Faced with the signs of this unfavorable situation, Kellogg executives still emphasize the wrong strategy of increasing production. Fortunately, after Gutierrez became CEO of Kellogg in April 1999, he decisively implemented drastic reforms.
Gutierrez, 46, successfully implemented his reform plan. He put forward the concept of "from increasing production to increasing value", repackaging the original simple grain into high value-added products. For example, they introduced a kind of cereal called "healthy food", which is aimed at women who plan to lose weight and consumers who are overweight and at risk of cardiovascular disease.
Later, he closed the 93-year-old factory and reduced about 500 workers. In 200 1 year, he even spent $4.4 billion to acquire Qibao, a biscuit giant, making it the second largest biscuit industry in the United States overnight. Under his careful management, Kellogg's market direction has also changed 180 degrees: from the original breakfast food to less than 40% of all products; It turns out that it takes 6-8 weeks for goods to be transferred from the warehouse to the retailer. Later, the direct sales mode of cargo hold saved time and cost.
After a series of reform measures, with the gradual improvement of Kellogg's performance, the company's share price began to stop falling and rebound. He successfully demonstrated the stunt of bringing back the dead, bringing a company on the verge of bankruptcy back to life, and its business is booming. Personally, he also got rich returns. In 2003, his annual salary reached $7.4 million and he controlled 2 million shares of the company.