Name of the selected organization: Nestlé Corporation

Organizational Overview: The Anglo-Swiss Condensed Milk Company was founded in 1866, and their
journey begins there. In 1867, Henri Nestlé produces a ground-breaking infant food, and in 1905, the
company he created combines with Anglo-Swiss to form the Nestlé Group. During this time, cities
expand and commodity costs fall as a result of railways and steamships, resulting in an increase in
international consumer goods commerce.

Organization’s Size

No of staff members 273 000

Offices / Locations 106
Sales Locations 186
Fitch Ratings A+
Total assets USD 52 trillion (CHF 45.8 trillion)
Market capitalization CHF 293 644 Mn
Total equity CHF 45 695 Mn

Regions Established:
Nestle establishments can be found in 17 regions in Africa, 26 regions in the Americas, 30 regions in
Asia, 33 in Europe and 6 in Oceania.

Product Portfolio:

The Nestle product portfolio includes a wide variety of food and beverages, covering powdered and liquid
beverages, Petcare products, nutrition and health science, prepared dishes and cooking aid, milk
products and ice cream, confectionery and water. The product ranges are massive.

Customer Segments:

Nestle overall cover families as a segment as it includes family-based products and home products.
Nestle includes something for all ages. Their chocolates and confectionery grab the interest of any age
group and children specifically. The baby products favour toddlers and new born babies. Nestle covers
all demographics and any social lifestyle as it offers necessities and caters to a mass market.

Chosen Project: The project chosen will be the opening of the new manufacturing facility in Sri Lanka in
the Asian region, Pannala, Kurunegala.
 Question 1 25 Marks

(875 words)

Projects are regarded as central activities to most companies and according to many studies, it has been
said that most projects fail in being completed within budget and designated timelines. It is explained, the
key reason for project failure is due to the lack of alignment or connection of the project with the business
strategy and overall objectives of the firm (Alsudiri, Al-Karaghouli and Eldabi, 2012).

To provide a background the literature on strategy alignment with project management of an organization,
typically, an organization’s strategy is an extensive plan which explains how the organization will be
achieving its goals and mission. The connection between business strategy and projects carried out is
explained by (Srivannaboon and Milosevic, 2006) where an organization needs to establish strategies to
remain competitive and the projects carried out are regards as means of transport to get to its objectives.
This is also where the challenge arises as usually, the overall objectives are not clearly communicated and
could be inconsistent with the activities of the project due to many external factors. The alignment between
the project and the objectives may also determine the resource allocation and capabilities available in the
organization to implement projects (Zadeh and Ching, 2007). According to (Zadeh and Ching, 2007), the
literature on strategic management is categorized into 3 pillars. The boundary, dynamic capability and
configurations. In the present, the most dominant component in this study is dynamic capabilities. This is
where the significance of internal resources come into play.

Hence, it can be concluded that an organizational strategy and objectives talk about the progress and
development an organization makes in a period of time by making use of the internal resources. This is
done in the form of projects that are implemented in order to reach this ultimate development.

It is important to first discuss the overall objectives of Nestlé and their overall strategy, vision and mission.
As a multinational, the global strategy of Nestlé is to devote their time and resources to areas where
harnessing the power of food may improve people's and pets' lives, protect and enrich the environment,
and generate enormous value for shareholders and other stakeholders (Nestlé Global, 2021). Their vision
statement is “Good Food, Good Life” and highly focuses on the continuous improvement of quality of food
as it understands its customers to consider food as a critical contributor to quality of life, health, happiness
and peace of mind (Nestlé, 2021a). They also regard innovation as the most important element to the
company, being a part of it since its very beginning. With the consumer’s requirement in mind and its critical
capability, Nestlé uses research and development to continuously provide the best for their customers in
terms of quality and nutrition (Nestlé, 2021b).

The chosen project for Nestlé Lanka is the new manufacturing facility in Pannala, Kurunegala. This new
project was implemented with the hopes of expanding its production capacity for dairy and coconut-based
products in Sri Lanka. This was not done just with the hopes of contributing to a better quality life for
consumers by catering to their needs of rich, nutritional food and beverages, by expanding the capacity of
production, rather, also with the goal of supporting local farmers and their families and even the Sri Lankan
economy as a whole by supporting the coconut and dairy sectors in the country. This investment was
mentioned as a significant investment that would help the company enhance and bring in innovation into
the country so it could continue to provide the quality it always has (Jayasuriya, 2017). With this
investment, the company has introduced new technology into the country and within the company in its
productions and facilities, providing local consumers better quality products and also effectively contributed
to the Sri Lankan economy overall (Food Processing Technology, 2017).

