Oscar Mayer

1375 Words6 Pages
(1) In the beginning of the case McGraw thinks he has "never encountered such a complex business challenge" as the one he currently faces. By the end of the case, after he has read the ideas listed in the four memos, McGraw can’t believe he ever thought the investment issue was "going to be a hard one." What changed the president’s perspective? What strategic decision-making process does McGraw pursue? In the first instance, McGraw thought that the problem in his Division was so complex and did not know what direction to take in his upcoming Strategic Plan presentation to his boss. After reading all the memos sent by his managers, he got many ideas on how to tackle the issue. The strategic decision making that he took was to carefully read…show more content…
Result: a more consolidated meat industry comprising of companies with sophisticated manufacturing and marketing skills, stronger financial positions, and a focus on building value added brands and market share. The race was thus on for new ideas and promotional support to achieve industry leadership. If Om was to remain on top as one of the leading brands, then investments would be needed on promotion and advertisement as well as in research and development. There was a dire need to align the products with consumer trends and satisfy the target audience’s want for products that were faster and easier to use.

(4) Absent any resource constraints, which of the four departmental directions do you think is the most viable? Which is the second best strategy? Which is the least viable? In my humble opinion the most viable option would be to follow Eric Stanger’s advice to go ‘back to basics’. In order to underwrite the new line of LR trademark and experiment with more new products, they had in effect been milking the OM lines. Their price increase on several of our more critical items had outpaced those of their key competitors, in order to always deliver more bottom line profits. They had shaved their A&P budgets for the same purpose and this was resulting in slippage in value and trust among our consumer franchise thus the declining sales and share. They thus needed to cut on
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