Johnsonville Sausage - Essay Example

It means achieving success by working with people rather than "getting things done" by people. The answer lies not in defining and limiting the scope of their activities but in allowing them to define their work commitments and targets for themselves, with the organization playing the role of a provider of resources and coaching. It entails seeing the workforce as a source of strategic advantage, not just as a cost to be minimized or avoided. Johnsonville recognized that if it wanted to become a major player, the company had to redefine how it valued and recognized its resources.

Instead of raw materials or physical assets, knowledge is now recognized as the major source of wealth and the basis for competitive advantage. But to leverage knowledge assets, we must fundamentally transform the way we organize and use this resource. Those organizations, which can create a team-based structure and culture, become significantly more profitable as a result; Johnsonville is a prime example. Present Issue: At this moment Ralph is faced with the question of whether he should accept the order for private-label sausage manufacture from Palmer Sausage (Palmer).

The order represents a sea change in the status of Johnsonville Sausage since it will involve a 25% jump in sales from an obviously profitable venture. However, his concerns as to whether this can be handled in the existing set-up of the company also appear justified. Analysis: One may look at the history of the company's financial performance and success. The question that may be raised is whether this growth rate can be sustained. From the details provided, one can see that the production capacity is fully utilized and, except for the seasonal variations, the sales have also reached saturation levels.

Seasonal variations are not within the control of the company in any case. Market share growth is also likely to be difficult with the main product of the company, the bratwurst, already enjoying a 46% market share; other products also do not appear to present many opportunities as well. In addition, one finds reference to the beginnings of restlessness among the workforce also.