INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

Presentation On:
The Chattanooga Ice-Cream Division
(Stress management)

Presented By:

Aashutosh Jangid(16810003)
Abhishek(16810005)
Anand VR(16810012)
Divyasnh Bhatnagar(16810031)
Vivek chopkar(16810082)
 Table of Contents

• Introduction of Company
• Leadership change and its impact
• Chattanooga’s ice-cream crisis
• SWOT Analysis
• Role Play
• Stress and stress management
• Best solution for the case
• Learning lesson from case

2
Introduction of company

Chattanooga Food Corporation (CFC) found in 1936 by

Charlie Moore’s grandfather.

It was one of the largest regional manufacturers of ice

cream in US.

It’s having primary supermarkets and related food

chains customers, and trading as a producer of mid
priced basic flavors of ice creams products.
3
Introduction of company

4
Company’s Hierarchy

Clinton
Moore
CEO

Charlie
Moore
President & GM

Barry Kent Stephanie Frank

Les Holly Billy Fale
Walkins Donaldson Krane O’Brien
Marketing Sales Production R&D VP & Controller Personnel

5
Charlie Moore (President and General Manger)

• Grandson of founder and son present CEO and chairman.

• Spent 5 years as photographer with National Geographic
Magazine.
• Spent 10 years with CFC in different departments.
– One in field sales with specialty foods
– 3 in finance and control at the corporate level
– 2 in marketing in grocery product division of CFC.

6
Charlie Moore (Leadership style)

7
Charlie Moore (Leadership style)

8
Charlie Moore vs Predecessor(Clinton Moore)

Predecessor(Clinton Moore) Charlie Moore

 Kind of autocratic  Relationship oriented

 Knew more about the  Believes in the value of
business than anyone else group base decisions
 Well developed network  Collaborative environment
for gathering and to bring people together
communication formally to share
information information
 Rarely felt need to consult  Consult on decisions and
his subordinates from
 Reserved important  From consensus
decision to himself

9
Current situation

Stay & shop contract issue

Flat and declining sales in last four years

Aggressive competition in super premium

and mix-in ice-creams

3 out of 7 members of the top

management leave in five years

US per capita consumption of ice cream

slowed.

10
Current situation

No upgraded MIS to a more

extensive product line

Stores are out of stock and back

ordered way too frequently

Division is working on new

project of non-fat formulation

11
Troubles in chattanooga’s ice-cream division

Sealtest’s product range & flavors and money thrown to stay & shop to buy
more freezer space.

Top management team is dysfunctional

Leadership decisions doesn’t fit the situation

The team has no direction/clear

leadership.

Leader (Charlie Moore)

was acting as gatekeeper
(maintenance oriented
behavior)

Lack of market
awareness
(customer’s need)

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 Stay & Shop => Chattanooga Ice creams

 Stay & Shop: a vast and established retail/supermarket chain

in USA.
 Third largest customer of Chattanooga ice cream division @
6.5 million USD revenue.
 Promoted Chattanooga’s flagship mid priced five basic
flavoured ice creams and line of frozen yogurts.
 Inventory gets out of stock and back ordered too frequently.
 Lesser margins offered and no promotional payments for
promoting Chattanooga's products..
 Demand of Chattanooga's products falling.
 Stay & Shop unhappy with Chattanooga and looking for
alternative suppliers which will benefit them more.

13
Stay & Stop => Sealtest

 Stay & Shop planning to replace Chattanooga with Sealtest

in all its southeast region supermarkets.
 Sealtest provided more than a dozen varieties products
including Mix-in along with the basic smooth flavors.
 Sealtest also provided several discount structures and
promotional allowances.
 Sealtest paid Stay & Shop up front for two years to get the
freezer chests and thereby promote their line.
 Improved service by production in large scale and huge
inventory for unlimited supply also gave Sealtest upper hand.

