1. The document discusses a case study about Chattanooga Food Corporation's ice cream division facing a crisis after losing a major customer, Stay & Shop supermarkets. 2. The division's top management team is dysfunctional and experiencing high stress and conflicts as they debate various solutions like cost cutting or investing in growth. 3. Charlie Moore, the president, must make a decision about the best path forward but is faced with competing recommendations from his vice presidents about cutting costs, launching new products, or focusing on promotions and expansion.

1. INDIAN INSTITUTE OF TECHNOLOGY ROORKEE
Presentation On:
Presented By:
Aashutosh Jangid(16810003)
Abhishek(16810005)
Anand VR(16810012)
Divyasnh Bhatnagar(16810031)
Vivek chopkar(16810082)
The Chattanooga Ice-Cream Division
(Stress management)

2. 2
Table of Contents
• Introduction of Company
• Leadership change and its impact
• Chattanooga’s ice-cream crisis
• SWOT Analysis
• Role Play
• Stress and stress management
• Best solution for the case
• Learning lesson from case

3. 3
Introduction of company
Chattanooga Food Corporation (CFC) found in 1936 by
Charlie Moore’s grandfather.
It was one of the largest regional manufacturers of ice
cream in US.
It’s having primary supermarkets and related food
chains customers, and trading as a producer of mid
priced basic flavors of ice creams products.

4. 4
Introduction of company

5. 5
Company’s Hierarchy
Clinton
Moore
CEO
Barry
Walkins
Marketing
Les Holly
Sales
Billy Fale
Production
Kent
Donaldson
R&D
Stephanie
Krane
VP & Controller
Frank
O’Brien
Personnel
Charlie
Moore
President & GM

6. 6
Charlie Moore (President and General Manger)
• Grandson of founder and son present CEO and chairman.
• Spent 5 years as photographer with National Geographic
Magazine.
• Spent 10 years with CFC in different departments.
– One in field sales with specialty foods
– 3 in finance and control at the corporate level
– 2 in marketing in grocery product division of CFC.

7. 7
Charlie Moore (Leadership style)

8. 8
Charlie Moore (Leadership style)

9. 9
Charlie Moore vs Predecessor(Clinton Moore)
Predecessor(Clinton Moore) Charlie Moore
 Kind of autocratic
 Knew more about the
business than anyone else
 Well developed network
for gathering and
communication
information
 Rarely felt need to consult
his subordinates
 Reserved important
decision to himself
 Relationship oriented
 Believes in the value of
group base decisions
 Collaborative environment
to bring people together
formally to share
information
 Consult on decisions and
from
 From consensus

10. 10
Current situation
Stay & shop contract issue
Flat and declining sales in last four years
Aggressive competition in super premium
and mix-in ice-creams
3 out of 7 members of the top
management leave in five years
US per capita consumption of ice cream
slowed.

11. 11
Current situation
No upgraded MIS to a more
extensive product line
Stores are out of stock and back
ordered way too frequently
Division is working on new
project of non-fat formulation

12. 12
Troubles in chattanooga’s ice-cream division
Sealtest’s product range & flavors and money thrown to stay & shop to buy
more freezer space.
Top management team is dysfunctional
Leadership decisions doesn’t fit the situation
The team has no direction/clear
leadership.
Leader (Charlie Moore)
was acting as gatekeeper
(maintenance oriented
behavior)
Lack of market
awareness
(customer’s need)

13. 13
Stay & Shop => Chattanooga Ice creams
 Stay & Shop: a vast and established retail/supermarket chain
in USA.
 Third largest customer of Chattanooga ice cream division @
6.5 million USD revenue.
 Promoted Chattanooga’s flagship mid priced five basic
flavoured ice creams and line of frozen yogurts.
 Inventory gets out of stock and back ordered too frequently.
 Lesser margins offered and no promotional payments for
promoting Chattanooga's products..
 Demand of Chattanooga's products falling.
 Stay & Shop unhappy with Chattanooga and looking for
alternative suppliers which will benefit them more.

