The Chattanooga Ice Cream Division Case Essay

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The Chattanooga Ice Cream Division Case Context and Background of the Case The Chattanooga Ice Cream was one of the three divisions of Chattanooga Food Corporation. Since 1992 the sales flattered and profits declined consistently. While US per capita consumption of ice cream diminished, the competition in its market increased considerably. In order to remediate the division’s performance, Chattanooga Ice Cream took several actions which included the promotion of Charles Moore to head of the division in 1993, the hiring of a new vice president of marketing, Barry Walkins, and of Stephanie Krane to upgrade the division’s information systems and control function, the introduction of a line of frozen yogurt and the closing of its original…show more content…
However, in private, they criticized and blame when things were wrong one another. The Head of Division attitude toward this was to ignore such behavior, hoping his senior managers would reconcile their differences and change their attitudes after working as a team for a while. After Moore explained with details the firm decision taken by one their customer to replace Chattanooga Ice Cream’s products for the ones of its competition, the senior managers responded by blaming each other for fall in sales. After being asked for solutions, their responses were either to reduce costs or grow revenues by introducing new products in the market. Both solutions were tried in 1993 with no success. Analysis of the case We can see that the executive team’s recommendations keep in the same line of action even tough when they were not successful in the past. Instead of performing a self assessment of their own department and/or an analysis of the causes that prevented the success of the same type of actions taken by the division in 1993 they keep blaming each other. Without doubt, this team is facing five basic dysfunctions: • Inattention to results: the tendency of team members to seek out individual recognition and attention at the expense of collective results, i.e. the goals of the entire team • Absence of trust: each team member has a big need for invulnerability which
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