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Chattanooga out of Stay & Shop

 Without Stay & Shop business, there will be a reduction in

operating profit of Chattanooga ice cream division by 25%.
 The news of loosing Stay & Shop will unfavorably impact
Chattanooga's business with other customers.
 Chattanooga’s management has to come up with strategies
to overcome the fore coming losses and level-up with the
competitors and emerge back as the market leader.
 Stress within the top management increased manifold as no
one wants to take responsibility of this loss and started
blame games.

15
Colgate vs. Patanjali

 Patanjali Ayurved, the home-grown foods-to-FMCG

toothpaste brand Danta Kanti has eaten into the global
leader Coalgate Palmolive’s toothpaste market.
 Patanjali has garnered a 4.5% market share in the
toothpaste segment since its launch.
 in the last one year, Colgate Palmolive, the sector leader,
has lost its market share by 60 basis points.
 in response to this Colgate plans to launch newer products in
the 'natural' space.
 Cibaca Vedshakti will be the first one in Ayurvedic segment
by Coalgate.
 Colgate's Cibaca Vedshakti will be priced at Rs 50 for a 175
gram pack, which is around 30 per cent cheaper than Danta
Kanti.

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General case

• Holding major share in a particular product/service

Industry • Following a conventional method of operation
leader

• Launch of better product/service

Entry of • Innovatively implementing operations and promotions
competitor

• Major market share of predecessor overtook by the competitor

• Stress inside management of loosing company increases thereby
Toppling of
forcing them to implement strategies to come back on top
key player

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SWOT Analysis

S W

SWOT

O T
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Strengths

• Existing distribution and sales networks

• Skilled workforce

• Domestic market

• Trusted & established brand

• Proper parent company as a backbone

• Experienced Staff

• Quality product

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Weakness

• Lack of market awareness

• Information system is not established

• Less number of variety in product

• Leadership is maintenance oriented

• Decline in sales and operating profit

• Oldest production inventory is closed

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Opportunities

• New product launch(Non-fat product)

• Expansion of the product line in the future

• Higher market share

• Expanding market in other states

• Regaining value in supermarket chains

• Increasing the mix-in and super premium products

21
Threats

• Competition with brands which has more variety in products

• External changes

• Loosing more customers like Stay & shop

• Consumption of Ice cream per capita in the region had

slowed

• Key staff leaving

22
Chattanooga Ice-Cream Division

23
U.S. per capita consumption of ice-cream(quarts)

24
Dollar share trends by the segment in the U.S. frozen dessert
market

25
Ice-cream flavor : Total U.S. volume share

26
U.S per capita production of ice-cream and related
products (quarts)

27
Role Play

28
What is Stress?

• The unconscious preparation to fight or flee that a person

experiences when faced with any demand.
• Stress is a dynamic condition in which an individual is
confronted with an opportunity, demand, or resource related
to what the individual desires and for which the outcome is
perceived to be both uncertain and important.
• Stress is associated with demands and resources.
• Stress can be good or bad.
• Distress - the adverse psychological, physical, behavioral,
and organizational consequences that may arise as a result
of stressful events

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A model of Stress

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Stress model analogy

• Stephanie Krane talks about economic uncertainty. She

suggests that more money can’t be spent on promotions.
• Billy Fale talks about lack of IT technology support for
support line which is a technological uncertainty.
• None of the VPs out of six departments has self efficacy.
Everyone tries to shift blame from them to others.
• Charles Moore could not take a firm decision. In a four years
of leadership he did not make any changes. It comes under
Organizational Leadership.
• Every VP has a different perception about each other.
• Walkins pressurizes Donaldson to pass product without
adequate testing.

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Sources of Stress: Work Demands

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Sources of Stress: Non-work Demands

33
Stress leads to conflicts

Billy Fale
Barry Walkins Les Holy
Production
Marketing VP VP Sales
VP
Stephanie
Krane
VP and
Kent Controller
Donaldson
VP R&D

IT
Professionals

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Stress hampers decision making

• Try to replace volume in new chain in Florida.

