Foundation In Management Assignment Sample
Introduction
In this vast technological world managing management and its functions is a very important factor for the development of business, and economical growth. Foundation over management is very important for organizations which will help to develop decision making and planning processes for the organization and will help to control, lead, and or organize different topics for management. With the help of the foundations over the management, it is possible to develop proper vision, goals, and vision for the organization which will help to develop economic growth for the organization. This also helps to develop interpersonal skills in the organization. This is the process of critical thinking and analytical skills. This also helps to understand cross-cultural and manage diversity over the organization. Nestle organization is selected for this study, which
PESTLE analysis
This part will describe the pestel analysis of the business organization Nestle.Describe and discuss different types of external factors which will impact the Nestle organization (Ohwo, 2020). external factors are economical factors political factors technical foxter social factors legal factors and environmental factors. This analysis will help to develop the business dynamics and the other quantity of the business. different external factors are described below.
Figure 1: PESTLE analysis of Nestle
- Political factors
According to the different survey reports Nestle spread their brand in different 190 countries. For this reason a huge amount of political factors affect the different operations of the organization. We have to focus on the different changes like taxation, import ,environmental regulation, export etc. In different countries the productivity strategy is different for this reason we can affect politics. They have to provide proper supply according to the demand of different countries otherwise they can face huge amounts of political pressure from different countries. We can change the food regulations and they should obtain different types of religious activity for the different cultures (Jia and Jia , 2020). This will help to attract different types of consumers for the organization.
- Economic factor
As this is a world popular band, different economies can affect this business organization. The cost of different types of raw materials has been increased on awareness day. For this reason the actual price of the product has been increased. Different types of consumers are affected by this factor. In different countries the rate of change of exchange rate has decreased and for this reason the overall economy of this country is also affected. For this reason different types of economical support has been stopped for this organization. In future time this process will affect the Nestle organization.
- Social factors
In this pandemic situation every consumer is concerned about their health. For this reason, desktops purchase different types of products from the Nestle Organization. The produced different types of high quality and sustainable products for the consumer attract them towards their product (Salim, 2018). The different growing awareness is the largest gap in the social environment to spread their business in the global market. For this reason they should obtain different strategies which will help to overcome this type of problems and also help to increase the profit from the different types of products.
- Technological factors
Technology is the most epic development path for the business organization. Technical is the proper part of success for any kind of business. Nestle organization normally believes in the digitalization and the different type Digital solution, models and different types of services. For this reason they can face different cyber attacks in future times. This will affect the privacy and the different data policy of consumers. For this reason the overall business plan can be affected.
- Legal factors
This paid this business in different countries for this reason they have to over a different business law of different countries (Buchenscheit et al. 2019). This process will not be easy for them. for the long lasting establishment, they need to follow different Labor Law. There are rules that are present which are related to the environmental laws. Problems can be faced from the different competitions of the market. These can be created by the similar product manufacturing process. they have to notice these and they also have to focus on different laws during the application of a business management plan.
- Environmental factors
Environmental factors are a huge issue for Nestle. This also affects the business policy as well. Consumers of this organization can also be found by this process. For this reason they have to maintain the sustainability in their organization to balance the environment with their business. Otherwise they can face different type of problems from the environment issues
SWOT analysis
Figure 2: SWOT analysis of Nestle
This part of this study will describe the SWOT analysis of nestle organization, this will help to develop strength, opportunity, weakness and threats about the nestle organization (Singh et al. 2021). This will help to understand why Nestle’s organization is successful.
Strengths of Nestle organization
This organization has different internal factors.
Global Presence
Nestle’s achievement in 189 economies contributes to the company’s consistent growth. Some countries had quite a representation for more than 150 years, establishing a copyright within the specific context. This suggests that its items are available to customers in a large spectrum of countries or have a lengthy impact on customers.
Cash flow increasing
According to the reports, cash flow of this organization has grown by 10.9 percent, which is near about 11.9 billion dollars in the year 2019 (Singh et al. 2021). This indicates that this organization has a healthy financial condition, so, this organization can invest their assets over the market, which can help them to earn more.
