Managing Change in Nestle and Cadbury: A Leadership Perspective

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UNDERSTANDING AND LEADING
CHANGE
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Table of Contents
TABLE OF FIGURES........................................................................................................................ 3
INTRODUCTION............................................................................................................................ 4
TASK 1 MANAGING THE IMPACT OF CHANGE.............................................................................5
PART A: RESPONDING TO CHANGE..........................................................................................5
ASSESSING DIFFERENT DRIVERS OF CHANGE THAT AFFECTED THE NESTLE & CADBURY.....5
COMPARING ORGANISATION’S RESPONSES TO THE DRIVERS FOR CHANGE WITH
CONSIDERATION OF THEIR SIMILARITIES AND DIFFERENCES................................................7
PART B: CHANGE IMPACT.........................................................................................................9
COMPARING AND EVALUATING IN WHICH THE INDIVIDUALS, LEADERSHIP AND TEAM HAS
AFFECTED BY THE INTERNAL AND EXTERNAL DRIVERS OF CHANGE.....................................9
FOR MINIMIZING THE NEGATIVE IMPACT OF CHANGE ON THE CHOSEN ORGANISATIONS
THE EVALUATION HAS BEEN DONE TO ADOPT DIFFERENT MEASURES...............................12
TASK 2: LEADERSHIP DECISION MAKING...................................................................................15
EXPLAINING THE DIFFERENT BARRIERS FOR CHANGE IN CONTEXT TO THE IMPACT ON THE
LEADERSHIP DECISION MAKING............................................................................................15
TASK 3 LEADING CHANGE...........................................................................................................16
DIFFERENT LEADERSHIP STYLES ARE USED TO DEAL WITH THE CHANGE IN THE
ORGANIZATION.......................................................................................................................16
CONCLUSION...........................................................................................................................26
REFERENCES................................................................................................................................27
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TABLE OF FIGURES
FIGURE 1: BURKE LUTWIN MODEL............................................................................................12
Figure 2: CONTINUOS IMPROVEMENT MODEL.........................................................................13
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INTRODUCTION
In this moving world, where the competition is at its height many changes will take place
very frequently. Change is the state where traditional things become different due to the
external and internal forces of the environment. In every organisation, changes take place
at some point in time and that is structured by various forces. The organisations have to
make various strategies to cope up with the changes and to improve and grow in the
market. This report will focus on organisations such as Nestle and Cadbury to analyse the
changes taken place by them that were derived by the different external and internal
factors and drivers. In the next part of the report, the focus will be on the different barriers
of change in the Cadbury. And last different leadership approaches and methods will be
used to deal with the change in the organisation.
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TASK 1 MANAGING THE IMPACT OF CHANGE
PART A: RESPONDING TO CHANGE
ASSESSING DIFFERENT DRIVERS OF CHANGE THAT AFFECTED THE NESTLE
& CADBURY
In almost all the organisation changes occur and these changes have been caused due to
some external and internal reasons. In this report, two organisations have been taken that
is Nestle and Cadbury so as to control the effect of the change and to solve them
effectively.
The impact of the change in Nestle by minimising the amount of the 10% sugar from its
snacks
The Nestle has initiated a change in 2018 that it will reduce the amount of sugar by 10% in
all of its snacks in the UK. This change is initiated because the consumption of the sugar by
the European citizens was increasing and this was bad news for them. So being concerned
for them the Nestle has decided to adopt this change in the organisation (Miah et al.,
2015).
Also, the fatness in the children was increasing because of overeating snacks and the
people were highly affected by the high sugar content. So, the Nestle Company decided to
replace the sugar with the high quantity of other ingredients that were already used in the
Snacks. And also they decide to use the artificial sweetness in the snacks to maintain the
taste of the products.
This decision by nestling has helped the company to move in the competitive market with
higher growth opportunities (Miah et al., 2015). This has also helped the Nestle to gain
customer satisfaction and various campaigns have supported this initiative by the Nestle.
