Outback Steakhouse
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Gardner Distributing Company purchases, sells, and distributes Iams premium pet food products (68 percent of sales), pet supplies (14 percent of sales), and lawn and garden supplies (18 percent of sales). The case sketches the background and management style of the owner, Butch Tonigan; the start-up and development of the business from 1980-1999; the transition to a professional management team; the financial restructuring of the business; and the development of a marketing strategy.
The management team has developed a purpose, mission, and objectives; but the strategies of the firm are not clear. A change in Iams strategy and hiring of a key account manager seem to be creating new opportunities for the firm in 1999. The challenge is to define the firms strategies. This will require an understanding of the business and the two industries in which the firm operates. It will also require a synthesis of the managers dialogue on the strategic options of the business. A surprising epilogue extends the analytical possibilities.
Alternative Courses of Action and Recommendation:
The Gardner Distributing Company should know how to relate company performance to strategic factors, functional and marketing strategy, policies, and implementation. Their strategy was to turn over 42% of its Iams business and reduce staff.
They separated customer accounts into four categories and identified key accounts with potential growth, together with their resources and attitude. Most of their customers dont know how to stock their stores they dont have good inventory controls also they cant identify their best selling items and their floor and shelf space management were not good. And this is where Gardner Distributing Company comes in, they are becoming more of a consultant to their customers and this may help them promote their products and build customer base. To develop real management synergy. Also to have a pro-active marketing approach and changing from micromanagement to empowerment.