It is thus evidential that the selected project and the organizational objectives are well-aligned as it follows
the slogan “Good Food, Good Life.”

Shedding light into the alignment of these with the internal resources, looking at literature on strategic
management, usually, there are two ways a firm formulates its strategy. One way is the resource-based
view and the competitive view. According to the resource-based view, the organization’s ability to attain
competitive advantage comes internally, from the resources and capabilities it possesses (Alsudiri, Al-
Karaghouli and Eldabi, 2012).

It is highlighted that Nestlé possesses the largest research and development organization, globally, in the
food and beverage industry. It has 23 locations globally with a total of 3,900 employees and investments in
massive amounts only for research and development are made by the company. Furthermore, each
product that is produced by Nestlé is followed by a talented team of scientists, engineers, nutritionists,
regulatory specialists, designers, and consumer care representatives (Nestlé, 2021b). These include the
right skills and competencies required to implement its projects. Moreover, it has the right technology and
equipment to make their project a success as well.

Hence, it can be concluded that Nestlé has set its focus right in the selection of its project when aligning it
with its resources and overall organizational objectives.
 Question 2 25 Marks

(875 words)

The capacity to complete a project according to the expected specifications, within the expected budget,
and stated timelines, while satisfying the important stakeholders by meeting their needs, is defined as
project success (Globerson and Zwikael, 2002).

Project leadership was once thought to be a human condition necessary to assist the project team in
completing the project on time and on budget. It is more of a sub-category of the concept of leadership than
a strategy, instrument, or theory distinct from the wider Leadership theory. It is also regarded as a task-
oriented situation in which a temporary form of leadership is used to manage the internal project team as
well as the external factors that surround it, with the sole purpose of ensuring that the project is delivered in
the expected manner within the required timeframe (Wanjira, Mukulu and Waiganjo, 2019).

Transformational leadership will be used to analyse the importance of project leadership in implementing
the selected project of Nestle, which is to open the new manufacturing facility in Pannala, Kurunegala. This
style of leadership has been deemed the most effective of all leadership styles in achieving project success
(Maqbool, Sudong, Manzoor, and Rashid, 2017; Cleveland and Cleveland, 2020), and it has been the most
frequently mentioned theory in the context of Project Leadership in most publications, according to the
author's research on Leadership theories (Iqbal, Zaman, Siddiqui, and Imran, 2019). This theory of
leadership is designed to serve the best interests of the team members.

A Transformative Leader is somebody who is proficient (Cleveland and Cleveland, 2020). A

Transformational Leader can also encourage their followers to attain their full potential by encouraging
them to be creative and helping them come up with new and unique ways to solve problems or manage a
task (Cleveland and Cleveland, 2020). They may coach or train their subordinates, provide a proper
understanding of strategy, and even monitor their performance to evaluate the effectiveness of their efforts
in motivating subordinates and transformational leaders may put effort into identifying what motivates their
followers so that they can be influenced into achieving their targets. As a result, it is best suited for project
managers (Musembi, Guyo, Kyalo, & Mbuthia, 2018; Omonyo, 2018), as the majority of literature in this
field agrees that transformational leaderships can lead to improved project performance or success
(Musembi, Guyo, Kyalo, & Mbuthia, 2018; Owusu-Manu et al., 2020).

This type of leadership is much aligned with the Hawthorne theory, where an ideal leader is someone who
possesses their own skills, yet would push and encourage their followers. In this regard, it can be explained
that, leaders are ideally seen as individuals appointed to get the best out of their followers, understand
them and guide them. Leaders according to the Hawthorne theory aren’t just guides but are also viewed as
personal guides who may encourage their followers to achieve their own targets. Creativity is encouraged
as well. One argument in favour of this theory and the type of leadership is that it brings out motivated
individuals who are keen to perform well and give their best. This may all in all contribute to project
success. Being aware that their own leaders are concerned for their well-being may encourage followers in
a team to give even better back to their leaders. The caring nature of this theory also indicates that there is
a personal bond established between the leader and the follower and in times of doubt and questions they
know that their questions will always be answered and acknowledged.

Opening up a new manufacturing facility is not a simple task and meeting such deadlines need to be given
high priority. With establishing he foundation for such projects, expectations are high and may affect many
stakeholders such as consumers as it affects their supply, the local farmers and their families, the
government and even the local community around Kurunegala awaiting job opportunities. Hence, failing in
such major projects may even ruin the reputation of the organization overall. Therefore, a leader with a
strong focus and skill level are needed. Sometimes, a leader that could set strict deadlines and lays out
instructions firmly could also seem helpful. This will be shed light unto with the drawbacks identified in the
Hawthorne theory of leadership.

