Organization Development and Change Case Study

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Organizational Development and Change at FunTime Snacks

Summarize the major problem(s) at FunTime. Choose the most appropriate diagnostic model for this particular case (organization, group, individual job as illustrated in the text) and apply it to this situation.

FunTime is going through a very disruptive time in their business model as larger, more well-financed competitors are challenging them at a local and regional level, undercutting the FunTime differentiated approach of using local, high quality suppliers and selling. The diagnostic model that best fits the FunTime case study is the organization. Bill Richardson, CEO and founder had been able to keep the entire organization focused on customer satisfaction and the pursuit of high quality snacks when the company had not been challenged by stronger, more focused competitors at the regional levels. Yet as the case study continues it's clear the distribution and pricing strength of competitors is beginning to force each region to act against the core values and principles of the FunTime business model and corporate culture.

From the price discounting and source of inferior snack products to the reliance on market development funds (MDF) and incentive programs, FunTime's regions are beginning to fracture and splinter away from the company. Worse, the pace of new product introductions by Frito-Lay, Borden's Nabisco and Procter & Gamble (P&G) are also forcing the FunTime regions to seek out low-quality products as well to keep up the pace. All of these factors are causing Bill Richardson concern and he acknowledges there needs to be discussion at the corporate level to solve the continued friction in each region against company core values and the heightened competitive pressure on the company overall.

2. Agnes Albanese studied FunTime's situation (i.e., diagnosis) and proposed a solution (i.e., crafted an intervention). Her belief was that the problem would be solved by centralized decision-making. Critique Agnes's diagnosis - both its content, and the way she conducted it. Based on what you have learned thus far, what would you have done differently? Briefly critique her intervention.

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Agnes Albanese is doing exactly the wrong strategy at the worst possible time in the yearly sales cycles of FunTime. With the Holiday Season including the SuperBowl approaching, she institutes a centralized pricing strategy that requires every purchase be routed through her office for approval. She specifically requires every pricing change over 5% be routed by her for approval and all new contracts for new purchases of more than $10,000 be cleared with her office before they are signed and implemented at a regional level. She continued to force the issue of centralized pricing, gaining director-level and eventually Bill Richardson's approval on the strategy. The initiative also passes senior management approval, yet narrowly.

The implementation of the plan is a study in worst practices in Organizational Development. She rolls out the program and it is immediately seen as a threat by regional directors who promptly ignore it and continue doing what they have always done, not telling her they are doing it. She makes the incredibly bad decision of launching it on an internal memorandum alone, not going to each region and discussing it with each director. She fails to get each directors' buy-in, much less discussing the core problems that led to the issues the company is facing. To many of the regional directors this unilateral communication from her office in FunTime headquarters is first seen as a threat and second, most likely as a politically-motivated grab by Agnes to gain greater control and influence in the company. Agnes also fails to realize that pricing is the most volatile political catalyst in the company, and changing the workflow of approvals is seen as a threat to the status of every person involved in that process. Not only are the regional directors concerned by what they see….....

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