Executive Summary

Hausser Food Products Company

Purpose. Analyze the declining profits within Hausser Food Products Company (HFP)
and then provide the appropriate solutions that the company can take to help alleviate the
problem.

Background. HFP is a leading producer and marketer of baby foods in the USA. It has
over the years maintained a market share of approximately 60%. During the past few
years, HFP has faced a rapidly changing market for infant foods. The decrease in the birth
rate and the new concern about food additives brought about major changes in the infant
food business. Finally, the increase of competition in the baby food market made the
problem even worse. The company’s sales dropped by 3% last year accompanied by a
greater drop in earnings with unused plant and warehouse capacity.

Causes.
1. Top down sales planning causes animosity, no input from the people in the field as to
what is realistic.
2. Company’s reward system does not fit the current unpredictable, changing market.
3. Company’s sales plans are more concerned with short-term profit (yearly basis)
instead of the long-term growth.
4. Company’s suggestion plan doesn’t provide a reward commensurate with the value of
the suggestion.
5. Too much bureaucracy and paperwork for sales force to fill out.

Recommendations.
1. Remove all existing vertical and horizontal barriers by organizing frequent meetings
and social events attended by managers of all levels in the company to discuss
problems, exchange information and make suggestions.
2. Organize attractive activities to build up sense of belonging in the whole company.
3. Place more attractive bonuses on extra sales to encourage salespeople to sell more.
4. Empower district managers to adopt flexible practices.
5. Award generously to great ideas and let innovators feel honored.

Conclusion.
HFP should choose to restructure the organization, enhance the process of sales planning,
increase communication and improve its reward system. Following these
recommendations would realign the goals of HFP and its employees; therefore, enhance
the current situation of HFP in the baby food market.