1.

1 Strategic Management

Strategic management involves the formulation and implementation of the major goals
and initiatives taken by a company’s top management on behalf of owners, based on
consideration of resources and an assessment of internal and external environments in which
the organization competes.

The Process of Strategic management

The process of strategic management are

1. Environmental analysis
2. Formulation analysis
3. Implementation
4. Evaluation

Environmental Analysis

Environmental analysis is the main stage for gaining information and data to grow
business. We analyze internal and external data influencing goal and get relevant vision for
organization. By doing analysis, we can know who is our organization’ competitor. We can use
the PESTEL analysis and SWOT analysis as a tool. We can focus on understanding the need of
the organization and get more idea to run the business.

Formulation

After completing analysis, the information and data is reviewed by strategy formulation.
For reaching defined goal and objective, we determine what resources has currently in
business. After accomplishing analysis, managers formulate corporate, business and functional
strategy. Formulation set policies, task, strategic planning. SWOT analysis is identified to
improve weakness, to overcome strength, to get the way for organization from strength and
weakness.

Implementation
 Strategy implementation is the action stage of the strategy management process.
Designing the organizational structure, distribution resources, developing decision making
process and managing human resources are included in this stage. Establish annual objectives,
devise polices, motivate employees, allocate resources, preparing budgets, developing
information structure must be made in this action stage. Every people must make duties and
responsibilities within the organization and fit with the overall goal.

Evaluation and Control

Strategy evaluation and control is the last stage of the strategic management process. It
includes for reviewing external and internal factors, measuring performance and taking
corrective action if necessary. You need to determine your progress by measuring the actual
results as compared to the plan. Reviewing external and internal factors because of changing
your business environment. If your strategy is not wording for your organization goal, you
should take corrective action. If your actions are not accomplishment, the strategic
management process will be replayed.

Leader

A person or thing that holds a dominant or superior position within its field, and is able
to exercise a high degree of control or influence over others.

Leadership

Leadership is the process of social influence, which maximizes the efforts of others,
towards the achievement of a goal.

The link between strategic management and leadership

Strategic management does not work without leadership skill. Leaders are essential to
the strategic management because of the power to take people together. They move towards
for accomplishing objectives and fulfill the stated mission in helping organization.
Environmental analysis need leadership skill like analytical, conceptual skill because they
analyze the internal and external factors to achieve goals. They search the strength and
weakness of competitors. They always try to get idea to run business more grow. Leadership
skill is needed to strategic formulation. Every managers in corporate, business and department
should have leadership skill. Managers must know what leadership style should be used to
achieve objectives. They make decisions and set policies. In Implementation stage, Leaders
manages, motivates, encourage, monitors to staff for sharing same vision. Creating
organizational structure and implementing change within a business can be used as the
important tool in strategic leadership. Leader creates motivation environment to develop staff.
Leadership skill are needed in evaluation and control. Leaders monitor to check policies and
decisions from formulation stage. Leaders evaluate employees who took training that act more
effectively to accomplish the best result possible for the company.

Conclusion

If leaders do not involve in organization, strategic management does not work well.
They are closely related each other.

1.2 The impact of management and leadership styles on strategic decisions

Leaders create change, and followers. Leaders has the skill to accomplish his or her clear
purpose in life. Every followers should have leadership skills to accomplish organization’s
purpose. Leadership style is the manner and approach of providing direction, implementing
plans, and motivating people. As seen by the employees, it includes the total pattern of explicit
actions performed by their leader (Newstrom, Davis, 1993). To be the effective leader,
leadership styles are needed to use correctly. Organization should make decisions with
autocratic if situation is urgent. When organization need advice to make decision from
Knowledge worker, professional, democratic style should be used. There are four types of
leadership style on decision. They are

1. Autocratic style
2. Democratic style
3. Laissez-faire style
4. Participative leadership style
Autocratic Style- The leader tells his or her employees what to do and how to do it, without
getting their advice. (U. S. Army, 1973).

Democratic style- The leader includes one or more employees in the decision making process,
but the leader normally maintains the final decision making. (U. S. Army, 1973).

Laissez-faire Style- The leader allows the employees to make the decisions, however, the leader
is still responsible for the decisions that are made. (U. S. Army, 1973).

