Description

Gourmet Foods is a huge grocery and drug company that competes in tough businesses. WalMart, in particular, has been eating away at its market share. In 2001, with revenues flat and
profits falling, the company hired Larry Johnston to turn the business around.
Johnston came to Gourmet Foods from General Electric. While he was at GE, Johnston met a
training specialist named Ed Nelson, who provides motivation and attitude training. Johnston
had been impressed with Nelsons work at GE, so he brought him in to Gourmet Foods to
charge up the troops.
Heres an example of Nelsons primary programcalled the Successful Life Course. It lasts
three days and begins each morning at 6 a.m. The first day begins with a chapter from an
inspirational handout followed by 12 minutes of yoga-like stretching. Then participants marched
up a hill, chanting, I know I can, I know I can. This is followed by breakfast and then a variety
of lectures on attitude, diet, and exercise. But the primary focus of the program is on attitude.
Says Nelson, Its your attitude, not your aptitude that determines your altitude. Other parts of
the program include group hugs, team activities, and mind-control relaxation exercises.
Nelson claims his program works. He cites success at companies like Allstate, Milliken & Co.,
and Abbott Labs. The goal is to improve mental, physical, and emotional well-being, he says.
We, as individuals, determine the success of our own lives. Positive thoughts create positive
actions.

Please answer the following questions:

1. Explain the logic as to how Nelson's three-day course could positively influence Gourmet
Foods profitability.
2. Johnston says, "Positive attitude is the single biggest thing that can change a business."
How valid and generalizable do you think this statement is?

3. If you were Johnston, what could you do to evaluate the effectiveness of your $10 million
investment in Nelson's training program?

4. If you were a Gourmet Foods employee, how would you feel about going to Nelson's
course? Explain your position. Students answers will vary.