Les Holy VP • Florida is far away. Requires substantial promotional amount.
Sales

• Can’t spend more money on promotions.

Stephanie • Freeze employee salaries.
Krane VP and • Eliminate cost of living increased on retirees’ pension and health care.
Controller

• Already production line weak.

Frank O’brien • Work force’s morale will go down.
VP Personnel

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Stress hampers decision making

• Opposes Stephanie’s decision.

• Favors more money spending.
Barry Walkins
VP Marketing • Add exciting mix-ins. Add new bulk packaging.

• Add new line of non fat ice cream.

Kent Donaldson • Demands $250000 additional for fast track development.
VP R&D

• Eliminate chocolate chips and coffee to promote other

products as their share is 15%.
Billy Fale VP
Production • In favor of regular and economy brands.

36
Stress hampers decision making

• Frank O'Brien opposes Stephanie Krane’s suggestion of

freezing salary.

• Stephanie Krane opposes Kent Donaldson’s suggestion of

additional $250000 expenditure on new line of ice cream.

• Les Holly opposes Billy Fale’s suggestion to eliminate

chocolate chips and coffee.

• So none of them could freeze down on a single decision.

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Inverted-U Relationship

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Preventative Stress Management

• Certain jobs are more stressful than the others.

• Individuals differ in their response to stressful situations.

• Organizational philosophy according to which people and

organizations should take joint responsibility for promoting
health and preventing distress.

• Individual approaches for stress management can be divided

as physical and emotional.

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Managing Stress

• Individual Approaches
– Time-management techniques
– Increasing physical exercise
– Relaxation Training
– Expanding the social support network

• Organizational Approaches
– Goal Setting
– Redesigning of Jobs
– Increased employee involvement
– Improved organizational communication
– Offering employee sabbaticals
– Establishment of Corporate wellness programs

40
Individual preventative approaches

• Primary Prevention – Designed to reduce, modify, or eliminate the

demand or stressor

- Positive thinking
- Time management
- Leisure time activity

• Secondary Prevention – Designed to alter or modify the response to a

demand or stressor

- Physical Exercises
- Relaxation Trainings
- Diet

• Tertiary Prevention – Designed to heal symptoms of distress and strain

- Opening up
- Professional help

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Role of Manager in stress management

• Learn how to create healthy stress without distress

• Help employees adjust to new technologies

• Be sensitive to early signs of distress

• Be aware of gender, personality, and behavioral differences

• Use principles and methods of preventive stress

management

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“The time to relax is when you don’t have time for it.”
– Sydney J. Harris

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Stress management by Sandip Maheshwari

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 ANALYSIS

• Solutions offered by different managers of Chattanooga Ice

Cream Division and their inferences

• Options for Moore to ponder over

• Best probable way for Moore to go (Decision Making)

• Take away from the case

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Solutions offered by different managers of
Chattanooga Ice Cream Division & Inferences
• LESS HOLLY (VP, Sales)

• Suggested to collaborate with new chains in Florida for the

replace of volumes left from Stay & Shop
• Encouraged cost to promotions for an early start of
business.

• Inference - This idea does not work since this will not solve
any problems which in the future mayarise since it does not
solve the problem why Stay & Shop leaved in the first
place.

46
Solutions offered by different managers of
Chattanooga Ice Cream Division & Inferences
• STEPHANIE KRANE (VP & Controller)

• Suggested to cut expenses by the same amount as the

operating profit losing at Stay & Shop

• Inference – Just a short term solution. Customers will again

in the long run go for the competitors who have a bigger
assortment and they will face the same problem over and
over again.
• Higher dissatisfaction among employees.

