Down East Spud Busters

Topics: Future, Strategy, Apple Pages: 5 (1016 words) Published: October 26, 2010
Chapter 8



This case describes a unique management feature of Best Buy - the results-oriented work environment. Start class by asking your students to imagine a job where no one paid any attention to how many hours they worked - only to whether or not they got the job done. Are there jobs/industries where such a thing would be more likely to work than others? What would be the advantages and disadvantages of such a practice from the perspective of both the employee and the manager?

Management Close Up Question: “What might be some of the benefits of a clockless workforce? Some of the pitfalls?”


Case Summary:

Down East Spud Busters has big plans for achieving future growth in its industry. The first phase of its new strategic plan resulted in the building of a large manufacturing plant in Northern Maine, which maintained a focus on value-added products. With the completion of phase one, Spud Busters anticipates sales revenue to triple from the existing yield of potatoes. Phase two of Down East’s plan calls for a nationwide sales and distribution program to be established for the company. The third and final phase of Spud Busters’ strategic plan anticipates building a second manufacturing facility in five years in Idaho. In this part of the plan, the company would also oversee an increase in crop planting and yield in both territories.

But perhaps the most grandiose strategic idea that this company has is to expand its market territories into Europe and the Pacific Rim. This is set to come about during the final phase of the plan. These business ideas are not too bad for just plain ole tater growers to have, wouldn’t you say? Bringing this proposed strategic plan to fruition would certainly provide Down East Spud Busters with achievement of its goal for future growth in the industry.

Chapter Topics Related to the Case:

• Discuss the concept of organizing
• Discuss how the concept of integration may impact upon a company like Spud Busters • Identify how managerial issues such as span of control and authority may affect a company like Spud Busters • Describe and discuss the concept of delegation • Identify how the concept of delegation may affect individuals such as the sales associates of Spud Busters

Case Discussion Questions:

1.Select from the chapter text options and prepare an organizational chart for the national distribution program that this company is about to embark upon. Be sure to incorporate the company’s goals into your overall structure.

Suggested Response:

Various organizational charts are to be expected in the individual student response to this question. However, acceptable responses must incorporate the following guidelines and information: (1) the boxes represent the different work, (2) the titles in the boxes show the work performed by each unit, (3) reporting and authority relationships are indicated by solid lines showing superior-subordinate connections, and (4) levels of management are indicated by the number of horizontal layers in he chart.

2.Given the vast geographical expanse and logistical challenges of this new program, what recommendations do you have for the company regarding HR policies and procedures?

Suggested Response:

While a variety of HR suggestions are to be expected, the following information will serve to represent some of what may be anticipated. (1) Develop clear company guidelines as to performance standards, (2) Establish a guiding code of ethics, (3) Have guidelines for diversity...
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