Problem Statement
The company faces a number of issues related to such spheres as leadership and operations. For instance, it is not clear whether to focus on a particular segment or a specific region. There are concerns associated with the pricing policy as well as the way to address such external factor as competition. However, the major problem is the lack of vision and the absence of a sound strategy. Clearly, strategies have certain disadvantages as they can be associated with the lack of flexibility and reduced capability to address the plethora of details that can emerge. At the same time, the strategy can become the framework for the change that is the only option for Maple Leaf Foods. Clearly, the development of the strategy, as well as its implementation, is the dynamic process that needs constant revisiting, evaluation, and even change. Thus, the major issue to address is the development of a strategy. It is also clear that the morale is rather low and proper leadership can address this issue.
Problem Analysis
Leadership
First, it is crucial to choose the most appropriate leadership style. This aspect is closely connected with the development of the strategy as the chosen leadership will shape the focus and methods used when creating the strategy. It is quite unclear which style was used before, but Gervin should start with deciding which one she will utilize. The use of transformational and transactional leadership styles are two possible alternatives. If the transactional leadership is used, the focus will be made on operations and the existing culture and processes. This leadership style can be very effective for the organization that needs to enhance its culture and make it more sophisticated (detailed, far-reaching and so on). However, this options is quite inappropriate for this case as the company is about to enter the period of significant changes. It is clear that a new culture should be developed and new processes and operations can come into being.
Therefore, Gervin should use the transformational leadership as this style is the most efficient during the period of change. Gervin should encourage employees to stimulate their creativity and productivity. The leader will facilitate the change, craft a new culture and encourage employees to embrace the change. Visionary leadership will be an appropriate option. The focus will be on mid- and long-term goals. The existing approach has proved to be quite ineffective so new practices, methods, and operations will be developed and used.
Strategy
In order to develop an efficient strategy, it is essential to evaluate the company’s organizational capabilities. The company has a moderate capability to innovate. For instance, there have been several attempts to come up with innovative products and strategies. The introduction of such products as Lean’n Lite and Top Dog brands shows that some effort could be regarded as successful. Nonetheless, there is the lack of consistency as the company seems to lose its grip on the further development of such brands. The popularity of the items mentioned decreased due to some ineffective decisions made including inconsistent pricing and marketing strategies. The company’s productivity is rather high, but it is also associated with the lack of focus. It is clear that the company manages to produce high-quality products at reasonable prices, but it fails to market them effectively. The lack of research is one of the most burning issues related to this organizational capability as the company tends to lose resources due to their improper use.
In the view of the organizational capabilities mentioned above, it is possible to consider some alternatives. The first one is linked to the focus on the national product rather than regionally customized hot dogs. It also manages to use the company’s capabilities to the fullest. The difference between the taste is minimal, which makes it quite reasonable to come up with the item that will be equally valued nationwide. The advantages of this strategy include cost reduction and optimization of various processes. The disadvantage is the high risk of losing loyal customers who may switch to the products of the company’s competitors.
Gervin will have to inspire employees to change the existing culture that promotes the value of the difference. The value of unification will be created instead. The leader will encourage employees to come up with ideas concerning the taste, packaging and marketing strategies to be used to make the new national hot dog popular across the country. Importantly, the price should not be higher than $2.19 to make it attractive to a wider audience. At that, the new national product should be developed in two segments, family and adult hot dogs. This will require quite significant funding, but it will enable the company to diversify and keep over 15% of sales. The company should also further develop Lean’n Lite and Top Dog brands with the focus on their formulations and pricing.
An alternative is associated with fewer changes. Thus, the products will be customized to meet the needs of people living in different parts of the country. However, the price should be reduced to win a larger market share. The costs can be reduced through the use of less expensive packaging and change of weight of the item. The advantages of the strategy are quite straightforward as the company will keep its loyal customers and avoid risks associated with the introduction of new products. Nonetheless, the sales decline shows that the products are losing its competitive advantage. The change in pricing can have a short-lived impact, which will result in significant losses for the company. Therefore, it is clear that the first alternative is preferable since it potentially leads to more flexibility, innovation, and the proper use of the organizational capabilities.
Recommendations
Gervin will be responsible for the implementation of change. She will address the heads of the departments outlining major steps to be made. She will also ask to share their ideas on possible tools to use to implement the new strategy. The plan will have several stages. At that, Gervin will focus on the development of a new culture that implies the focus on innovation, integrity, creativity, and collaboration. The discussion may start in December 2016, and it will result in the development of a detailed plan by the end of the month. The next stage will be the articulation of the plan to the company’s employees who will also be encouraged to provide their feedback (share their concerns, recommendations, ideas, and so on).
This stage will take up to two months. The stage of the development of new products and new marketing strategies will last from December to March. The new product will first appear in several regions (Ontario, Quebec, and Alberta), and a thorough research will be implemented before a large-scale promotion campaign will start. The sales and the research will start in March and will last up to the beginning of May. The new products will appear nationwide in May. Clearly, changes (if necessary) will be implemented based on the results of the research. It is important to start the sales in spring as this is the beginning of the season when the product is specifically popular and in high demand.