Mrs. Fields' Cookies - Case Study Example

Although in the early years, the concentration was rigid on the product lining of the company to market only the cookies, in the later years, with the improvement in the performance, the company started marketing ice-creams and other baked products along with cookies in 14 unparallel flavors and varieties. Incidentally, the company emerged as one of the major players in the sweet snack industry. The company in this virtue expanded its operations in different parts of Japan, Hong Kong and Australia.

It was during 1987 when the company initiated the acquisition of a France based bakery and/or sandwich store named as La Petite Boulangerie (LPB). LPB during the period was operating through almost 119 stores scattered in every nook and corner of the country under the corporate head of PepsiCo (Harvard Business School, “Mrs. Fields' Cookies”). Fields’ Initial Actions upon Acquiring LPB The dimensions of LPB in terms of both product lining and organizational structure were largely different from that of Mrs.

Fields’, Inc during the period. Therefore, it was quite likely that in the realistic practices both the companies will have unparallel values and objectives as well. In this regard, to transform the objectives and the vision of LPB in order to be similar as that of Mrs. Fields’, certain major changes were enforced which brought about drastic changes in the managerial outlook of the company. For instance, LPB associated more than 53 administrative staffs to control its outlets through various departments from marketing and sales to Research & Development (R&D).

But as a result of the acquisition, the number of administrative staffs was reduced to only three as Mrs. Fields’ took control of the overhead functions of LPB, such as the finance department, the human resources department and others. Only the operations and the R&D department were left unchanged (Harvard Business School, “Mrs. Fields' Cookies”). Reasons to Initiate These Actions According to Randy Fields, the acquisition was enforced as an expansion tactic due to the fact that LPB dealt with both cookies and various other bakery products to the upscale customers through sit-down cafes.

However, as stated by the founders the strategy represented something extra than just expansion, which was treated to be new concept for Mrs. Fields’. It was due to this reason that the stores of Mrs. Fields’ after the acquisition went through a change process in order to obtain a new outlook of a combination store. This combination store thereby would serve both cookies and other bakery products along with ice-creams and deserts. Another reason to attempt the strategic decision of acquiring LPB was the belief of Randy.

According to Randy’s perception, Mrs. Fields’ stores were running so vividly that any thing which adapted the brand name would perform well in the targeted market. Consequently, the then market analysis also depicted that the popularity of the quality baked products are somewhat resistant to the economic fluctuations. This in turn encouraged the founders to undertake the risk of acquisition and reformation. The in-depth cause of acquiring LPB was to incur a larger profit than Mrs. Fields’ could gain separately (Harvard Business