Tootsie Roll Q&a

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Tootsie Roll

1. How does Tootsie Roll Industries (TRI) communicate its values to suppliers and employees?

TRI uses a top-down method, which in some cases can alienate lower leveled employees. TRI has implemented a few different programs to encourage accessibility, teamwork, and open communication. The company’s “open door policy,” allows for employees to observe and participate in the decision-making process throughout all departments. The company also established cross-functional teams, which increases creativity and increases the employees’ sensitivity on issues that will affect the organization. Cross functional groups provide cross training to the company’s employees. These types of programs display the company’s commitment to employee value and strong collaboration. The company communicates differently with its suppliers using negotiating skills.

Tootsie Roll Industries supplies are commodity items, so items need to be high quality(especially because it is food), low-cost, and within specifications. Although suppliers might not change very often, constant negotiation is done in order to maintain a mutually beneficial relationship. A large part of the candy industry’s growth comes from acquiring established brands throughout the world, so acquisitions are vital to operations. TRI management frequently meets with a company’s management or parent company. At these meetings they communicate openly and honestly about various opportunities and risks for both parties. The ability to overcome conflicts will make or break a potential deal, so through the use of cooperative strategies TRI can negotiate effectively and display its value to its suppliers/acquisitions. The company displayed its negotiating skills effectively when it dealt with city of Chicago onto secure an urban enterprise zone around the company’s headquarters. The company negotiated a deal where both parties were mutually satisfied. Chicago gave the company perks and the...
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