America 1919-Chapter 722 - : 248, The battle is in full swing_2

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, immediately 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 something else? That is, A&P’s board of directors have brought in James Cuff from Kraft Foods as a new director and completed a share swap with Kraft Foods?”

“Boss, do you mean to say they’ve been working on this for the past seven days?” Duster Boqi thought for a moment 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 somewhat sheepishly, he asked Donnie, “So, what do you mean, 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 me about the situation at that time!”

Duster Boqi was somewhat puzzled by Donnie’s meaning, but after thinking for a moment, he still spoke.

“At that time, Miss Maholi believed that the company’s existing products could no longer meet the company’s development 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 investment, it wasn’t guaranteed that products suited to the current American taste could be developed. Furthermore, Kentucky’s biscuit brand was not a high-volume 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 agreement when she married Mr. Astor, so at that time, 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 time, while he wanted to borrow talent from Miss Maholi, he didn’t think too much about her attitude. He merely 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 meant.

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 come 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 management.

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 immediately, but their internal disunity meant that John Hartford couldn’t carry out their promotional campaign,” Helen chimed 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 James 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 developmental bottleneck, and that was when Donnie’s Apollo Chain was established.

Apollo Chain formed a deep, binding partnership with Grain Empire Food Company, and it’s true that Maholi had a stake in Apollo Chain as well.

This chapter is updated by freēwēbnovel.com.