What Challenges Await Target’s New CEO Cornell?

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July 31 (Bloomberg) -- Sanjay Khosla, former president of developing markets at Kraft Foods, discusses Target’s choice of former PepsiCo executive Brian Cornell as its new CEO, the challenge of rebuilding a brand and the United States’ relationship with India. He speaks on “Bloomberg Surveillance.”

To go outside, what do you make of that?

It was expected.

I just heard about brian cornell , i did a little-pepsi deal with him.

-- a lipton-pepsi deal.

He has some retail background.

It is a great choice.

Any downside to going outside target?

They have always promoted people from the inside.

Given where they are in their journey, this is the right thing to do.

You talk about rebuilding broken brands and a less is more approach.

How does target do that given competition from amazon and the stain that has been left with consumers because of the data breach?

Target has to do two things.

One, go back to its core and build on that.

With the new ceo coming from the outside, it is getting the customer experience at a different level.

To compete with the amazon of the world.

Mr.

cornell comes out of ucla, he has a lot of experience.

How do you translate sam's club and frito-lay-like products, how do you bring that over to the consumers of target?

At the end of the day -- a box is a box.

It is not so much about getting the customer experience right, his credibility.

How does he get competitive advantage question mark it is spot on.

What is the best practice to delegate authority.

He had to hire hundreds of people and then give them marching orders, mr.

Cornell.

How does he reinvigorate target?

Biddy i refer to a case -- maybe i refer to a case, oreo.

Oreo is a 100-year-old brand.

For 95 years, it was unsuccessful outside the u.s.. and not for lack of trying.

By delegating, to your point on the delegating and getting them almost a blank check, focusing on countries that were connected virtually.

It went to $200 million to $1 billion in five years.

When you put green tea in oreos, that is an outrage.

Who decided to do that?

Was it a mckinsey-ite.

Somebody in china?

It was a local decision.

The fact was how to get the balance right between mindlessly global and hopelessly local.

In this case, the decision to go to a green tea oreo or whatever else, some of them work, some of them do not.

It has been successful.

There are some instances where sticking with the one-size-fits-all approach does work.

Coca-cola works because that is the drink that everyone drinks, you cannot make it different for china or india.

That is the important part.

It is not that coke -- is not to go always hopelessly local.

It is a balance between global and local.

Go with a competitive advantage.

In oreo, we went to green tea oreos and other products.

Procurement, r&d technology, that is a competitive advantage.

It is not one-size-fits-all.

The important part is to be clear, where's the competitive advantage, and get that balance right between global and local.

In the book you have a whole section devoted to the notion of a blank check.

You say "a blank check is a metaphor for giving people support to accomplish and out of scale task." secretary of state john kerry arrived in india this morning.

What is on the top of the agenda for him to accomplish, the out of skill task of bringing u.s. and india closer together?

First come the blank check concept.

And then the india thing.

I'm a blank check, it is a metaphor.

It was declining and outside the u.s. at about $.5 billion.

To your point, delegating authority, to go to a bunch of people who are closer to the market and the consumer and telling them to scale fast.

It went from $.5 billion to $1 billion in five years.

What happened in that case is not just results that always work, you learn from failures.

It is you send a feeling of ownership.

Very often, the retired blank check is much better than average.

Coming back to your other question.

It is a huge opportunity for the u.s. and india to cement relations.

They are too large democracies.

Very important business for the future.

I was in india last week.

The mood is energetic, it is really a lot of energy.

The mandate of the government -- the expectations are high.

And now it is delivery time.

You have been getting all of us to focus on the election and that seachange.

India is profound.

Sanjay, secretary kerry will travel to india.

Mr.

modi recently under criticism.

What should john kerry's message to the new government of india the?

The main thing is to build the relationship, for the short, medium, and long term.

At the end of it, both countries are really interested in making sure their economies work.

Which is the growth message, what the modi government has been single-minded about.

A win-win for both countries.

Are you optimistic that mr.

Modi can project his success north of bombay across all of india?

I believe so.

Talking to a lot of people on the ground last week when i was there, just the energy and the optimism.

I think everyone is wanting things to get done.

There's a bright, young -- half of the country is under the age of 25. many of the people did not even know what happened 25 years before.

They want to make this, it is a can-do attitude that is positive.

They believe it can happen.

I am hugely optimistic.

Very excited about the indian opportunity.

Thank you so much, sanjay khosla.

Since reinhart, thank you very much.

A forex report.

Churn to the market, equity future co--11. euro well under 1.34, 1.3385.

This text has been automatically generated. It may not be 100% accurate.

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