Nestle Case
Nestle Case
1. Did nestle undergo either first order and/or second order change according to the case? Answer listing example of types of change from the above story
For many years Nestle was considered as a model for the companies, it was the largest food company and they had a turnover of $47 billions just as they said in the text. Unfortunately for them, they took bad decisions and the first one was to buy shares of L’oreal. It’s a completely different market from the food industry and they didn’t get the skills to work on it.
The second bad decision was to purchase Canation in 1984 and it had a big influence on their benefits.
2. Brabeck-Letmathe emphasizes the need for an incremental approach to change. Do you agree that this is what he has done? Discuss the differences and similarities between his view and your view of what has occurred at Nestle both historically and in recent times.
Brabeck-Letmathe was the CEO of Nestle and he was the symbol of the change. His management was based on slow actions but the actions were done with precision and were really costly. As we saw in the text he spent more than $300 millions per year.
Theses actions were mostly based on the installation of technology in the line of production and the short-term profit, which was not the case before. Moreover, he based the activity of Nestle ONLY on the food industry market and not anymore on others.
3. What implications for change mangers would apply specifically to Nestle? Outline how the Nestle management team may have reacted to each implication.
The main focus of the strategy for the CEO was to use the employees to use the profitability of the company and to use technologic items to make the better company and certainly not to replace one of these “items”. To my mind, and I am sure I am right the team was really happy with the CEO because he introduced new technics with the same team to double or even triple the profitability of the company. The team could be
1. Did nestle undergo either first order and/or second order change according to the case? Answer listing example of types of change from the above story
For many years Nestle was considered as a model for the companies, it was the largest food company and they had a turnover of $47 billions just as they said in the text. Unfortunately for them, they took bad decisions and the first one was to buy shares of L’oreal. It’s a completely different market from the food industry and they didn’t get the skills to work on it.
The second bad decision was to purchase Canation in 1984 and it had a big influence on their benefits.
2. Brabeck-Letmathe emphasizes the need for an incremental approach to change. Do you agree that this is what he has done? Discuss the differences and similarities between his view and your view of what has occurred at Nestle both historically and in recent times.
Brabeck-Letmathe was the CEO of Nestle and he was the symbol of the change. His management was based on slow actions but the actions were done with precision and were really costly. As we saw in the text he spent more than $300 millions per year.
Theses actions were mostly based on the installation of technology in the line of production and the short-term profit, which was not the case before. Moreover, he based the activity of Nestle ONLY on the food industry market and not anymore on others.
3. What implications for change mangers would apply specifically to Nestle? Outline how the Nestle management team may have reacted to each implication.
The main focus of the strategy for the CEO was to use the employees to use the profitability of the company and to use technologic items to make the better company and certainly not to replace one of these “items”. To my mind, and I am sure I am right the team was really happy with the CEO because he introduced new technics with the same team to double or even triple the profitability of the company. The team could be