deli snacks
Overview
ALL STAR Foods International (ALL STAR) is a large international manufacturer of snack foods, including potato chips, nacho chips, and pretzels, that are sold under the Tasty Crunch brand name. ALL STAR has operations throughout North America and Europe, and its international head office is located in Chicago. Consolidated net sales are in excess of US$1 billion, and ALL STAR’s shares are traded publicly on the New York Stock Exchange.
In Canada, ALL STAR operates through its wholly owned subsidiary, ALL STAR Foods Canada Ltd. (ASFC or the Company). ASFC has facilities located across Canada and sales in excess of CDN$150 million. Its head office is located in Toronto, Ontario.
Over the past several years, ASFC’s sales have grown slowly and its financial results have been relatively weak. Consequently, ALL STAR initiated a major restructuring of ASFC at the beginning of 2010. This resulted in the replacement of almost all the senior management staff. Bruce Tate, a senior manager in ALL STAR’s operations in the United States, was appointed President of ASFC. His mandate was to double the size of the Canadian operations and to generate a pre-tax profit margin in excess of 10% within a period of five years.
Southeastern US Region. Bruce has a strong background in sales at ALL STAR and a reputation for driving top-line results.
In his role as President, Bruce is accountable for ASFC’s total performance, including sales objectives and bottom-line results. He is a hands-on manager who likes to keep a direct reporting relationship between himself and each facet of ASFC’s operations. As a result, he removed the positions of CFO, COO, and EVP and had all six vice-presidents report directly to him.
This reorganization did not result in substantial cost savings because the new vice- presidents were paid more than their predecessors. However, Bruce believed that flattening the organizational structure by reducing the number of layers between senior
ALL STAR Foods International (ALL STAR) is a large international manufacturer of snack foods, including potato chips, nacho chips, and pretzels, that are sold under the Tasty Crunch brand name. ALL STAR has operations throughout North America and Europe, and its international head office is located in Chicago. Consolidated net sales are in excess of US$1 billion, and ALL STAR’s shares are traded publicly on the New York Stock Exchange.
In Canada, ALL STAR operates through its wholly owned subsidiary, ALL STAR Foods Canada Ltd. (ASFC or the Company). ASFC has facilities located across Canada and sales in excess of CDN$150 million. Its head office is located in Toronto, Ontario.
Over the past several years, ASFC’s sales have grown slowly and its financial results have been relatively weak. Consequently, ALL STAR initiated a major restructuring of ASFC at the beginning of 2010. This resulted in the replacement of almost all the senior management staff. Bruce Tate, a senior manager in ALL STAR’s operations in the United States, was appointed President of ASFC. His mandate was to double the size of the Canadian operations and to generate a pre-tax profit margin in excess of 10% within a period of five years.
Southeastern US Region. Bruce has a strong background in sales at ALL STAR and a reputation for driving top-line results.
In his role as President, Bruce is accountable for ASFC’s total performance, including sales objectives and bottom-line results. He is a hands-on manager who likes to keep a direct reporting relationship between himself and each facet of ASFC’s operations. As a result, he removed the positions of CFO, COO, and EVP and had all six vice-presidents report directly to him.
This reorganization did not result in substantial cost savings because the new vice- presidents were paid more than their predecessors. However, Bruce believed that flattening the organizational structure by reducing the number of layers between senior