Baking & Snack - May 2008 - 11

EDITORIAL

EDITORIAL STAFF
Executive Editor
Laurie Gorton
lgorton@sosland.com
Editor

Economic Opportunity
he downturn in the economy is evident, although its level and impact are still
unclear. What is certain is changes domestically impact trade around the world.
However, instead of worrying how it will affect your company, or immediately
taking drastic measures to save money, be proactive - spend.
That's a tough directive, but according to several industry studies, companies that
have prospered during recessions were those that actually spent more on selling, general and administrative activities, as well as on capital and efﬁciency initiatives compared with the industry average and those companies that lost market share. Instead
of becoming stingy, successful companies focused on creating stronger customer value
and proﬁtability. Of course, spending is not the difﬁcult part, but rather investing
money in the right places and on the right activities. Here are few ideas:
Stay in touch with your customers. Don't make them the least important entity at
this time. You need them more than they need you.
Keep an eye on your competition. Know their strengths and strategies - not to
emulate them but to create differentiation.
Review or amend your mission statement. Be sure it emphasizes creating stronger
customer value and proﬁtability, and share your mission with your customers and
your employees. Show initiative and be proactive.
Keep employees in the loop. You know they are your most important asset. Every
plant executive Baking & Snack interviews makes a special mention of this. Remember,
they are responsible for implementing your initiatives, maintaining quality and efﬁciency. They must be on board and see that you support them. An informed employee
feels important and is more inclined to put in extra effort.
Be sure you have the right team. Do not consider across-the-board cuts. Rather,
look at each department and focus additional resources on those people and positions
that contribute to value creation.
Look long term. Short-term decisions may impress directors and shareholders
but could easily lead to longer recovery and decision reversal. Force yourself to look
beyond the current conditions and balance short- and long-term decisions.
Price strategically. Economic downturns raise temptation to decrease selling price,
hoping to maintain or increase volume to prevent production layoffs or downtime.
But most experts advise resisting price cuts. They say such competition destroys
value. Consumers still expect value in their purchases,
perhaps even more so when times are tough. Maintain
quality and taste. If not, you will lose your customers
forever. Market, merchandise and communicate value
and differentiation.
Implementing these strategies will be easy for some
yet difﬁcult for others. Persevere, and your efforts will
be rewarded.
- Steve Berne, Editor
sberne@sosland.com

Steve Berne
sberne@sosland.com

Managing Editor

Holly Bradley
hbradley@sosland.com

Associate Editor

Jennifer Barnett Fox
jfox@sosland.com

Associate Editor

Kimberlie Clyma
kclyma@sosland.com

Senior Editor

Shane Whitaker
swhitaker@sosland.com

Contributing Editors:

Columnists:

Donna Berry
Rebeca López-García
Richard F. Stier
Jim Kline
jkline@theensolgroup.com
Theresa Cogswell
bakercogs@sbcglobal.net
Anne Giesecke, Ph. D.
info@a-dpolicyanalysis.com

DESIGN STAFF
Design Services Manager

Sadowna Conarroe

Designer

Jennifer Cheek

Manager of Advertising Design
Classiﬁed Ad Layout

Becky White

Christina Sullivan

Design Team Assistant

Steve Piatt

PUBLISHING STAFF
Chairman
Charles S. Sosland
Vice-chairman
L. Joshua Sosland
President
Mark Sabo
Publishing Director
G. Michael Gude
Publisher
Paul Lattan
Vice-President,
Chief Financial Ofﬁcer
Melanie Hepperly
Audience Development Director Don Keating
Advertising Manager
Nora Wages
Ad Materials Coordinator
Debbie Maniez
Digital Systems Analyst
Marj Potts
Circulation Manager
Sheryl Morrow
Marketing Communications
Manager / Reprint Manager
Carrie Fluegge
Editorial and Midwest Sales Ofﬁce
4800 Main St., Suite 100, Kansas City, MO 64112
Phone: (816) 756-1000; Fax: (816) 756-0494
E-mail: BakingSnack@sosland.com
Internet: http://www.bakingbusiness.com

Newsletter

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BAKING & SNACK / May 2008

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Baking & Snack - May 2008

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