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Cerujugo Hr Case Analysis Essay

Decent Essays

Individual Case Assignment
MHR 505
Frank Miller

By: Benjamin Morgan
500 261 174

Symptoms
From the assigned reading it becomes clear that there are a number of symptoms which suggest that beverage manufacturer and distributer Cerjugo SA is a company in crisis. The main signal that Cerjugo is not living up to its expectations is that its forecasted sales and profit targets, for its juice division, have not been met for two consecutive years this is especially troubling for a company which in the past boasted a 98% share of the beer market in Latin America. Beyond the lack luster sales numbers there are many other symptoms that Cerjugo’s juice division is ailing, such as reports that potential customers are not aware of the …show more content…

All four of the managerial positions which answer to Guzman are highly qualified for their position and the tall hierarchy structure of the company appears to hinder their ability to work well as a team.
There were also reports of a generally unsatisfied and unproductive sales force, the root cause of this is a lack of job specialisation. The sales force is organized geographically with each employee controlling their own territory, however, each employee is responsible for selling both beer and juice within that region. Furthermore, most of the sales staff where already employed by Cerjugo before the acquisition of the juice business, accordingly despite being trained to sell juice as well, the sales force is more experienced and comfortable selling Beer and this has bred a lack of motivation to gain the expertise necessary to successfully sell juice to their clients.
Analysis of Root Cause & Consequent Recommendations
Although these problems seem expansive and varied in nature a few changes to the corporate culture will likely remedy all of these complications. On the sales side job enrichment is of key importance, a necessary step towards this is having the sales force divided into two market segments, beer and juice. With each employee controlling a small set of clients who they will get to build a relationship with, a relationship which is based

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