From the moment Strauss announced the appointment of Shai Babed as CEO of Strauss Israel last Thursday evening, the market was in turmoil. For quite a few industry officials, this appointment did not go down the throat. Criticism focused mainly on Babed's lack of experience managing an international company of Strauss's size, Especially when it is in such a severe crisis after the big salmonella storm.
However, it needs to be said out loud: there is also a more problematic aspect that has flown under the radar.
This is not the first time, nor the last, in which someone who held a public position and was enslaved to the public interest - takes all the knowledge and experience to promote a private business interest.
The goal is of course to maximize profits, which in many cases goes against the public interest by definition.
The law allows the transition after a cooling-off period, but despite the cooling-off period - it is hard not to notice a certain problem with this.
This problem is becoming even more acute in the current period, and the wave of price increases does not miss almost any area.
It can be assumed that in some cases, Babed's interests as CEO of Strauss will be different from the interests he had during his tenure at the Ministry of Finance.
Retail is a profession
This is not the first position in the private market for Babed after the Ministry of Finance.
Babed, who served at the height of the Corona crisis as CEO of the Ministry of Finance, moved to the private market and was appointed CEO of Moti Ben Moshe's "Blue Square Oak", where he decided to leave just six months after he began serving in the position.
A senior official in the food industry said: "The story is mainly the big challenge that awaits him around salmonella and the cost of living, it's a different world. The assumption is that Ofra Strauss was targeted by this decision by the shareholders, in order to bring in someone who would not be a 'Moor of the End'."
Labad will now have quite a few things on his mind that the Strauss were not used to dealing with.
For example, the company used to automatically earn 40% every quarter, and it closed the last quarter with losses.
The challenge is great, and perhaps we gave priority to someone from the Treasury who knows how to deal with the cost of living and its derivatives, the regulation and the system.
Also, Babed will have to keep them from the growing competition.
According to the same source, "The disadvantage is mainly a lack of experience in retailing. Retailing is a profession. It's like the story of Yaki and Damani in Shufersal. And Damani knows how to manage, but managing a well-known retail business is a different world. Second thing, and no less important, is his resume as someone who has confronted His friends in the treasury. It also ended with Ben Moshe because of too much ego in the room of both of them."
Despite the criticism voiced in the industry about Babed's lack of experience, it should be noted that the search committee examined dozens of candidates both from within the company and outside it, including non-Israeli ones.
This process was accompanied by an international company called "Agon Zander", which specializes in the development of managers and locating managers for companies around the world.
Quite a few challenges
According to estimates, the selection of Babed was made on the basis of his ability to carry out changes, reforms and processes.
They talk about him as a performanceist thanks to the reforms he made in the treasury.
He also has experience in the international arena.
Babed, as mentioned, will need all his skills in order to face the many challenges.
And as if he has no shortage of challenges - he also faces the challenge of the "Carrefour" chain, which is coming to Israel and offers a private label that includes categories that overlap with Strauss's.
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