Chapter 722: 248, The battle is in full swing_2
Knock, knock, knock…
Donnie tapped lightly on the desk, while Duster Boqi and Helen looked at him curiously.
“I think I’ve figured out why they’ve been acting this way these past few days!”
Helen, who wasn’t as reticent, imdiately asked upon hearing Donnie, “Why?”
Donnie explained, “Have any of you noticed that besides announcing an increase in promotional efforts to match ours, their company also announced sothing else? That is, A&P’s board of directors have brought in Jas Cuff from Kraft Foods as a new director and completed a share swap with Kraft Foods?”
“Boss, do you an to say they’ve been working on this for the past seven days?” Duster Boqi thought for a mont and then said, “Yes, that must be it. A&P knows about our relationship with the Grain Empire Food Company, so they sought a company that could replace Grain Empire Food Company, and Kraft Foods is the perfect substitute. This allows them to obtain products from Kraft Foods at a lower price, so even though they’ve increased their promotional efforts, their actual losses have not increased!”
...
Donnie, after watching Duster Boqi flaunt his self-satisfied analysis, waved his hands and said, “Perhaps this is what they’ve been striving for over the last seven days to boost their promotional efforts, but it’s definitely not the underlying reason for their inactivity!”
Duster Boqi’s expression froze, and then sowhat sheepishly, he asked Donnie, “So, what do you an, boss?”
Donnie did not answer Duster Boqi directly but instead asked back, “Duster, you worked at Grain before, so I think you should be very familiar with the situation there, especially regarding the incident that happened there recently. Tell about the situation at that ti!”
Duster Boqi was sowhat puzzled by Donnie’s aning, but after thinking for a mont, he still spoke.
“At that ti, Miss Maholi believed that the company’s existing products could no longer et the company’s developnt needs. Therefore, Miss Maholi made two suggestions: the first was to increase the company’s R&D funds to develop new snack products, and the second was to acquire a biscuit brand located in Kentucky.
However, back then the board thought Miss Maholi’s proposals were too idealistic, believing that even with considerable investnt, it wasn’t guaranteed that products suited to the current Arican taste could be developed. Furthermore, Kentucky’s biscuit brand was not a high-volu biscuit brand, and the board believed that Grain Empire Food Company’s own biscuit brand was already sufficient for the current market.
Moreover, they thought Miss Maholi was being too rash and had concerns about her not signing a prenuptial agreent when she married Mr. Astor, so at that ti, the matter made Miss Maholi quite unhappy with the board!”
This happened when Donnie was just thinking of starting the Apollo Chain, and at that ti, while he wanted to borrow talent from Miss Maholi, he didn’t think too much about her attitude. He rely thought that everyone should have their secrets.
It was later that Walker told Donnie about this.
“So, is the real reason the directors of Grain Empire Food Company disagreed with Miss Maholi’s suggestions truly what they thought it was?”
Donnie asked Duster Boqi.
By then, Helen, who had been sitting on the other side, already showed a look of realization; it was clear that by this point, Helen understood what Donnie ant.
Duster Boqi continued to think for a while before revealing an enlightened expression.
“Boss, I’ve got it. The reason those people opposed Miss Maholi’s proposal wasn’t that her suggestions were bad, but because her suggestions would change the existing structure of the company. The interest holders within the company stood to lose from such proposals. Moreover, as the largest snack company in the United States, Grain Empire Food Company’s directors and executives had lost the passion of the entrepreneurial period. They didn’t need to be rash at this point but needed stability, and stability was their pursuit!”
After hearing Duster Boqi’s response, Donnie showed a satisfied smile.
This was the answer he had co up with over these last few days.
Any company that grows into a behemoth will lose its passion and impetus to move forward due to its bloated corporate structure and the greed of its managent.
At this point, personal interests had already surpassed the interests of the company!
“So what you’re saying is, A&P didn’t fail to respond to our promotion imdiately, but their internal disunity ant that John Hartford couldn’t carry out their promotional campaign,” Helen chid in.
Donnie nodded and replied, “Right, that must be the case. John Hartford’s invitation to Kraft Foods to join A&P wasn’t to get Kraft Foods’ products at a lower price because, even without inviting Jas Cuff to join A&P, given Kraft Foods’ awkward situation, they would have definitely offered their products at even lower prices to A&P!”
Kraft Foods had indeed experienced rapid growth in the past two years, but after the high-speed expansion, Kraft Foods had also reached a developntal bottleneck, and that was when Donnie’s Apollo Chain was established.
Apollo Chain ford a deep, binding partnership with Grain Empire Food Company, and it’s true that Maholi had a stake in Apollo Chain as well.
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