The impact of the change in Cadbury by adopting new marketing strategies in recent
years
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The Cadbury in the UK has the largest market share, but due to growing industries and
competition by other companies the market share of the company has fallen down (Remer,
2015). For the growth of the Cadbury in the UK, the sales team played a crucial role by
adopting new effective marketing strategies. Have changed their delivery market, in the
sense that they now deliver their products to not only supermarkets but also the supply of
products is for the retail shops. This strategy will help the company to reach every segment
of the customers and will lead to an increase in market share. The main motive of the
company was to grab the largest share of consumers in the market and for that, the
Cadbury has adopted the strategy of introducing a different range of products with
different prices for different income group people (Stobbs et al., 2018). This has led them to
reach all income groups and for the higher class, they have introduced a new gift pack. In
this way, the Cadbury was successful in giving competition to its biggest competitor Nestle.
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COMPARING ORGANISATION’S RESPONSES TO THE DRIVERS FOR CHANGE
WITH CONSIDERATION OF THEIR SIMILARITIES AND DIFFERENCES
The emergent Changes that have taken by Nestle
The changes that have been taken by Nestle were to lower the sugar level by 10% in the
Snacks. This change was due to the increasing changes in the market and the external
environment (Black et al., 2017). They have introduced new strategies to capture the
market and to gain customer satisfaction.
In the case of Cadbury, they have adopted new marketing strategies because of the huge
competition by other brands in the market and their share was falling down (Stobbs et al.,
2018). They have decided to introduce a new range of products with the variety if prices for
all income groups.
Analysis of change impact
This change impact analysis was defined by the famous persons Bohner and Arnold; they
said that the first step in the change analysis is that to identify and find out the basis of the
change i.e., in what terms adoption of change can help in the growth of the company and
then decide what needs to be changed in the process (Buxel et al., 2015).
Comparing the Nestle and Cadbury with respect to their responsibility for the drivers of
change
The Nestle adopted the changes due to the external forces of the environment and the
customer’s change behaviour towards the consumption of the product (Black et al., 2017).
Whereas the Cadbury has taken changes because of the growing higher competition in the
market that helped them to move forward and focus on the growth strategies for future
expansion (Welch and Sadok, 2016).
The Nestle adopted this change because of increasing the numbers of losing customers for
nestling because of health issues and the Cadbury has taken this change to capture the
highest market share.
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The Nestle has responded to the drivers of change by focusing on global health issues due
to a large amount of sugar level in the Nestle (Black et al., 2017). The Nestle has to adopt
this strategy because not only this was leading the company down, but this was also
impacting the demand and supply for their products (Welch and Sadok, 2016). The Drivers
for change that forced the company were the children were getting fat because of the
overeating of the chocolates and snacks by Nestle. And this was creating health issues and
because of this, the people started shifting towards the other brands (Black et al., 2017).
On the other hand, the Cadbury was facing large competition in the market. There was the
time when Cadbury used to be the leader but due to less focus on the marketing strategies
of the company they have started losing market share and this could also hinder their
brand image. To solve these problems, the drivers for change to protect the brand image
and to get the major share in the market by giving competition to others (Stobbs et al.,
2018). The sales team has played a vital role in responding to the drivers of the change by
adopting effective marketing strategies for the company.
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PART B: CHANGE IMPACT
COMPARING AND EVALUATING IN WHICH THE INDIVIDUALS, LEADERSHIP AND
TEAM HAS AFFECTED BY THE INTERNAL AND EXTERNAL DRIVERS OF CHANGE
To identify the impact of the external and the internal drivers for change the Swot analysis
has been conducted in the Nestle and the Cadbury to compare and evaluates
The SWOT Analysis of the Nestle will help the company to know the impact of the external-
internal drivers of forces:
STRENGTHS WEAKNESSES
 The global brand name value of
Nestle
 Nestle has the power to develop in
the future because of the trust
among the customers (Oh et al.,
2018)
 Nestle has a strong and committed
team that help the company to grow
 The company has strong Leadership
followed by the high quality and
customer satisfaction (Phadermrod et
al., 2019)