47
Solutions offered by different managers of
Chattanooga Ice Cream Division & Inferences
• BARRY WALKINS (VP Marketing)

• Suggested investing in growth over cutting expenses

• Stated expansion better than promotion
• Suggested adding up new flavours and 5-gallon bulk
packaging

• Inference – The idea is good but involves risk and a thought

is to be given oh how to pay dividends to CFC and arrange
such huge investment

48
Solutions offered by different managers of
Chattanooga Ice Cream Division & Inferences
• KENT DONALDSON (VP R&D)

• Suggested new launches (growth) over cost cutting.

• Intended investment for a new Fat free ice cream launch, for
a fast track process

• Inference – Considering Krane’s aspect, on time delivery in 6

months seemed skeptical. Moreover, an amount of $250000
was huge to invest.

49
Solutions offered by different managers of
Chattanooga Ice Cream Division & Inferences
• BILLY FALE (VP Production)

• Eliminate chocolate chip flavor to lower the production cost

• Favored cost cutting over growth

• Inference - Cutting product line could have negative

consequences for the company’s image and the
perception of the clients. They may loose some further stores

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 Perception of Personalities

• Barry Walkins (VP marketing) He is very creative and had a

good intuitive sense of what consumers wanted but
disorganized and often lacks follow through

• Billy Fale (VP Production) He is a very knowledgeable and

disciplined and competing, vice president of production but a
bit rigid in his thinking and anchored in the past.

• Kent Donaldson (VP R&D) He would be classified as

collaborating Vice president of research &development and
had conflicts with Walkins.

51
 Perception of Personalities

• Les Holly (VP Sales) The division’s sales manager who has
a tendency to withhold information and sometimes does not
follow through.

• Stephanie Krane (VP & Controller) She had a strong record

of delivering on her promises.

• Frank O’Brien (VP, Personnel) He is uncooperative,

avoiding and unassertive

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 Stress Management for the case study
Character Facts Reasons for Stress Stress Management

Charles Moore 1. Poor leadership 1.Lack of control 1. Prioritizing

2. Confused 2.Role conflict: activities
personality Interole & Intrarole 2. Knowing daily
cycle
Les Holly 1. Absenteeism 1. Personal Role 1. Meditation
2. Lack Of 2. Ground job & 2. Organizational
communication Travel communication
Billy Fale 1. Rigid in thinking 1. Strenuous 1. Increase
2. Anchored in past activities employee
2. New technologies involvement in
decision making
2. Yoga and
Meditation

53
 Stress Management for the case study

Character Facts Reasons of Stress Stress Management

Kent Donaldson 1. Failed product 1. Role ambiguity 1. Scheduling

2. Demand of extra 2. Temporal activities
capital for R&D pressure according to time

Stephanie Krane 1. Negative view 1. Financial 1. Knowing daily

towards risk instability cycle and urgent
2. Short sighted 2. Company demands
progress 2. Wellness
programs like
yoga and sports
Barry Walkins 1. Less organized 1. Change 1. Meditation
2. Lack of follow 2. Inter-role 2. Proper follow-up
through and priority
management

54
 Options for Moore to Ponder Over

• Cost Cutting :-
1. Cutting down salaries, benefits to employees
2. Shutting down Chocolate ice – creams

• Company Growth :-
1. Launching new fat free ice – cream
2. Promotions
3. Adding new flavours and 5-gallon ice cream

55
 Best Way for Moore to go (Decision – Making)

• According to our analysis, Growth is the correct approach.

• The idea of Walkins finds high suitability, as it is feasible and

achievable in time.

• Meanwhile, IT and inventory management should be taken

care off, where investment is not required, only follow up will
do.

• Later, with better grip on market, promotions also can be

better taken care of

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Stress Transformation

STRESS

STRESS MANAGEMENT

STRESS RELAXATION

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Stress Relaxation Techniques

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Stress Relaxation Techniques

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Stress Relaxation Techniques

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Stress Relaxation Techniques

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 General Take Away from the Case

1. Stress is not bad

2. Stress makes a person realize his/her potentials

3. But stress needs to be managed well

4. Different stress relaxation measures should be taken to

make stress management easy

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General Take Away from the Case (Contd..)

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