Project #26807 - management in global environemnt

totall of 7 pages

case analysis


You Decide Transcript



Willy’s Candy Company has experienced flat sales and earnings for the last few years. The company has two major products, Willy’s Yummy Chews and Willy’s Sour Straws. The company has been able to maintain sales for these products through a combination of aggressive pricing and trade incentives. Over the years, the company has tried to introduce new candy products without much success. Now, the company is trying to decide how to proceed strategically.



Your Role/Assignment

Scenario Summary



You are the strategy consultant to the Executive Committee of Willy’s Candy Company. You are attending their meeting where each member of the Executive Committee is presenting their ideas on how the company should proceed strategically. Your task is to evaluate each Executive Committee member’s strategic ideas and issue a recommendation on how the company should proceed. You will listen to each Executive Committee member’s rationale for their ideas, evaluate their ideas and then make a recommendation.








Complete a 2-3 page memo to the Executive Committee detailing your analysis. In that memo be sure to evaluate each member’s strategic ideas identifying the aspects of their ideas you agree and disagree with, and the reasons why you agree and disagree. Then detail the strategic direction you believe the company should pursue and the rationale for your recommendation.


Key Players


Chester A. Wonka III, CEO:


Ladies and Gentleman, I called you to this meeting to discuss the future of our company. As you are aware, our sales and profits have been stagnant the last few years. Our portfolio consists of two popular products, Willy’s Yummy Chews and Willy’s Sour Straws. No matter what we have tried, we have not been able to grow their sales, profitability and market share. In fact to maintain our market share, we have had to offer significant pricing and trade incentives. Accordingly, I feel we need to evaluate alternative our strategic options. The option I am putting on the table is the merger of our company with the larger Swiss company that has made us numerous offers in the past and has told me personally that their last offer is available to us. This merger will allow Willy’s to be part of a larger conglomerate and expand Willy’s into international markets. While we will no longer own our beloved company, the merger will provide us the resources, capabilities and marketing support necessary to grow Willy’s in ways that we have been unable to.


Swifty Miller, CFO:



Merger, smerger!!! There is no way I would recommend selling out to that giant Swiss conglomerate! They will absorb our operations into their larger operations and we will all be without a job. All that will be left of Willy’s is the name on a package. Instead, I recommend we work with my buddies over at Silverman Fuchs. They are an excellent investment bank and they have identified a number of smaller candy companies who would be agreeable to being purchased by us.



If we bought these companies, we would be growing our portfolio of products and be able to realize significant efficiencies in our production, sales and marketing organization. I know what you are all thinking; we do not have a lot of cash. How are we going to pay for these companies? That is where my buddies over at Silverman Fuchs can really help out. They are masters at raising money through debt issuances. If we buy these smaller candy companies, they assure me they will be able to sell a bunch of new debt debentures that we will issue at today’s historically low interest rates. Granted, all this new debt will lower over investment rating to "junk" status. But now is the time to lever up and grow.


You Decide Transcript



Megan Lee, Executive Vice President, Marketing: Gentlemen, when you brought me in last year from that famous consulting group in Boston, you said it was to help the company implement the best practices and procedures that larger companies utilize. We are just beginning that process. If we stick with it, we will grow. The next step is to ramp up our advertising and new product development department. We are in position to grow sales and share of Willy’s Yummy Chews and Willy’s Sour Straws by increasing our advertising. Additionally, adding more resources to our New Product Development department, we will be able to create new products that will be successful and profitable in the market place. I know I am younger than all of you but I know the Willy Candy Company has a proud traditional. In fact, I am told that before I was born, they even based a popular movie on our company. We cannot dismiss the value of this history and tradition with a merger with a larger company or by creating our own mini conglomerate. The proper strategic alternative is to invest in ourselves using the latest management know-how.


Robert Johnson, COO:


As your new COO, I have been reviewing our operations and expenditures closely the last month. I have uncovered numerous opportunities for us to improve our operations and reduce expenditures. There are some functions we can outsource to third parties to reduce costs. There are other areas where we can streamline operations, reduce headcount and lower costs. If we follow my cost-cutting plan of action, I am certain we can realize significant profit growth the next few years.







Demonstrate a strong grasp of the problem at hand. Demonstrate an understanding of how the course concepts apply to the problem.



Apply original thought to solving the business problem. Apply concepts from the course material correctly toward solving the business problem.



Write your answers clearly and succinctly using strong organization and proper grammar. Use citations correctly.



A quality paper will meet or exceed all of the above requirements


Subject Business
Due By (Pacific Time) 04/06/2014 5 pm
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