The executive team is gathered in December to decide how to respond to increasing pressure from analysts and shareholders over results. Other companies in their industry, food, have been restructuring to meet estimates, given the slow growth in core developed world markets. In contrast, the team has spent the last nine months pursuing long-term strategic priorities, but results are not coming through as fast as expected. The executive team will need to find an additional 3% on earnings by the time it has its analyst call in March to discuss full-year results. In addition, market conditions are changing in India, a priority for growth, and the company needs to move more rapidly than planned to keep up with its customers. How should the executive team balance the short-term pressures from financial markets with long-term strategic priorities for growth?
Learning Objective
This case focuses on the tensions in balancing short-term pressures for results/decisions, e.g. from analysts/shareholders to make earnings targets, versus focusing on working towards long-term growth targets. There is also room for discussion of how stretching targets should be, given the reality facing the company; whether the executive team should revisit its strategic priorities in light of market changes; and how progress on strategic priorities can be accelerated.
Keywords
Strategy, Change, Crisis, Must-win Battles, Food, Consumer Goods, General Management
Available Languages
English
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