Sunflower Incorporated

Synopsis

This case refers about a large distribution company which resells products related to snacks. This company undergoes a change in its financial reporting system which was suppose to increase its profits and decrease its cost as well as to compete with its rivals.

Issues

• The major issue that this case highlights is manipulation in products in some regions to increase the sale and the profit of the company.

• This manipulation in products is selling low quality products to the consumer which may hamper the goodwill of the company.

• The other issue is ineffectiveness in implementing change program that Agnes Albanese initiated.

• Even after agreeing with the change program, not a single regional executive bother to send the pricing and purchasing report.

Analysis

The first question here arises is why the change program that Agnes initiated failed. The reason for this is inadequate analysis and resources, failing to establish clarity of outcomes, inadequate supply of information, and lack of coordination from the regional executive part. Earlier the organization was running on decentralized organization structure where regional executive had freedom to take decisions of their own but with this new change there authorities were decreased and decision making process regarding pricing and purchasing were centralized. The other thing was that change process was initiated on peak sale season which was also one of the adjacent factors for the failure. The decision of the top management to bring somebody from outside to monitor the pricing and purchasing process was a good step but the initiation of change program from Agnes Albanese side