The three examples of lessons from the front line that are evident in Nestle case are the use of innovative technology, downsizing, and also mergers and acquisitions. Firstly, is the use of innovative technology. It is also known as technological innovation which comprising new products and processes and significant technological changes of products and processes (Technological Innovation, 2013).
If the new product has been introduced on the market so it is called as product innovation. It is very clear introduction of innovative technology tool is very significant for managing the operations of the company, but the company has not yet implemented that tool in it operation (Case Study Nestle, 2016). Therefore, it is desirable for the company to use innovative technology tools to make it more efficient and effective. Secondly, is downsizing.
This comes under that category of organization restructuring. Downsizing means to reduce 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. For short, 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 (Case Study Nestle, 2016). To overcome this issue, it is preferable for the company to choose other cost reducing method rather than cut the number of 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 (Rouse, 2013). 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. So, when two companies merge in any form, then retention of the employee arises as a significant issue (Case Study Nestle, 2016).
It is better for Nestle to had a structure of personnel and process which is required for smoother operating in every organization since Nestle moved out from being only into milk products to cosmetics and pharmaceuticals.
