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Case Study of Dreyer's

In: Business and Management

Submitted By torrymvp
Words 2144
Pages 9
Contents

ABSTRACT 3
INTRODUCTION 4
BACKGROUND 5
METHODOLOGY 6
FINDINGS 7
INTERNAL PROBLEMS 7
EXTERNAL PROBLEMS 8
RECOMMENDATIONS 10
PORTFOLIO RESTRUCTURING 10
ORGANIZATIONAL RESTRUCTURING 11
PRODUCT DIVERSIFICATION 11
STAKEHOLDERS CONCILIATION 12
CONCLUSION 13
REFERENCES 14

Abstract
This report focuses on the United States-based ice cream producer, Dreyer’s, Inc., which used to be the largest ice cream company in America. In order to consolidate the ice cream industry, Rogers and Cronk, CEO of Dreyer’s, carried out some advancing operation philosophies including the launch of a strategic plan named the “Grand Plan” in the year 1994. The report gives a description of the expectations of the “Grand Plan” and their company culture in details and demonstrates why they are unlikely to be implemented successfully. Therefore, the 4 years from 1994 to 1998 witnessed a dramatic sales performance downturn. After analyzing the strategies and the industry situation, it appears that both the internal and external problems, such as the huge spending of the Grand Plan, fierce competition among rivals and increased costs raised by raw material prices, etc. led to Dreyer’s failure. Based on the findings, this report gives recommendations on portfolio restructuring, corporate restructuring, product diversification, and stakeholder conciliation. The aim is to help Dreyer’s manage through the current crisis and establish a firm ground in the market.

Introduction
Dreyer’s grand ice cream company was founded in 1928 by William Dreyer and Joseph Edy, and used to be one of the leading ice cream manufacturers and distributors in the United States. Its highest market share once achieved 14.8% of the entire ice cream category. In 1994,T.Gary Rogers, the chairman of the board as well as the CEO of the company, together with his partner Cronk, decided to

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