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2. Brabeck-Letmathe emphasizes the need for incremental approach to change. Do you agree that this what he has done? Discuss the differences and similarities between his view and your view of what has occurred at Nestle, both historically and in recent times.
Yes, I agree with what Brabeck-Letmathe has conducted an incremental approach to change. Simply incremental change must happen slowly and steadily because it is such a continuous changes which help the organization to improve their productivity as well. If they make all changes happen at once instead of over a period of time, then there will be no incremental change in term of their production and it would be a transformational changes which is happen in one time only. He expanded Nestle with different products, which I think it could helped them to increase their production. He also tried to improve their strengths and make them better from time to time. I believe that he could have done this better financially because having too many investors can put a financial burden on the organization.
On the other hand, if the change in Nestle happened at blast, the results would not been as good for such a huge organization like Nestle. Nestle went through a variety of acquisitions in different countries over the past 100 years. The first priority for Nestle is to work on improving the alignment between these various acquisitions. Next, Nestle should focus on the strength of the new acquisitions and look for an ongoing improvement for them. Nestle also belt and sustained its strength gradually for a long period of time, and has been establishing its core value over the course of decades. Therefore, the incremental approach to change was so essential for a well-known company like Nestle to maintain its strength, core values and success rather than changing it entirely.
However, he is despite the complete overhaul of the executive director by replacing it with 10 new executives, which can be an effective and important symbol of commitment to change. The restructuring that he done is continual process at Nestle that focus on developing the strengths of the organization, our team believe that if the organization is doing well, no radical changes need to be implement. Brabeck-Letmathe willing to take the risk of finance to implement restructuring because he believe with replacing it with 10 new executives will develop the strengths of Nestle. Brabeck-Letmathe did the merge and acquisitions by being major shareholder in the cosmetic giant L’Oreal. He also purchased pharmaceutical and ophthalmic by purchased Alcon Laboratories Inc. which is Nestle is a worldwide leader known for manufacturing products. From our view, mergers and acquisitions enable organizational growth at accelerated rates and they continue to be popular or well-known, although with seasonal variations. Mergers and acquisitions also can excessive capacity and consolidate operations in more mature industries.