Quaker Oats Company

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Title of the Case: The Quaker Oats Company
Time Context: Early 1971
Summary/Abstract:

Harry Ambrose had recently been appointed The Quaker Oats Company’s director-long-range planning. An MBA with nine years of managerial experience but no previous exposure to the management of formal planning systems, in early 1971 Mr. Ambrose had a task of guiding the company through what is essentially the initiation of formal, long range planning.

Mr. Ambrose also has objectives to attain for the betterment of long-range planning. First, he would like to establish in managers’ mind that long-range planning is here to stay and is an important part of their jobs. Second, he would like to educate them in the rationale of long-range planning. In particular, he needs to break them away from thinking that long-range planning is the extrapolation of short-term quantitative relationship.

I. Statement of the Objectives
To establish in managers’ mind that long-range planning is an important part of their jobs To educate them in the rationale of long-range planning
To break them away from thinking that long-range planning is the interpolation of short –term quantitative relationship

II. Central Problems
How will Harry Ambrose achieve his objectives?

III. Areas of Consideration

STRENGTH
1. Mr. Ambrose has a good relation with the head of PP&A. 2. A fine budgeting and control system
3. Well established short-term planning
4. Research and Development Group that is good enough to produce or come out with striking products to target customers. 5. A highly successful product development program

WEAKNESSES
1. Uncertainty arising from the new corporate structure 2. Limited staff capability
3. Changing management structure

OPPORTUNITIES
1. Company expansion to other countries.
2. Attract more customers with their various products. 3. Catch the...
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