Right Sizing

The human body has the amazing capability to heal itself, fend off viruses and sicknesses with its immune system. While medicine, food and beverages can be consumed to make one have a better sense of well being, to the body, they merely trigger its ‘soldiers’ to work better and harder. Like the body, a company is an entity with its staff working tirelessly to generate growth, new deals and market leadership. As it grows, it faces the highs and lows of the economy, and adjusts its strategies and business plans to adapt to the environment. It would even come to a stage where mergers and acquisitions are identifi ed as necessary spurts of growth.

Since last year, companies such as Amcor and Kraft have been hard at work on their acquisitions of Alcan Packaging and Cadbury respectively. Such consolidation promises the owners larger market territories, greater economies of scale, new customer segments and bigger avenues to grow. These boosts however do not come without their troubles, if they are handled poorly. One CEO told Asia Food Journal at a press event (page 13) that acquisitions might bring corporate and regulatory compliance issues. One might even buy a company that is not what it seems.

Nevertheless, it is the aim of every company to sustain growth and burst forth into new areas. With strong leadership and clear goals that are communicated to the staff, the company is set to grow from strength to strength.