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 ***** Switzerland ***** the United States, a bold yet necessary 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 ***** Alcon Laboratories are also first-order change ***** both ***** these acquisitions could *****ly ***** the nestle culture (Burrus-Barbey, 2001). The divestitures and smaller acquisitions consistent with the core business of Nestle are second-order change ***** therefore not as impactful on the company culture. Additional second-order change events include the more pragmatic and solution-focused approach to defining how ********** technology (IT) will be used in Nestle. Consistent ***** the culture ***** Swiss-b*****ed companies, ***** Nestle is risk averse ***** also takes on first-order change when it will augment their exist*****g business models, extending the ***** 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 and competencies (Raisch, Krogh, 2007). This conservatism of ***** changes ***** seen as necessary ***** the survival of the firm and its position in rapidly expanding global markets while keeping the core ***** 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 *****, ***** **********rically and in recent times.

***** CEO of Nestle, Mr. Brabek-Letmathe, realizes that the resistance to change in his company is very strong ***** that too many first-order changes can completely confuse and create a chaotic situation for the ********** many divisions and departments. Wisely Mr. 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 of whether one's job is safe or not. Employees react quickly and with great ***** 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 ***** h***** employees (*****, 2001) and as a result is considered one of t*****e most capable leaders in h***** the *****dustries Nestle compe*****s in.

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

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