Nestlé is a multibillion dollar company that sells everything from chocolate to cosmetics. Over the years Nestlé has been through major changes to expand the growth of the company and to succeed as a business. These changes vary from expanding into eighty countries as well as acquiring other companies.
Nestlé has undergone many changes since the beginning. These changes include both first order and second order changes. First order changes are changes that “maintain and develop the organization” (Palmer, Dunford, & Akin, 2009, p. 86). One first order change that Nestlé underwent was moving many executive offices from Switzerland to the United States during the Second World War. This is considered first order change because the changes were made to develop the organization. The purpose was to increase efficiency and productivity but it did not involve fundamental changes in strategy, core values or corporate identity.
Second order changes are changes that transform the nature of the organization. Nestlé began to invest and acquire companies outside of the food industry. For example the organization purchased the pharmaceutical company Alcon Laboratories Inc. This change is considering a second order change because it transformed the nature of the organization. A company that previously had only focused on the food industry was diversifying to promote growth.
In recent times Nestlé has had an incremental approach to change. Brabeck-Lemathe does not want to make drastic changes but slow and study changes. He believes drastic changes are for dealing with a crisis situation but not for when a company is doing well. In the past changes seem to be more transformational. Acquiring other companies that are outside of the industry you deal with would be considered a transformational change.
An implication that would...