Bus 661 - Nestle Case Study

Nestlé

Gingi Brown

BUS661

Erick Aguilar

March 6, 2012

Ashford University

Nestlé

Nestle’ is a highly successful global consumer products company. The case study describes changes that occurred at the company over long periods of time. The main CEO’s of Nestle had success in their own right. Maucher focused on financial improvement through acquisitions. Brabeck- Letmathe’s approach was to concentrate on sustainability of the company through its core individuals. Brabeck- Letmathe’s made sure that when he implemented new structures it was a done so that Nestle fundamentals were intact.

Nestlé’s first significant change would be considered first-order change by making the decision to relocate executive offices to the United States from Switzerland during war torn Europe. This then allowed the Swiss founded company to make the necessary adjustments to their products but maintain the core values or corporate identity in the new United States market. The second part of their change would be a second-order changed would then be when they expanded and became a major shareholder in the L’Oréal cosmetic company and then later subsequently Alcon Laboratories Inc. Branching out to the both of these companies went away from their original format and adding on addition products that was not originally part of their organizational development. Thus rendering the radical transformation with the new companies that would change the original core values and adapt to the new changes in Nestlé. Throughout both of these time periods restructuring and risk assessment and organizational management to help develop the company into the million dollar giant they are today.

Brabeck- Letmathe that change needs to be slow and steady. This is also something that should not hinder the ultimate growth of the company (Palmer, Dunford, & Akin, 2009, p. 109). By taking this approach to his company this does represent incremental changes. If Brabeck- Letmathe was to change everything thing in the company at once rather than over time then this would not be the ideal of implemental change.

Brabeck- Letmathe’s changes in the company started at the beginning of the 1900’s and continued throughout this century. Brabeck- Letmathe had the foresight to make sure that when he took over as CEO that he took the strengths that Nestlé already had and put individuals in place that would further the longevity of the company’s success. By Brabeck- Letmathe using the incremental approach it allows the company to still have its core and changing those layers that needed new growth and allow them to be a long term