Participative Leadership Style- In which the leader participates with and involves others in the
decision-making process. The participate leader is realizes the importance of getting opinions
from others.

For example- MIC use Democratic and Participate leadership style. Democratic style is used to
make business plan and marketing plan with managers and get more idea and information from
the employees. The strength and weakness of MIC is known from them. By using this style, MIC
can get mutual benefit because leader become to make better decisions and will be paid
respect by followers. Laissez-faire style is used for Professional, lectures, knowledge workers.
They all are highly skilled, commitment and cap). able of working on their own decisions.

1.3 Leadership Styles can be adapted to different situations

Leadership styles depends on the situations that is the behavior of followers. According
to the Hersey and Blanchard, Hersey, P. (1985They classified into four behaviors of style:

Telling- is characterized by one way communication in which the leader defines the roles of the
individual or group and provides the what, how, why, when and where to do the task.

Selling- while the leader is still providing the direction, he or she is now using two-way
communication and providing the socio-emotional support that will allow the individual or
group being influenced to buy into the process.

Participating- this is how shared decision-making about aspects of how the task is accomplished
and the leader is providing fewer task behaviors while maintaining high relationship behavior.
Delegating- the leader is still involved in decisions; however, the process and responsibility has
been passed to the individual or group. The leader stays involved to monitor progress. For
example: MIC use selling and delegating styles. For professional worker, delegating styles is
used because they are able, confident and motivated to work. If we use wrong style at these
worker, they don’t work with us. By delegating them, they feel ownership sense and
commitment to work. Telling style is used for non- professional worker because they have no
experience and lack of training. By using telling, tasks can be done more and more and their
performance is more progress. But leader always monitors and assess their performance.

Nestlé managers at all levels are more concerned with leading and inspiring people to add value
to the Company and society rather than with exercising formal authority. This calls for a high
personal commitment of each employee and a common mindset geared towards results. In an
increasingly dynamic world, leaders face significant challenges and opportunities. These stem
from shifts to new social patterns and unprecedented worldwide competition. Achieving
ongoing success requires that each Nestlé leader understands the context and capitalises on it.

Nestle’ makes 3 leadership styles such as Democratic style, Laissezfaire style and partici-pative
style. Because our employees has a passion for building and sustaining an environ-ment where
people have a sense of personal commitment to their work and give their best to promote our
Company’s success.Cares for and develops the leaders of

tomorrow through addressing all areas that allow them to progress in their work and to

expand their capabilities.Understands the importance of continuous learning and improvement,

as well as sharing knowledge and ideas freely with others. Is committed to giving and receiving
honest, accurate and timely feedback, including performance evaluation, in a climate of mutual
respect. Believes in the importance of building diverse teams, and promotes the advantages of
gender balance.

Our company have number of products renovated for nutrition or health consideration.
Development 10950 number suppliers audited from 2010-2015. 7.7million m3 quality of water
in our operations either recycled or reused. 105 numbers of factories achieving zero waste for
disposal. These was only achievable good leadeship strategy and strong management. Always
1.2 Analyse the impact of management and leadership styles on strategic decisions

Nestlé S.A. is a Swiss multinational nutritional and health-related consumer goods company
headquartered in Vevey, Switzerland. It is the largest food company in the world measured by
revenues. Nestlé’s products include baby food, bottled water, breakfast cereals, coffee,
confectionary, dairy products, ice cream, pet foods and snacks. Nestlé employ around 330,000
people in over 150 countries and have 461 factories or operations in 86 countries.

In 1866, when the first European condensed milk factory was opened in Cham,
Switzerland, by the Anglo-Swiss Condensed Milk Company. In Vevey, Switzerland, Nestlé
founder by Henri Nestlé, a German pharmacist, launched his Farine lactee, a combination of
cow’s milk, wheat flour and sugar, saving the life of a neighbour’s child. Nutrition has been the
cornerstone of the company ever since. In 1905, The Anglo-Swiss Condensed Milk Company,
founded by Americans Charles and George Page, merged with Nestlé after a couple of decades
as fierce competitors to form the Nestlé and Anglo-Swiss Milk Company. The company grew
significantly during the First World War and again following the Second World War, expanding
its offerings beyond its early condensed milk and infant formula products. In 2011, Nestlé was
listed No.1 in the Fortune Global 500 as the world’s most profitable corporation.

