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 structureGeographical Divisional Grouping

Head office

Regional office

Finance

Marketing

Purchase

Sales

Regional office

Finance

Marketing

Purchase

Sales

Regional office

Finance

Marketing

Purchase

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

1.

Entrepreneurial

Stage

2.

Collectivity

Stage

3.

Formalization

Stage

4.

Elaboration

Stage

Crisis:

Need to deal

with too much

red tapeCrisis:

Need for

delegation

with controlCrisis:

Need for

leadership

Creativity

Provision of clear direction

Addition of internal systems

Development of teamwork

Crisis:

Need for

revitalization

Decline

Continued

maturity

Streamlining,

small-company

thinking

S

I

Z

E

Large

Small

Organizational Stages of Development

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