Are your costs too low?
Jules Goddard
When Kraft announced it was taking over Cadbury, it wasn't long before a hefty round of cost-cutting started. But is this depressing and familiar scenario really the best way to grow a company? Jules Goddard examines the flawed assumptions inherent in efficiency drives, concluding that it is strategy, not costs, that determine competitiveness
Within A Day of acquiring Cadbury, before the ink was dry on the contract, Irene Rosenfeld, CEO at Kraft, was announcing $2 billion of cost-cutting. How utterly predictable. How depressing. How unimaginative. But more than anything, how puzzling....