Waterview
Q.1) Present a summary of the case highlighting the main features of the company and the situation faced by Charles Moore and his Team?
This case is about one of the division of Chattanooga Food Corporation(CFC) Ice Cream Division with revenues of $150m. It was one of the largest regional manufacturers of ice cream in US. It’s having primary supermarkets and related food chains customers. And trading as a producer of mid priced basic ice creams products. Even though CFC performed well in recent years but from last four years its ice cream division experienced flat sales, declining operating profitability and its cost is increasing and facing aggressive competition from premium & super premium ice creams brands. And had decided to replace Chattanooga with the Sealtest line in all its southeast region supermarkets.
To improve the Chattanooga ice cream division’s performance, in 1994 they introduced new line of frozen yogurt and in 1995 to reduce the cost they closed its original manufacturing plans and consolidated in its two newer plants. But they were not succeeded in returning the profitability & performance to its previous level.Thats why division was unable to dividend cash up to its parent. Its 3 out of 7 members of the top management leave in five years that also upset venerable pattern of relationship.
Charles Moore is good leader, have more business knowledge, good communicating abilities, good relationship with employees, believe in group based decisions. But he has difficulties to implement his management philosophy on his division. In his weekly staff meeting with Senior functional officers (marketing, manufacturing, research & development, control, and human resources).all senior functional officers blame other departments for error and bad performance and all senior functional officers clash over alternative ideas for turning around a business in decline.
Barry walkins(VP of marketing).want to invest to expand the product lines.
Billy
This case is about one of the division of Chattanooga Food Corporation(CFC) Ice Cream Division with revenues of $150m. It was one of the largest regional manufacturers of ice cream in US. It’s having primary supermarkets and related food chains customers. And trading as a producer of mid priced basic ice creams products. Even though CFC performed well in recent years but from last four years its ice cream division experienced flat sales, declining operating profitability and its cost is increasing and facing aggressive competition from premium & super premium ice creams brands. And had decided to replace Chattanooga with the Sealtest line in all its southeast region supermarkets.
To improve the Chattanooga ice cream division’s performance, in 1994 they introduced new line of frozen yogurt and in 1995 to reduce the cost they closed its original manufacturing plans and consolidated in its two newer plants. But they were not succeeded in returning the profitability & performance to its previous level.Thats why division was unable to dividend cash up to its parent. Its 3 out of 7 members of the top management leave in five years that also upset venerable pattern of relationship.
Charles Moore is good leader, have more business knowledge, good communicating abilities, good relationship with employees, believe in group based decisions. But he has difficulties to implement his management philosophy on his division. In his weekly staff meeting with Senior functional officers (marketing, manufacturing, research & development, control, and human resources).all senior functional officers blame other departments for error and bad performance and all senior functional officers clash over alternative ideas for turning around a business in decline.
Barry walkins(VP of marketing).want to invest to expand the product lines.
Billy