Organizational Change: A Case of Nestlé Analysis
General instructions
In this assessment, students will prepare a report in which they describe and critically analyse the change in a selected organisation. Students are required to draw upon relevant research relating to the organisation, industry and change management literature. The report must involve the interaction of conceptual material covered in the subject with data that is collected. The main part of the report should provide (1) analysis of how the organization has changed internally in response to the external pressures and internal drivers, and (2) a brief thoughtful evaluation of the organisational change - was the change successful, why or why not?
Weighting: This case study paper is worth 50% of your final marks.
Length: 1500 words (-+10%; executive summary, tables, figures, references and appendix are NOT included in the word count)
Due: Friday 16 April 2021, 11:59 pm
Case selection
Students are required to select an organisation or network of organisations which has recently (in the past 3 years) conducted or is in the process of conducting organisational change. The list of organisations is available below. Students should ensure that they refer to the instructor's suggestions when making their choice of an organisation, such as its size and nature of changes:
A large organization which you have worked for and are able to get insights in its recent (past three years) organizational change. It can be either a commercial company or a NGO.
Volkswagen
Microsoft
Netflix
Nestle
Huawei
Panasonic
British Airways
The report should cover
The brief background to the change management initiative
The key pressures/drivers influencing the organisational change.
The main part of the presentation: Using relevant change-management models or diagnostic models to analyse deeply and sufficiently how the organization has been changed to respond to the external pressures and internal drivers.
The brief evaluation of the results of the change.
Quality references: Students need to utilise a minimum of 6 academic sources, e.g., academic textbooks and/or academic journal articles. In addition, other sources can be used such as the official web site of the organisation, Australian Bureau of Statistics data or other statistical information, media excerpts, etc. A reference list must follow APA referencing style.
Marking criteria:
Communication (20%) – Information is structured and presented clearly.
Analysis (50%) – Substantive analysis of the business case and consideration of alternative options and implications.
Evaluation (30%) – Ability to develop a persuasive evaluation of the case.
Rubric
Assessment 1: Case study (individual)
Assessment 1: Case study (individual)
Criteria Ratings
This criterion is linked to a Learning OutcomeCommunication (20 %)
Information is structured and presented clearly: (1) The case study was well structured (intro, body and conclusion) and presented in a coherent and logical manner; (2) The report was presented in a professional manner e.g. fluently written, clear paragraphing, few grammatical and spelling errors. Appropriate use of academic English; (3) The report was correctly referenced (in-text and reference list) using the APA convention.
High
Very clear and concise outline and direction of the assignment. Excellent presentation of the topic content that comprehensively and evidently addresses the topic and the argument progresses logically with comprehensively supported and linked to peer- reviewed literature.
Pass
Acceptable outline and direction of the assignment. Superficial presentation of the topic content that addresses the topic and the argument progresses logically with some support and link to peer-reviewed literature.
Low
Poor outline and direction of the assignment. Irrelevant content that does not address the topic and the argument does not progress logically with little or no support from peer reviewed literature.
This criterion is linked to a Learning OutcomeAnalysis (50%)
Substantive analysis of the business case and consideration of alternative options and implications: (1) The change management initiative was clearly identified and introduced including a brief background/context to the topic. Purpose and scope of the report were adequately outlined; (2) The key pressures/arguments influencing the organisational change were clearly explained; (3) A detailed account and critical analysis of the organisational change was provided based on relevant, current academic literature and other sources.
High
Comprehensively applies relevant theoretical/philosophical understandings of change management to critically appraise business/organisational responses to change management pressures.
Pass
Superficial/minimal application of relevant theoretical/philosophical understandings of change management to critically appraise business/organisational responses to change management pressures.
Low
No application of relevant theoretical/philosophical understandings of change management to critically appraise business/organisational responses to change management pressures.
This criterion is linked to a Learning OutcomeEvaluation (30%)
Ability to develop a persuasive evaluation of the case: (1) The report included a thoughtful evaluation of the organisational change. Was the change successful, why or why not?; (2) The evaluation clearly draws on the findings in the report.
