BUSINESS DILEMMA You\'re the Manager What Would You Do? YOUR POSITION: New Chief
ID: 393731 • Letter: B
Question
BUSINESS DILEMMA You're the Manager What Would You Do? YOUR POSITION: New Chief Executive Officer HE COMPANY: Flanagan Corporation Flanagan Corporation is a national manufacturer of ready-to-eat southern-style food. Originally, the busi- ness was family-run and operated, but it grew so very quickly that family members sold out their interest over 20 years ago. At that time, the company sought to di versifty and purchased a national bakery and a canned vegetable manufacturer. Flanagan's food products now dominate the market. The company's reputation is based on using the highest quality ingredients and unique seasonings THE PLACE: Memphis, Tennessee Twenty years ago, Flanagan was organized along Flanagan Corporation takes advantage of consumers two product lines: canned stews and frozen casse- demand for 'comfort foods." roles. Over the past several years, the company has adopted a more "consumer-oriented organizational gies that Flanagan will have to manage to produce heat approach, developing or acquiring new health-focused processed and frozen foods. products that reflect consumers' changing con sumption habits. The company has changed in many ecutive headed each of Flanagan's units with total re- ways. It has added new product lines, streamlined op- sponsibility for it, from developing and marketing erations, and taken more of a regional approach rather products to manufacturing and logistics. While so than a nationwide mass-market advertising approach. managers enjoyed the diversity, others felt stres ing food con- Under the previous CEO's leadership, a single ex- However, problems arose as the company's man- strain from maintaining such a broad focus. Johnston of a n trying to manage so many has altered the organizational structure to more se units. Performance and profits declined as a brand management approach, giving diver recession forced many consumers to save money by making meals from managers total responsibility for groups or lines o ecutive officer, resigned under intense pressure from tion and profitability. As CEO Mark Johnston, yo key employees and Johnston, with experience from a major competitor has now taken over as CEO scratch. Jim Austerland, the chief tion, managers have more stringent goals some large shareholders. Mark now implementing this reorientation of the com are QUESTIONS Johnston has set tough goals for the company and 1. What assumptions about future consume has taken drastic steps to meet them, closing several factories and cutting 150 jobs out of corporate head- quarters. He has redefined the company to focus ex clusively on stews, frozen entrees, and canned vegeta bles. The bakery division was sold because its product did not fit in well with Flanagan's more successful product lines. These moves have limited the technolo- behaviors and attitudes are you making? 2. What role have goals played in your planis 3. What are some of the negative reactions you -arriving as CEO at Flanagan's? have to face from employees and how deal with these? woExplanation / Answer
1. The assumptions about future consumers’ behaviors and attitudes made by the company are:
2. The goals taken under the business strategy of the company have helped in stream lining the business processes and make them work towards the strategic objectives of the company. The goals have set defined roles and objectives of each unit and resource in meeting the strategic objectives of the company in the long run. The goals can also be used to identify deviation from the set planned path of the organization.
3. Some of the negative reactions which the manager, Johnston can expect from the employees:
Johnston needs to be prepared to face the above-mentioned situations. He needs to have a plan for every scenario under discussion. He has to act as a facilitator and guide in this situation. The employees need support and guidance in these changed and strained work situations. Hence the responsibilities of Johnston are bound to increase in this case.
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