Essay - Managing Organizational Change - Nestle did Nestle Undergo Either First-order...

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Managing Organizational Change - Nestle

***** Nestle undergo either first*****order and/or second-order change according to the case? In answering list examples of types of change from case.

***** most significant first-order change Nestle experienced was ***** decision to relocate executive offices ***** Switzerland to the United States, a bold yet necess*****ry move given the threat of World War II in general and Nazi Germany nationaliz*****g their company, as the Third Reich typically did in occupied countries. The decisions ***** acquire L'Oreal and Alcon Laboratories are also first-order ***** as both of these acquisitions could *****ly change the nestle culture (Burrus-Barbey, 2001). The divestitures ***** smaller acquisitions consistent with the core bus*****ess of Nestle are ***** ***** and therefore not as impactful on the company culture. Additional second-order change events include the more pragmatic and solution-focused approach to defining how *****formation technology (IT) will be used in Nestle. Consistent ***** the culture of Swiss-based companies, the Nestle is risk averse and ***** takes on first-order change when it will augment ***** existing business models, extending the ***** into entirely new markets. First-order change is specifically used for creating greater opportunities ***** intelligent, planned growth that builds on the company's core strengths and competencies (Raisch, Krogh, 2007). This conservatism ***** ***** *****s ***** seen as necessary for the survival of ***** firm and its position in rapidly expanding global markets while keeping the core ***** the company completely stable and capable of creating ***** process-based competitive advantage over time.

********** emphasizes the need for an incremental ***** to change. Do you agree ***** this is what he has done? Discusses ***** differences ***** similarities between his view and your view ***** what occurred at *****, both *****torically ***** in recent times.

The CEO of Nestle, Mr. Brabek-Letm*****he, realizes that the resistance to change in his company is very strong and that too many first-order changes can completely confuse ***** create a chaotic situation ***** ***** ***** many divisions and departments. Wisely *****. Brabek-Letmathe chooses to m*****imize major disruptions to his company's operations as to alleviate undue stress on ***** employees, as with change there is the c*****tinual anxiety ***** whe*****r one's job is safe or not. Employees react quickly and with great anxiety if they do not know why a new major strategy is taking place. Mr. Brabek-Letmathe has cultivated a style of transparency, accountability ***** the nurturing of ownership for his employees (Burrus-Barbey, 2001) and as a result is considered one of the most capable leaders in ***** the *****dustries Nestle competes in.

Given ***** fact that ***** concentrates ***** on explaining why it is making a decisi***** for a first-order change to ensure a high level of ********** and transparency with its employees, it is clear why Mr. Brabek-Letmathe is apparently so *****-averse. One must respect a CEO ***** know h***** company so well as ***** not bring too much change to fast and risk alienating them in the process. Instead, Mr. Brabek-Letmathe concentrates on earn*****g their trust through an


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