 Some of the company's products
have got bad reviews from the
government as well as from
customers
 The company lack in maintaining the
standardised process (Oh et al.,
2018)

 Nestle as the bad past and that still
creates the problem
 Nestle still need to be stable in the
market
OPPORTUNITIES THREATS
 Nestle can introduce new
distribution channels
 Nestle can adopt the backward
integration
 Nestle can grow in the international
market (Oh et al., 2018)
 By focusing on the BRICS Economies
they can grab the strong market
share
 Strong competition by other popular
brands (Oh et al., 2018)

 The prices of the raw materials used
by the company differ many times
 The Nestle could face a problem due
to technological changes
(Phadermrod et al., 2019)
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For the comparison of two of the companies, the SWOT analysis for the Cadbury is also
being conducted
STRENGTHS WEAKNESSES
 The Cadbury has the highest
financial backup
 The Cadbury is famous for its best
innovations
 They are leading the market in the
products like chocolates, food drinks
and confectionaries (Phadermrod et
al., 2019)

 They have a low cost of the
production
 They are the largest supplier of the
chocolates in the market (Woods and
Linsley, 2017)
 They only have limited main products
like chocolates and food drinks
whereas the other brands are
performing better in that (Woods and
Linsley, 2017)
OPPORTUNITIES THREATS
 The culture to give chocolate as a
gift is increasing
 They are paying attention to the
introduction of the new products
that will have low fats in it
 The increasing growth in the
Urbanisation and the middle-class
people (Woods and Linsley, 2017)
 The company is transferring the
production system to the countries
where there is a low cost of
production
 The company has the pressure to
fight with the competition from other
nations (Woods and Linsley, 2017)
 The lower cost and the popular brand
name in India, it is able to capture a
higher market in India and not in the
UK (Phadermrod et al., 2019)
Comparing and evaluating the leadership, team and individuals behaviour have affected
by the various internal and external drivers of change
 Both the companies adopted the drivers for change and that has affected the
behaviour of the leadership, team and the individual’s behaviour (Phadermrod et
al., 2019)
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. In the case of the Nestle, the drivers for change were the increasing health issues among
the children and people and that was forcing the consumer to shift to the other brands (Oh
et al., 2018).
And because of the problem was taking the bigger model the company has decided to
lower the amount of sugar in the Snacks and this has affected the behaviour of the team
because now the team has to work on the new guidelines and also the leaders has to lead
the employees in different way (Oh et al., 2018).
On the other side, the Cadbury's driver for change was the competition from other brands
and due to that reason the company has adopted new marketing strategies and that has led
to change in the behaviour of the team, leadership and individuals (Woods and Linsley,
2017). By adopting new marketing strategies the employees and the team has no greater
responsibility in respect to the successfully implement the strategies adopted by the
company (Woods and Linsley, 2017). The leaders of the company were now more focused
to give tough competition to other brands.
Thus in this way, the Nestle and Cadbury Company’s leadership, team and individuals
behaviour have been affected by the drivers for change.
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FOR MINIMIZING THE NEGATIVE IMPACT OF CHANGE ON THE CHOSEN
ORGANISATIONS THE EVALUATION HAS BEEN DONE TO ADOPT DIFFERENT
MEASURES
The evaluation of different measures such as the Burke Litwin Model and the Continues
change process Model has been focused in this section:
BURKE LUTWIN MODEL
FIGURE 1: BURKE LUTWIN MODEL
[SOURCE: Olivier, B., 2018]
To study of the changes that have taken place in the organisations such as the Nestle and
the Cadbury this model has been used to analyse the internal and external factors that
have to be focused to remove the impact of the negative impact of change from the
organisation (Olivier, B., 2018).
This model takes into account the different processes that such as the first step is to
analyse the external factors, then the leadership styles, management practices of the
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