Title: Case Analysis of Nestlé

I. Introduction

Nestlé is a multinational food and beverage company headquartered in Switzerland. Founded in 1866,
Nestlé is one of the largest food brands in the world, offering a wide range of products including
beverages, dairy products, confectionery, baby food, and more for the Company to operate in areas as
diverse as food and beverage, health sciences and skin health. Nestlé’s strengths are its rich product
portfolio, global presence, strong brand recognition, and commitment to quality and innovation. This
case study will examine the main problems and challenges faced by Nestlé and discuss possible solutions
and recommendations for the company.

II. Identifying Core Problems

Key Issues:

1. Ethical Concerns: Nestlé has faced accusations of unfair marketing practices related to infant
formula in developing countries.

2. Environmental Sustainability: The company has faced criticism for its impact on the
environment, including water use and plastic waste.

3. Health and Nutrition: public concerns about the nutritional value of some Nestle products and
their impact on public health.

4. Competitive Market Positioning: public concerns about the nutritional value of some Nestle
products and their impact on public health.

5. Supply Chain Challenges: Issues related to supply chain sustainability, responsible sourcing, and
labor practices.

Core Problem:

The main problem lies in maintaining ethical practices, sustainable environmental performance, ensuring
healthy products, staying competitive in a dynamic market, and materials establishing an ethical and
responsible offering to meet customer needs and expectations

Influence and Responsibility:

Impact and Responsibility: These problems severely affect Nestlé’s reputation, consumer trust, legal
relationships and long-term sustainability. Various stakeholders, including management, marketing
teams, supply chain managers, and manufacturing teams, share responsibility for these issues

III. Role of Audit and Auditor

The role of auditor and auditor is to analyze Nestlé’s financial statements, internal controls and business
operations. They play a key role in ensuring compliance with legal, regulatory and ethical standards, as
well as building transparency and confidence among stakeholders.

IV. Exploring Alternative Solutions

Potential alternative solutions to address the identified issues include:

 1. Strengthening Ethical Marketing Policies and Compliance

2. Implementing Environmentally Sustainable Practices

3. Enhancing Product Portfolio for Health and Wellness

4. Investing in Research and Innovation for Competitive Edge

5. Improving Supply Chain Sustainability and Responsibility

V. Choosing the Best Solution

Best Solution: Enhancing Product Portfolio for Health and Wellness

This solution was chosen due to its potential to align Nestlé with evolving consumer preferences for
healthy and nutritious products. It supports Nestlé's long-term sustainability and addresses societal
concerns about health and wellness. The strategy involves optimizing existing products and innovating
new ones to meet high nutritional standards while considering taste and affordability.

Supporting Evidence:

 Academic research on consumer trends favoring health-conscious choices.

 Nestlé's historical success in product innovation.

 Success stories of companies benefiting from a health-oriented product strategy.

 Increasing consumer demand for nutritious and functional food.

VI. Making Recommendations for Action

 Product Development and Innovation Teams: Develop and introduce a range of health-focused
products in line with consumer preferences and nutritional guidelines.

 Marketing and Sales Teams: Conduct targeted marketing campaigns to promote the new
product line and educate consumers about the benefits of a healthier diet.

 Supply Chain Management: Ensure responsible sourcing of ingredients and sustainable

packaging to align with the health and wellness focus.

 Government Relations and Compliance Teams: Work closely with regulators to ensure
compliance with nutritional standards and advocate for supportive policies promoting health-
conscious products.

Implementing this strategy would position Nestlé as a leader in the health and wellness food market,
fostering long-term sustainability and addressing public concerns about product quality and societal
health.