Leadership and Management Strategies in the Food Industry: Nestle

This report provides a comprehensive analysis of leadership and management principles within the context of Nestle, a major player in the food industry. It begins by defining and comparing the roles and characteristics of managers and leaders, highlighting their differences and similarities. The report then examines how leadership and management functions are applied in various situations, such as task allocation and employee retention, using situational leadership approaches. It delves into the application of different leadership theories and models, including systems leadership, chaos theory, and contingency theory, to improve Nestle's operations. The report also explores the key approaches to operations management, emphasizing the importance of operational efficiency in achieving business objectives, and analyzes factors affecting the business environment. Finally, it assesses how leaders and managers can enhance operational efficiency, considering both internal and external factors impacting Nestle's performance. The report concludes with an evaluation of the application of operations management principles within the company.

MANAGEMENT AND
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
a) Define and compare the role and characteristics of manager and leader................................3
b) Examine how leader and function of manager applied in different situations........................4
c) Apply theories and models of leadership approach.................................................................5
d) Analyses and differentiate between role of a leader and function of manager.......................7
e) Assess the strengths and weaknesses of different approaches within the work environment. 7
f) Critically analyze and evaluate the different theories and approaches to leadership...............8
Task 2 Case Problems .....................................................................................................................9
a) Key approaches to operations management and the role of leaders and managers in OPM...9
b) Importance and value of operations management in achieving business objectives ............10
c) Factors of business environment that affecting operational and decision-making................10
d) Evaluate how leaders and manager can increases efficiency of operational management. . .11
e. Factors affecting business environment and wider community.............................................11
f. Evaluating application of operations management.................................................................12
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
Business responsibilities has increases with the higher complexities in the external
market. The opportunities can be gained by an entity by improving their existing set of skills in
beating rivals in the same market. Nestle as one of the business player in the food industry has
been selected for this project report. This project report is all about defining role and
characteristics of a leader and the manager by comparing the differences and similarities amomg
both of them. This report emphasises on different leadership styles and its further appliucation in
the existing enterprise. This stresses on the operational management of this entity and its further
implications on the current business enterprises.
TASK 1
a) Define and compare the role and characteristics of manager and leader
Nestle company is selected for this project which lies under food industry and it deals in
providing food and drink products (Karlsson, 2016). This entity offer variety of food products
supplied all over the world. The products list of this enterprise includes baby food, medical food,
bottled water, breakfast cereals, coffee and tea, dairy and confectionery products, ice cream
products.
Concept- The manager represent the whole management which shows the controlling
and directing techniques applied in guiding their subordinates. On the other hand, a leader is a
person who takes initiative to guide their followers to complete their tasks in the better way.
Purpose- The purpose of the manager is to create higher level of coordination by
harmonizing large number of people in a team. The leader on other side will apply their skills
and capabilities to motivate their followers to work in the firm.
Style-The personality of a leader is attractive in order to please their followers to bring
out their hidden talent. The manager is the personnel who is the problem solvers and act like an
arbitrator and tends to give their view point on the issue which take place in the enterprise.
Focus- The manager stresses on achieving goals and the objectives framed by the top
management which will be complied by all he subordinates in an entity. The good analytical
ability of a manager is used in improving the existing capabilities of the business entity. A leader
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focuses on motivating their follower in the positive or negative way to complete the overall tasks
and duties in the entity.
Orientation-The leader emphasizes on people as the tasks are completed by people in the
business. On the other hand, management will only focus on completion of tasks and duties
which are imposed by the manager which will be completed by team leaders in coordination with
their followers.
Role-The leader facilitate their team member by resolving their issues currently faced by
an individual by finding the root cause of the problem which helps in reducing current errors The
strategies are crafted by leaders which in turn helps an individual to comply all the policies for
the benefit of these individuals.
Basis Manager Leader
Definition A leader can be manager who
manage things in order to
achieve the desired outcomes
for the business.
