The Johnsonville Sausage Co Essay Example | Topics and Well Written Essays - 750 words

The Johnsonville Sausage Co - Essay Example Johnsonville commits itself to the development of their employees, and in return, expects personal growth and superior performance from them. The company's core values of integrity, commitment, innovation, continuous learning, and teamwork are the foundation that has enabled Johnsonville to manage their tremendous success. These values are clearly demonstrated in the way the business is organized and the employees empowered. The underlying principle that drives the management philosophy of Johnsonville is "to make people better, not to make the business better" (p6). "We do two things here - make sausage and sell it" (p7) is the guiding principle for the structuring of the organization, all functions are divided into two streams, depending upon whether the job they do falls in the "making" or "selling" category. With such a clear vision Johnsonville has found an elegant solution to evolution of a simple and effective business structure. The achievement of competitive success through people involves changing the basic way of how we think about the workforce and the employment relationship. It means achieving success by working with people rather than "getting things done" by people. The answer lies not in defining and limiting the scope of their activities but in allowing them to define their work commitments and targets for themselves, with the organization playing the role of a provider of resources and coaching. It entails seeing the workforce as a source of strategic advantage, not just as a cost to be minimized or avoided. Johnsonville recognized that if it wanted to become a major player, the company had to redefine how it valued and recognized its resources. Instead of raw materials or physical assets, knowledge is now recognized as the major source of wealth and the basis for competitive advantage. But to leverage knowledge assets, we must fundamentally transform the way we organize and use this resource. Those organizations, which can create a team-based structure and culture, become significantly more profitable as a result; Johnsonville is a prime example. Present Issue: At this moment Ralph is faced with a question of whether he should accept the order for private-label sausage manufacture from Palmer Sausage (Palmer). The order represents a sea change in the status of Johnsonville Sausage since it will involve a 25% jump in sales from an obviously profitable venture. However, his concerns as to whether this can be handled in the existing set-up of the company also appear justified. Analysis: One may look at the history of the company's financial performance and success. The question that may be raised is whether this growth rate can be sustained. From details provided, one can see that the production capacity is fully utilized and, except for the seasonal variations, the sales have also reached saturation levels. Seasonal variations are not within the control of the company in any case. Market share growth is also likely to be difficult with the main product of the company, the bratwurst, already enjoying a 46% market share; other products also do not appear to present many opportunities as well. In addition, one finds reference to the beginnings of restlessness among the work force also. Specific reference may be made to the passage on page 12 where some workers are