BUSINESS DILEMMA What Would You Do? You\'re the y: Flanagan Executive Flanagan C
ID: 393528 • Letter: B
Question
BUSINESS DILEMMA What Would You Do? You're the y: Flanagan Executive Flanagan Corporation YOUR POSITION: New Chief Executive a national manufacturer of food. Originally, the busi- operated, but it grew so very THE PLACE: Memphis, Tennessee sold out their interest over At that time, the company sought to di versifly and purchased a national bakery and a canned ness was family-run and quickly that family members 20 years ago. manufacturer. Flanagan's food products now dominate the market. The company's reputation based on using the highest quality ingredients and Twenty years ago, Flanagan was organized along roles. Over the past several years, the company has takes advantage of Flanagan Corporation ta unique seasonings have to manage to processed and froz Under the previ produe approach, developing or acquiring new health-focused products that reflect consumers' changing food con- adopted a more "consumer-oriented" organizational gies that Flanagan will lead n's units with total re for it, from developing and manufacturing and logistics. sumption habits. The company has changed in many ecutive headed each of ways. It has added new product lines, streamlined op- sponsibility for it, frors ua products to ma erations, and taken more of a regional approach rather enjoyed the diversity, hers ket advertising approa r, pro blems arose as the company's man- strain from maintaining su agement was stretched thin trying to manage so many has altered the organizational boad focues verse units. Performance and profits declined as a brand management approac recession forced many consumers to save money by responsibility for groups or li making meals from scratch. Jim Austerland, the chief tion, managers have more strs executive officer, resigned under intense pressure from tion and profitability. As CE0als fo key employees and some large shareholders. Mark now implementing this reori to more d a ivingm lines of products. In ads ot ringent reorientation of the or competito QUESTIONS Johnston, with experience from a major competitor has now taken over as CEO Johnston has set tough goals for the company and 1. What assumptions about futur several corporate head- quarters. He has redefined the company to focus ex- behaviors and attitudes are you making? What role have goals played arriving as CEO at Flanagan's? has taken drastic steps to meet them, closing in your plans since entrees, and canned vegeta- 3. What are some of the negative reactions you might on was sold because its product have to face from employees and how would you bles. The bakery divisi did not fit in well with Flanagan's more successful d the technolo- product lines. These moves have limited the technolo- deal with these? hieve operational goals, which are instrumental to the completion of tactical pa Tactical plans have the same relationship to strategic plans. Thus, in evaluating lower level plan, it is necessary for managers to ask themselves whether these plas contributing ultimately to the realization of the firm's strategic goals. It is not uncom plans to take on a "life of their own" as functional areas adopt these plans and dev their activities around them. t some point, as the strategic goals change, the strategic, tactical, and openat plans must be altered to accommodate the new strategic goals. h itate to change their plans unctional areas mayExplanation / Answer
Answer.
1) after analysing the case, the assumption were made on the consumer behaviour that there tastes and preferences will change over time, customers are becoming more health conscious and company needs to provide healthier food to meet those customers need. And due to recession customers were Saving there money and preparing food by themselves instead of opting for outside food stuff. It was a challenging issue to attract those customers in such an economic downturn.
2) goals are important to provide certain ways and directions so that they are achieved without any major loss. As a CEO at Flanagan, goals were set for the betterment of the company, which involved tough decision to attain long term success. These goals resulted to close down several factories, cutting of 150 jobs, redefining company to focus on best selling and popular products and cutting those products which didn't suit the company's product lines. These all moves limited the technology and put pressure on the management to focus on production and profitability and made responsible for the outcome.
3) there are always some resistance and opposition to certain decisions in every organisation. As far as this case is concerned, the managers were in a tensed situation due to the responsibility assigned to them to be accountable for production and profitability of the firm. They need to manage employees in most effective way with a limited technologies. Employees may resist due to anxiety and fear of unknown things which they might have to suffer. If they don't meet the goals they may lose their jobs.
These fear and resistance can be removed by communicating the benefits of such a drastic change, involving them in the reorientation process to make them understand change from the scratch, providing training to the management as well as employees to deal with the change. These will boost their confidence and help them to adopt new change and make them strive to achieve set goals.
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