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Case Study Nestle

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Case Study Nestle

Strayer University

Adriana Jenkins

HRM 560

April 26, 2012


This paper will discuss the organizational change that Nestle has undergone. The changes that Nestle underwent will be identified as being either first-order or second-order change and a rationale for my decision will be given. This paper will also discuss whether the changes made were with an incremental approach as emphasized by Brabeck-Letmathe. Also, three examples of lessons from the front line that were evident will be identified and how these issues may be overcome will be discussed.

1. Discuss the organization change that Nestle has undergone.

Nestle employees approximately 224,000 people, they have 500 factories that operate in 80 countries and they are considered one of the biggest food companies in the world with sales of $47 billion annually. Nestle has under gone through a huge number of transformations throughout the years. (Palmer, Dunford & Akin, 2009). Nestle manufacture products such as different cosmetics and chocolates and has been long known as a worldwide leader in its business. To increase its growth in operations Nestle diversified outside the food industry in 1974. It became a major shareholder in the cosmetic company L’Oreal. With large amounts of debt many people felt this move by Nestle to be challenging and that they were over extending themselves by this acquisition. Again Nestle stepped outside the food industry and made yet another acquisition and purchased Alcon Laboratories, a U.S. manufacturer of pharmaceutical products.

2. Identify whether the changes were first-order and /or second-order changes and the rationale for your decision.

According to the case both first-order and second-order changes were evident. Nestle in the past underwent a number of second-order changes. For example,


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