Second –order change -Change was purposeful to determine how IT would best serve Nestle. -Nestle began acquiring local subsidiaries in foreign markets and changed its approach to global expansion. -Change events include the more pragmatic and solution-focused approach to defining how Information technology (IT) will be used in Nestle. According to the case, Because Nestlé only sold through sales agents to countries outside of its home market.
Its launch into the American market was initiated when the First World War increased demand for dairy. Nestle began acquiring local subsidiaries in foreign markets and changed its approach to global expansion by the 1900’sNestle experienced both first-order and second-order change. Nestle is a company rich with organizational culture and a strong history of leaders more than capable to initiate change, no matter how slow the process may actually present itself-- After all the turtle won the race. Under the category of first-order change would be the relocation of executive offices from Switzerland to the United States to escape the Third Reich and achieve nationalization of their company. The acquisition of L’Oreal and the impact of its diversification also falls within first-order change.
Second-order change is for Nestle has always been more purposeful. First-order change serves to enhance the existing business model and instigate growth. The second-order change was purposeful to determine how IT would best serve Nestle.Nestle employees approximately 224,000 people, they have 500 factories that operate in 80 countries and they are considered one of the biggest food companies in the world with sales of $47 billion annually. Nestle has under gone through a huge number of transformations throughout the years.
(Palmer, Dunford & Akin, 2009). Nestle manufacture products such as different cosmetics and chocolates and has been long known as a worldwide leader in its business. To increase its growth in operations Nestle diversified outside the food industry in 1974. It became a major shareholder in the cosmetic company L’Oreal. With large amounts of debt many people felt this move by Nestle to be challenging and that they were over extending themselves by this acquisition.
Again Nestle stepped outside the food industry and made yet another.