The document proposes enhancing the Company Democracy Model (CDM) by introducing a new Level 2.5 for Tropicana. Level 2.5 would be called "Democratic Culture Controlled Partial Implementation" and would involve testing new product ideas on a small scale before fully implementing them at Level 3. This allows Tropicana to identify any issues early on, save costs and resources if ideas don't work, and improve products based on customer and market feedback before a large-scale launch. The enhanced CDM would help reduce risks for Tropicana and improve operations, reputation and trust with customers.

1. BUSM139 Assessment 1:
Enhanced CDM for Tropicana
Team 4 Friday’s Batch:
1. Alicia Schandy - ID 220197597
2. Annkit Sharma - ID 220885591
3. Arpitha Thollapalli Gopinath - ID 220471578
4. Khushboo Bakhtiani - ID 220376181
5. Kui Zhao - ID 220474432

2. Client Organization: Tropicana
● Tropicana is a beverage company that sells fruit juices.
● It was founded in 1947.
● Between 1998 and 2021 it was a subsidiary of PepsiCo, but in August 2021, 61% of Tropicana was sold
to PAI Partners (private equity firm).
● Tropicana has a global footprint of more than 2,000 associates that spans North America and Europe.
● Tropicana highlights innovation and R&D as an essential part of their mission on their LinkedIn profile,
which makes their business particularly suitable to implement the CDM.
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3. Client Organization: Tropicana
● In 2009, Tropicana switched the design on all
cartons sold in the United States to a new image
created by the Arnell Group.
● In less than two months and after a 20 percent
drop in sales, Tropicana switched back to its
original design losing a total amount of more
than 50 million dollars.
● The table represents the decline in sales after
implementing the new packaging. Also, we can
see that the sales significantly improve after
reverting to the original packaging.
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4. The Company Democracy Model (CDM)
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5. The Company Democracy Model (CDM)
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The CDM is a practical methodology that organizations can adopt to achieve effective knowledge-based management
and leadership.The model is based on the utilization of the knowledge produced by the company itself as its own core
innovation engine.
Sustainability strategy:
● Level 1: Build a knowledge-based democratic culture.
-Employers feel free and secure to share knowledge, ideas, and insights in any format.
-The employers keeps the intellectual property of his contribution.
● Level 2: Build teams to validate and mature the idea presented in Level 1.
-Adjust human resources to support the employee in transforming the initial idea into practical project
requirements.
-Anyone with a good idea can receive this support.
● Level 3: Development efforts to produce actual and tangible results.
-The company invests in implementing the idea.

6. The Company Democracy Model (CDM)
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Extroversion strategy:
● Level 4: Identify and manage innovation.
-Invest heavily in the product developed in level 3 and turn it into an innovation.
-Costly and time-consuming process; not all ideas reach this point.
● Level 5: Utilize competitiveness and promote international strategy and operations.
-Marketing and communication to exploit the power of the new products or services.
-Redesign organizational strategy to utilize innovation.
● Level 6: Reach the apex of the strategy
-Company can enjoy the benefits of being in a blue ocean, extroversion.

7. Organization challenges that the CDM cannot fulfill
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● Sometimes products that look great on paper fail to deliver to customers.
● With the existing Company Democracy model, if an idea reaches level 3, and the product doesn’t perform well, it
could lead to huge losses for the company.
Reasons :
1. Fault in the product
2. Customer Dissatisfaction
3. Existing Competition in the market
4. Bad Design or Packaging
5. Incompatible with the existing system
● All the above can be identified at an earlier stage with thorough testing of the product, and can save time, effort
and money.

8. Enhanced CDM: Introducing level 2.5
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Level 2.5 : Democratic Culture Controlled Partial Implementation

9. Enhanced CDM: Introducing level 2.5
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Level 2.5: Democratic Culture Controlled Partial Implementation.
● Between Level 2 and Level 3.
● The company makes small investment to launch the product/idea in a segment of the target market and evaluate
the result.
● Evaluation should be in-depth and aim to identify flaws and areas of improvement for the product/idea including
Customer feedback and Market Analysis.
● If it works well, advance to Level 3 to fully implement it.
● If it doesn't, drop to Level 2 to adjust/reassess.

10. Enhanced CDM: Introducing level 2.5
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Level 2.5: Democratic Culture Controlled Partial
Implementation.
For Tropicana:
● Company can change the package design in a
few trial cities and evaluate the results.
● If there is no impact on the sales or if the sales
reduce, then it makes no sense for the company
to move to Level 3.
● The company needs to move back to Level 2 to
modify or drop the idea.

11. Strategic goals that can be achieved through enhanced
CDM
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● Understand customer - The new level will help us in understanding the target audience’s preferences in the
initial stages itself.
● Identify potential issues - If there are any flaws in the product, they can be identified easily and can be rectified
before mass/ bulk production.
● Save revenue and time - Cost incurred for acquiring raw materials, training new employees, hiring new
resources can be avoided. Resource’s time can be utilised to do some other job.
● Adapt to PDCA model - Plan: Recognize an opportunity and plan a change. Do: Test the change. Carry out a
small-scale study. Check: Review the test, analyze the results, and identify what you've learned. Act: Take
action based on what you learned in the study step.

12. Leadership styles needed to adopt Level 2.5
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● Participative leadership:
Definition: The leader listens to the followers and involves them in the decision-making process
-Employees are involved in the decision-making process
-QA teams provide feedback on the product performance and quality
-Suggestions are taken from employees for the improvement of product
● Transactional leadership:
Definition: The leaders set clear objective and reward the followers accordingly for accomplishing said
objective in an organized fashion
-Focus on tasks and results during partial implementation
-Clarifying role and tasks to guide employees towards established goals
-Practicality, Performance-Oriented, Conventional Decision Making

13. Leadership activities needed to execute level 2.5
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● Design your controlled partial implementation and how much time/money you are going to invest on it.
● Define the market segment that you are going to test on. E.g. For Tropicana this could be different cities.
● Organize the human resources that are going to be working on the development.
● Determine scope, assign tasks, clarify goals and processes. Communicate the expectation of the leader to the
employees clearly.
● Determine the types of Quality Assurance methods that are going to be used.
● Ensure the work environment supports employees’ goal achievement.
● Encourage the employees to participate in the testing phase and take in their input.
● Provide constructive feedback on task achievement.
● Analyze the results based on multiple factors like Customer Perception, Quality, Performance, Sales, etc.
● Quickly adapt to solve different problems.

14. Impacts of level 2.5 on other levels
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● The risk of failure in Level 3 is reduced
because it will now receive a verified and
proven idea from level 2.5.
● The operation performance in Level 3 is
improved based on experiences gained in
Level 2.5.
● If the implementation of ideas in level 3
encounter problems in some regions or
periods, the company can drop the idea to
Level 2.5 and test the idea in small trials.
● Level 2 can now get feedback from level 1
(an idea that needs to mature) or from level
2.5 (tested idea with some flaws to be
improved).

15. Conclusions
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By including level 2.5 :
● Chances of failure are reduced - Since the changes are thoroughly tested in Level 2.5, the chances of
failure after implementing new idea is very less.
● Company image and reputation is unharmed - Both corporate image and reputation can impact a
company’s revenue and success
● Company can avoid product launch being cancelled or delayed - this is important because it can hurt
relationships with company business partners
● Win customer’s trust - Companies will have good reputation in the market, this will increase their
customer base.
● This level can benefit companies of all sizes in every sector like technology, automobile, FMCG, etc.

16. Thank You