Organizations function more effectively if they function having open door policies, adapting to the constant changes in the external environment. Since such organizations are affected by changes in the external environment, managers must understand the nature of this environment. The external environment of an organization comprises of the mega environment alternatively known as the general environment along with the task environment.
Organizations include people belonging to different cultures, cast, creed, race etc. Each individual varies in his nature and this indicates that personnel would certainly be extremely unpredictable. The management of organizations thus is a daunting task. Growing diversity, knowledge and information explosion, strategic partnership, global competition and emphasis on various aspects like total quality management are the plethora of other challenges that contemporary managers, more often than not, face. In order to handle this varied range of challenges effectively and efficiently, managers require support and mutual aid from individual personnel and their teams who, most often than not, resist change.
At the beginning of the 21st century, the key to organizational efficiency and success is to properly manage change by utilizing pragmatic planning approaches. The purpose of strategic planning is to offer a framework to the management which helps in effective decision making that will have a positive and long lasting impact on the sustenance of the organization. A conscious effort to systematize the effort and to manage its evolution is preferable to an unmanaged and haphazard evolution. The basic planning problem is how to allocate the organization's limited resources. The major benefits to be expected from planning include an improved sense of direction for the organization, better performance, increased understanding of the organization and its purpose, earlier awareness of problems, and more effective decisions.
Acquiring and retaining good human resources is an important pre-condition for the victory of every organization. Organizations that can accomplish this can be both effectual i.e. they will be able to accomplish their goals as well as competent i.e. they will use least amount resources needed to achieve their goals. Incompetent or unsuccessful organizations face the risk of declining or going out of existence of the corporate world.
In this paper we look at ‘Efficiency’ in the context of Nestle, the global food and beverage manufacturer.
The fundamental business objective of Nestle is to be considered as the global leader in Nutrition, Health, and Wellness; should be trusted by all the stakeholders and to be an example of exemplary financial performance in the industry. Innovation and Renovation, communication with the customer, and operational efficiency are the key components of the business development strategy of Nestle. All these components are inter-related and all of them are aimed to drive product development, quality and restoration, operational performance, interactive long-term relationships with consumers and stakeholders. Recently, Nestle created Nestle Nutrition, a separate business unit that focuses mainly on the organization’s core nutrition business. Strengthening the leadership in this particular business unit is a significant element of the organization’s corporate strategy. This is a very good example of the key business strategy of operational efficiency as the organization has charged this particular business unity with operational responsibility and the fundamental objective of this unit is to deliver superior business performance through providing trusted and scientifically proven nutrition products to its consumers.
Nestlé’s success in its business development strategies is very evident from the strong customer loyalty that the organization enjoys. Even though there are numerous brands under Nestle, the focus of the organizational business development strategy is on the priority and the strategic brands rather than on the number of brands it owns. In addition to the enormous amount of loyal customer base, Nestle also enjoys a command on premium pricing of its products. This again is an indication of the successful business development strategy. Nestle is known for having a focused product line in eye care and health care business sectors. This indicates the ability of the organization to diversify and at the same time maintain a line of products and strategic brands supporting the organization.
The challenges of the corporate business environment are increasing by the day. These days, firms have to deal with a plethora of logjams like for instance, technology that is outdated, unused or infrastructure that is not very sophisticated and state-of-the art, out of place payment systems, and futile scheduling and control systems, which have in an inferior position their progress. Many organizations today have started recognizing the significance of automation, optimization of scheduling and an appropriate inventory management system, and are integrating total quality management and quality control into their operations. The fundamental objective of any business is to make money. While this could be the end the major means to reach this end is to achieve optimized productivity. Making money may be translated to increased net profits in synchronization with increasing returns on investment and cash flows. One of the principal aims of any business is to attain a position that enables them to attract more number of clients when compared to their competitors. In order to achieve such a competitive advantage, businesses try to recognize their discrete competencies. The distinctiveness of an organization’s operations function is significant in shaping its choice of various types of products and markets, and the rudiments of its competitive potency. A variety of operational and strategic decisions are taken in this process.
(ICMR), ICFAI Center for Management Research. Introduction ot Organizational Behaviour. Hyderabad: ICFAI Center for Management Research (ICMR), 2003.
Castelar Articles. Nestle's Competitive Strategy. 2007. Castelar Articles. 04 December 2013 <http://articles.castelarhost.com/nestle_competitive_strategy.htm>.
ICMR - The ICFAI Center for Management Research. Business Strategy (pp: 14-22). Hyderabad: ICMR - The ICFAI Center for Management Research, 2004.
Kay, John. "The structure of strategy." Business Strategy Review. 4 (1993): 17-37.
Luca Petruzzellis, Angela Maria D’Uggento, & Salvatore Romanazzi. "Student satisfaction and quality service in Italian Universities." Managing Service Quality (Vol: 16, No. 4) (Available online at: http://www.ftsm.ukm.my/aishah/paper%20pdf_2nd%20education/Luca_Student%20satisfaction%20and%20quality%20of%20service%20in%20italian%20universities.pdf) (2006): 349-364.
Nestle - Good Food ,Good Life. Strategy - Nestle Roadmap to Good Food, Good Life. 2011. Nestle - Good Food ,Good Life. 04 December 2013 <http://www.nestle.com/AboutUs/Strategy/Pages/Strategy.aspx>.