Written by: Louis Maatiaha Tangiia
Pillsbury: A Revolutionary Tale In Management
Assignment: Pillsbury Customer Driven Reengineering
Date: 28/04/2013
Student Name: Louis Maatiaha Tangiia
Student ID: 4594096
Abstract
This report discusses the Pillsbury Company 's reasons for changing their strategy and assessment of the new strategy using Value Chain Analysis and Activity Based Costing . A brief history of Pillsbury and its old strategy is outlined initially. The discussion then focuses on their new strategic focus with emphasis on the how and why of this change. The performance of Pillsbury is assessed using Value Chain Analysis with an explanation on how Pillsbury leverages primary and supporting activities to decrease cost and add value across the chain. Activity Based Costing analysis is used to gain insight into the cost structure of Pillsbury 's supply chain. Finally these insights gained from Activity Based Costing analysis will be explored by assessing Pillsbury 's ability to influence future decision-making.
Table of Contents
Abstract
1.0 Introduction
2.0 New Strategic Focus
3.0 Pillsbury Leveraging its ' Activities 3.1 Primary activity improvements 3.2 Supporting activity improvements
4.0 Activity Based Costing Analysis 4.1 Cost structure of supply chain 4.2 Influence on future decision-making
5.0 Conclusion
6.0 Reference List
7.0 Appendicies Appendice 1 New Value chain
1. Introduction
Founded in 1869 The Pillsbury Company began as a flour milling firm in Minnesota. This company was then bought by Grand Metropolitan (GrandMet) in 1989, a UK-based consumer goods and retail corporation who sought to become a world leader in branded food and drinks businesses. In 1994 Pillsbury - North America sector created 50% of GrandMet 's 1993 sales of 8 billion dollars due to their 75% market share of refrigerated dough. A choice was made by CEO of Pillsbury Paul S