Wednesday, November 20, 2019
Nestle Corporation Assignment Example | Topics and Well Written Essays - 500 words
Nestle Corporation - Assignment Example Most changes in industries are driven by the desires of customers (Doublethink, 2010). In the 1900s the company implemented second order change when the firm transformed from a domestic company into a global enterprise. The organization penetrated new marketplaces by purchasing subsidiaries in the foreign markets. Nestle aggressively targeted the U.S. marketplace during the World War II due to the increasing demand for dairy products. Another second order change that occurred at Nestle was the movement of corporate offices from Switzerland to the United States. The firmÃ¢â¬â¢s moves were based on the goal of increasing efficiency and productivity. In 1974 Nestle underwent another second order change when the firm decided to change its strategic approach by implementing a diversification strategy. A diversification strategy captures whatever strategic benefits that exist within a portfolio of businesses and turns them into a competitive advantage for the company (Chaneta). The firm became a major shareholder of the cosmetics company LÃ¢â¬â¢Oreal. A second acquisition that increased the level of diversification of the company was the purchase of Alcon Laboratories. Alcon Laboratories is dedicated to the manufacture of pharmaceutical and ophthalmic products. A first order change that the new CEO of the company, Brabech-Letmathe, implemented was the hiring of ten new executives to the executive board.