High
Comprehensive evaluation of organisational change that reflect the business realities.
Pass
Some relevant points about evaluation of organisational change that reflect the business realities.
Low
Irrelevant or missing points about evaluation of organisational change that reflect the business realities.
Organizational Change: A Case of Nestlé
Student’s Name
Institution
Organizational Change: A Case of Nestlé
For an organization that wants to remain competitive and meet the changing needs of customers, change is inevitable. According to Stouten, Rousseau, and De Cremer (2018), the focus of change management should not just be on successfully implementing changes but also on making sure that the changes are sustainable. Nestlé understands the need for organizational change. Nestlé is a Swiss multinational organization established in 1866 (Nestlé, n.d.). It focuses on food and beverages and since it was established, it has instituted numerous organizational changes to adapt to a changing business environment. The purpose of this paper is to explore Nestlé’s recent change and establish whether the change was successful.
Background of Nestlé’s Change Management Initiative
In 2019, Nestlé announced the creation of a new function to assist in its strategy. The company created the Group Strategy and Business Development function. This new function will be responsible for managing licensing agreements, external partnerships, and venture capital initiatives for the company (Nestlé, 2019). In addition, the function will also be tasked with establishing opportunities for internal and external growth. Nestle also appointed Sanjay Bahadur, who has been with the company for more than 30 years, to head this new function. This change gives Nestlé an opportunity to achieve its long-term growth and development through meaningful acquisitions and divestitures as well as continuous innovation in different areas (Nestlé, n.d.) because the unit will be fully responsible for identifying growth opportunities.
Key Drivers of Organizational Change at Nestlé
Changing business environments often necessitate organizational change. Specifically, the drivers for change can be both internal and external (Jan & Veronika, 2017). Internal drivers stem from within the company when the company wants to change the status quo. External drivers are those that come from outside the company, such as technology and competitive pressures. At Nestlé, one of the key drivers for this change has been the need for growth and expansion. This is an internal driver. Nestlé’s main strategic objective is to achieve a sustainable mid-single-digit organic sales growth by rapidly innovating and effectively managing its portfolio (Nestlé, n.d.). This can be best achieved if the company has an effective way of establishing opportunities within and outside the company. The person appointed to lead the new function has experience in managing portfolio adjustments within the company to accelerate growth. Prior to being appointed the leaders of the new function, Sanjay Bahadur was the head of acquisition and business development at Nestlé (Nestlé, 2019). He, therefore, brings his knowledge and expertise to the new function. Another key driver is competitive pressure. According to an article by Atkins and Daneshkhu published in the Financial Times (2017), Nestlé has been facing competitive pressures in the consumer goods industry, which has forced it to make a strategic shift to achieve its mid-single-digit sales growth objective. Nestlé realizes that increasing its sales without a way of enhancing sustainability will put it in more trouble in the long run. However, the new function can ensure that Nestlé’s growth and development are sustainable.
Analysis
The consumer goods industry is characterized by rapid change, especially due to changes in markets. As such, identifying key trends before competitors is instrumental as it will give a company a competitive edge. Nestlé recognizes that to stay ahead of competitors, it has to be the first in identifying key trends and opportunities in the industry. By creating the new function, Nestle stands to achieve a competitive advantage in the long run. This change can be termed as planned change. According to Smulowitz (2021), planned change occurs when the organization consciously identifies the need for change and puts the change in motion. Nestlé made a conscious decision to respond to its internal and external drivers of change by creating a new function that would address the specific problem of growth and expansion in the face of intense competition in the industry. Below are the changes that Nestlé has undergone, internally, in response to the pressures for change:
1 Establishing a vision
In many cases, organizations fail at change management because they fail to establish and communicate effectively the reason for the change. As revealed by Smulowitz (2021), organizations should establish a vision for the change effort to promote employee buy-in and facilitate an effective transition. As part of its change efforts, Nestlé established a vision for its new function and communicated this vision to stakeholders. The vision for the new function was in several f...