Nestle's overall effectiveness. The conclusion highlights the significance of teamwork, decision-making, and continuous innovation in achieving business goals and maintaining a competitive edge in the global market. Finally, the report suggests that Nestle should focus on enhancing teamwork and cooperation among its employees to further improve its organizational effectiveness.

Running head: ORGANISATIONAL EFFECTIVENESS OF NESTLE
ORGANISATIONAL EFFECTIVENESS OF NESTLE
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1ORGANISATIONAL EFFECTIVENESS OF NESTLE
Table of Contents
NESTLE.....................................................................................................................................2
Criteria’s.....................................................................................................................................2
References..................................................................................................................................6

2ORGANISATIONAL EFFECTIVENESS OF NESTLE
NESTLE
I observed that Nestle is the world’s most abundant food and beverage manufacturer,
which has headquarter in Switzerland. This company delivers its excellent quality products to
over 191 countries to serve their customers. Nestle has quality products like MAGGI,
NESCAFE, and KitKat. I noticed that nestle is delivering quality foods over the decade since
1912. After studying their reports, I found that the primary purpose of nestle is to enhance the
quality of life of their customer, which contributes towards a healthier future. Nestle wants to
shape the world in a better and healthier way by serving premium fresh foods to their
customers. Nestle is also inspiring people to live a healthier life. Nestle is primarily focused
on the society, ensuring the long-term goals of their organization (Singh & Alazmi, 2019). By
serving people with good foods, Nestle is responsible for achieving its business goals. From
their websites and recent reports, I perceived that the operations of nestle are highly
committed to maintaining the quality and safety of their food products. Operations are
engaged to provide nutritional and healthy food products to their customers. The tagine of
nestle “Good Food, Good Life” is a clear indicator that the company is mainly focused on
being the leading and competitive nutrition, health group within the global market. I also
perceived that the production and management of Nestle are focused on providing a variety
of healthy food products to their customers.
Criteria’s
From my perspective, I think that the criteria of Nestle should be evaluated
appropriately to evaluate the effectiveness of Nestle. In my opinion, I believe that the
operation of nestle should be assessed based on these four criteria to evaluate the
effectiveness of their organization. These criteria are provided below.
Decision-making

3ORGANISATIONAL EFFECTIVENESS OF NESTLE
The decision making of nestle is decentralized, and the primary reason for this is to
provide better insights to their customers. To improve the communication and distribution
process in the global market, Nestle has set some virtual teams, which will assist Nestle in
enhancing the regional sales, category marketing, and supply chain verticals (Lee et.al.,
2020). Depending on customer insight, Nestle can launch local variants of its new products. I
think that the decision making process will help nestle to overcome any market-related issues.
This will also increase their flexibility and market penetration as per my observation (Varma
& Ravi, 2017). The decentralized decision-making should be used to make the decision faster
and effectively in the organization, focusing on their target market.
Change and learning
From their reports and journals, I observed that Nestle implements changes in its
organization by following the economic and other conditions of the market. 66% of the
employees of nestle is involved in the learning program to upgrade and enhance their skills.
From my point of view, this is a very important approach by Nestle as the improvement of
their organization can only be possible through their employees (Hayes, 2018). Nestle also
installed high-quality machines to increase production and compete in the market. Learning is
an integral part of nestle as per my observation. Primarily, training is provided on the job,
ensuring that no employee is left from this learning procedure.
Teamwork and co-operation
Nestle is primarily focused on working as a team, ensuring no strategy is left to be
achieved. Teamwork is one of the most important aspects that should be observed to evaluate
the performance of the organization. I think, without proper teamwork and co-operation, no
company can achieve anything in the market. From generating revenue to serving customers,
every process needs proper teamwork and cooperation (Graf, 2018).

4ORGANISATIONAL EFFECTIVENESS OF NESTLE
Self-organizing and Adaptive system
The self-organized system is used to control the system process without the help of
any external organization. Self-organizing teams are not dependant on their managers to
commence work. Nestle company does not follow this system (Filelis-Papadopoulos et.al.,
2017). Nestle is a function-based organization that is controlled by their higher authorities.
The task between different teams is divided. Then various groups or teams work on the job.
The research and development team of Nestle innovates new food products, ensuring the
health and safety of its consumers (Espinoza-Orias, Cooper & Lariani, 2018). I think that this
process is a lot easier to work with. In my view, Nestle has a very much decentralized
structure that helps them to solve internal and external conflicts of the organization as well as
aids them in achieving their target goals in the market.
I think that teamwork and cooperation is the most important aspect that should be
taken into consideration when evaluating the effectiveness of an organization. The reason for
this choice is simple as I observed that without proper teamwork and co-operation, it is
impossible to work for the objectives of the organization (Ogedengbe, 2017). Further, as per
my observation, I think that the shareholders of this company can use this to enhance their
operation in the business. I recommend that teamwork and cooperation should be improved in
the organization by following certain aspects. The management should frequently have a
meeting with their employees to improve the understanding inside the organization. Any
mistake in the process can be taken rectified through proper teamwork; therefore, I suggest
that Nestle should frequently organize meetings to understand the ideas and requirements of
the employees. This will help them to build a proper connection between the work and the
employees. Nestle is focusing on providing better nutrition across the world through its
research and development team. I perceived that Nestle is researching to make their food
products safe and secure for all of its consumers.

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Conclusion
From the above analysis, I can conclude that all of the criteria are important to
evaluate the effectiveness of Nestle. From my perspective, teamwork and cooperation should
be the primary thing that the company should adopt to focus on their business goals more
effectively. Other than this factor, decision-making can be the second crucial factor for
Nestle. I also perceived that the development team of Nestle is focused on innovating
different food products to improve the nutrition and producing foods that will tackle iron
deficiency.

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References
Espinoza-Orias, N., Cooper, K., & Lariani, S. (2018). Integrated product development at
Nestlé. In Designing Sustainable Technologies, Products and Policies (pp. 447-456).
Springer, Cham.
Filelis-Papadopoulos, C., Xiong, H., Spătaru, A., Castañé, G. G., Dong, D., Gravvanis, G. A.,
& Morrison, J. P. (2017, July). A generic framework supporting self-organisation and
self-management in hierarchical systems. In 2017 16th International Symposium on
Parallel and Distributed Computing (ISPDC) (pp. 149-156). IEEE.
Graf, A. (2018). The impact of culture on the strategy of MNCs-a case study of
Nestlé (Doctoral dissertation, uniwien).
Hayes, J. (2018). The theory and practice of change management. Palgrave.
Lee, S. P., Kee, D. M. H., Lee, P. S., San Chin, W., Gan, H. M., Alghanim, B., & Kumar, B.
(2020). Improving the Interpersonal Relationship among Employees in
Nestle. Journal of the community development in Asia, 3(1), 8-15.
Ogedengbe, O. S. (2017). An investigation of multinational corporation management, on the
example of “Nestle” Corporation” (Doctoral dissertation, Тернопільський
національний технічний університет ім. Івана Пулюя).
Singh, A., & Alazmi, F. K. (2019, October). A Case Study on Nestle. In Journal of
International Conference Proceedings (Vol. 2, No. 2, pp. 80-85).
Varma, G. R., & Ravi, J. (2017). Strategic Analysis on FMCG Goods: A Case Study on
Nestle.