Problem Solution: Best Snacks Inc.
Taleish M. Daniels
University of Phoenix
Problem Solution: Best Snacks Inc.
“Best Snacks, Inc., a 150-year-old company which has been held publicly for more than 100 years, has traditionally held the number one or two positions in the snack market, providing an excellent and stable investment for stockholders. But in the past several years, Best Snacks sales have been slipping, market share has decreased and, particularly in the past two years, stock prices have taken a dive. This year, the company will finish a very weak second, and with several smaller competitors emerging as major players in the snack industry, Best Snacks is in danger of losing its long-held premier standing in the snack market,” (University of Phoenix, 2010, ¶ 2). In addition to these issues, the employees at Best Snacks are unsettled and feeling as if management does not value their opinions and has not done a good job of promoting innovation. In order to succeed, Best Snacks must tackle the challenges of its failing product line as well as find a way to bring the internal climate with employees back to a state of resolution. Describe the Situation
Issue and Opportunity Identification
Best Snacks is facing a number of issues. Declining sales, complacency, and a lack of motivation within the employees due to the absence of manager support have all contributed to the current state. By taking a close look at its competitors and studying other successful organizations the leadership at Best Snacks can retain some of its previous success. Capitalizing on the new changes in leadership, Best Snacks has the opportunity to restructure their organization in a way that will foster an environment of creativity and innovation. As stated, both sales and market share at Best Snacks has seen a decline. The opportunity presented is for the leadership at Best Snacks to evaluate the organization’s current process to determine how they can keep up with the competition. A radical innovation is a significant change that simultaneously affects both the business model and the technology of a company. Radical innovations usually bring fundamental changes to the competitive environment in an industry, (Davila, Epstien, & Shelton, 2006, p. 51). Contributing to the declining sales is the fact that there have been no product or service innovations in the past five years; instead, previously successful marketing methods have been improved or extended. Successful organizations tend to become complacent and conservative in order to preserve their core competencies—those things that lead to their success. This is logical and largely advantageous in the short-term. Paradoxically, the things that led to their success could be the very things in the long-term that pull them into failure, (Davila, Epstien, & Shelton, 2006, p. 239). By designing new marketing methods that are completely different from anything that has been done before, Best snacks can return to their customer base with a fresh approach that will draw people to their products. A learning organization is an organization that purposefully designs and constructs its structure, culture, and strategy so as to enhance and maximize the potential for organizational learning (explorative and exploitative) to take place, (Jones, 2004, p. 377). Currently many employees at Best Snacks do not understand the importance of innovation and have forgotten how to develop and implement creative ideas. Most of this stems from the fact that managers do not support creativity and innovation, another issues facing Best Snacks. Employees believe that they are not supported in their ideas and independent thinking. One of the key roles of the CEO is to make innovation part of the culture of the company. The CEO needs to make certain that collaboration occurs and becomes part of the culture. Steve Jobs works this critical cultural...