14. 14
Stay & Stop => Sealtest
 Stay & Shop planning to replace Chattanooga with Sealtest
in all its southeast region supermarkets.
 Sealtest provided more than a dozen varieties products
including Mix-in along with the basic smooth flavors.
 Sealtest also provided several discount structures and
promotional allowances.
 Sealtest paid Stay & Shop up front for two years to get the
freezer chests and thereby promote their line.
 Improved service by production in large scale and huge
inventory for unlimited supply also gave Sealtest upper hand.

15. 15
Chattanooga out of Stay & Shop
 Without Stay & Shop business, there will be a reduction in
operating profit of Chattanooga ice cream division by 25%.
 The news of loosing Stay & Shop will unfavorably impact
Chattanooga's business with other customers.
 Chattanooga’s management has to come up with strategies
to overcome the fore coming losses and level-up with the
competitors and emerge back as the market leader.
 Stress within the top management increased manifold as no
one wants to take responsibility of this loss and started
blame games.

16. 16
Colgate vs. Patanjali
 Patanjali Ayurved, the home-grown foods-to-FMCG
toothpaste brand Danta Kanti has eaten into the global
leader Coalgate Palmolive’s toothpaste market.
 Patanjali has garnered a 4.5% market share in the
toothpaste segment since its launch.
 in the last one year, Colgate Palmolive, the sector leader,
has lost its market share by 60 basis points.
 in response to this Colgate plans to launch newer products in
the 'natural' space.
 Cibaca Vedshakti will be the first one in Ayurvedic segment
by Coalgate.
 Colgate's Cibaca Vedshakti will be priced at Rs 50 for a 175
gram pack, which is around 30 per cent cheaper than Danta
Kanti.

17. 17
General case
Industry
leader
• Holding major share in a particular product/service
• Following a conventional method of operation
Entry of
competitor
• Launch of better product/service
• Innovatively implementing operations and promotions
Toppling of
key player
• Major market share of predecessor overtook by the competitor
• Stress inside management of loosing company increases thereby
forcing them to implement strategies to come back on top

18. 18
SWOT Analysis
S W
O T
SWOT

19. 19
Strengths
• Existing distribution and sales networks
• Skilled workforce
• Domestic market
• Trusted & established brand
• Proper parent company as a backbone
• Experienced Staff
• Quality product

20. 20
Weakness
• Lack of market awareness
• Information system is not established
• Less number of variety in product
• Leadership is maintenance oriented
• Decline in sales and operating profit
• Oldest production inventory is closed

21. 21
Opportunities
• New product launch(Non-fat product)
• Expansion of the product line in the future
• Higher market share
• Expanding market in other states
• Regaining value in supermarket chains
• Increasing the mix-in and super premium products

22. 22
Threats
• Competition with brands which has more variety in products
• External changes
• Loosing more customers like Stay & shop
• Consumption of Ice cream per capita in the region had
slowed
• Key staff leaving

23. 23
Chattanooga Ice-Cream Division

24. 24
U.S. per capita consumption of ice-cream(quarts)

25. 25
Dollar share trends by the segment in the U.S. frozen dessert
market

26. 26
Ice-cream flavor : Total U.S. volume share

27. 27
U.S per capita production of ice-cream and related
products (quarts)

28. 28
Role Play

29. 29
What is Stress?
• The unconscious preparation to fight or flee that a person
experiences when faced with any demand.
• Stress is a dynamic condition in which an individual is
confronted with an opportunity, demand, or resource related
to what the individual desires and for which the outcome is
perceived to be both uncertain and important.
• Stress is associated with demands and resources.
• Stress can be good or bad.
• Distress - the adverse psychological, physical, behavioral,
and organizational consequences that may arise as a result
of stressful events

30. 30
A model of Stress

31. 31
Stress model analogy
• Stephanie Krane talks about economic uncertainty. She
suggests that more money can’t be spent on promotions.
• Billy Fale talks about lack of IT technology support for
support line which is a technological uncertainty.
• None of the VPs out of six departments has self efficacy.
Everyone tries to shift blame from them to others.
• Charles Moore could not take a firm decision. In a four years
of leadership he did not make any changes. It comes under
Organizational Leadership.
• Every VP has a different perception about each other.
• Walkins pressurizes Donaldson to pass product without
adequate testing.

