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Nestle's Profitability and Long-Term Prosperity

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Nestlé is equipped with about 3,500 scientists who are dedicated to the Research and Development projects throughout the year. As per Brabeck’ s instructions, the company must revamp at least one-fifth of its total product line. This decision is influenced by the company’ s global business environment in which it operates. Nestlé in this scenario was successful to realize the importance of nutrition in the consumers’ minds because of which, Brabeck decided to steer the company towards being a business which provides quality products to its consumers. Nestlé functions in a highly competitive market where innovation and product revamping becomes necessary if a business wishes to illuminate its presence in the market let alone remain at the top position.

Along with this, the changes need to be made as per the consumers’ preferences. Operating in a competitive market also makes it necessary for Nestlé that it consistently provides something new to the consumers. Be it the quality, the packaging, brand mantra, or the taste. In order to bring about both breakthrough innovation and small variations in the products in the market and, Nestlé has broken down its Research and Development team in two thirds for revamping the company’ s existing product lines and the remaining one-third for bringing about major innovations in the market (Trailer et al, 2009; Nestlé S. A.

(Vevey), 2009; Robinson, 2008). Managing Research and Development of such magnitude both efficiently and effectively is not an easy task. Brabeck had backed the Research and Development team with strong budgets and the results were a reflection of Nestlé ’ s simultaneous Operational Excellency programs which can also be called the hub of all the additional resources which were being released and diverted from being allocated in unprofitable ventures to more useful ways.

Investing smarty on Nestlé ’ s Research and Development was a long-term strategy to enhance the company’ s ability to compete in the mature markets.  

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