PROBLEM STATEMENT

Most consumers are motivated to purchase nutritional products that are closely aligned with their
health and well-being. Such products are manufactured by eliminating artificial ingredients,
pesticides or GMOs, etc. Such consumption behavior has resulted in the development of cleaner
labels, thereby increasing products in the non-GMO and organic segments. This puts more
pressure on the food and beverage industry as most companies find it difficult to adapt to the
trend.
Nestlé has been facing several strategic issues due to its extended operations worldwide. The
company is facing difficulty coping with huge organizational costs and storage issues due to its
international transportation of ingredients and products (Bradley, 2014). Secondly, due to its vast
spread internationally and diverse range of product portfolio, the effectiveness of coordination
and decision-making between the country-specific headquarters and sites decreases gradually.
In addition, Nestlé’s consistent promotion of its new and innovative products is not always
worthwhile, as some of its products or inventions are not understandable or not appropriate for
specific regions or countries.