32. 32
Sources of Stress: Work Demands

33. 33
Sources of Stress: Non-work Demands

34. 34
Stress leads to conflicts
Stephanie
Krane
VP and
Controller
Billy Fale
Production
VP
Les Holy
VP Sales
Barry Walkins
Marketing VP
IT
Professionals
Kent
Donaldson
VP R&D

35. 35
Stress hampers decision making
Les Holy VP
Sales
• Try to replace volume in new chain in Florida.
• Florida is far away. Requires substantial promotional amount.
Stephanie
Krane VP and
Controller
• Can’t spend more money on promotions.
• Freeze employee salaries.
• Eliminate cost of living increased on retirees’ pension and health care.
Frank O’brien
VP Personnel
• Already production line weak.
• Work force’s morale will go down.

36. 36
Stress hampers decision making
Barry Walkins
VP Marketing
• Opposes Stephanie’s decision.
• Favors more money spending.
• Add exciting mix-ins. Add new bulk packaging.
Kent Donaldson
VP R&D
• Add new line of non fat ice cream.
• Demands $250000 additional for fast track development.
Billy Fale VP
Production
• Eliminate chocolate chips and coffee to promote other
products as their share is 15%.
• In favor of regular and economy brands.

37. 37
Stress hampers decision making
• Frank O'Brien opposes Stephanie Krane’s suggestion of
freezing salary.
• Stephanie Krane opposes Kent Donaldson’s suggestion of
additional $250000 expenditure on new line of ice cream.
• Les Holly opposes Billy Fale’s suggestion to eliminate
chocolate chips and coffee.
• So none of them could freeze down on a single decision.

38. 38
Inverted-U Relationship

39. 39
Preventative Stress Management
• Certain jobs are more stressful than the others.
• Individuals differ in their response to stressful situations.
• Organizational philosophy according to which people and
organizations should take joint responsibility for promoting
health and preventing distress.
• Individual approaches for stress management can be divided
as physical and emotional.

40. 40
Managing Stress
• Individual Approaches
– Time-management techniques
– Increasing physical exercise
– Relaxation Training
– Expanding the social support network
• Organizational Approaches
– Goal Setting
– Redesigning of Jobs
– Increased employee involvement
– Improved organizational communication
– Offering employee sabbaticals
– Establishment of Corporate wellness programs

41. 41
Individual preventative approaches
• Primary Prevention – Designed to reduce, modify, or eliminate the
demand or stressor
- Positive thinking
- Time management
- Leisure time activity
• Secondary Prevention – Designed to alter or modify the response to a
demand or stressor
- Physical Exercises
- Relaxation Trainings
- Diet
• Tertiary Prevention – Designed to heal symptoms of distress and strain
- Opening up
- Professional help

42. 42
Role of Manager in stress management
• Learn how to create healthy stress without distress
• Help employees adjust to new technologies
• Be sensitive to early signs of distress
• Be aware of gender, personality, and behavioral differences
• Use principles and methods of preventive stress
management

43. 43
“The time to relax is when you don’t have time for it.”
– Sydney J. Harris

44. 44
Stress management by Sandip Maheshwari

45. 45
ANALYSIS
• Solutions offered by different managers of Chattanooga Ice
Cream Division and their inferences
• Options for Moore to ponder over
• Best probable way for Moore to go (Decision Making)
• Take away from the case

46. 46
Solutions offered by different managers of
Chattanooga Ice Cream Division & Inferences
• LESS HOLLY (VP, Sales)
• Suggested to collaborate with new chains in Florida for the
replace of volumes left from Stay & Shop
• Encouraged cost to promotions for an early start of
business.
• Inference - This idea does not work since this will not solve
any problems which in the future mayarise since it does not
solve the problem why Stay & Shop leaved in the first
place.

47. 47
Solutions offered by different managers of
Chattanooga Ice Cream Division & Inferences
• STEPHANIE KRANE (VP & Controller)
• Suggested to cut expenses by the same amount as the
operating profit losing at Stay & Shop
• Inference – Just a short term solution. Customers will again
in the long run go for the competitors who have a bigger
assortment and they will face the same problem over and
over again.
• Higher dissatisfaction among employees.

