Nestle: Analysis of Leadership, Operations, and Management Strategies

This report provides a comprehensive analysis of Nestle's leadership, management, and operational strategies. It explores the roles and characteristics of leaders and managers in various situations, differentiating between their responsibilities and functions. The report delves into several leadership theories, including situational, system, and contingency leadership, and how they apply to Nestle's operations. Key approaches to operations management, such as just-in-time, Six Sigma, and total quality management, are examined, highlighting their importance and value in reducing wastage, raising employee motivation, and increasing sales. The report also identifies key factors influencing Nestle's business, such as culture, and emphasizes the significance of operation management in meeting customer demands and achieving a competitive advantage. The analysis provides insights into how Nestle can optimize its internal functioning and maintain a strong market position.

UNIT 4 MANAGEMENT
AND OPERATIONS

TABLE OF CONTENT
INTRODUCTION.......................................................................................................................................3
Roles and characteristics of leaders and managers..................................................................................3
Roles and functions of a leader and manager in different situational context..........................................4
Leadership theories..................................................................................................................................5
Key approaches to operations management.............................................................................................6
Importance and value of operations management....................................................................................7
Key factors influencing the business.......................................................................................................8
CONCLUSION...........................................................................................................................................9
REFERENCES..........................................................................................................................................10

INTRODUCTION
To achieve the highest level of efficiency there has to be a control and operating
functions which are known as operation management. Operation management helps in planning
for organization so that they can convert their inputs into outputs effectively and achieve their
objectives. Nestle is a public organization which is serving products worldwide and has its
headquarters in Switzerland. There are a lot of products which are sold by Nestle like baby food,
dairy products, ice creams, pet food, etc but emphasizes of this report would be on coffee. The
report would consist of different roles and characteristics of leader and managers in different
situations, Theories and approaches which can be applied in operation management and that
value which organizations have so that they can have an effective functioning is going to be
discussed in the further report.
Roles and characteristics of leaders and managers
Manager is administering head in company who has control on all employees and
decisions making in organization. Leaders are employees under managers who have a control on
a group of people of company so that they can make productivity, standards and objectives of
organization be achieved. There are a lot of differences which are there in roles and
characteristics in both of them which is going to be discussed in further report.
Basis Managers Leaders
Roles  Talented employees must be
hired by organization so that
standards of company can be
maintained and productivity of
the company does not decrease
(Fahimnia and et.al., 2019).
 Knowledge in managers has to
be high so that they can make
decisions for company better
 Leaders must have to right
skills and knowledge to
delegate work to the
employees so that they can
give their best in company.
 Regular monitoring and
controlling employees has to
be done by the leaders so that
they can make working

which is going to make
organization achieve their
objectives by having right
strategies and decision making.
improve and objectives of
company will be met faster.
Characteristics  There is a requirement of a lot
of experience which manager
must have and manager in
Nestle are experienced which
is why company is being able
to make a lot of changes come
in company so effectively.
 There should be respect in the
managers for the employees in
the organization. With that
there should be confidence in
management so that they can
make decisions for company
effectively.
 Leaders of Nestle are very
focused on the work they are
doing so that they can guide
the employees under them
properly which will give
them a direction to function
in and meeting objectives
will be faster.
 There should be a strong
communication of leaders
with management and
employees of company so
that they can make results of
company effective and get a
competitive advantage.
Roles and functions of a leader and manager in different situational context
Roles and functions of a leader and manager are very different from one another which
have to be done properly so that company can function effectively and smooth functioning.
There are a lot of situations which can rise in an organization which have to be controlled and
worked upon by leaders and managers of company so that there is a better functioning. Situations
like labour turnover and conflicts in organization can make internal environment of organization
not be able to meet expectations and demands of customers on time.
The managers have to get in a lot of changes in Nestle so that the needs of the customers
can be met by the organization and that will help the company to get more customers in the
company. When the changes come in the leaders have to make sure that the decisions which are

taken by the managers for establishment are effective and the employees of the company will be
able to adapt to them (Hill and Hill, 2017). Leaders have to motivate the employees so that the
chances of conflicts are low in the organization and the company will be able to get a lot of
changes in the company which is going to help the company to get more revenue. The labours of
the organization must get a healthy environment to work in so that the organization does not
have a result of employees leaving the organization which Nestle is taking care of. The
importance of employees is understood by the organization well which is making Nestle take
their measures after analysing all factors. The conflicts have to be managed otherwise the
organization is going to lose their skilled and trained employees in the organization.
Leadership theories
There are a lot of theories which can be used by leaders so that they can have a better
functioning for themselves which is a very essential factor. To make the organization achieve
their objectives the leaders have to use theories so that they can find success in the market.
 Situational Leadership
There are a lot of situations in which the leaders have to make decisions so that the
organization can function effectively and smoothly. The small problems can become bigger later
which is why they need to be solved and in all the problems managers can not take measures
(Anand and Gray, 2017). This is why the leaders of the company also have to be experienced so
that they can solve the problems in the organization which will not reduce the productivity and
let the internal environment of the company be affected.
 System Leadership
There are a skills and capacities of individuals in an organization as a leader so that they
can have a better functioning in the market. The systematic leadership is going to make the
organization have a better sense of direction and make the company be able to achieve their
goals from time to time. This is a regular basis which the leaders of an organization practice so
that they can achieve their missions. There are a lot of responsibilities on the leaders which have
to be done in a planned manner so that the organization can achieve their objectives.

