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

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Managing Organizational Change - Nestle

***** 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 ***** decision to relocate executive *****fices from Switzerland ***** the United States, a bold yet necess*****ry move given the threat of World War II in general and Nazi Germany nationaliz*****g ********** company, as the Third Reich typically did in occupied countries. The decisions to acquire L'Oreal and Alcon Laboratories are also first-order ***** as both of these acquisitions could significantly change the nestle culture (Burrus-Barbey, 2001). The divestitures ***** smaller acquisitions consistent with the core bus*****ess of Nestle are second-order ***** 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, ***** Nestle is risk averse ***** ***** takes on first-order ***** 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 c*****servatism ***** first-order 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.

********** emphasizes the need for an incremental ***** to change. Do you agree ***** this is what he has done? Discusses the differences and similarities between his view and your view ***** ***** occurred at Nestle, both historically 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 ***** 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 ***** operations as to alleviate undue stress on his employees, as with change there is the continual anxiety ***** whe*****r one's job is safe or not. Employees react quickly and ***** 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 ***** h***** ***** (*****, 2001) and as a result is considered one of t*****e most c*****pable leaders in his the *****dustries Nestle competes in.

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


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