A manager cannot be a leader
as a leader will lead their
entity in order to accomplish
desired outcomes.
Approach The focus of the manager in an
entity is on completing work.
A leader will always
emphasize on people as they
are highly concerned with the
behavior of an individual.
Function Manager of Nestle held
responsible for driving their
whole team members in order
to accomplish a desire aim.
Leader of Nestle will coach
their team members in order to
take initiates.
Change period Manager imposes rules and
orders on an individual in
order to comply all the rules
and accepts the change in the
firm.
Leader will communicate all
benefits about the current
changes the organization and
its overall impact in the lives
of an individual with the given
change.
b) Examine how leader and function of manager applied in different situations
Situation leadership is that approach which is used by this entity to ensure the functions
played by a leader and a manager to accomplish the assigned tasks and duties of the business
enterprise (Gollenia, 2016).
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This approach is given by Paul Hersey and Ken Blanchard in order to improves the
current level of leadership used by all the leaders in motivating their clients towards the
achievement of desired aim's and the objectives.
Allocation of tasks and duties- The one way communication takes places between leader and its
subordinates in which leader will allocate tasks to their followers. Efficient allocation of all kinds
of resources is essential in order to accomplish all tasks and duties in a given time period in order
to provide ultimate advantage to an enterprise. The manager will not communicate directly with
the followers as they only impose the policies.
Higher staff turnover- In this particular situation takes laces in an entity employer try to
convince employees to retain the business for long time. Higher salary and incentives will be
given to motivate all the employees are dissatisfied with the current job. The leader will frame
policies in the situation of high staff turnover by informing future benefit of an entity in order to
remain in this kind of business. The manager on the contrary, will not show any interest while
involving with the subordinates. The exit interview will be conducted the management in which
review of the performance of the followers are assessed by the leaders and identify the cause of
their dissatisfaction.
Centralization of powers- The tasks are allocated to an individual along with authority which
inspire an individual to complete their task in the given time frame. The delegation of
responsibilities will help a leader in order to monitor the progress of their follower in relation to
the projects and tasks given to them.
Low competence of employees- Training will be offered to all the employees working in an
enterprise to enhance all their qualities in order to achieve desired aims and targets. The
inexperienced employee will have lack of skills in order to face the existing burden in form of
rigid tasks and duties (Karlsson, 2016). The curiosity to learn new things are high in person
which are utilized by a leader in allocating important tasks.
Market knowledge- An individual working in an enterprise need to adopt various technique so
that they can improve their current skills and the capabilities in order to take higher competitive
advantage. The knowledge level of a person has enhanced but doesn't have complete knowledge
regarding a particular subjects. The employees are frustrated and discouraged by small mistakes
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done by them. The leader will help this person in order to overcome their existing weaknesses
into their strengths.
Future direction- Guidance will be provide to all the employees working in the business as
without proper direction an employee will not generate higher outcomes in the near future. The
employee who get frustrated have overcome their weaknesses and know their future direction as
they self directing their personality. The opportunities need to be explored by followers to
challenge their capabilities. The temporary plan will be formed and broken by a person
according to their convenience. The lack of confidence in itself will increase the workplace
issues which enhances the boredom at the workplace.
Recognizing capabilities- Hidden qualities of an individual will be recognizes by an employer
that helps in creating additional value which indirectly increases their overall capabilities. This
phase will provide fame a recognition among experts of an industry. The level of confidence will
also get increases as the weaknesses of a person has reduced by amending their efficiency. The
nature of an individual will become proactive as they have faced several kinds of complexities
which challenge their ability which strengthen their overall confidence in itself to stay strong.
The inspiration of a person in reaching this particular place is due to the support and contribution
of a leader who facilitate their followers to reach this stage by improving their skills.
c) Apply theories and models of leadership approach
The application of different leadership styles will help in improving the existing working
conditions of nestle which is given as below:
System leadership- The complete system of Nestle will be controlled and managed by applying
this particular leadership which emphasises on improving the current system. The current
technique will be used by an individual in order to automate their existing business functioning.