48. 48
Solutions offered by different managers of
Chattanooga Ice Cream Division & Inferences
• BARRY WALKINS (VP Marketing)
• Suggested investing in growth over cutting expenses
• Stated expansion better than promotion
• Suggested adding up new flavours and 5-gallon bulk
packaging
• Inference – The idea is good but involves risk and a thought
is to be given oh how to pay dividends to CFC and arrange
such huge investment

49. 49
Solutions offered by different managers of
Chattanooga Ice Cream Division & Inferences
• KENT DONALDSON (VP R&D)
• Suggested new launches (growth) over cost cutting.
• Intended investment for a new Fat free ice cream launch, for
a fast track process
• Inference – Considering Krane’s aspect, on time delivery in 6
months seemed skeptical. Moreover, an amount of $250000
was huge to invest.

50. 50
Solutions offered by different managers of
Chattanooga Ice Cream Division & Inferences
• BILLY FALE (VP Production)
• Eliminate chocolate chip flavor to lower the production cost
• Favored cost cutting over growth
• Inference - Cutting product line could have negative
consequences for the company’s image and the
perception of the clients. They may loose some further stores

51. 51
Perception of Personalities
• Barry Walkins (VP marketing) He is very creative and had a
good intuitive sense of what consumers wanted but
disorganized and often lacks follow through
• Billy Fale (VP Production) He is a very knowledgeable and
disciplined and competing, vice president of production but a
bit rigid in his thinking and anchored in the past.
• Kent Donaldson (VP R&D) He would be classified as
collaborating Vice president of research &development and
had conflicts with Walkins.

52. 52
Perception of Personalities
• Les Holly (VP Sales) The division’s sales manager who has
a tendency to withhold information and sometimes does not
follow through.
• Stephanie Krane (VP & Controller) She had a strong record
of delivering on her promises.
• Frank O’Brien (VP, Personnel) He is uncooperative,
avoiding and unassertive

53. 53
Stress Management for the case study
Character Facts Reasons for Stress Stress Management
Charles Moore 1. Poor leadership
2. Confused
personality
1.Lack of control
2.Role conflict:
Interole & Intrarole
1. Prioritizing
activities
2. Knowing daily
cycle
Les Holly 1. Absenteeism
2. Lack Of
communication
1. Personal Role
2. Ground job &
Travel
1. Meditation
2. Organizational
communication
Billy Fale 1. Rigid in thinking
2. Anchored in past
1. Strenuous
activities
2. New technologies
1. Increase
employee
involvement in
decision making
2. Yoga and
Meditation

54. 54
Stress Management for the case study
Character Facts Reasons of Stress Stress Management
Kent Donaldson 1. Failed product
2. Demand of extra
capital for R&D
1. Role ambiguity
2. Temporal
pressure
1. Scheduling
activities
according to time
Stephanie Krane 1. Negative view
towards risk
2. Short sighted
1. Financial
instability
2. Company
progress
1. Knowing daily
cycle and urgent
demands
2. Wellness
programs like
yoga and sports
Barry Walkins 1. Less organized
2. Lack of follow
through
1. Change
2. Inter-role
1. Meditation
2. Proper follow-up
and priority
management

55. 55
Options for Moore to Ponder Over
• Cost Cutting :-
1. Cutting down salaries, benefits to employees
2. Shutting down Chocolate ice – creams
• Company Growth :-
1. Launching new fat free ice – cream
2. Promotions
3. Adding new flavours and 5-gallon ice cream

56. 56
Best Way for Moore to go (Decision – Making)
• According to our analysis, Growth is the correct approach.
• The idea of Walkins finds high suitability, as it is feasible and
achievable in time.
• Meanwhile, IT and inventory management should be taken
care off, where investment is not required, only follow up will
do.
• Later, with better grip on market, promotions also can be
better taken care of

57. 57
Stress Transformation
STRESS
STRESS MANAGEMENT
STRESS RELAXATION

58. 58
Stress Relaxation Techniques

59. 59
Stress Relaxation Techniques

60. 60
Stress Relaxation Techniques

61. 61
Stress Relaxation Techniques

62. 62
General Take Away from the Case
1. Stress is not bad
2. Stress makes a person realize his/her potentials
3. But stress needs to be managed well
4. Different stress relaxation measures should be taken to
make stress management easy

63. 63
General Take Away from the Case (Contd..)

64. 64