Essays on The Process of Organizational Change at Nestle Case Study

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The paper "The Process of Organizational Change at Nestle" is an outstanding example of a management case study.   From the case study in Palmer et al (2009), Nestlé has evolved from a domestic Swiss-based company manufacturing dairy products for infants to the world’ s largest food companies operating in over 80 countries with a diverse product line ranging from chocolates and coffee to cosmetic products and pet food. Under current chairman and former CEO Peter Brabeck- Letmathe, Nestle undergoes continual and incremental restructuring at an annual cost of about $ 300 million (Palmer et al 2009).

Nestlé ’ s current situation can be attributed to a number of factors due to the various changes that the organization has undergone over the last century. This essay will analyze the process of organizational change at Nestle. Drawing on the case study from Palmer et al (2009), the essay will first identify the factors that can be attributed to Nestle’ s current position as the world’ s largest food company and the nature of change at Nestle. The essay will demonstrate the first order and second-order changes that Nestle has experienced the current view of incremental change at Nestle, implications for change managers, and lessons from the front line.

The essay will then discuss these factors using Weisbord’ s six-box organizational model as a diagnostic tool. Nestle Nestlé ’ s current situation can be attributed to its visionary leadership which has successfully overseen the process of organizational change at the company. Under the tenure of different CEOs, Nestle has changed from a domestic food company into the world’ s largest food company with a diverse product line that includes some of the world’ s strongest household brands such as Nescafe, Cerelac and Kit Kat.

This has been due to a series of aggressive mergers and acquisitions that have seen the company expand its operations into 80 countries worldwide, employing over 224,000 people in over 500 factories (Palmer et al 2009). Nestle can also attribute its market-leading position to political and economic changes such as those occasioned by the Second World War which drew the company out of its Swiss shell and into the global market.

References

Ball, D. (2007). Crunch time: After buying binge, Nestle goes on a diet. The Wall Street Journal, July 23. Retrieved on July 24, 2011 from < http://www.imm.bwl.uni- muenchen.de/dateien/3_lehre/dec_in_marketing/nestle.pdf>

Boersma, K. & Kingsma, S. (2005). Developing a cultural perspective on ERP. Business Process Management Journal 11 (5), 123-136.

Brabeck, P., (2001). The Business Case against Revolution: An Interview with Nestle's Peter Brabeck by Suzy Wetlaufer. Harvard Business Review 79 (2), 112-121.

Matzler, K., Bailom, F., Anschober, M. & Richardson, S. (2010). Sustaining corporate success: what drives the top performers? Journal of Business Strategy, 31 (5), 4-13.

Nestle, Nestle History. Retrieved on 25 July, 2010 from

Palmer, I., Dunford, R., & Akin, G. (2009). Managing organizational change: A multiple perspectives approach. Boston: McGraw-Hill Irwin

Raisch, S. (2008). Balanced Structures: Designing Organizations for Profitable Growth. Long Range Planning, 41 (5), 483-508.

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