JULY 2011. Daniel Lutz, the newly appointed head of Nestlé China’s ice cream business unit, had some tough decisions to make. With 20 years of experience in Nestlé’s ice cream markets, Daniel had successfully worked in the ice cream business in Switzerland, Mexico and Malaysia. Before Daniel’s predecessor, Hans-Peter Edelbluth, took over the ice cream business unit in China, it had experienced 10 years of losses. During Hans-Peter’s four-year tenure at the helm of Nestlé China Ice Cream, he had built and coached a strong team and defined a strategy for the business. Thanks to Hans-Peter’s strategy the business was on its way to achieving its breakeven goal during a time when the industry was rife with constant food safety crises. Daniel could not thank Hans-Peter enough for the legacy he left behind. But, with a mandate to make the business profitable, Daniel knew that some radical changes would be required.
