Roger Caracappa must negotiate savings, innovative proposals from potential French suppliers that could displace otherwise satisfactory, long-acting supplier. Shortly after being appointed executive vice president of Estee Lauder Companies with global packaging as a key responsibility, Caracappa was to evaluate a recent proposal he received from a small French company that patented the innovative packaging. Innovation could save the Estee Lauder Companies around $ 4 - $ 5 million a year if Caracappa defended him, made a deal to use it, and if it was taken by key brands Lauder. If the new pack functioned as promised, the consumer does not perceive any change in the high quality, stylish packaging, which is important for a luxury brand image of the company. But if the new packaging caused the production, delivery or quality problems, expected savings will be quickly forgotten and Caracappa will bear a heavy responsibility for a problem and the violation of otherwise satisfactory relationship with long-acting supplier. "Hide
by James K. Sebenius Source: Harvard Business School 2 pages. Publication Date: December 3, 2011. Prod. #: 912003-PDF-ENG
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