This kind of leadership is stresses on management as strategic thinking needs to be adopted by an
individual to achieve the desired goal and the objectives framed by an entity in a particular year.
Management decisions- The policies need to be framed at the top management which further
complied by all kinds of users currently working in the business of nestle (Ghosh, 2016).
The strategic decisions will be taken by a leader as this will be performed by motivating top level
employees by giving assurance about the future success or overall growth of an entity.
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The middle managers are motivated by giving additional responsibilities to all the mangers in
order to handle complex tasks and duties in different segments. The middle level managers are
motivated by appreciating their talent in order to gain competitive advantage.
The operational level employees in the business held responsible for meeting the hidden needs
and aspirations of an entity by supporting an enterprise in achieving their desired goals and the
objectives.
Chaos theory- The current theory is applied in an entity whose major objective is to focus on the
current conflicts takes places in the business in order to improve overall business enterprise. The
nature of all the business problems are analyzed properly in relation to the aims and targets
framed by an entity to align their performance with the tasks and duties.
Contingency theory- This is regarded as the important organizational theory which claims to
organize existing functions of an entity in the best possible manner to gain competitive
advantage over its rivals (Gollenia, 2016). This leadership will focus on framing various goals
and the objectives in order to reduce the current obligations. The leader will consider different
behavior of an individual in relation to the current situations in order to improve the existing
conditions of the business. The considerations which needs to be taken into account is the
existing goodwill of the business.
Risk evaluation- The external risks is assessed in relation the current brand image of an entity.
The risks will be classified into two different parameters such as internal and external risks
currently affecting the overall business performance of an enterprise. The internal risks can be
related to the employees and poor management control. The external risks is related to the
customers, shareholders and the investors whose investing decision will be canceled due to bad
image of an entity in meeting the different obligations of the external parties. The planning will
be conducted in order to reduces the overall impact of external risks on the existing performance
of the firm. The scheduling of all the projects will be done which helps in reviewing the existing
tasks in relation to its obligations.
d) Analyses and differentiate between role of a leader and function of manager
The leader and manager of nestle need to be perform several functions in improving the
existing performance of entire firm (Bromiley and Rau, 2016). The approaches adopted by a
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leader and a manager get different in handling variety of subordinates to achieve desired aims
and targets of the business which is given as below:
Legal environment- Rules and regulations comply by all the employees working in the business
as Autocratic leadership style will be adopted to impose orders on all the employees working in
an entity.Nestle are required to follow health and safety measures as it deals in food products in
order to protect the interest of the customers. A manager will impose liability on its subordinates
to comply with the rules and regulations as an order. On the other hand, a leader will help their
subordinates in complying these rules in order to deliver high quality output by supporting them.
Marketing segment- The products are launched in the business as this decision taken by the top
management which further communicates by manager. A leader will seek consent from all
subordinates to launch new products or modify the existing products by taking ideas of the
subordinates.
Change in organization- Democratic style of leadership would be helpful for an entity in
retaining all the employees in the same enterprise for long period. The traditional practices
changed in the business by shifting the entire firm from manual working to the digital working
will be resisted by different employees. A manager will communicate this thing in formal
manner to all the subordinates to get their feedback which will only result into negative reactions
of all the employees. On the other hand, a leader will understand the actual situations of the top
management but this thing will be presented in front of subordinates in friendly manner to seek
their feedback which can be positive or negative (Bendoly, 2016). The next step taken by a
leader after listening to all the subordinates in order to convey the positive benefits of this change
will further result into higher number of support from all the subordinates rather than resisting
with the current change.
e) Assess the strengths and weaknesses of different approaches within the work environment
Training and development- The efficiency of the leaders in the Nestle can be improved by
providing them training by using situation leadership styles. The current technique has
emphasises on meeting needs of different individuals in real business situations.
