Roger Caracappa: Package Deals for the Estee Lauder Companies Harvard Case Solution & Analysis

Roger Caracappa must negotiate a cost-saving, advanced suggestion from a possible French provider which could displace the satisfactory, long time incumbent supplier. Shortly after being promoted to executive vice president of the Estee Lauder Companies with international packaging as a vital obligation, Caracappa had to assess a recent proposal he had received from a small French company that had patented a packaging innovation.

The innovation could conserve the Estee Lauder Companies some $4-$5 million per year if Caracappa championed it, negotiated a deal to utilize it, and if the key brands of Lauder embraced it. In the event the brand new packaging functioned as promised, no change would be perceived by the consumer in the high quality, stylish packaging that was crucial to the luxury picture of the company's brands. However, if the brand new packaging caused creation, delivery, or quality issues, the savings that were supposed would be immediately forgotten and Caracappa would bear a heavy duty for the difficulties and for interrupting an otherwise acceptable relationship with the longtime incumbent supplier.

PUBLICATION DATE: December 03, 2011 PRODUCT #: 912003-PDF-ENG

This is just an excerpt. This case is about COMMUNICATION

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