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 of change from case.

***** most significant first-order change Nestle experienced was the decision to relocate executive *****fices ***** Switzerland ***** the United States, a bold yet necessary move given the threat of World War II in general and Nazi Germany nationaliz*****g *****ir company, as the Third Reich typically did in occupied countries. The decisions to acquire L'Oreal and Alcon Laboratories are also first-order change as 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 ***** ***** 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 Information technology (IT) will be used in Nestle. Consistent with the culture of Swiss-b*****ed companies, ***** Nestle is risk averse ***** ***** 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 ***** intelligent, planned growth that builds on the company's ***** strengths and competencies (Raisch, Krogh, 2007). This conservatism ***** ***** changes ***** seen as necessary for the survival of ***** firm and its position in rapidly expand*****g global ***** while keeping the core ***** the company completely stable and capable of creating ***** process-based competitive advantage over time.

********** emphasizes the need for an incremental approach to change. Do you agree ***** this is what he has done? Discusses the differences ***** similarities between his view and your view ***** what occurred at *****, ***** historically ***** 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 changes can completely confuse and create a chaotic situation for ***** *****'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 anxiety 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 ***** his ***** (*****, 2001) and as a result is considered one of the most capable leaders in ***** ***** industries Nestle competes in.

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

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