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Total Marks

30

Starting Date

Friday, January 04, 2013

Closing Date

Monday, January 07, 2013

Status

Open

 

 

 

The Case:

Nestlé S.A. is a company of Swiss origin headquartered in Vevey, Switzerland. Nestlé's products mainly include baby food, bottled water, breakfast cereals, coffee, dairy products, ice cream, pet foods and snacks. Werner Bauer, Chief technology officer of Nestle, has presented company’s vision that they are committed to delight their consumers with healthy food and beverages of the highest quality and they can’t achieve this goal without education and skill enhancement of the workers of Nestle.

 

That’s why they have invested on R&D for development and improvement of analytical standards through an analytical methods network. Each day, it strives to make its products tastier and healthier that help consumer’s care for themselves and their families. This would not be possible without its unmatched R&D capability, nutrition science and passion for quality in everything it do. For example, Nestlé Professional has taken a lead in reducing the salt and fat content of its sauces. Nestle has engaged more than 100 professional chefs to incorporate the Nestlé philosophy on Nutrition, Health & Wellness into their products and recipes.


Suppose, due to vast experience, efficiency and investment in R&D, Nestlé’s sales volume had reached from $19 billion in 2010 to $94 billion in 2011 with profit of 6% in 2010 and 7.5% in 2011. Furthermore, the company has reduced its average cost by 3.5% from 4.1% during 2010-11. This huge jump of its sales is a reward of learning by doing which has enhanced the efficiency of professionals, decreased the cost and eventually promoted the sales of quality products.

 

Requirement:

 

A.   If Nestle has a target to achieve 11.6% profit for the year 2014, how they can get insight from Managerial Economics in order to fulfill its target?

B.   Keeping in view above scenario, discuss with logical reasoning which concept of Managerial Economics tend to increase the quality production of Nestle by promoting such a bumper increase in sales and profit.

 

(Write "to the point" answer, avoid irrelevant or extra details.)

Important Instructions:

 

1. Your discussion must be based on logical facts.

2. Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.

3. Obnoxious or ignoble answer should be strictly avoided.

4. Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over.

 

For Detailed Instructions please see the GDB Announcement.

 

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Replies to This Discussion

Tariq bhi plz discuss kare

Please Discuss here about this GDB.Thanks

Our main purpose here discussion not just Solution

Don’t wait for solution post your problems here and discuss ... after discussion a perfect solution will come in a result. 

So, Start it now, replies here give your comments according to your knowledge and understandings....

Thanks

koye discuss kare plz

No one knows Managerial Economics ? Mai samja sirf mai hi Nikama hun. i hate  Economics

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