Strategic management

CASE STUDY MANAGEMENT CASE STUDY MANAGEMENT Question Companies operate in different social environment. As a result they affect different persons both internally and externally. Thus they should not just operate in what benefits them alone but to the entire society (Hill & Jone, 2012), so that they can impact change among individuals. This is what is used by the Ivanovic in their daily operations.
The company nurtures its own employees so that they can maximize on them. This ensures that they provide equal opportunities to members in the society whether experienced or inexperienced. The workers are made to corporate in the work place to ensure smooth work flow in the organization since shared productivity is key to any success in a company (Hill & Jone, 2012).
The company has also decided to create fair business environment in the society. After the Ivanovic had sold the company earlier to the d Avigon, they decided to create a new brand rather than provide similar commodity so that they could avoid business misunderstanding with their friends. This cannot be said of the regular bakeries who might have ventured on the same business creating unhealthy competition in the market
The company also offered language training to the immigrants so that they could create an effective communication and organized events such as soccer. These measures created unity both at work place and back at home that ensured peaceful coexistence in the society which is the quiet opposite of the regular bakeries.
Question 2
The company insisted in the use of organic in the production of bread instead of the cheap inorganic components. Expensive use of raw materials leads to high costs in the production. This leads high prices that negatively affect the sale of the products (Hill & Jone, 2012). In fact, this might have formed part of the decision to sale part of the business in order to raise the funds.
Hiring was majorly done on inexperienced workers who had to undergo training in the company. This affects the organization in terms of time consuming and increased expenditure. The organization would have hired mixed workers so that the inexperienced can learn in the process of work and save the costs.
The company was in dire need for expansion and they refused the venture and franchising measures proposed to them. These groups only act as capital providers and do not take the firm away (Hill & Jone, 2012). They even raise more healthy capital for the organization than the loans. If I were the Ivanocic, i would have accepted their proposal to oversee the growth in the company.
After hiring Mathew, Ivanocic provided too much room for the CEO to decide on critical decisions that negatively affect the company. However much the CEO needed autonomy, they must take part in hiring of staffs in key positions in the company.
The company was in downwards after the hiring Mathew, they knew but they took so long to act as it was obvious the CEO was not fully committed to the organization. The company owners would have intervened and bring back the employees confidence before the problems escalated.
Question 3
I would have rejected the proposal. This is due to the fact that, salary is never based on profits and the CEO was already being paid to increase the company profits and does not have a right in profits since he is not a shareholder.
References
Hill, C. W. L., & Jones, G. R. (2012). Strategic Management. Cengage Learning.