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Nestlé took this opportunity to expand in the U.S. by acquiring several already established factories. The most important change affecting the expansion of Nestle was WWII. During this time there was a feeling of seclusion for Nestlé as it’s based of operations were in Switzerland. They started to move the executives from the home base of Switzerland to offshore markets. The U.S. move was part of Nestle strategy of increasing the efficiency and productivity of the company.
Second-order for change for Nestlé was in 1974. This is the first time the company diversifies its products by acquiring a cosmetic company, this was a transformation from the products of Nestlé. This acquisition alters the fundamental product line of the company. In 1974 the Nestlé Company became a major shareholder of the L’Oreal Company. Due to this choice Nestlé is still dealing with the consequences of the partnership. The company shareholders believed that Nestlé over extended itself financially with this acquisition and the debts that came with …show more content…
Brabeck-Letmathe started by restructuring. The restructuring played a large part in the success of the company; he took small steps to achieve his goals. He overhauled the executives’ board by replacing them with 10 new executives, which I think was the right approach at the right time. I mean how was he going to implement any changes for the company with executives who are not necessarily willing to see his vision.
Brabeck-Letmathe views his focus as developing the strengths of the organization and holds the view that radical changes is ideal for a crisis but if a company is doing well, then unnecessary change should be questioned.(Palmer)
I think the small incremental changes that were taken were right for them. Just like we understand that if something is changed to quickly and time is not set aside to absorb these changes it may not work. Change itself is something that most people are not willing to do, so if you take small steps and take the time to absorb the change it will work. I mean if the company changes to rapidly it doesn’t have enough time to catch up, Nestlé had enough time to absorb the change and make any adaptations that were necessary.
What implications for change managers would apply specifically to Nestlé? Outline how the Nestlé management team may have reacted to each
Second-order for change for Nestlé was in 1974. This is the first time the company diversifies its products by acquiring a cosmetic company, this was a transformation from the products of Nestlé. This acquisition alters the fundamental product line of the company. In 1974 the Nestlé Company became a major shareholder of the L’Oreal Company. Due to this choice Nestlé is still dealing with the consequences of the partnership. The company shareholders believed that Nestlé over extended itself financially with this acquisition and the debts that came with …show more content…
Brabeck-Letmathe started by restructuring. The restructuring played a large part in the success of the company; he took small steps to achieve his goals. He overhauled the executives’ board by replacing them with 10 new executives, which I think was the right approach at the right time. I mean how was he going to implement any changes for the company with executives who are not necessarily willing to see his vision.
Brabeck-Letmathe views his focus as developing the strengths of the organization and holds the view that radical changes is ideal for a crisis but if a company is doing well, then unnecessary change should be questioned.(Palmer)
I think the small incremental changes that were taken were right for them. Just like we understand that if something is changed to quickly and time is not set aside to absorb these changes it may not work. Change itself is something that most people are not willing to do, so if you take small steps and take the time to absorb the change it will work. I mean if the company changes to rapidly it doesn’t have enough time to catch up, Nestlé had enough time to absorb the change and make any adaptations that were necessary.
What implications for change managers would apply specifically to Nestlé? Outline how the Nestlé management team may have reacted to each