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Green Giant and the Move to Mexico

Good Essays

The Minnesota Valley Canning Company started in 1903, and was one of the first companies to be recognized through their advertising personality, "The Jolly Green Giant." As consumers became familiar with the marketing character, the Minnesota Valley Canning Company soon changed their name to The Green Giant Company. The company became a well-known canned and frozen vegetable foods vendor. To lengthen the growing season, the company expanded from Minnesota into California during the 1950 's and 60 's. Along with the expansion came the construction of a freezing vegetable facility located in Salina, California. In 1978 Pillsbury, a company that specialized in baking goods acquired the Green Giant Company to expand their market and …show more content…

The first tier stakeholders in this case are the Green Giant employees and management, Salinas area residents, and residents around Irapuato, Mexico. The second tier stakeholders consist of: Grand Metropolitan Company, the local business owners in both areas, consumers of Green Giant 's products, and Green Giant 's competitors.
Problem Statement Grand Metropolitan has told Green Giant executives that failure to significantly increase profits quickly may lead to "severe career implications." The decision maker in this case, the president and senior managers of Green Giant Company, needs to make the decision whether to move operations over to Mexico to reduce cost. Moving the company to Mexico will mean significant amounts of lay-offs in the US, but will also mean a substantial reduction in expenses.

Alternatives
• Move the entire operations to Mexico with no consideration to employees in California
• Leave the entire operations in California and promote growth of market share through marketing
• Switch the plant processing facilities over to produce an environmentally clean product
• Only move enough business to achieve desired savings, which would reduce the number of lay-offs
• Move over time to Mexico and offer severance packages, relocation opportunities, and adequate transition time
Solution
The best solution for Green Giant Company was to develop a timeframe in which the company could move

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