Analysis of problems- The complexity of different situations will be improved by applying
practical approaches to strengthen the existing business entity. The changes take places in the
current enterprise the leader will adapt with the current situations by handling the situations from
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both top management and the subordinates sides by creating perfect alignment between them
(Renz, 2016).
Understanding needs of employees- Interaction section taken by the employer to convey the
feeling comfortable working environment to produce all the targets of the business in lesser time.
Nestle are required to adopt current system in order to reduce their obligations by using their
existing skills and capabilities.
Improving performance of business- The performance of an enterprise will be improved by
funding out the root cause responsible for meeting the hidden needs of both management and
subordinates. The leader can apply good communications and arbitrary skills in resolving the
issues between management and employees.
Conflict management- These kinds of issues will be resolved by an individual by seeking
additional support from the external parties. The decisions taken by the management will get
improved as the unanimous decisions in which the both the perspectives has involved will result
into accurate decisions finally taken by an individual. The improvement of workplace issues will
help an entity in enhancing the overall productivity of an individual by focusing on their work
rather than issues and conflicts.
f) Critically analyze and evaluate the different theories and approaches to leadership
Task oriented leadership- Nestle food enterprise is currently focuses on task oriented technique
in which the human needs are ignored by stressing on completing wide number of tasks within
given time frame. The management will allocate different tasks to the followers in completing
higher number of tasks with high level of accuracy by using different technologies. The leader
which can be departmental head of this entity who will emphasises on achieving the singular
tasks of delivering various products (Fagel, 2016). The department can be baby product and
medical products whose customer base is different and sensitive as wrong ingredients will affect
these individuals. The quality of food will be determine which helps in increasing the customer
satisfaction for the products delivered by an entity to its various kinds of customers. The
employees of an entity will be motivated to work better for an organization by enhances the
success rate of this entity.
Relationship oriented- Situation leadership will be adopted by an entity in improving the
current business performance of an entity in which needs and the expectations of different
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employees are taken into considerations. Meeting expectations of employees will, further helpful
for an organization in achieving higher output for the business by utilising less input.
TASK 2 CASE PROBLEMS
a) Key approaches to operations management and the role of leaders and managers in OPM
Operational department of Nestle is focusing on quality aspects so that appropriate and
suitable products can be delivered to the customers. The most important aspect of operation
management is supply chain which needs to be quality associated so that all the business
practices can be strengthened (Handfield and Nichols, 2002). In the below mentioned section,
approaches of operation management have been discussed: Total Quality Management (TQM): The process of Total Quality Management helps the
organization to manage all the operations in excellent way. It includes quality dimensions
while delivering products and services which is vital from customer point of view. TQM
approach involves more than simply meeting goals of traditional approach and the end
result of TQM leads the organizations to manage all organizational processes in a
consistent manner. This has been adopted by Nestle wherein quality materials are
included for customer satisfaction (Hough and White, 2004). Six Sigma: The method is also applied in Nestle wherein business activities are managed
according to the aim of zero defects. As per the approach, continuous monitoring and
inspection is being conducted by Nestle so that to ascertain the areas of improvement.
With the help of this method, all the work processes of Nestle are reaching the quality
standards (Bell and et. al., 2005).
 Ishikawa method: Ishikawa method is known as fishbone diagram that depicts the causes
of a specific event. The method is useful and it also applied in Nestle for the purpose of
identifying defect along with the potential factors that causes overall defect. Each cause
or reason for imperfection is a source of variation. The method can be used to show the
relationship among cause and effect. Through this, possible causes for a problem can be
ascertained especially when a team's thinking tends to fall (Ittonen, 2012).
