Strategic Management - the Ivanovic - Case Study Example

The company has also decided to create a fair business environment in society. After Ivanovic had sold the company earlier to the d Avignon, they decided to create a new brand rather than provide a similar commodity so that they could avoid business misunderstanding with their friends. This cannot be said of the regular bakeries who might have ventured into the same business creating unhealthy competition in the market
The company also offered language training to the immigrants so that they could create effective communication and organized events such as soccer. These measures created unity both at the workplace 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 on the use of organic in the production of bread instead of the cheap inorganic components. The expensive use of raw materials leads to high costs in production. This leads to high prices that negatively affect the sale of the products (Hill & Jone, 2012). In fact, this might have formed part of the decision to sell 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 consumption and increased expenditure. The organization would have hired mixed workers so that the inexperienced can learn in the process of work and save costs.
The company was in dire need of 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 Ivanovic, I would have accepted their proposal to oversee the growth of the company.
After hiring Mathew, Ivanovic 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 the hiring of staffs in key positions in the company.
The company was in downwards after the hiring of 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 brought 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 to profits since he is not a shareholder.