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Case 7 Hasseur Case

Hausser Food Products is facing declining sales and profits as the baby food market slows. The company's regional sales manager, Brenda Cooper, believes the highly successful Florida sales team may be withholding strategies that could help other districts improve. Reasons for the Florida team's success include autonomy in their work and an aversion to sharing details that could reduce their bonuses if corporate imposed nationwide. The recommendation is to reform compensation and management practices to encourage collaboration instead of competition between districts.

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Ruchika Singh
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187 views3 pages

Case 7 Hasseur Case

Hausser Food Products is facing declining sales and profits as the baby food market slows. The company's regional sales manager, Brenda Cooper, believes the highly successful Florida sales team may be withholding strategies that could help other districts improve. Reasons for the Florida team's success include autonomy in their work and an aversion to sharing details that could reduce their bonuses if corporate imposed nationwide. The recommendation is to reform compensation and management practices to encourage collaboration instead of competition between districts.

Uploaded by

Ruchika Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CASE: HAUSSER FOOD PRODUCTS

Background.

Hausser Food Product Company (HFP), a United States (USA) manufacturer and marketer of
baby foods, is the industry market leader. The company currently has a market share of about 60
%. The company is currently facing changes in the infant-food market. Decreasing country birth
rates coupled with concerns about food additives used in food additives have led to sluggish
growth in industry sales. Increasing competition in the industry is also a major source of concern
for the company. The company's sales of the previous year dropped to 3 % while the company's
profits fell even further due to unused plant and warehouse capacities. Hausser Food Product
Company's Top Management (HFP) is concerned about the situation, and seeks ways to
stimulate short-run growth. Brenda Cooper, the company's Regional Sales Manager, is
concerned about the existing methods of selling the company's product, and is even more
concerned about the marketing departments not coming up with fresh ideas from the field about
how to boost sales.

Reason:

Hausser Food Company is a mono product company whose product has reached maturity, and
now slows down sales growth.

Brenda Cooper claims that to drive sales of its goods the company has to do something new with
another.

Brenda expected the sales team to come up with ideas that could further improve the company’s
product sales growth, but it does not seem to receive input from the market.

After careful review of the sales details from the different districts in her area, Brenda Cooper
found that the Florida district team has consistently surpassed their target by 10 percent while
other districts have fallen short in target.

Brenda believes that the Florida team is hoarding information that could be vital to other districts
of the company since those districts are often behind in sales projections.

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Reasons behind the actions of the Florida District Team:

 The Florida team is reluctant to reveal details to Management because they feel that if
they reveal such details, if they may threaten their bonus to keep them on the job, they
would be left with only the comparatively small base salary.

 At Hausser Foods Company, the top-down approach to standard setting does not
encourage lower-level managers and sales reps to be involved in decision-making. So this
limits their imagination and the organization’s commitments.

 Top Management's continued rise in performance expectations for sales reps and district
managers appear to risk their bonuses.

 Top management can also reduce the paper work requirements of sales representatives.
Sales representatives feel overburdened by fulfilling Management demands in report
filling areas. The sales reps assume that instead of submitting several reports to
headquarters, they should be concerned with sales.

 The sales reps claim that Management's reward / incentive for presenting essential idea
that could help the business achieve its goals is a small one.

 Sales rep in Florida does not like being micro-managed. They want autonomy or
independence; make use of their initiative to get their results.

Recommendation:

 Compensation should not be disincentive to information and idea sharing, it should also
not lead to sub-optimality.
 Design the organizational architecture to motivate and align people
 Ensure frequent meetings between Management and teams within the organization.

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 Employees are adequately compensated for sharing knowledge that could ensure the
progress of the organization.
 Inclusion of a representative of sales reps in performance setting.
 Reduction in clerical activities performed by sales reps.
Ruchika singh
Pgfc 1955

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