Nestle Company is a globally operating company that deals with food and beverage. Its headquarters are based on Vevey Switzerland with numerous branches all over the world. Among the products produced by the company are coffee, bottled water, tea, milk products, breakfast cereals, and baby food. Based on revenues, it is ranked as a leading food company in the world. Nestle Company management practices are the leading process that ensure proper and efficient running of the business. The company employs different management theories to ensure it retains its market share and remains at the lead despite the current competition from many other developing firms in the industry.
The company employs scientific management widely to ensure it stays abreast with the daily technological changes. According to the theory of scientific management, responsibility and work towards the main goal for the company is shared equally between the management and the workers. Nestle company applies the theory by dividing work the companies work into departments and describing clearly the functions of each department. It goes further to describe the function of all the members in the company. The company management is divided into; board of directors, executive board, honorary chairperson and the finance section all with their duties determined. Application of the theory has proved very valuable to the company as it has helped to increase efficiency and productivity (Bartol 1994).
General administrative theory is a theory of management that centers on describing the roles of managers and explaining what makes up high-quality management practices. Nestle management practices originate from the theory with the company being led by a Board of Directors led by Peter Brabeck-Letmathe. Executives from the company oversee the daily running of the company, they comprise of departmental heads and executives from the company. With their roles clearly defined, and core values for their work stated the company runs competitively and efficiently. The theory proves very useful to the company by ensuring quality management, proper control of activities, planning for the company, and ensuring that the company’s goals are achieved.
Nestle company also applies total quality management theory in the running of its activities. The company focuses its management to achieving long-term success by ensuring customer satisfaction. It is done improvement on products and services rendered by the company. The company researches on the changing tastes and preferences of the consumers to ensure that it meets the consumers’ expectations. The theory helps the company withstand competition and increase its market share all over the world. It allows improvement in quality and design for the company’s products and services to suit the customer’s desires.
Systems approach is another management theory adopted by Nestle Company in its management. The company stresses on interacting of the external and internal factors that affect its operation. Nestle company uses the theory to assess market essentials that are pertinent to the company’s profitability and market share.
Nestle company applies contingency approach in the running of the company globally to ensure to ensure that the company remains profitable and competitive. To cope with the changing environment and market conditions, the company adjusts its managerial structure and ways according to the situation being faced at a particular time. Circumstances under which the company is operating under dictate on how the management is undertaken. For example, due to the increased use of internet all over the world, the company was forced to consider employing the technology in order to reach many people. It created a site where it could get customer feedback and opinions on their product as well as marketing their products online. Contingency approach theory of management has helped the company to cope with the different situations and circumstances that have faced the company ensuring that it continues to run efficiently.
Narrowing down on total quality management approach as used by the Nestle Company to ensure long-term success of the company, various strategies are adopted. Among the strategies adopted and improved on is the marketing plan for the company. Nestle capitalizes on developing its marketing to foster good customer relations and culture. The company has adopted a team focused culture and an open door policy to encourage its employees. It goes a step farther to adopt aggressive marketing behavior taking customer feedback so that it increases on its products and services offer. It has its supplies reaching all areas of the nations it operates in whether the big cities or small rural areas. The company adopts effective promotion and price strategies so that it has long-term success in the market (Young 1979).
Stressing on the general administrative theory, Nestle Company makes use of it richly. The company clearly describes the roles of the managers’, and the values to consider. The company has properly defined hierarchy from the board chairperson down to the departmental heads, and to the workers. The board of governors controls the long-term running of the company while the CEO together with company executives and departmental heads ensure the day-to-day running of the business. The clearly and strictly defined duties for the company ensure effective and efficient operation of the company.
Bartol, K. M., & Martin, D. C., 1994, Management, New York, McGraw-Hill.
Young, J. N., 1979, Management: Theories and Practices, Washington, National Defense University.