Strong supply chain operations
This organization developed innovations over the market at their local level. This organization also incorporates technologies, this helps them to increase their source for raw materials (Harris, 2020). With the help of these factors it is possible to develop an efficient supply chain for this organization, which helps them to gain substantial efficiencies over the market.
Fast innovation
Science application over the local platforms is a very effective strategy for this organization. With the help of the local players collaboration it is possible to develop innovation over the organization in a fast way, and Nestle, for instance, was able to reduce science-to-technology timeframes by 30% on aggregate in the year 2019 and added 50 extremely quickly initiatives that would debut in the next 6 months to 12 months.
Digital Transformation
Investment of Nestle in the digital transformation over the field of e-commerce, social media, supply chain, manufacturer ring, and marketing has helped this organization become “data driven” (Le et al. 2020). This helps this organization to develop different strategies which help them to personalize needs of different customers, and help those consumers to gain higher satisfaction also.
Weakness of Nestle
Core competencies of this organization lies with the strengths of this organization.
Problems for product making
Nestle has received a lot of flak from people all around the world for not properly presenting and promoting its products. The advertising of feeding infant formula to individuals in underdeveloped countries is a famous example (Dam, 2021). Uninformed moms were mixing the goods with polluted water, resulting in a high number of cases of illness.
Organizational structure
Current structure of Nestle organization is based on the product portfolio. It is not based on the geographical operation, which creates power distance over the organization over the decision making process, and this creates huge changes over the organization.
Dependency over advertising
This organization follows such a strategy which lies over the advertising policy for their marketing process. This includes huge cost factors for this organization.
Opportunities for Nestle
Increment for transparency
With the help of advanced technology, consumers also hold huge amounts of information about products and companies nowadays, which increases transparency rates also (Pillay and Scheepers, 2020). This also helps the consumers to hold information about raw materials, which helps them to feel safe.
Sustainability
Operating sustainability and integration will help this organization to reduce cost, develop efficiency, and help them to utilize employees and staff properly.
Diversity for product portfolios
This organization has a big opportunity to introduce their product in different sectors, which is different from beverage and food. Nestle may diversify and strengthen its market apart from food and drinks by forming strategic relationships. In the year 2024, the technology sector, for instance, is expected to increase at a CAGR of 5 percent.
- Threats to nestle
- Climate impact
Climate change has a big impact over the organization, product quality, and supply chain (Takahashi, 2021). Raw materials such as coffee, dairy, wheat, affected most for climate change, quality and supply of this product is dependent over the climate change.
Strategic investments
Failure of investment alignment includes the diverse products such as groups in a highway. This organization has a big risk for losing their brand, and potential support.
Product safety and quality
Nestle faced many negative effects for their reputation and trust in the safety of food. And one of the big examples for this is the maggi issue of this organization over the Indian market.
Rising competition
There are many other competitors for this organization over the market. And with the help of the technological advances these organizations over the market increase their efficiency over the market, which is creating risk of competition over the market.
Organizational structure and strategy
Top-level of management
The top-level of Nestle are summarized in the following points;
The policies of the top management of the company and the objectives of the company can be fulfilled,
And the issues are delivered by the top management of the company as instructed. And the instructions include the budgets, schedules, and procedures.
- The top management of the company gives the guidance and direction to operating their business effectively.
- They are also responsible to maintain their contacts with the external world.
- The top-level management has the responsibility to improve the performance of the stakeholders,
Middle-level management
The middle level management is responsible for provisioning the inspiration to the lower-level workers and improving their performances.
- The departmental managers and branch managers belong to this level. The middle-level managers understand the policies and the instructions that are provided by the top-level managers.
- And they can make the plans for the subunits of Nestle.
- These managers are participating in the training and development of the lower-level management of Nestle.
Lower-level management
The lower-level management is also known as supervisory or operative management. The supervisors, officers, superintendent sections, etc. all are included in this level of management.
- Their job is to assign the tasks and jobs of the different employees.
- They give instruction and guidance to the employees who are working under them.
- They are maintaining the quality and quantity of the product.
- In the case of any issues and problems, the lower level management has to solve the problems.
