The three examples of lessons from the front line that are evident in Nestle are such as use of innovative technology, downsizing, and mergers and acquisitions. Firstly, is the use of innovative technology. As we know that the technological innovation is the process where an organization embarks in a journey which means the importance of technology as a source of innovation has been identified as a critical success factor for increased market competitiveness. It is very clear that introduction of innovative technology tool is very significant for managing the operations of the company, but after that the company has not implemented that tool yet. It is advisable for the company to add innovative technology tools to make the things better and fast. Secondly, is downsizing.
This comes under that category of organization restructuring. Downsizing specifically leads to reduction in the number of employees in an organization. Organizational downsizing may affects the work processes of an organization since the end result of the downsizing is typically fewer people performing the same workload that existed before the downsizing took place. In simple words, downsizing refers to the elimination of employees in the organization. Thus, this downsizing was a result of restructuring that was a continuous process in Nestle. Downsizing assists in cutting of the cost, but at the same time raises the issue of worker retention. To overcome this issue, it is advisable for the company to opt other cost cutting method rather than affecting the employees.
If there is proper communication of future vision and strategy within the organization, then it will help a lot. Further one can also look for option in the restructuring technique. Thirdly, is mergers and acquisitions. Mergers and acquisitions is the area of corporate finances, management and strategy dealing with purchasing or joining with other companies.
It has been analyzed from the case study that Nestle has earned significant amount from mergers and acquisitions. It had a great increase in its productivity and had some really profitable deals in hand. However in such cases cost savings are affected a lot. A large number of cultural issues have to be taken care of.
In general, when two companies merge in any form, then retention of the employee arises as a significant issue. It is advisable for Nestle to had a structure of personnel and process which is required for smooth working of every organization since Nestle moved out from being only into milk products to cosmetics and pharmaceuticals.
