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.

The most significant first-order change Nestle experienced was the decision to relocate executive offices from Switzerland to ***** 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 and Alcon Laboratories are also first-order ***** ***** both of 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. Additi*****al second-order change events include the more pragmatic and solution-focused approach to defining how Information technology (IT) will be used in Nestle. Consistent ***** the culture of Swiss-b*****ed companies, the Nestle is risk averse and ***** takes on first-order ***** 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 ********** core strengths ***** competencies (Raisch, Krogh, 2007). This c*****servatism ***** first-order changes are seen as necessary for the survival of the firm and its position in rapidly expanding global markets while keeping the core of the company completely stable and capable of creating greater process-based competitive advantage over time.

Bra*****k-Letma***** 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-Letm*****he, realizes that the resistance to change in his company is very strong and that *****o many first-order changes can ***** confuse and create a chaotic situation for ***** 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 his employees, as with change there is the c*****tinual anxiety of whether one's job is safe or not. Employees react quickly and with great ***** if they do not know why a new major strategy is taking place. *****. Brabek-Letmathe has cultivated a style of transparency, accountability and the nurturing of ownership for his ***** (Burrus-Barbey, 2001) and as a result is considered one of the most c*****pable leaders in h***** the *****dustries Nestle competes in.

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

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