The Chattanooga Ice Cream Division

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CASE 1: The Chattanooga Ice Cream Division
1. PROBLEM IDENTIFICATION
The main problem is, the Ice Cream Division sales were declining over the past four years. Sales revenue presented more than 180millions of Dollars in 1991, but in 1995 presented only 150 millions of Dollars. During this period, growth of consumption of ice cream had slowed and competition in Chattanooga´s markets had increased substantially. Charles Moore try to find the best idea to solve a problem with declining production. 2. PROBLEM ANALYSIS

In 1995 for the first time in recent memory of group, the division was unable to dividend cash up to its parent. Moves and the departure of members of the top management group within five years had also destructive effect on relationships. The first problem is with slowed growth, which is decreasing more and more. Lower sales revenue are the cause of lower profit. The second one is relationships between colleagues. They could communicate really hardly. Their opinions are very different, it´s impossible to synchronize so mixed ideas. 3. SOLUTION PROPOSAL

There are some solutions proposals which are from the different people from the company. Relationships aren´t as well as they can, people from different section have different opinion about situation and Moore is unhappy with the public display of conflict. Barry Walkins, the vice president of marketing thinks, the problem is with product line. They can´t compete with just five flavors and no mix-ins when their competitors offer a dozen or more. There is a proposal to rebuild a portfolio of products, it mean try to insert more of flavor of ice cream or mix-ins. He doesn´t think, they are going to solve the current problem by cutting expenses. He thinks there are times when you have to spend money to make money, he believe they are in such a situation. All they have to do is toad some excitement and compete head on with Ben & Jerry´s and the others by adding new mix-in flavors. They have to start...
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