Harvard Case - Biscuits Poult SAS: How Can Alternative Organizational Designs Be Successful?
"Biscuits Poult SAS: How Can Alternative Organizational Designs Be Successful?" Harvard business case study is written by Frederic Godart, Brian Henry, Mehdi Berrada. It deals with the challenges in the field of General Management. The case study is 17 page(s) long and it was first published on : Nov 6, 2017
At Fern Fort University, we recommend Biscuits Poult SAS implement a hybrid organizational structure that combines elements of a functional structure with a matrix structure, focusing on product-based teams for innovation and agility. This approach will leverage the company's existing strengths while addressing the challenges of its current structure and the need for greater flexibility in a rapidly evolving market.
2. Background
Biscuits Poult SAS is a French biscuit manufacturer facing increasing competition and market pressures. The company's current functional structure, while efficient for large-scale production, hinders innovation and responsiveness. The case study highlights the need for a more flexible and adaptable structure to support growth and innovation. Key protagonists include:
- Jean-Pierre Poult: CEO, concerned about the company's future competitiveness.
- Marie Dubois: Head of Marketing, advocating for greater agility and customer focus.
- Pierre LeClerc: Head of Production, emphasizing operational efficiency and cost control.
3. Analysis of the Case Study
SWOT Analysis:
Strengths:
- Strong brand recognition and established market presence.
- Efficient production processes and cost control.
- Dedicated and experienced workforce.
Weaknesses:
- Rigid functional structure hindering innovation and agility.
- Lack of product development and market responsiveness.
- Limited customer focus and brand differentiation.
Opportunities:
- Growing demand for healthier and more innovative biscuit products.
- Expanding into new international markets.
- Leveraging technology and data analytics for improved decision-making.
Threats:
- Increasing competition from local and international players.
- Fluctuating raw material prices and economic instability.
- Changing consumer preferences and demand for healthier options.
Porter's Five Forces:
- Threat of new entrants: Moderate, due to established brand presence and economies of scale.
- Bargaining power of buyers: Moderate, as consumers have multiple choices but brand loyalty exists.
- Bargaining power of suppliers: High, due to dependence on raw materials and potential price fluctuations.
- Threat of substitute products: High, due to increasing popularity of alternative snack options.
- Rivalry among existing competitors: High, with numerous local and international players vying for market share.
Strategic Analysis:
Biscuits Poult SAS needs a strategic shift towards innovation, customer focus, and market agility. This requires a restructuring that enables faster product development, better market responsiveness, and a more customer-centric approach.
4. Recommendations
1. Implement a Hybrid Organizational Structure:
- Functional structure: Retain existing departments for core functions like production, finance, and HR.
- Matrix structure: Establish product-based teams with cross-functional members from different departments.
- Product-based teams: Empower teams to develop new products, manage marketing campaigns, and respond to market trends.
2. Foster Innovation and Agility:
- Establish a dedicated Innovation Center: Develop a dedicated space for product development, experimentation, and collaboration.
- Invest in technology and analytics: Implement data-driven decision-making tools for product development, market research, and customer insights.
- Encourage cross-functional collaboration: Promote communication and knowledge sharing between departments.
3. Enhance Customer Focus:
- Develop a customer-centric culture: Prioritize customer needs and feedback in all decision-making processes.
- Implement a CRM system: Track customer preferences, purchase history, and feedback to personalize marketing and product offerings.
- Strengthen brand identity: Develop a clear and consistent brand message across all channels.
4. Embrace Digital Transformation:
- Optimize online presence: Develop a user-friendly website and e-commerce platform.
- Leverage social media: Engage with customers and build brand awareness through social media platforms.
- Implement e-marketing strategies: Target specific customer segments with personalized marketing campaigns.
5. Basis of Recommendations
These recommendations address Biscuits Poult SAS's core competencies by leveraging its production expertise while fostering innovation and agility. They also consider external customers by focusing on their needs and preferences, while acknowledging the competitive landscape and potential threats.
Quantitative Measures:
- Increased market share: Projected growth in sales and market penetration through new product launches and market expansion.
- Improved profitability: Enhanced operational efficiency through streamlined processes and product development.
- Enhanced customer satisfaction: Improved customer experience and loyalty through personalized offerings and responsiveness.
Assumptions:
- The company has the resources and commitment to invest in the recommended changes.
- The workforce is adaptable and willing to embrace new organizational structures and processes.
- The market remains receptive to innovative and healthier biscuit options.
6. Conclusion
By implementing a hybrid organizational structure, fostering innovation, enhancing customer focus, and embracing digital transformation, Biscuits Poult SAS can position itself for success in a dynamic and competitive market. This approach will enable the company to leverage its strengths, address its weaknesses, and capitalize on emerging opportunities.
7. Discussion
Alternatives:
- Full-fledged matrix structure: While offering flexibility, it may lead to confusion and resource allocation challenges.
- Decentralized structure: Could lead to a loss of control and coordination, especially in a large-scale manufacturing environment.
Risks:
- Resistance to change from employees and management.
- Difficulty in implementing and managing a complex organizational structure.
- Potential for increased costs associated with technology and innovation.
Key Assumptions:
- The company's commitment to change management and employee engagement.
- The availability of skilled talent to fill new roles and lead innovation initiatives.
- The market's continued demand for healthier and more innovative biscuit products.
8. Next Steps
Timeline:
- Months 1-3: Conduct feasibility studies, develop implementation plan, and secure necessary resources.
- Months 4-6: Implement organizational changes, train employees, and launch pilot projects.
- Months 7-12: Monitor progress, refine processes, and expand implementation across the organization.
Key Milestones:
- Establishment of the Innovation Center.
- Launch of the first new product under the hybrid structure.
- Implementation of CRM system and data analytics tools.
- Completion of the digital transformation strategy.
By taking these steps, Biscuits Poult SAS can successfully navigate the challenges of a rapidly evolving market and emerge as a leader in the biscuit industry.
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Case Description
The case highlights a failed attempt to 'liberate' management and employees from traditional business practices at a factory in France. It closely follows the events that took place at Poult during a 10-year period that began in 2006. It draws on the astute reflections of the last CEO at Poult, who, until his dismissal in 2017, was actively engaged in building an alternative culture among the firm's 800 factory workers, machine operators and technicians. Thanks to detailed analysis, the case offers insight into the matrix of activities that constitute a 'liberated enterprise', from building autonomous teams to driving innovation from the bottom up.
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