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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?
Inadequately Trained Employees
Workers who have not received sufficient training to perform their jobs effectively, potentially impacting productivity and quality.
Poor Quality Materials
Materials that do not meet the required standards for production or manufacturing, possibly leading to product defects.
Employee Carelessness
Situations in which employees' lack of attention or disregard for procedures leads to inefficiency or loss for the company.
Overapplied Overhead
A situation where the amount of overhead allocated to products or services exceeds the actual overhead expenses incurred.
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