Good Example Of Research Paper On Managerial Economics

Type of paper: Research Paper

Topic: Nestle, Company, Control, Organization, Strategy, Structure, Management, Employee

Pages: 5

Words: 1375

Published: 2020/11/15

Description of the Scenario

There are certain pre-requisites that associated specifically with a company to prolong their effectiveness and the story of their success. The managerial styles as well as the methods of making and implementing policies are always different in the enterprises commiserates with their size and revenue recognition capability. Organizations are entitled to manage these challenges for thier performances.
The thing which is tried to implement on this assignment is about the implication of six different views of managerial economics and strategic management. Nestle is the company chosen for the same assignment. Nestle S.A is a Swiss food and beverage company that has its physical main location in Vevey, Switzerland (Franzen & Moriarty, 2009). It is known momentous company of the entire world as far as measuring in terms of net revenue is concerned. The line of product of Nestle is big and strong that comprises on bottled water, baby food and breakfast cereals. It is currently operating in more than 194 countries of the world, and has employees higher than the level of 300,000. Net Revenue and Net Income which reported by Nestle in 2013 were CHF 92.16 billion and CHF 10.02 billion respectively.

Importance of the Six Topics and usefulness in Corporate Culture of Nestle

Types of Strategic Control Analysis
Strategic control is more than important and favorable for the productivity of an enterprise, and it is found equally beneficial for Nestle as well. There are three different types of strategic control found interactive on the selected company which are Specific Alert Control and Implementation Control. It is important for a the companies to manage them accordingly for their operations (Nestle, 2002).
Specific Alert Control: A special alert control is the type of control of rapid assessment of an organization strategy to cope up with any of the unwanted event. Nestle is one of the most secure corporation across the globe for managing their operations as well as financial functions. Due to specific alert control, the company becomes able to maintain their significance and effectiveness arose during the economic hardship, wherein most of the organization went on the brink of the bankruptcies.
Implementation Control: Implementation control is all about managing the core theme of their employees by employing powerful and effective strategies particularly. Nestle have implemented the control of their policies on their strategic wellbeing and control, which is a perfect sign for the effectiveness of the company. Upper management of Nestle is very eager to make and implement powerful and competitive strategies for the company to maintain their psoition with zeal.
Strategic Surveillance: A tactful and timely audit of the strategies can be very successful for an organization Therefore an organization requires to strategically monitor their policies to be implemented correctly (Nestle, 2002). Nestle has perfect surveillance and monitoring system to have an intact check and balance system of their resources and their implementation. This particular control is the one that makes them eminent than any other organization of the world.

Balancing between rewards

There are two important types of rewards which known as Motivational Factors for the organizations, like intrinsic rewards and extrinsic rewards. An organization which has the tendency and ability to manage between their rewards are relatively powerful and effective in comparison to those companies which are unable to promote this practice (Nestle, 2002).
Nestle, is one of the biggest name in the world in terms of providing consumer based products, and this can only happen if they have devoted and sophisticated team of professionals. Fortunately, the company has intelligent and devoted employees at their end, and in return Nestle is obliged to provide sheer benefits to them through which their productivity and level of motivation increased tremendously. Nestle believes on providing regular appreciation, positive feedbacks with perks and pay raise timely to their employees in order to maintain a healthy work-life balance in their employees. Balancing the rewards is one of those strategies of the company through which the entire level of communication would increase considerably.
The best thing that associated with Nestle is their operations with no boundaries whatsoever. The management and the workers should be connected with each other without any barrier between them. It means that employees don’t have to fulfill any sort of formality to communicate with their upper management, referred as important signs of productivity and efficacy of this company.

Pros and Cons of different Organizational Structure

There are three different types of organizations structure on which the entire operations of a company depends upon. The two important types of organization structure are as follows

Functional Structure

Divisional Structure
There are certain pros and cons found in the structure
Functional Structure
An organizational structure in which number of functionalities and departments work together in order to excel the organization is known as Functional Organization (Singer & Mason, 2006). Functional Structure is known as a Common type of organizational structure, and the pros and cons of this type is as follows


Level of Communication among the departments is high
Suited to small and medium sized businesses
Every department has their control on the company
It sometimes lose control from the employees of the company
It may divert the attention of the company from their real line of business and operations
Divisional Structure
Divisional Structure is a type of structure which usually found in large companies that operates in a wide range of geographical area and location. Divisional structure usually has number of small organization under its nose. Nestle S.A has the same organizational structure as far as maintaining their operations.


High Capability to manage operations
High profitability
Better Customer Focus
Less interaction with the upper management
Low interaction with shareholders
Elements of Effective Leadership
Leadership is known as the power or phenomenon that used by the companies to manage their workforce in a perfect and organized manner. Leadership is a behavior cum strategy through which an organization transforms and come up with such a strategy through which they can perform explicitly well (Singer & Mason, 2006).
An effective leadership will not work for the organizational productivity, but they focus on the sustainability and interaction level to increase effectiveness. Nestle S.A. is the strongest organization of the globe, thus the stance of effective leadership is also important for them. Nestle takes this challenge very positively because every employee worth for them. The leaders and managers working in the company are very polite and have transformational leadership style working in their nature. They not only value their employees, but also try to motivate their potential to take maximum work from them. The leaders of Nestle are highly intelligent and interactive, and they are working on the phenomenon to provide effectiveness in their core future.

Ethics Program

Business ethics and corporate social responsibility (CSR) are very important for the enterprises. Nestle has a clear cut strategy to promote their operations with full of ethical standards and regulations. Nestle has initiated many ethical programs to promote their employees, customers and the external shareholders by informing them about the responsibility of Nestle as an employer, a seller and the management of funds (Singer & Mason, 2006).
Apart from that, Nestle donates a large amount of their earnings on the poor countries which are relatively poor, in order to make them free from the ropes of poverty. It is not easy to completely eradicate the factor of poverty from the world; however action like ethics program initiated by Nestle can work wonderfully well in the future.

Types of Risk

Some of the risks that can be in the operations of Nestle are Competition Risk and Exchange Rate Risk. Competition is increasing heavily in every corner of the globe, and it may not be fitting the position for Nestle in international markets. Exchange rate risk problem associated with the company because of their international recognition and operations however proper derivative contracts can overcome on this situation and problem.

Fitting of Managerial Economics

The part of economics that associated specifically with the management is known as Managerial Economics. All the six parts mentioned above pertains to strategic management and managerial economics. The parts have a direct connection with the success rate of the organizations, known as a perfect and tactful areas of managerial economics. Hence, it can be said that managerial economics is exclusively fitted in this particular topic.


Franzen, G., & Moriarty, S. (2009). The science and art of branding. Armonk, N.Y.: M.E. Sharpe.
Nestle, M. (2002). Food politics. Berkeley: University of California Press.
Singer, P., & Mason, J. (2006). The ethics of what we eat. [Emmaus, Pa.]: Rodale.

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