Case Study of Dreyer's

2156 Words Nov 28th, 2011 9 Pages
Contents

ABSTRACT 3
INTRODUCTION 4
BACKGROUND 5
METHODOLOGY 6
FINDINGS 7
INTERNAL PROBLEMS 7
EXTERNAL PROBLEMS 8
RECOMMENDATIONS 10
PORTFOLIO RESTRUCTURING 10
ORGANIZATIONAL RESTRUCTURING 11
PRODUCT DIVERSIFICATION 11
STAKEHOLDERS CONCILIATION 12
CONCLUSION 13
REFERENCES 14

Abstract
This report focuses on the United States-based ice cream producer, Dreyer’s, Inc., which used to be the largest ice cream company in America. In order to consolidate the ice cream industry, Rogers and Cronk, CEO of Dreyer’s, carried out some advancing operation philosophies including the launch of a strategic plan named the “Grand Plan” in the year 1994. The report gives a description of the expectations of the “Grand Plan” and their
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The Grand Plan was intended to be carried out from 1994 to 1998, and was expected to gain financial benefits in the first two years.
However, during the implementation period, Dreyer’s faced the toughest moment in history. Its pre-tax earnings and stock price decreased dramatically due to a series of problems. One of the problems was the unexpected skyrocketing price of butterfat. Besides, the high cost promotion and the delivery system also became a heavy burden for the company. Because of these problems, Dreyer’s Grand Plan took much longer than they predicted to meet the recovery costs. This case report will examine Dreyer’s strategy-the Grand Plan, will explore in depth the reasons why this plan has not achieved the initial expectations, and then will focus on the recommendations to solve the company’s crisis.
Background
In the late 20th century, the ice cream industry market share was classified into frozen novelties and packaged ice cream, and packaged ice cream could be divided into super premium, premium and lower-price products. Dreyer’s Grand Ice cream Company mainly focused on the premium products.

Dreyer‘s own delivery system- Direct Store Delivery

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