Case Study Nestlé
Introduction
Nestle is one of the biggest food companies in the world with sales of $47 billion annually. Nestle has undergone through a huge number of transformation throughout the years. (Palmer, Dunford & Akin, 2009). Nestle manufacture product such as different cosmetics and chocolates that has been long known as a worldwide leader in its business.
To increase its growth in operations, Nestle had picked up other markets for diversification other than the food industry which Nestlé’s first pick item was the cosmetic brand. But after some time, the company had acquired other products like ophthalmic and pharmaceutical. At last, for the expansion the company was required to concentrate on enhancing productivity, business expansion and financial improvement.
Body
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.
In the case study, Nestle went through major first order change. One of the first-order changes that occurred was in the 1900’s when Nestle changed its approach to global expansion by acquiring subsidies in other countries. Prior to that, Nestle only operated with sales agents to buy their products out of Switzerland, so they changed their international strategy maintaining the company’s goals and the organizational mission.
During the First World War, this had increased the demand on diary product, Nestlé took advantage of this fact as a way to expand itself into U.S. purchasing American factories, and continuing with their global expansion. In addition to increase productivity and efficiency, during the Second World War Nestle moved out of Europe.
Nestlé in 1974 then started to diversify their products in order to grow as company and increase earnings. Nestlé acquired a cosmetic company that became the major shareholder of L’Oreal. That was the first of different acquisitions of companies out of the food industry. Nestle then
Nestle is one of the biggest food companies in the world with sales of $47 billion annually. Nestle has undergone through a huge number of transformation throughout the years. (Palmer, Dunford & Akin, 2009). Nestle manufacture product such as different cosmetics and chocolates that has been long known as a worldwide leader in its business.
To increase its growth in operations, Nestle had picked up other markets for diversification other than the food industry which Nestlé’s first pick item was the cosmetic brand. But after some time, the company had acquired other products like ophthalmic and pharmaceutical. At last, for the expansion the company was required to concentrate on enhancing productivity, business expansion and financial improvement.
Body
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.
In the case study, Nestle went through major first order change. One of the first-order changes that occurred was in the 1900’s when Nestle changed its approach to global expansion by acquiring subsidies in other countries. Prior to that, Nestle only operated with sales agents to buy their products out of Switzerland, so they changed their international strategy maintaining the company’s goals and the organizational mission.
During the First World War, this had increased the demand on diary product, Nestlé took advantage of this fact as a way to expand itself into U.S. purchasing American factories, and continuing with their global expansion. In addition to increase productivity and efficiency, during the Second World War Nestle moved out of Europe.
Nestlé in 1974 then started to diversify their products in order to grow as company and increase earnings. Nestlé acquired a cosmetic company that became the major shareholder of L’Oreal. That was the first of different acquisitions of companies out of the food industry. Nestle then