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Nestlé
When consumers think of Nestlé, they probably think of chocolate. Historically, though, Nestlé's confectionary business is its weakest area. Based in Switzerland, it is the world's largest food company, with a brand arsenal of Nescafé, Jenny Craig, Perrier, Purina, and PowerBar, just to name a few of its 30 product lines. Nestlé is hoping to become the "world's leading health, nutrition, and wellness firm" by spending billions of dollars on research and development of functional foods--foods that have pharmaceutical-like capabilities to enhance energy and heart, bone, gut, and other health. Nestlé wants consumers to see chocolate as a pharmaceutical product rather than just a treat. Part of this new focus includes streamlining the product mix by selling underperforming items or lines that do not fit its new direction. Critics claim that this new focus could hurt the company's existing brands if the new products fail. Additionally, it may be an uphill battle convincing consumers that a company known for indulgence is now a wellness company.
-Refer to Nestlé.Nestlé's quest is to make some of its existing products more nutritious and provide a health benefit.This is an example of which type of product modification?
Collectibility
The likelihood or ability of a company to collect payments from customers for goods or services provided, considered when recognizing revenue.
Completed Transaction Method
An accounting method that recognizes revenue and expenses only when a transaction has been completed.
Net Income
Final earnings of a business once all deductions including taxes and expenses are made from the initial revenue.
Premium Wheat
Wheat that surpasses standard quality criteria and may therefore command a higher price on the market.
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