http://www.businessweek.com/magazine/content/11_13/b4221029399707.htm?chan=magazine+channel_news+-+companies+%2B+industries
This is an article about a company that has mangement that is prepared for anything.
Quote from Nestlé CEO Paul Bulcke:
"There's no business school that can prepare you for that," says Bulcke, now 56 and Nestlé's chief executive officer. "What you learn there is how to reconnect the dots very fast."
Bulcke is again using the quick-response skills he honed in Latin America, this time to cope with the volatility in food and raw material costs that's buffeting the world's largest food and beverage company.
Very difficult to deal with, the commodity pricing of the product is difficult to negotiate. It is good Nestle is somewhat rounded in having high end product with more moderate. As pricing escalates, the moderate to low priced products will probably increase in volume to make up for other losses.
ReplyDeleteGreat example of a company being able to change with the times. The companies that survey in the marketplace today are looking at all the ways of making the consumer happy. With new small packages the price is very high, but the consumer often times does not take the time to review the price per unit. Commodity pricing is very unstable, Nestle has learned from the past on how to be well rounded on the business model for the entire company.
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