 Contingency Leadership
This style is taken by the managers of the company so that they can get clarity in the
functioning of the organization and the productivity of the company can be maintained which is
a very essential factor for the organization (Fettermann and et.al., 2018). Nestle is having a lot of
experience in the market which is making the company have a better place for themselves in the
market. The turnover in the Nestle is controlled by the leaders so that there is a better functioning
and the profit margins increase which is going to be invested in technological aspect of the
company so that there is a better functioning.
Key approaches to operations management
The leaders and managers of the organization have to use approaches in Nestle so that
they can have a better functioning and the outcomes of the organization can be improved. There
are three approaches which are going to be discussed in the further report which are as follows.
 Just in time
The managers and the leaders have to tract the inventory so that the raw material which is
coming in the company is not extra and not being wasted by the organization (Slack, 2018).
There are a lot of beans which can be supplied to the company because the suppliers trust Nestle
because of the reputation they have in the market. Leaders send a list of requirements in the
organization to the managers and managers must recheck them so that the right supplies can be
done in the company. There is no requirement to get in supplies which is not required and will
get expired and wasted in the organization. This is a much cost friendly approach for Nestle and
the company will be able to have a higher profit margin.
 Six sigma
The wastage in the organization has to be less and there are huge investments which are
being done by Nestle so that they have a zero carbon footprint which will make the company
have a better standard for themselves in the market. Leaders have to make sure that the
employees are following the changes which are environment friendly and better disposal
methods in the company so that Nestle will be able to achieve the objectives from time to time.

 Total quality management
Leaders and managers of Nestle must use this approach since it will help in improving the
quality of products of organization. This is very important because this will satisfy customers of
organization and Nestle will be able to have higher profit margins. This will also result in high
reputation of the organization in the market which is going to attract more customers and loyalty
of them as well (Cheng and et.al., 2019). The demands of the customers must be met and the
employees of the company have to be motivated so that the company can make this take place in
Nestle.
Importance and value of operations management
Operation management helps the company to meet the demands and needs of the
customers which are a very essential factor for the organization. This will help the company to
get a competitive advantage so that the organization can have a strong and long market base.
 Reduce Wastage
Operation management helps the organization to reduce the waste outlet of the organization
so that the organization can give their best in the market. There are a lot of measures which have
to be taken by the management Nestle so that they can achieve this factor and the leaders must
adapt and make sure that everyone is following them. There is going to be a better decision
making in the organization so that there is a better functioning. The organization is going to get a
competitive advantage and the cost friendly environment in Nestle is going to increase.
 Raising Employee Motivation
Employees of Nestle are the backbone of the organization therefore it is very important for
the company to achieve this factor for that they can have a better functioning for themselves
(Chan and et.al., 2017). Motivated employees means that the company can get in changes in the
organization easily which is going to be very helpful and the organization will be able to have a
strong base for themselves.
 Raise Sales

The end products of nestle are well maintained and the best of product is provided to the
customers which is why Nestle is having a strong customer base for themselves. The standards of
the customers are being met and the demands are also being met from time to time which is why
the organization is having such a good brand image in the market.
Key factors influencing the business
There are a lot of factors which can influence the productivity of an organization which have
to be well maintained by Nestle which are as follows (Lamba and Singh, 2017).
 Culture
Over years of experience in this industry there is a culture which the organization has
developed for them so that they can maintain the internal functioning of the organization and that
will give the best of products to the customers. It is very important for the internal factor of the
company to be maintained so that they can have a competitive advantage in the market. Meeting
the objectives will be faster if the culture of the organization is followed and the organization
will be able to have a better functioning for them. Culture in the organization is make according
to the customers and employees so that there is a strong internal factor in the organization so that
the company can operate effectively.
 Ethics
The leaders and managers make sure that the ethics of Nestle is being followed in the
business so that there is a discipline in the organization so that there is an organized form of
working (Thomé, Scavarda and Scavarda, 2016). It is very essential for Nestle to have a planned
and organized form of working so that they can meet the expectations of the customers which is
going to be very helpful. Right decisions will be taken by the organization which is going to be
very helpful for the long run of Nestle in the market and the company will be able to get a
competitive advantage.
 Corporate Social Responsibilities

There is a lifestyle of customers which has to be matched by the products of the company
which is a great advantage for nestle because they are being able to convert the green beans to
coffee powder for the customers which is matching the lifestyle of the customers. The product is
not high priced which is why the customer base for the company is maintained which is a very
good factor.
CONCLUSION
From the above report it can be concluded manages and leaders play a very important
role in the organizations so that the organization can achieve their goals and objectives in the
market. Analyzing the internal and external factors by the organization has to be done so that
they can have a better functioning for themselves so that they can get a competitive advantage.

REFERENCES
Books and Journals
Anand, G. and Gray, J.V., 2017. Strategy and organization research in operations
management. Journal of Operations Management. 53. pp.1-8.
Chan, H.K and et.al., 2017. The role of social media data in operations and production
management. International Journal of Production Research. 55(17). pp.5027-5036.
Cheng, T.C.E and et.al., 2019. The use of social media in operations and supply chain
management. Special issue call for papers from International Journal of Operations
and Production Management.
Fahimnia, B and et.al., 2019. Behavioral operations and supply chain management–a review and
literature mapping. Decision Sciences. 50(6). pp.1127-1183.
Fettermann, D.C and et.al., 2018. How does Industry 4.0 contribute to operations
management?. Journal of Industrial and Production Engineering. 35(4). pp.255-268.
Hill, A. and Hill, T., 2017. Essential operations management. Macmillan International Higher
Education.
Lamba, K. and Singh, S.P., 2017. Big data in operations and supply chain management: current
trends and future perspectives. Production Planning & Control. 28(11-12). pp.877-890.
Slack, N., 2018. Essentials of operations management. Pearson UK.
Thomé, A.M.T., Scavarda, L.F. and Scavarda, A.J., 2016. Conducting systematic literature
review in operations management. Production Planning & Control. 27(5). pp.408-420.