The paper "Nestle Got into Trouble with Maggi Noodles " is a great example of a business assignment. Nestle got into trouble with Maggi noodles because of different reasons which impacted them. Some of the root causes which created the trouble for the business are regulators: Nestle was facing issues with its regulators as they testing conducted by Indian laboratories showed a high degree of lead content. Lead is a harmful substance if consumed and can have a negative impact on the human body. Nestle, on the other hand, stated that the test conducted by them showed no lead content as the mechanism of testing used by Indian laboratories were incorrect.
Nestle also harped on the point that different laboratory testing in India was showing different results where showed agreed to the report generated by Indian laboratories and some agreed to the report generated by Nestle laboratories. This creates doubt regarding the mechanism which is being used to test Maggi. The regulatory bodies, on the other hand, disagreed with what Nestle was saying and stated that the product was having harmful content and needs to be banned.
The difference in report and testing mechanism which both the regulatory bodies and Nestle adopted resulted in different results. Since the Indian regulatory bodies were not willing to accept the test results provided by Nestle and instead followed the results which the local testing laboratory provided it resulted in banning of Maggi till the time the product was corrected and free from any harmful chemicals. Corruption: The manner in which the overall mechanism was carried out also highlights a certain degree of corruption. This is on the backdrop that Baba Ramdev is looking to promote its own brand of fast food items under the brand of being swadeshi or Indian.
He is against multinational brands on the ground that the products supplied by multinational organizations are highlight priced and of inferior quality. This could have resulted in simulating the government bodies in taking steps against Nestle and coming up with reports which were false and misleading. This can be stated on the backdrop that the products of Baba Ramdev have started to capture a good chunk of the Indian market and Nestle has to deal with competition.
To ensure that an Indian brand competes with the multinational brand strategies could have been developed to create a bad and false impression of Nestle. The situation unfolds that a degree of corruption was present in the entire scenario and Nestle had to face the situation as it was entirely against them resulting in the banning of Maggin from the Indian markets. Packaging: Packaging was another issue that had impacted Nestle. The packaging material which Nestle used is plastic of an inferior quality which has the risk of being leaders in content.
This increases the risk as the packaging materials are not as per the determined quality which increases the overall risk. This is an aspect which had impacted Maggi as they need to look at using better materials so that the eatables are fresh for human consumption. The manner in which Nestle was unable to deal with the different requirements which were being presented highlighted the overall risk for the business and ultimately led towards the banning of its product Maggi.
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