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

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Managing Organizational Change - Nestle

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

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

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

***** CEO of Nestle, Mr. Brabek-Letmathe, realizes that the resistance to change in his company is very strong and that too many first-order changes can ***** confuse ***** create a chaotic situation for the ********** many divisions and departments. Wisely Mr. 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 continual anxiety of whether one's job is safe or not. Employees react quickly and with great anxiety if they do ***** know why a new m*****jor strategy is taking place. Mr. Brabek-Letmathe has cultivated a style of transparency, accountability ***** the nurturing of ownership for his employees (*****, 2001) and as a result is considered one of the most c*****pable leaders in ***** the industries Nestle competes in.

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


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