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 ***** change from case.

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

Bra*****k-Letmathe emphasizes the need for an incremental ***** to change. Do you agree that this is what he has done? Discusses the differences and similarities between his view and your view of what occurred at Nestle, ***** historically ***** in recent times.

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

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


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