Scenario abstracted from the case of the Problems at Perrier: Nestle took over Perrier in 1992 seeing...

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General Management

Scenario abstracted from the case of the Problems atPerrier:

Nestle took over Perrier in 1992 seeing Perrier as an attractivetarget. However, it did not enjoy

much success the company is hoping for. Nestle has beenstruggling in turning Perrier around.

As stated, the Perrier recorded a very low pre-tax profit marginin 2003 and recorded a loss in

2004.

Nestle attempted to turn Perrier around but faces strongresistance from the workers. Now

Perrier intends to cut 15% of the workers to turn Perrier aroundbut faces strong resistance from

its Union, CGT. To move forward with its plan, Nestle needs thesupport of CGT.

Answer the following question:

   1. Identify TWO (2) strongest reasons that explainwhy the Union is not motivated to

      change.

   2. Based on the reasons identified in question 1,propose with justification TWO (2) most

      suitable interventions Nestleshould take to gain the Union's support.

   3. Explain with example TWO (2) evaluation Nestleshould conduct to measure the

      effectiveness of your statedintervention.

(the CGT, a union that is viewed by the management asconsistently resisting Nestlé’s attempts to improve Perrier’sfinancial performance.)(Jean-Paul Franc, head of the CGT atPerrier, sees the situation differently. In regard to the company’splan to cut 15 percent of its workforce he protests, “Nestle can’tdo whatever it likes.” He says, “There are men and women who workhere… Morally speaking the water and the gas stored below thisground belong to the whole region.”)

Answer & Explanation Solved by verified expert
3.8 Ratings (651 Votes)
1 There are two strongest reasons why the Union is not motivated for change There was a communication gap between the companys management and employees about the Downing efforts This may be because the management did not effectively inform the decision or the employees were not ready to emerge The acquisition problem was another problem it seems did not go    See Answer
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