On 1^st Oct, Paul Bulcke, the chief executive of Nestle, said during a teleconference that they have already evaluated 97% percent of their businesses and came up with a list of those could not be fixed, which means that they might be sold.

Nestle, as the largest food manufacturer in the world, owns more than 421 factories and 300 kinds of products in 61 countries, which definitely makes it harder to regulate its products quality and balance sales of its multiple brands.

I think the reaction of Nestle is wise and obeys law of the market. Normally, a company starts from offering a certain kind of product and service. When it develops to some degree it starts offering more types of products and services to expand market and gain more potential customers. However, as the size of the company becoming bigger and bigger, the brands of it becoming more and more, there may end up being a lower quality of products and unbalanced developing speed among brands.Consequently, it is a reasonable action for Nestle and good for its future.

resources: http://www.foxbusiness.com/industries/2013/10/01/nestle-looks-to-get-rid-bad-brands/?intcmp=obnetwork

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