Nestle Change free essay sample

Nestle is a multinational packaged food and beverage company founded and headquartered in Vesey, Switzerland. Nestle Company is the worlds first company to make infant cereal. Henri Nestle is the chemist who starts to do research on baby food in year 1867. His products soon became known worldwide after introducing a baby drink, which is his new product. In 1905, Nestle Company merged with Angle-Swiss Condensed Milk Company and after that Nestle Company produced milk chocolate.Nestle has a wide range of products across a number of markets including coffee, bottled water, other beverages, chocolate, ice cream, infant foods, performance and healthcare nutrition, seasonings, frozen and refrigerated foods, confectionery and pet food. Because of its variety production, now Nestle becomes of the largest food companies in the world, marketing over 8500 brands and 30,000 products. Nestle has almost 500 factories around the world and employs more than 200,000 employees worldwide. Nestle operates in nearly 100 countries across 5 continents and the brand is trusted and confident for its customers to consume. We will write a custom essay sample on Nestle Change or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Under the leadership of Peter Brabeck- Letmathe, Nestle went through second-order change. According the National Academy for Academic leadership â€Å"Second-order change is deciding – or being forced – to do something significantly or fundamentally different from what we have done before. The process is irreversible: once you begin, it is impossible to return to the way you were doing before. Second- order, discontinuous change is transformational, radical, and fundamentally alters the organization at its core. Second- order change entails not only developing but transforming the nature of the organization.Below I have listed a few examples of this second order change: †¢ Nestle only sold through sales agents to countries outside of its home market. †¢ Its launch into the American market was initiated when the First World War increased demand for dairy products. Nestle took this opportunity to establish its presence in the United States by acquiring several existing factories. †¢ In 1974 Nestle diversified for the first time out-side the food industry in order to promote growth.Change may mean adding on to, and integrating, rather than removing and replacing current practices. What this reminds the managers of change is that they need to assess how carrying out a change will impact upon current practices and the extent to which a change will create ripple effects on practices and routines that they need to retain. So instead of removing the technological policy of the firm, they can try to improve it. Nestle can also downsize their firm. Downsizing is the intentional process of permanently reducing staff numbers in an organization.Since they are unnecessarily big and invested every single sector, they can sell some of their industries and focus on most profitable ones. There are three examples of lessons from the front line that are evident in the Nestle case. They are: †¢ There is a dramatic pace of change in Nestle. This has to be slowed down. †¢ There is high risk in its investments; the firm has to hedge its risks. †¢ There is a wrong policy in technology. Care needs to be taken in assuming that types of organizational changes can be neatly categorized as small, adaptive, and incremental compared to those that are large and transformational.