Sunflower Incorporated

Presented By : Group 5 Gaurav Mittal-PGP27355 Gautham V- PGP27356 Ghanshyam Bhutra- PGP27357 Himanshu Verma-PGP27358 Anand Ingle-PGP27359 Jyoti Bodh-PGP27363

Nilesh Kotalwar-PGP27365
Prakhar Sethi-PGP27372

Background
Sunflower Inc. is a snack foods and liquor distribution company
Over 5000 employees with sales of more than $550 million Purchases and distributes snacks foods to retail stores Areas served is divided into 22 autonomous regions Each region has a central warehouse, salespeople, finance and purchase department Every division is headed by regional director

Current structure Geographical Divisional Grouping

Head office Regional office Regional office Finance Marketing Purchase Regional office Finance Marketing Purchase Sales

Finance
Marketing Purchase Sales

Sales

Problem Analysis
Environmental Variables:
Demand for liquor was decreasing Large players have their own distribution network

Intense competition

Some regional offices were probably selling low quality product Minimal usage of informational technology Company ill equipped to respond to environmental and market shifts

Initiatives by company
New position created to monitor pricing and purchasing practices
Following changes were suggested by Loretta Williams
Implement information technology in long term Approval of head office is required for changes in local prices of more than 3% All new purchase greater than $5000 to be cleared through the head office Head office to be notified for any changes in purchase and prices

Implementation Flaws
Suggested changes after a mere 3 weeks (Without comprehensive understanding of company structure and culture)
Bureaucratic control was not well accepted by the regional heads Inadequate coordination and communication with the regional head regarding the changes Failed to establish clarity of outcome to the division Inadequate analysis of the situation of individual divisions Change implemented during peak sales season

Barrier to Change
Excessive focus on Costs
Failure to perceive benefits Lack of coordination and cooperation Uncertainty avoidance Fear of Loss

Organizational Stages of Development

Large
Streamlining, small-company thinking Development of teamwork Continued maturity Decline

Addition of internal systems

S I Z E

Provision of clear direction

Crisis: Need for revitalization

Creativity Crisis: Need for leadership

Crisis: Need for delegation with control

Crisis: Need to deal with too much red tape

1. Small Entrepreneurial Stage

2. Collectivity Stage

3. Formalization Stage

4. Elaboration Stage

Recommendations for implementation

Should have established a sense of urgency for changes Improvement in communication Benefits of new pricing and purchase methods need to be explained Meeting with the regional head for discussing the changes to be made

Training in Information Technology

Organization is in crisis at the end of formalization stage New sense of collaboration and teamwork required Improvement in coordination within the regional and head office Company should focus on market expansion

THANK YOU