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.

The most significant first-order change Nestle experienced was the decision to relocate executive offices from Switzerland ***** ***** 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 to acquire L'Oreal ***** Alcon Laboratories are also first-order ***** ***** both ***** these acquisitions could significantly change 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. Additional 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 ***** Swiss-b*****ed companies, ***** Nestle is risk averse and also takes on first-order change when it will augment their exist*****g 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 company's ***** strengths ***** competencies (Raisch, Krogh, 2007). This c*****servatism of first-order changes are seen as necessary ***** the survival ***** ***** firm and its position in rapidly expand*****g global ***** while keeping the core of the company completely stable and capable of creating ***** process-based competitive advantage over time.

Brabek-Letma***** 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 ***** what occurred at Nestle, both **********rically ***** in recent times.

***** CEO of Nestle, Mr. Brabek-Letmathe, realizes that the resistance to change in his company is very strong and that *****o many first-order ***** can ***** confuse ***** create a chaotic situation ***** the company's 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 ***** great anxiety if they do ***** know why a new major strategy is taking place. Mr. Brabek-Letmathe ***** cultivated a style of transparency, accountability ***** the nurturing of ownership for his ***** (Burrus-Barbey, 2001) and as a result is considered one of the most capable leaders in his the industries Nestle competes in.

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

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