Senior management of Nestlé, a large multinational corporation, is planning to restructure the organization due to the pandemic. Currently, Nestlé is decentralized around geographic areas. Therefore, the executive responsible for each area has considerable autonomy over manufacturing and sales. The new structure will transfer power to the executives responsible for different product groups; the executives responsible for each geographic area will no longer be responsible for manufacturing in their area but will retain control over sales activities. According to the information provided, what is Nestlé’s new organizational structure? 2. Based on question 1, describe TWO (2) advantages and TWO (2) disadvantages of the implementation of the new structure to Nestle. 3. Referring to question 1, discuss in detail TWO (2) types of resistance senior management might encounter from this organizational change.
1. Senior management of Nestlé, a large multinational corporation, is planning to restructure the organization due to the pandemic. Currently, Nestlé is decentralized around geographic areas. Therefore, the executive responsible for each area has considerable autonomy over manufacturing and sales. The new structure will transfer power to the executives responsible for different product groups; the executives responsible for each geographic area will no longer be responsible for manufacturing in their area but will retain control over sales activities.
According to the information provided, what is Nestlé’s new organizational structure?
2. Based on question 1, describe TWO (2) advantages and TWO (2) disadvantages of the implementation of the new structure to Nestle.
3. Referring to question 1, discuss in detail TWO (2) types of resistance senior management might encounter from this organizational change.
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