WORKSHOP BUSINESS GROWTH STRATEGY

WORKSHOP BUSINESS GROWTH STRATEGY

THE 5 ESSENTIAL OF PLANNING MINIMIZATION INPUT

1. Understanding- The Johnsonville Sausage Co. was based in Johnsonville, Wisconsin, a small town about 60 miles north of Milwaukee. In 1945, when Ralphs parents purchased it, the company was a rural meat marketa family home with a storefront, a sausage kitchen, and a slaughter shed and smokehouse out back. The family opened retail food stores between 1946 and 1952. They bought livestock from local suppliers, slaughtered the animals, and sold meat in the three retail stores. He also made fresh sausage, which had acquired an excellent reputation in the area.- The wholesale business looked more promising and the management decided to focus their efforts on building this segment of the business. The management built the companys wholesale business, return on equity climbed from 18% to 27%, and the debt-to equity ratio between 55% and 65%.Products

Johnsonville Sausages product line consisted of three types of sausage, which in total accounted for approximately 120 different items:

Fresh sausage : Made from freshly butchered pork and beef cuts. Fresh products had a shelf life of approximately three weeks.

Smoked sausage : A sausage made in the same manner as a fresh sausage, but to which nitrites were added as a cure. The sausage was then cooked for two to four hours in a hot oven with smoldering wood chips to impart a smoked flavour. Smoke sausage had a shelf life of approximately two months. Semi-dry sausage: Semi-dry sausage, also called summer or slicing sausage, was made like a smoked sausage but was cooked for there or four days. It was typically much larger than an average sausage and could be sliced like a salami. Semi sausage had a shelf life of at least four months. Product varieties within each of these three categories were created by varying the species, the link length and the casing.

Production The processing plants ran on a two-shift basis. Fresh meat was delivered to the plant by 10:00 p.m., when the first shift began to turn this meat into sausage filler : meat was ground and spices and flavourings added. At 6:00a.m, the second shift arrived and began making sausages by stuffing casings with this mixture.

The sausage meat was emptied into a large hopper and was extruded by machine into the casing.

For fresh sausage, the link were then placed by hand on Styrofoam trays, flash frozen, wrapped in cellophane packages, and packed in boxes to be shipped. For smoked or semi-dry sausage, the link were placed in the smoke-house and cooked/smoked for a time with a seasoned wood. The process was somewhat capital intensive since large, mechanized equipment was used to grind the meat, stuff the sausage, and freeze the links. The cost breakdown of an average pound of sausage was a follows :

a. raw materials 58%

b. direct labour 4%

c. manufacturing overhead 20%

d. sale and marketing 9%

e. warehouse/distribution 3%

f. contribution to corporate 6%

Overhead and profit 100% Inventory was kept at a minimum- two days or so- and all products were made in a response to customer orders. During summer months, fresh sausage was extremely popular, particularly the bratwurst for which the company was famous in Wisconsin.

Fresh bratwurst was the product most responsible for Johnsonvilles growth; brats were sold at the Milwaukee Brewers stadium and were extremely popular. In fact, several annual polls of sportswriters and broadcasters revealed that Johnsonvilles bratwurst was the favourites stadium food available anywhere.

In addition to publicity like this, the firm inaugurated a TV at campaign in 1981 that focused on the brat fry as a social event. First, performance is key. And in a well-developed system, there is no conflict between what is the best for the company and whats best for the individual.

The second element is the idea that people do need help to accomplish their objectives, and that this is the job of management. We can help them by defining very carefully what their job is, defining explicitly what the performance standards are, and giving them the resources they need. Over the years, as new functions in the organization were articulated, Russ also assumed responsibility for the following areas :

a. Engineering (developing plans for new plant and equipment)

b. Research and Development (USDA testing, packaging, product and process development)

c. Purchasing (buying meat, spices, and packaging)

d. Personnel Development (education and training)

Each Monday, production schedules for the coming week were developed by the plant coordinator. These schedules set daily production volumes. Required production targets then cascaded back to create production goals for each area (grinding, mixing, stuffing, packing, and so on). Manufacturing performance was evaluated against budget. On an annual basis, beginning each fall, two or three line workers form each area within manufacturing became part of a budget team, together with people from sales and accounting. Working with the sales force, the line workers developed a sales forecast for the coming 12 months, by product line. They line developed budgets and set goals for certain key measures, including :a. Labor efficiency (pounds of sausage per man-hour)

b. Yield (pounds of meat used per pound of sausage produced)

c. Labor cost (dollar of labor per pound of sausage)

Workers collected the data required to measure their progress toward these goals and analysed and posted results versus budget on a monthly basis. Daily figures for yield, efficiency and cost were produced.

During his first year, the management concentrated on rebuilding distressed customer relations; building a management team with specific responsibilities, adding performance measures and accountability; establishing a marketing and administrative structure, including internal and external information systems; and initiating an entry-level training program. The management also developed the product line in response to suggestions from retailers and the sales force, and he reduced operating expenses.Transition of Management

Before Johnsonvilles transition, the research and development area was not formally delineated in the organization; Ralph worked on his own ideas. Now R&D was viewed as everyones responsibility. One of the companys recent, and successful, new products, Beer n Bratwurst, was developed by a team within the company. The bratwurst was made with beer, instead of the water, to replicate the flavour that many brat fans achived by soaking the product in beer. The idea came out of a brainstorming session held during summer 1984. Together with individuals from the sales and research areas, this team tested and refined the product, which was introduced six month later.

2. Setting Objective1. Meningkatkan penjualan tahunan 25% dengan meningkatkan bisnis grosiran ke Palmer2. Inovasi Produk untuk produk Sosis Category Fresh yang memberikan kontribusi besar3. Mengoptimumkan proses produksi untuk mecukupi peningkatan sales 25% 4. Membuat kontrak dengan Palmer selama 1 tahun/jangka panjang, untuk menghindari pemutusan kontrak sepihak di tengah jalan.

3. Formulating Strategy1 . Mengembangkan variant produk yang lebih inovatif dan tidak hanya berdasarkan pesanan dengan memaksimalkan fungsi R& D .2. Mencari sumber bahan baku berkualitas sama dengan harga yang lebih murah ( untuk daging , bumbu dan kemasan )

3 Mengoptimalkan Produksi dengan Efisiensi tenaga kerja dan meningkatkan yield 4 Melakukan kegiatan promosi secara kontinyu untuk meningkatkan awareness terhadap Johnsonvilles Sausage

5 . Mengembangkan human resources dengan membuat struktur organisasi, job description yang jelas , system rewarding dan training untuk karyawan. 6. Meningkatkan produksi 25% dengan penambahan jam kerja 20 jam selama 1 minggu .1 minggu = 16 jam x 5 hari = 80 jam (jam kerja normal)

25% dari 80 jam = 20 jam /minggu

4. Creating ProgramPromotion :

Membuat iklan TV yang berisi produk- produk Sosis Johnsonville

Membuat event- event promosi untuk membangun image Sosis Johnsonville antara lain lomba makan sosis.Membuat suatu tempat kumpul komunitas eksklusif Ibu-ibu rumah tangga sekaligus memfasilitasi dengan arena bermain anak2. Dan juga mengedukasi bahwa sosis merupakan makanan yang bergizi tinggi.

5. Organizing Team1. Melakukan kontrak kerja sama jangka panjang dengan perusahaan pizza ,Hotdog Toko Roti yg punya jaringan di berberapa kota besar untuk menggunakan sosis dari Johnsonville2. Membuka Restoran khusus dengan menu-menu dari Sosis Johnsonville yang lengkap dengan area bermain anak / taman bunga.

Dari Team 4

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