- They can maintain a good relationship with the organization and because of their presence, the productivity and sustainability of Nestle can be improved.
Recommendations
Nestle is the largest and oldest brand. For this reason, they have to maintain sustainability in their product and in the organization also (Espinoza-Orias et al. 2018). For this reason, they need to include a defined type of partnership for their business. This will support the global market economically and develop proper Management which will track the quality of different types of food products in the organization. They need to find the different weaknesses of Nestle. In this way, they can maintain continuity in the market. Different types of professional practice can increase the performance of the overall management of Nestle .Managerial diversity is also necessary for the better. For this reason, they need to develop proper leadership skills in every employee. They need to analyze every activity of The Other management within the organization. In every time they need to encourage the different workers to work efficiently. This will affect the efficiency of the organization is all stay se am towards, the product will be increased. Vulnerability is the most effective practice for the better management of Nestle (Juco et al. 2019). This also affects the upcoming risk for this organization. For this reason, they need to hold different types of regular meetings for the employees. In this way management can discuss the situation of the organization in the global market. Managers need to recognize the different efforts of the employees. This will help to make proper values for the employees
Conclusion
This study is all about the foundation in management of nestle organization, where pestle analysis and SWOT analysis have been performed in this study. This study is mainly developed based on secondary data analysis. This study briefly discussed the political factors, economical factors, social factors, technological factors, environmental factors, and legal factors of this organization in pestle analysis. This study also described the strengths, opportunities, weaknesses, and threats of this organization in the SWOT analysis part. This study also describes the following recommendation for this organization.
Reference
Journal
Juco, N.R., Ayson, A.D., Canlapan, N.J.K. and Reynante, R.D., 2019. Plus College Foundation–College of Engineering, Angeles City, Philippines Corresponding authors: Nestle R. Juco, Systems Plus College Foundation–College of Engineering, Angeles City, Philippines; Email: nrjuco@ gmail. com Citation: Nestle R. Juco (2019) Sensor–Based Soil Tester for Crop Rotation Evaluation: Nessa J Agricultural Science.
Takahashi, H., 2021. Everything Originated from Milk: Case Study of Nestlé. World Scientific.
Pillay, R. and Scheepers, C.B., 2020. Nestlé South Africa: leading multi-stakeholder partnership response in the COVID-19 context. Emerald Emerging Markets Case Studies.
Dam, J., 2021. Change in managerial decision-making through data analysis. a thorough analysis of Nestle.
Le Pechoux, C., Pourel, N., Barlesi, F., Faivre-Finn, C., Lerouge, D., Zalcman, G., Antoni, D., Lamezec, B., Nestle, U., Boisselier, P. and Thillays, F., 2020. An international randomized trial, comparing post-operative conformal radiotherapy (PORT) to no PORT, in patients with completely resected non-small cell lung cancer (NSCLC) and mediastinal N2 involvement: Primary end-point analysis of LungART (IFCT-0503, UK NCRI, SAKK) NCT00410683.
Harris, L., Nestlé Creating Shared Value: Nestlé Waters Canada (A Canadian Perspective) By: Lily Harris.
Singh, P., Sin, L.G., Kama’Aziri, N.S.B., Jian, O.Z., Azlan, N.A.S.B.M., Ibrahim, P.N.I.B.B., Sheng, D.H., Kee, D.M.H., Heng, J.T.S., Wee, L.S. and Ying, L.Y., 2021. A Study on Nestle Promotion Strategy. International Journal of Accounting & Finance in Asia Pasific (IJAFAP), 4(1), pp.60-70.
Buchenscheit, M., Moser, C. and Müller, S., Central opportunity and problem areas of digitization in the recruitment process of Nestlé.
Salim, M.S., 2018. An investigation of strategic management on the corporation NESLTE.
Jia Wen, C. and Jia Qi, C., 2020. ORGANIZATIONAL CONFLICT IN NESTLE.
Ohwo, K.O., 2020. INTEROPERABILITY AND EFFECTIVENESS OF INDUSTRIES IN THE SUB-SAHARAN AFRICA (SSA) EVIDENCE FROM NESTLE NIGERIA PLC. Management & Marketing Journal, 18(2).
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