Nestlé Was Unsuccessful in Early Attempts to Sell Its Chocolate

question 94

Multiple Choice

Nestlé was unsuccessful in early attempts to sell its chocolate in India. It discovered its chocolate bars were not suitable for the Indian markets because the candy became messy from sitting in direct sunlight without the benefit of air conditioning. Nestlé adopted an innovative strategy and developed Chocostick,a liquid chocolate that is now very popular. Which management function did Nestlé use to solve its problem?

• A)planning  
• B)controlling  
• C)organizing  
• D)leading

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Definitions:

Restocking Cost

The expenses involved in replenishing inventory or stock.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Collection Period

The time frame it takes for a business to convert its credit sales into cash, reflecting how efficient a company is at collecting accounts receivable.