According to their strategic decisions the Nestlé Corporate Business Principles are at the
foundation of the company’s culture, developed over 140 years, which reflects the ideas of
fairness, honesty and long-term thinking. Nestlé believes that not only possible to create long-
term value for their shareholders if their behaviour strategies and operations also create value
for the communities where they operate, for their business partners and of course, for their
consumers. The company also has longer-term development projects that focus on developing
new technological platforms, such as non-animal protein sources or agricultural biotechnology
products.

We continue to actively manage our commitments to environmental and social susta-inability,

necessary for operating our factories and for the sustainable growth and
development of the communities and countries where we operate. We have always believed
that in order to prosper we need the communities we serve and in which we operate to prosper
as well, and that over the long term, healthy populations, healthy economies and healthy
business performance are mutually reinforcing. This involves substantial training and education
of people inside and outside Nestlé, as well as large investments in technology with lower
environmental impact. All of the leader in Nestlé are mainly control 2 leadership. tried
development and training to share the knowledge with the ability to enter new market quality
product to be successfully. Nestle is the largest food company around the world. Nestle have
two main important company. One is Swedland and second is North American. In 1877, start
produced solulble milk base baby food. In 1884, Nestle created second product of Maggi
noodle. In 1904 Nestle develop new product chocolate. In the 1980s, Nestlé’s improved bottom
line which allowed the company to launch a new round of acquisitions. Carnation was acquired
for $3 billion in 1984 and brought the evaporated milk brand, as well as Coffee-Mate and
Friskies.

Nestlé has 278,000 employees living and working throughout the world integrating 100
different nationalities. the support of top management, Leader promotes an integrated
approach to the health and well-being of its employees worldwide, by providing them with
practical, entertaining tools intended to help build wellness into their professional and personal
daily routines. Our aim is to create a culture which energises and empowers employees to take
ownership of their own health. Nestlé follows the principle of ‘healthy minds in healthy bodies’,
knowing that a loyal and productive workforce is the key driver of its success. In line with Nestlé
moving as a company towards Nutrition, Health and Wellness, it was decided to streamline and
develop further activities so that employees would learn how to integrate nutrition and physical
activity in their daily habits. Therefore, since 2006, a multi-disciplinary Working Group has been
working on this umbrella initiative to strategize, assemble and organise health and wellness
actions for employees at Nestlé Headquarters. This Working Group of 14 employees is made of
representatives of HR, marketing, Safety-Health-Environment, Public Affairs, Commun-ications,
restaurants, sports & leisure association, association du personnel, security, medical and
insurances. The NQ (for “Nutritional Quotient”) initiative aims at equipping all Nestlé
employees with regular nutrition education sessions. It is made of interactive modules, pre- and
post- evaluations, as well as an auto-evaluation of eating habits. Sessions are delivered by
nutritionists, who help employees better understand key nutritional concepts and develop
healthy habits, based on practical case-studies. A more advanced training is proposed to
employees working in marketing, product development and communications. An online version
of NQ was launched in 2010. So far, 65% of employees have gone through this training. The
company restaurant in the WellNes Centre offers a varied selection of meals with clear
nutritional information. A wide range of meals is proposed: 5 different meals, including
“vegetarian” and “balanced” options. The “balanced menu” is a menu below 500 calories, low
fat, with reduced salt, and more vegetables. Canteen cooks are also trained in nutrition, health
and wellness and use a new type of high oleic sunflower oil with 10% of saturated fatty acids to
cook with.

Consolidated results show that Nestlé employees have a better health status than the average
of Swiss companies tested the NQ training showed a clear interest of the employees towards a
practical and individual nutritional coaching. Therefore, since October 2009, 60 free individual
nutritional consultations with a medical nutritionist are also offered to employees per year.
Condition to benefit from it is to have validated the NQ training and to have a clear personal
health project (e.g. weight loss). (Source: Ligues Vaudoises de la Santé, 2009). All of the process
are not success without leader to giduline.