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Champion Foods Case Study

Part 1

Based on the facts of the case, the primary reason why the staff are not cooperating with Wilkes in implementing the new directives is resistance to change. Resistance to change is a common phenomenon when implementing change in an organization. Workers are usually resistant to change because of getting used to handling operations in a specific way and hence cannot see the benefits of implementing the change (Grama & Todericiu, 2016). In most cases, the staff might feel that the new procedures/directives disrupt operational workflow and are viewed more as inconvenient and unnecessary (Grama & Todericiu, 2016). Given the concept of resistance to change, one can thus argue that the staff are not cooperating with Wilkes because they do not see the importance of the new directives and instead view them as an inconvenience. The staff would rather continue with the traditional way of handling operations at the company.

In reviewing the case facts, it is logical that Wilkes failed to adopt the right leadership/management style in implementing the changes. This is most evident in the staff not cooperating with Wilkes in adopting the changes. The lack of cooperation by the staff is an indicator that Wilkes failed to communicate the importance of the changes to the organization effectively. It also indicates that Wilkes failed to efficiently consult the staff when developing the new directives. Studies indicate that staff are less likely to resist changes when actively participating in their development (Grama & Todericiu, 2016). The inclusion of staff in the entire change process creates a sense of ownership among the staff and improves acceptance levels for the change.

To implement the new procedures, Wilkes needs to actively involve the staff in the entire change development and implementation process. This implies that he needs to actively engage with the staff and obtain insights on what they believe would be the best approach for implementing the change. Including staff in the change the process creates a sense of ownership and reduces resistance. Wilkes should also implement the changes in phases by focusing on one region where the organization operates before moving to another region. This helps identify and eliminate any locally based obstacles that might negatively impact the implementation of the directives. It also allows him to identify weaknesses in the new procedures and resolve them.

 Part 2

Effective promotion is crucial in the frozen dinner/food industry. Through effective product promotion, companies operating in the industries can engage with the target consumers and persuade them to select their products over those of the competition. To remain competitive in the industry, most companies implement several promotional strategies. The three most common promotional strategies are issuing discounts and coupons, social media advertising and loyalty point programs. This section of the paper covers promotional strategies and how they are effectively implemented in the frozen foods industry.

Offering discounts or coupons is the most popular promotional strategy players in the frozen food industry employ. The strategy is usually used when the company seeks to attract new customers, retain existing ones or introduce a new product to the market (Ferrell et al., 2021). The strategy entails allowing customers to purchase the product at a reduced price through discounts or get the product for free using coupons (Ferrell et al., 2021). The strategy is widely employed in the frozen foods industry because it effectively gets new customers. Given the high cost of healthy food prices in the U.S, most consumers would willingly try a new product if offered at a discounted price. An example of the use of discounts is seen in Nestle Stouffer’s, which routinely offers coupons and discounts on frozen meals. The coupons and discounts are usually made available through the company’s website and are used to promote product sales.

The use of social media advertising is also widely employed by frozen food companies as a mechanism for promoting their products. Social media advertising focuses on marketing the different products sold by the company through various social media platforms. Over the years, the increased popularity of social media influencers, coupled with the large number of individuals who utilize social media, have served to make social media advertising an effective strategy for product promotion (Li et al., 2021). The companies employ their social media pages to post attractive pictures of the products they sell and directly engage with the customers. Through social media, companies can create an engaging relationship with customers, leading to increased brand loyalty and product sales (Li et al., 2021). Amy’s Kitchen is a good example of a frozen foods company that effectively employs social media to promote its products. The company routinely makes posts emphasizing that they only use organic ingredients in their frozen meals. The posts serve to promote the company’s products among health-conscious individuals.

Loyalty point programs are also heavily employed by frozen food companies. The programs are an effective strategy for helping the companies retain their existing customers by offering them points which can be redeemed for different items in the future (Ferrell et al., 2021). Using loyalty points programs helps companies develop brand loyalty, leading to increased sales (Ferrell et al., 2021). One brand in my city that effectively employs loyalty programs is Conagra Brands. The company partners with Publix Super Markets and offers loyalty points to individuals who purchase frozen food items using the Publix Loyalty Card. The consumers can accumulate points that they can use for any product they desire at the Publix Super Market or on Conagra’s e-commerce site.

Wilkes should adopt social media marketing at the company because it will provide them with a competitive edge in the market. The company will be able to develop relationships with its consumers and effectively promote its products, thereby leading to increased sales. The use of social media will also make it possible for the company to reach an extensive consumer base.

Part 3

The ability to effectively differentiate one’s products from those of the competitor is integral for providing a company with a competitive edge in the market. Champion foods can differentiate its products by emphasizing organic and locally sourced ingredients in its frozen foods. This form of differentiation will increase the company’s appeal to health-conscious individuals and those who prefer promoting local businesses. Through the approach, the company will be able to target a new client segment, leading to increased sales for the company’s products. The company can also differentiate itself by offering gluten-free or vegan food options. This approach will also open up a new demographic of customers that the company can target. An example of this strategy is employed by Amy’s Kitchen which has been able to corner the local market for people who prefer gluten-free meals.

Another approach of differentiation that the company can employ is price differentiation. By selling its products at a slightly lower price than the competitors, the company can cannibalize its competitors’ customers (Roy & Khastagir, 2016). This will allow the company to increase its market share and increase sales and revenue generated by the company. This approach is effective because, given the high cost of food, consumers tend to prefer cheaper and healthier options to expensive ones. Based on consumer preference, it is logical that by slightly reducing its prices and offering high quality food products, Champion foods will be able to significantly increase its consumer base.

There are a number of strategies that Wilkes can be able to improve the efficiency of the company’s operations. One strategy he can employ is to streamline production and focus heavily on the company’s most popular frozen meals. This approach will enhance production efficiency and reduce the company’s overall production cost. The cost reduction largely stems from increased production, which increases producer power allowing them to obtain more raw materials at cheaper prices (Roy & Khastagir, 2016). To enhance efficiency in decision-making, Wilkes can also afford the regional managers the autonomy to make decisions on certain aspects of the company’s operations. This is important because it eliminates the delay that usually emanates from having to wait for decisions from headquarters. It also helps the managers better deal with issues that are localized to specific regions where the company operates. Lastly, Wilkes can improve production by employing just-in-time manufacturing practices. The practices serve to eliminate waste and inefficiencies in the production processes leading to a reduction in cost and increased profitability for the company (Roy & Khastagir, 2016). By employing the suggested approaches, Wilkes will be able to significantly enhance the operational capacity of Champion foods.

 References

Grama, B., & Todericiu, R. (2016). Change, resistance to change and organizational cynicism. Studies in Business and Economics11(3), 47-54.

Roy, M., & Khastagir, D. (2016). Exploring role of green management in enhancing organizational efficiency in petro-chemical industry in India. Journal of Cleaner Production121, 109-115.

Li, F., Larimo, J., & Leonidou, L. C. (2021). Social media marketing strategy: definition, conceptualization, taxonomy, validation, and future agenda. Journal of the Academy of Marketing Science49, 51-70.

Ferrell, O. C., Hartline, M., & Hochstein, B. W. (2021). Marketing strategy. Cengage Learning.

 

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