Nestle

Brooks Nestle Case Study

1. Did Nestle undergo either first-order and/or second-order change according to the case? Answer, listing examples of types of change from the above story.

Nestle experienced both first-order and second-order change. Nestle is a company rich with organizational culture and a strong history of leaders more than capable to initiate change, no matter how slow the process may actually present itself-- After all the turtle won the race. Under the category of first-order change would be the relocation of executive offices from Switzerland to the United States to escape the Third Reich and achieve nationalization of their company. The acquisition of L’Oreal and the impact of its diversification also falls within first-order change. Second-order change is for Nestle has always been more purposeful. First-order change serves to enhance the existing business model and instigate growth. The second-order change was purposeful to determine how IT would best serve Nestle.

2. Brabeck-Lemanthe emphasizes the need for an incremental approach to change. Do you agree that this is what he has done? Discuss the differences and similarities between his view and your view of what has occurred at Nestle, both historically and in recent times.

I am in complete agreement with the fact that Brabeck-Lemanthe has instituted a continual and purposeful incremental policy in regards to change. He has realized and that that resistance to change is always high and too many first-order changes always creates chaos and confusion. Change causes continual anxiety and in an attempt to alleviate major disruptions and concerns for job security he has historically cultivated a style that includes accountability and a nurturing approach. He moves slowly and every move carefully calculated with precision to achieve direct goal.

3. What implications for change managers would apply specifically to Nestle? Outline how the Nestle management team may have...