The global food manufacturing industry has historically benefited from a period of embedded market growth driving exceptional shareholder returns. As market growth has slowed, executives are under increasing pressure to change their focus. In this article, we discuss why trading a uni-dimensional focus on revenue growth for a uni-dimensional focus on cost reduction is not likely to drive sustained growth in shareholder value. We explore why moving away from “pendulum management” is particularly challenging for large food manufacturers, and suggest ways forward.
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