Assignment 2 Nestle
Dr. Mary Tranquillo
HRM 560 Managing Organizational Change
October 28, 2010
Organization changes that Nestle has undergone
1. Discuss the organization changes that Nestle has undergone. Nestle is the largest and most successful consumer packaged goods company in the world, founded and headquartered in Vevey Switzerland. Nestle successfully introduced many new products into many different parts of the food and beverage industry. The Nestle Company was established in 1867 by Henri Nestle. In the beginning, Nestle Company specialized in selling infant milk; which provided alternative for mothers who could not breast feed their infant. The value of the product was soon recognized, as it saved many children’s life. Today, Nestle is the world's largest and most diversified food company, with nearly 500 factories around the world, producing healthy, enjoyable food products for every stage of life. Nestle underwent many organizational changes. In 1905 Nestlé Company merged with the Anglo Swiss Milk Company by the Page Brothers. The merger provided the company with a wide range of product line. According to Palmaer, I., Dunford, R., & Akin, G., 2009, “Nestle changed its approach to global expansion and began purchasing global subsidiaries in foreign markets.” During the World War I Nestle purchased several factories in the United States to keep up with the increasing demand for condensed milk and dairy products via government contracts. When fresh milk became available again after the war, Nestle financial status suffered which caused a tremendous amount of debt. The price of ingredients was increasing, the economy slowed down and exchange rates deteriorated because of the war. During World War II many “executive offices offshore were transferred to the United States. These moves into the offshore markets were part of Nestle’s commitment to changing the company in order to increase efficiency and productivity”...
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