Part I
1. My impression of Quaker’s overall strategic planning was negative. It’s not just knowing what the consumer wants, but the organization has to deliver success. I don’t believe they planned well enough. A big loss of profits was from the inability to streamline their distribution. Quaker should have looked into the idea further and had an alternate solution ready in case profits didn’t flourish, which they didn’t. Also, I believe Smithburg took a risk on the idea, but played it off by saying, “We certainly believe we bought a brand with legs,” which suggests that he knew what he was doing all along. If Smithburg knew what he was doing from the start, he wouldn’t have taken a $47.8 million dollar loss. Quakers strategic planning was not well thought out and the company was continually making changes to react to the negative outcomes. I believe if Quaker would have used the Six Priorities that make a great strategic decision, they would have been more prepared and possibly could have survived in the market without taking such a big loss. These six priorities include:
1. Keepings products/services up to date
2. Gaining and maintaining customer service
3. Minimizing confusion by building an infrastructure and systems to establish and sustain high performance
4. Improve processes and procedures for efficiency, quality, and return
5. Developing committed and competent workforce
6. Positioning for the long-term by identifying trends, assumptions, and issues that offer other opportunities or potential threats (Lippitt 58)
2. I feel the steps Quaker should make to adap ...