Problems at Perrier

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1. Did Nestlé undergo either first-order and/or second-order change according to the case? Answer, listing examples of types of change from the above story. Nestlé underwent a second –order change according to the case. Nestlé did a transformational change. It continued in the corresponding network of what the organization had already but, the focal point was, how to revitalization itself so that it can progress more adequately. For example, Nestlé only sold their products through sales agents to countries outside of its home market. They changed the approach to worldwide expansion so that they can buy from local subsidiaries in foreign networks. Also, Nestlé had changes made to where they produced more than just food; they started producing cosmetic with L’Orѐal and incorporated Alcon Laboratories. Coming together with both of these companies steered Nestlé away from their initial structure and created different products that was not a part of the organization advancement. Its launch into the American market was initiated when the First World War increased demand for dairy.

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 Nestlé, both historically and in recent times. Yes, I believe Brabeck-Letmathe has incremental change because he believes that change should happen “slow and steady”. If you make all changes happen at once, instead, over a period of time then, there will be no incremental change. He expanded Nestlé with different products, which I think helped them to increase in production. He tried to implement their strengths and make them better. I believe that he could have done this better financially because having too many investors can put a financial burden on the organization. By Brabeck-Letmathe using this approach it gives the organization a chance to keep the core values and...
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