Leaders and managers of Nestle are engaged in analysing quality dimensions of the
business; thus it can be said that they play active role in meeting quality requirements of the
business. Leader has to ensure that all the approaches are being adopted in the business entity for
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maximizing the capability of organizational operations. Moving towards the role of managers, it
can be said that they have to determine if all the business functions are concerned with quality
approaches. Up to some extent, it is significant for the purpose of enhancing organizational
competitiveness and productivity (Hough and White, 2004). All the operations of Nestle are
appropriately managed according to quality dimensions; hence Nestle needs to ensure that all
such integrated processes helps the business entity to meet the defined aims and objectives.
The managers are entitled to emphasize on all such approaches so that operational
activities can be carried out accordingly. Leaders and managers both are accountable to play
diverse roles so that quality of the work can be enhanced. This is also essential in terms of
encouraging the quality facets that plays major role in enhancing customer base and profitability
aspects. Leaders and managers both are entitled to focus on Total Quality Management so that
defects and errors in the production can be minimized accordingly. Emphasis on all such
methods will enhance the value of operational activities.
b) Importance and value of operations management in achieving business objectives
Operations management assists the manager of Nestle to undertake strategic business
decisions and as a result, proper solutions are being identified to overcome organizational
constraints. For example- emphasizing on OPM aids Nestle to take long term strategic decisions
which includes mergers and acquisitions or any other industrial change that has a direct impact
on core business activities (Bell and et. al., 2005). Since, the process (operations management)
involves designing and controlling of activities; therefore considering the same Nestle is able to
produce all such products that are essential from customer’s point of view. Furthermore,
operations management in a service setting like Nestle would focus on ensuring that - workers
are adequately trained, customer service locations are equipped as required and services are
revised as directed by customer input or competitive forces. Management of all these aspects
directly results in meeting the aim and objectives (Groocock, 2000).
Appropriate management of all the operations helps in managing supply chain procedure
and that further assists business to meet the demands of customers. It is essential for Nestle to
fulfil the demands of customers when required because this is the prime factor through which
success and profitability facets could be enhanced (Ittonen, 2012). Further, OPM also aids Nestle
to survive in competitive market by bringing up quality and necessary products for the end users.
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Emphasis on quality dimension's amends customer satisfaction and similarly, it increases
profitability factor. With the help of operations management, cost of production is reduced which
has a direct impact on business profitability. Henceforth, from the above discussion, it can be
said that Nestle has been acquiring long term and short term profits because of appropriate
management of all business activities.
Apparently, Nestle has been working with the aim to enhance the ratio of customers and
this is possible when the business focuses only on bringing quality products and services. This
can be managed through focusing on quality associated products and services. With the help of
operational planning and management, Nestle will be able to focus on quality aspects so that
customer base of the company can be enhanced.
c) Factors of business environment that affecting operational and decision-making
Internal factors- The assessment of the internal factors of the Nestle is essential as it will be
helpful for an entity in order to know its strengths and weaknesses in handling external pressure.
The products are sold by an entity in the external environment in order to get higher customer
support to beat their rivals (Shivley, Urie and Lombard, 2016).
Brand image- In this food industry competitors are fully surrounded this enterprise as they try to
spoil the current image of Nestle in the market to reduces their efficiency. The crafting of
strategy is internal factors which will b e helpful for the business in minimizing the existing set
of competitors and increases the overall base of buyers.
Marketing activities- It will be improved as higher substitute products are available in the
market. The legal weapon can be used by this firm as meeting some health and safety obligation
this entity can increase their image in the whole society and even in the eyes of the law.
Financial performance- Recession is another important factors which shrinks the existing
capacity of an individual and their business. The financial crisis faces by an entity will shift their
d3emand of food products to towards their competitors. The decisions need to be taken by the
leader in this particular situations is to secure the current position of the business in the market
by using old business connections.
d) Evaluate how leaders and manager can increases efficiency of operational management
Nestle company focuses o their primary objective is to consider significant changes in
their current base of customer's needs and the expectations (Christopher, 2016). The operational
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