Roger Caracappa must negotiate a cost-saving, innovative proposal from a possible French provider that could displace otherwise satisfactory, longtime incumbent supplier. Soon after being promoted to Executive Vice President of the Estee Lauder Companies with international packaging as a vital obligation, Caracappa needed to evaluate a recent suggestion he had received form a little French company that had patented a wrapping invention. The invention could save the Estee Lauder Companies some $4-5 million per year if Caracappa championed it, negotiated a deal to utilize it, and if it were adopted by Lauder's key brands.
In the event the brand new packaging functioned as assured, the consumer wouldn't perceive any change in the high-quality, stylish packaging that was vital to the luxury image of the brands of the business. But in case production, delivery or quality problems were caused by the new packaging, the hypothetical savings would be rapidly forgotten and Caracappa would tolerate major duty for the difficulties and for interrupting an otherwise satisfactory relationship with the long time incumbent supplier.
PUBLICATION DATE: January 30, 2012 PRODUCT #: 912701-VID-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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