Oscar Mayer Case Study

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1.) At first, Marcus McGraw found the challenge so complex and saw it a difficult task because he had not sat down to put down the ideas on paper and evaluate the situation carefully. He was just thinking of the difficult task ahead and not how to assail the problem. He was missing parts of the puzzle, he was not evaluating anything as yet or trying to formulate or implement any strategy. He had no option, no solution immediately after he read the McTiernan report. He had not done any ‘strategic planning’ thus, his perspective was different than after he had read the memos. After reading the memos from his colleagues, he realized that he could count on them since they had great ideas and were persons with great capability for these types of concerns and issues, especially when he read the one of his long time colleague and friend. McGraw pursues that decision making process of gathering information, generating ideas, looking at the ‘pros and cons’ of the situation that Oscar Mayer faces through his associates. He follows them and his mind guides him knowing that he can trust on his department managers. Marcus McGraw purses a decision making that is unbiased. He does not go for just one department; he follows all four managers. He was unbiased in this way and was a good strategy as well since the managers have that market-driven strategy which is healthy for the firm. They are well market-oriented and are able to distinguish the capabilities of Oscar Mayer just as they are able to match the customer value requirements to capabilities. They were cognizant that the market is more competitive, they also pointed out that introducing new lines of product could bring prosperity to Oscar Mayer, which is one of the suggestions that McTiernan had brought up. Therefore, McGraw’s decision making process of taking the ideas of all four managers was a wise one. 2.) If McGraw chooses the favors of only one department then he is risking all other departments. In a business you cannot only favor and invest in one department only. All departments are important components for success of the business. If you only focus on one department, then the other departments will eventually collapse thus the company is losing on other areas in the market where profits can be made. This also means that the firm no longer has that diversity in products which reflects negatively on the company. McGraw can mitigate the damage by improving each of the departments so that they become more competitive in the market. He could also diversify in products just as was recommended by a couple of his managers thus making him a tough competitor on the market if adequately and carefully strategized. He will surely need to invest quite a lot on advertising and promotion which will reduce their profits in the short term; however, they will experience growth and profits in the long-term. As mentioned, once each department is improved and with the right strategy, Oscar Mayer will benefit and improve the sectors of quality, quantity and price. They have done it before and the can only be better and will concentrate in satisfying consumers’ needs and wants. 3.) First of all, let’s list the Strengths and Weaknesses. Strengths: Well-known Brand, Technology Skills in R&D, Strong Distribution Channels, Relatively High Market Share, High Profit Margin, Successful History and Product Diversification. Weaknesses: Relatively High Price, Not Healthy (High fat content). Oscar Mayer has a relatively high market share already, and a relatively low market growth. Due to its strengths, it already has a high market share and due to its weakness and the new trend in the market which is looking for products with lower fat (healthier), and lower prices, Oscar Mayer is losing its market growth. This is obviously a great threat to Oscar Mayer in terms of competition since the consumers are now looking for lower prices in those products, as well as healthier...
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