Since this theory gives more priority to human ideologies, it needs to be understood that this alone does not
improve performance. This may not always improve the team spirit among followers, project performance
and its results. There are many other factors that are equally important like discipline of workers, skills,
knowledge possessed, time management, strategizing the project and many more. Moreover, there is more
attention given to groups and team decisions. In real situations, there are instances where the sole
decisions of the leader need to be mainly looked at rather than a whole group. In times of efficient and fast
decision-making, team dynamics are not applicable. Finally, according to the Hawthorne theory, the
followers operate in freedom of their own ideal of work. This may also result in less productivity among
teams.
 Question 3 30 Marks

(1050 words)

Benefits realization is defined as a means of ensuring that benefits are obtained from outputs. Benefits
realization management is defined as a collection of processes where benefits are realized and aligned
with formal plan, ensuring gains are achieved as project implementation develops and ends, and that
benefits are sustainable and sustained once project implementation is accomplished. This process helps
organizations with a method of measuring and evaluating how the implemented projects can add value and
be of value to the organization (Project Management Institute, 2021).

Success can be defined in a variety of ways, but one way to think about it is as a result of making forecasts
and keeping promises regarding products, services, or results while also offering long-term advantages to
customers and end users (Levin, 2015). As we strive for success, it's critical to identify our short- and long-
term priorities, the various deliverables our organization should pursue through its programs and projects,
as well as their benefits, required resources, and, most importantly, how our initiatives, projects, and actual
planning implement strategic objectives and business value. It's easier than it sounds to achieve this level
of accomplishment. The Project Management Institute has been tracking the effectiveness of maturity in
benefits realization in its recent Pulse of the Profession report, and records gathered demonstrates that the
more seasoned an entity is in realizing benefits, the more likely it is to finish tasks on schedule and within
budget, and also to meet its authentic objectives and business purpose (Levin, 2015). Benefits realization,
according to the report, is a method of managing how programs and projects contribute value to the
business, and organizational leaders who understand this value recognize what is required to realize their
program and project investments. It goes on to say that just a few companies have a benefits realization
program, which leads to the failure to attain the target success rate (Levin, 2015). Benefits realization
provides the framework for streamlining strategy execution by ensuring that each phase, job, and
stakeholder produces demonstrable value on a timetable that can be tracked. The benefits realization
process works by providing companies with the tools they need to define and track their progress. This is
represented in a number of metrics, including: achievement of each projected benefit, equitable resource
consumption, avoidance of large delays, effective change management, and the avoidance of serious
mistakes or blunders (Wiltshire, 2021).

A benefits realization program is essential in any project and applying this to Nestlé, it is suggested that
keeping track of the progress of the project is crucial. One main reason is that Nestle is a global
organization that operates in many parts of the world, except where it is headquartered in Switzerland.
Keeping track may enable higher levels of management, those who may not even be in the country to be
updated easily on progress and expenditure and budgets as approvals for new projects come from senior
management. Therefore, the officials operating from the country may be answerable to any questions
thrown at them. It also helps to stay right on track without getting deviated from the original project plan and
the overall strategy of the organization.

Projects are kept on track through monitoring and management. The appropriate controls can make a big
difference when it comes to finishing projects on schedule. Project managers can also make informed
decisions using the information gathered. They can seize chances, implement adjustments, and avert
problems with crisis management. Simply put, monitoring and control guarantees that tasks are completed
in a timely and efficient manner (Project Management Professional Training, 2021). This boosts efficiency
and production. In the process of monitoring and keeping track of the progress, project managers have the
chance of ensuring that the job is done as needed and also no deviation occurs from what is exactly
expected. Furthermore, any project risks and troubles can be avoided as project managers are aware of
each and every step of the project (Project Management Professional Training, 2021). The project manager
can identify problematic areas in advance by monitoring the degree of project risk and the success of any
risk mitigation (Stakeholdermap.com, 2021).

The following diagram indicates how a work breakdown structure is done. Once this is prepared, the
organization could follow a sequence of monitoring steps.

Figure 1: Work Breakdown Structure (Project Management Professional Training, 2021).

Figure 2: Process (Project Management Professional Training, 2021).

Given below are a few recommended techniques that Nestle could use in their selected project of opening
the manufacturing plant.

To keep a record of project updates and measure the milestones of projects, it can be done by identifying
the Critical Path activities and other significant phases or decision points on the project and measuring
progress against them are all part of monitoring project milestones. Milestones can be tracked using a
table, Gantt chart features, or even by creating a milestone slip chart (Stakeholdermap.com, 2021).

