Succeeding Without Losing Your Soul (Part 4)

The following are the author’s remarks at the Financial Leader of the Year (FLY) awards dinner on October 4, 2017, sponsored by the McCracken Institute and Rollins College.  This is Part 4 of 4. 

To read Part 1, click here.

To read Part 2, click here.

To Read Part 3, click here.

But suppose you’re not a Millennial with the inclination to travel to Outer Mongolia to do business directly with goat herders. (I can tell you that’s not on my bucket list.) Suppose you work for a big company. Let’s say a global corporation… like Nestlé.

Nestlé is an $89 Billion food and beverage company. The company’s mission statement is “Good Food, Good Life.” If you’re an espresso drinker, you may be familiar with one of their products: Nespresso. Perhaps you’ve seen a TV ad that features these guys:

ClooneyDevito

Nespresso follows the old Gillette razor blade business model. Nestle doesn’t exactly give away Nespresso machines like Gillette gave away razors. However, selling coffee in little pods is a very profitable business for them. And, it enjoyed 30% annual growth in its first decade on the market. It’s fair to say that Nespresso expanded the market for premium coffee and, simultaneously created a huge problem for Nestle:

Where would they obtain a reliable source of coffee to feed the demand they had created?

The traditional playbook for procurement managers is to commoditize the supply and Continue reading “Succeeding Without Losing Your Soul (Part 4)”

Succeeding Without Losing Your Soul (Part 3)

The following are the author’s remarks at the Financial Leader of the Year (FLY) awards dinner on October 4, 2017, sponsored by the McCracken Institute and Rollins College.  This is Part 3 of 4. 

To read Part 1, click here.

To read Part 2, click here

At its root, shared value recognizes that the competitiveness of a business relies upon thePPP health of the community surrounding it. Businesses need not only economically healthy customers to buy its goods and services but also a community that is willing and able to provide critical public assets like roads, schools, and police protection. The surrounding community needs businesses to provide jobs and wealth creation opportunities for its citizens.

In Michael Porter’s seminal work on this topic, he outlines three key ways that companies can create shared value Continue reading “Succeeding Without Losing Your Soul (Part 3)”