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JOHNSONVILLE SAUSAGE

CO.
Case Analysis
I. Johnsonville Sausage

II. Title Context

1. In 1945, Ralph F. and Alice Stayer opened a butcher shop and named it

after their quaint hometown – Johnsonville, Wisconsin. The delicious

sausage made in the Stayer’s butcher shop came from an old family

recipe, which made its way down the family tree from 19 th-century Austria.

This recipe became known as the sausage with the BIG TASTE, and a

legacy was born.

2. Summary / Abstract

Johnsonville Sausage is a sausage company headquartered in

Sheboygan Falls, Wisconsin. Founded in 1945, it is one of the largest

sausage producers in the United States and the largest sausage brand by

revenue in the United States. Johnsonville sausage is available in more

than 40 countries. Privately owned, the company has approximately 1,400

employees.

3. Mission of Johnsonville Sausage

According to Johnsonville Sausage, “Our mission is to create and

maintain an environment that requires each member to fully develop their

God-given talents. We achieve this by living the Johnsonville Way.”

4. Vision of Johnsonville Sausage

According to Johnsonville Sausage, “Our vision is to be committed

to sustainability. It means working in a way that helps people see we care

about our people and planet as much as we care about business, It


means recognizing the way we operate today impacts the future of

tomorrow. Johnsonville strives to be the best company in the world that

just happens to make sausage.”

5. Corporate Social Responsibility

To provide service that benefits all stakeholders.

III. Statement of the Objectives

1. To become the best company in the world.

2. To become better than anyone else at defining, and then serving, the best

interest of all those who have a stake in our success.

3. To succeed by setting near-term objectives and long-term goals that will

require a personal growth and superlative performance by each of us.

IV. Central Problem

Johnsonville Sausage suffered its own tragedy and was forced to test its

organizational purpose. What should they do to prevent another incident that

took place four years ago?.

V. Areas of Consideration

1. Strength

i. First Mover Advantage in the increasingly crowded market place.

ii. Johnsonville sausage products have strong brand recognition in the

Innovation & Entrepreneurship industry.

iii. Talent management at Johnsonville sausage and skill development

of the employees.

2. Weaknesses
i. Gross Margins and Operating Margins which could be improved

and going forward may put pressure on the Johnsonville Sausage

Financial Statement.

ii. Declining market share of Johnsonville sausage with increasing

revenues.

iii. Business model of Johnsonville Sausage can be easily imitated by

the competitors in the industry.

3. Opportunities

i. Increasing adoption of online services by customers will also

enable Johnsonville Sausage to provide new offerings to the

customers in leading teams, organizational structure industry.

ii. As customers have to migrate from un-organized operators in the

leading teams, organizational structure industry to licensed players.

It will provide the company an opportunity to penetrate entry level

market with a no-frill offering.

iii. The low inflation rate brings more stability in the market, enable

credit at lower interest rate to the customers of Johnsonville

sausage. This will increase the consumption of Johnsonville

Sausage products.

4. Threats

i. Even though at present the Johnsonville Sausage is still leader in

product innovation in the Innovation & Entrepreneurship segment. It

is facing stiff challenges from international and local competitors.


ii. Distrust of institutions and increasing threat of legal actions from

Johnsonville sausage.

iii. Saturation in urban market and stagnation in the rural market.

VI. Alternative Courses of Action

1. A possible solution to the problem is they arrange for each member to

dedicate 20 hours per week volunteering time in the community.

ADVANTAGE:

 This will allow the Johnsonville Sausage to develop, learn and

educate themselves.

DISADVANTAGE:

 This will take too much time to adjust in changes.

2. They could continue to train their employees more strictly so that

eventually they could prevent another incident that happened four years

ago.

ADVANTAGES:

 If this works out, this could boost the image of the Johnsonville

Sausage.
DISADVANTAGES:

 This is a long-term plan to be executed..

3. Johnsonville should hire local agents to have an advantage in the local

markets which would help them to gain more popularity and generate

more income.

ADVANTAGES:

 They could capture other markets which they found as a potentially

interesting market.

 They could have bigger chance of winning the local market they

plan to go to since they have local agents that could help them

negotiate with that particular location.

DISADVANTAGES:

 The possibility of failure despite of having a local agent will still be

there.

 This will not guarantee that the local markets will not choose the

other competing productions.


Recommendation:

I, therefore, conclude that the best solution to the problem is alternative course of

action no. 1 which is the Johnsonville Sausage should arrange for each member to

dedicate 20 hours per week volunteering time in the community. They should live up to

their reputation regarding treating their employee with dignity is their top priority. The fire

incident that happened four years ago was not the fault of any individual, thus the

company felt to treat their employees decently. After all, their team members were

important stakeholder in the Johnsonville way of doing business.

VII. Plan of Action

1. Landscaping, teaching, and general community improvement efforts

across Watertown.

2. They shouldn’t terminate an employee.

3. Johnsonville Sausage must live to their motto and that is treating their

employees as the top priority.


VIII. Potential Problem

1. What if Johnsonville Sausage can’t respond quickly to the needs of niche

markets that disruptors are focusing on?

2. What if the trade relations between China and US can still affect

Johnsonville Sausage growth plans?

3. What if the legal procedures have become expensive and long drawn

process?

IX. Contingency Plan

1. Johnsonville Sausage is still considered the leader in product innovation in

the Innovation & Entrepreneurship segment, although there’s still

pressure, they have to trust in their stakeholders.

2. Although it can affect the growth plans of Johnsonville Sausage, the trade

war between China and US was already down and settled. So the

potential to expand operations in China can now be implemented.

3. Johnsonville Sausage has to find a way so it can’t lead to less investment

into emerging markets thus resulting in slower growth.