A control chart is used to keep track of the project's quality. A single project feature is displayed in a simple
control chart, whereas many project characteristics are displayed in a multiplex chart (Project Management
Professional Training, 2021).

Review and status meetings are used to go further into issues and figure out why something happened.
They can also point up any difficulties that may arise in the future (Project Management Professional
Training, 2021).

A Matrix of Requirements Traceability (RTM) is when the requirements of the project are mapped to the
outcomes in this chart. The matrix shows how two baseline papers relate to one other. This increases the
visibility of the project's tasks. It also precludes the addition of new activities or requirements to the project
without prior approval. This improves the reach of the project's tasks. It also precludes the addition of new
activities or requirements to the project without express permission (Project Management Professional
Training, 2021).

Project team reports are also another technique to measure and evaluate project statuses where reports by
the project team, including suppliers and specialty teams, can frequently provide a clear indication of
potential issues, assuming that the reports are accurate and there is an open and honest culture about
project progress. From phone calls and office talks to written reports, reports can be official or informal as
well. The Project Leader should be on the lookout for reports that give no measurable indication of progress
or that give a positive impression without any supporting evidence (Project Management Professional
Training, 2021).
 Question 4 20 Marks

(700 words)

The transformation of a Third-Party supplier into a partnership could be basically and easily known as the
initiative of the two entities journey as true strategic partner. Where, the initial stages would be to build a
strong mutual bond between the two companies to conduct and ply their trade together which could
ultimately lead to improved supplier relationships and would further build a professional business value
model between the two entities rather than a typical buyer-seller relationship (Jarvis, 2021).

The foremost and the important aspect that would come in handy for Nestle in a strategic partnership deal
with one of their suppliers would be that the bond that get creates which digs deeper than a normal buyer
seller relationship would be the drastic change and extensive lend of hand through their overall relationship
merely considerate to the fact that the deal would not be closed when the trade has occurred but the two
entities are on a mission by aligning their goals and they have now become much more interdependent to
each other than they were previously. That is, for example if there is any outage that is to be foreseen in
the near future a typical seller would practically delay the supply but through the partnership deal which
would mean that the business of Nestle basically being the primary objective means that the two entities
would collaborate and find a quick solution to the problem and minimize the customer as much as they
could to which in turn would not bring any client impact.

Moreover, another benefit would also be that Nestle might be offered with much flexibility in terms of the
payments since now the two companies are aligned onto one goal and the management could always find
a way to settle the deal where that would have not been the case in a typical buyer seller relationship since
in a scenario as such the closure of the deal would be mandate in order to complete the delivery of goods
(Jarvis, 2021).

Nestle could also develop innovative and creative techniques by initiating joint innovative products by doing
extensive research with their true strategic suppliers of which the same discussion would have not been
always in good terms when the deal was a typical buyer seller relationship because a congruency of goals
would not have been present.

Nestle could also dive deep right into the strategic alliance with their suppliers in a partnership deal to
explore new alien markets by identifying opportunities and recognizing threats from a far through the
assistance of their partners since the increase in revenue of Nestle by the expansion would mean that the
ration would also conduct justice to the partners in a same manner.
As much as the aforementioned would have several advantages it also might forward a very few cons
which Nestle might need to focus on as well.

One such situation would be that, considering the fact that the strategic partnership has been built with
mutual trust as the base although there is a visible congruency in goal setting and the vision if the two
companies, there could always be a divergent factor when the Priority Alignment factor is considered.
Where, while in a certain deal if Nestle is focusing on building a long-term strategic alliance using the deal
the partner would be of much need for the revenue that builds between the deal and the negotiations in that
matter would always tend to fail since the priorities of the two companies differ although they have agreed
to travel towards one goal.
When a strategic partnership deal has been struck in midst with a supplier it could also mean that
companies tend to rely heavily on the Just in Time technique in producing and delivering supplies which is
believed to not be a very suitable technique and method to be followed on since an overly reliance on the
aforementioned where there will be no any buffer stock and could lead to a devastating situation which was
also very much highlighted during the pandemic period where many companies ran out of stock to rely on
their inventory while restrictions were placed although the JIT method adopters ran out of options and fell
onto a clueless position (Jarvis, 2021).

Hence, as critically explained how a strategic partnership with a supplier would have their own pros and
cons the decision to do so must be always based on an assessment in line to choosing its vulnerabilities,
risks and rewards and adopt the wisest decision in accordance to the situation in Nestle.

 
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Appendix (optional)