Nestle Case Study

Nestle has faced top management managing style problem such as CEO was only focused on financial improvement without organisation strategy. Therefore, Nestle decided to change such as appointment new CEO and transform the organisation structure and direction well-defined organisation objectives. Management team and organisation structure change be able to change organisation structure as operational strategy that help to provide plenty knowledge, makes profit, improve response times. In addition to, Transformational change refers to changes such as downsizing, restructuring, and reengaging are regarded as transformational (Plamer 2009). Purpose of Nestle changes was not only appointment new CEO but also replace with 10 new executive. Nestle realized that when the CEO and top management changed it makes new vision of future organisation performance as well as restructure effective organisation structure. Also, transformational leadership can be more strongly associated with perceptions of organizational performance when the organization undertakes high changes (Ilir 2009). As the result, restructuring new organisation structure can make more flexible organisation.

The reason why, I selected second-order change is that when business faced finance crisis or nonstrategic it related to CEO's managing style or organisation structure problem so I decided to transform organisation structure such as appointment new CEO with 10 executives. For example, I believe that new CEO has obvious own business objectives and properly direction to employee organisation objectives that absolutely affect to make more sufficient organisation and employees may try to approach organisation objectives. In addition, second-order help in order to improve business environment such as make flexible that reformed upon completion of the task and reduction of internal and external boundaries that encourage communication and resource of sharing. As the result, I have decided second-order