Profitable Brand for Hostess Brands Inc - Assignment Example

Business Model Introduction Hostess brands Inc. is a large company that deals is in the food industry. The company owns many brands as wonder bread, Hostess cupcakes, Ding Dong, Ho Hos and Drakers Devil Dogs. The fall into bankruptcy of the giant Hostess brands has left it with the option of selling some of its brands awaiting the court-supervised auction to follow. This provides an opportunity of a lifetime to buy wonder white bread brand name. The company has experienced staff, and the brand sells itself throughout the country. There are many bidders for the brands. The brand that interests the company the most is the wonder bread. The report provides a detail strategic plan. The plan will ensure that the brand is profitable. The Hostess brand Inc. plunging into bankruptcy is due to the expensive business model that they use to operate. The company owns a large network of buildings, trucks; employees, teamsters and the bakers union. After identifying the weakness of the Hostess brands, Inc. Pepperidge farm Bread Company would restructure the business model and the brand would be profitable to the company. The shortcomings of Hostess Company are due to the expensive business model that it adopted. The model that Pepperidge farm Bread Company has will be able to sustain the brand. Buying the brand will not be a waste of resources but vale to the company. Pepperidge farm Bread Company business model do not allow the company to own all the assets that in the bread making industry, but only the crucial part are handled with the company. The company however monitors all the proceedings that involve the sale of its products. The company has the right to terminate the contract that it might have entered into with a distributor or any business party. The company would not distribute the brand once acquired, but use independent distributors to do the work. This would ensure that even if the workers paralyze the normal distribution, distribution would still go on as usual. The company has set some guidelines for the awarding of contracts to distributors to protect its interests. The company uses the strategy of the distributor paying for the bread and earning from his sells. This ensures that the distributors work hard and sell the product. These will ensure that the distributors look for more customers to get more sells and earn more. These also reduce the company’s losses compared to when it is the company’s workers distributing the bread. The company has also reduced the cost of operation. The distributors are required to buy their own truck. This reduces the maintenance costs of the trucks. The strategy also ensures that only financially able distributors get the contracts to distribute the bread brand. Since the brand is popular within the population. The production would be in mass to satisfy the market. However, the number of bakeries required to achieve this will depend on factors as the route that the distributors are able to cover efficiently. New establishment will only be set up in places that have a high market and the supply is insufficient to certify the market. Research is conducted before setting up new bakeries. In the meantime, Pepperidge farm Bread Company will use the bakeries accrued with the brand as it continues to study the market. The Pepperidge farm Bread Company will maintain the sole right to the formulae of making the bread and packaging. The company will also maintain the proprietorship rights but release as the distribution rights of the bread. The routes that the Pepperidge farm Bread Company own will go for bids. These routes will be sold to the highest able birder. The bidder will have to demonstrate that he can handle the route. The selling of the routes will help avoid unnecessary competition in the routes amongst the distributors. The act will also ensure that each distributor works hard in his designated route achieve more sells. The model that Pepperidge farm Bread Company adopts does not require the company to own everything in its line of production. This allows the company to protect its interests and maximize on profits by reducing the operation costs. The company also minimizes its labor force in the process avoiding rubbing shoulders with workers unions. The company management is left with the few tasks to concentrate on. This gives the management an easy time and the management become more efficient compared when the tasks are many. There will be rewards for the extra ordinary performance from the distributors. These will encourage and give them the moral to perform better. It will also create a competition among the distributors to perform better to get the award. The unmotivated workers contributed to the collapse of Hostess brand Inc. Pepperidge farm Bread Company enact motivation strategy to its workers to avoid a similar scenario. Most of the unmotivated workers lack a reason to make them want to come to work the next day. The company management will ensure that these workers have a reason to make them explore all their potential. The company is going to set targets that the workers aim to meet. These goals are set at the departmental level, and the departments work together to achieve them. The workers are made to feel appreciated and of importance to the company. These will have a positive impact on their moral and they will work in an environment that they know is professional, and their skills are recognized. The company management will ensure that the workers welfare is considered. When a worker is sick, he is given a sick off. These will make the worker feel appreciate and want, to continue working for the company. The results are that the output of the workers will be high, and they will be creative in their work place. The management will encourage workers to participate even more innovation. The newly acquired brand will require creativity to sell even more in the markets and compete effectively. The management will identify workers with a unique talent and encourage them or the betterment of the brand. There will be a free environment for easy interaction between the workers and management for improvement on the brand. The company will have the employee of the month award. This award will come with some token on top of it. This will motivate the workers to work even extra hard to earn it. There will also be a provision for the employee of the year. The departments that will be performing well are congratulated and motivated solder on with the same spirit. The departmental heads organize regular meetings with the departmental staff. Working as a team should be encouraged and the department staff encouraged following the companies motto. In good economic times, the workers will receive a bonus that will motivate them to work harder the following financial year. The bonus encourages the workers and makes them fill as part of the company. These helps the workers fell as if they are a family and not mare workers. This has a positive effect on the moral of the workers. Employees who show extraordinary efforts in their work will receive promotions. The promoting criteria should be disclosed to the employees. This gives them the moral to strive to achieve the promotion. When a worker is given a promotion, it motivates him to work extra hard to improve the brand. The company will organize once annually a motivation fun day where workers can appreciate their gains. The fun day should bring the families of the workers together. These makes the workers feel attached to the company. The fun day also helps the workers release the stress that may be due to family or the work place. The fun day helps the workers recharge and they are renewed for the next phase of work. These will be beneficial to the brand, as the workers will face the challenges ahead with confidence (Renckley). The company organizes seminars that help motivate the workers and give them skills to do their work even more efficiently. The seminars also give the workers a chance to interact with their bosses freely and share ideas on the brand. The strategies are subject to change with the changes in time to ensure the company stays afloat. Works Cited Renckley, Richard G. Human Resource. New York: Barrons Educational Series, Inc, 2004. Read More