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Pillsbury: a Tale in Management

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Pillsbury: A Revolutionary Tale In Management

Written by: Louis Maatiaha Tangiia
Pillsbury: A Revolutionary Tale In Management
Assignment: Pillsbury Customer Driven Reengineering
Date: 28/04/2013
Student Name: Louis Maatiaha Tangiia
Student ID: 4594096

Abstract
This report discusses the Pillsbury Company 's reasons for changing their strategy and assessment of the new strategy using Value Chain Analysis and Activity Based Costing . A brief history of Pillsbury and its old strategy is outlined initially. The discussion then focuses on their new strategic focus with emphasis on the how and why of this change. The performance of Pillsbury is assessed using Value Chain Analysis with an explanation on how Pillsbury …show more content…

Leveraging the activities identified is the focus of VCA and an understanding of these activities are directly involved with their organisations purpose and product. These activities are considered the primary costs of Pillsbury: Research and Development, Inbound Logistics, Operations, Outbound Logistics and Marketing and Sales. The other activities are those that 'support ' the primary activities and indirectly help in the production of an organisations goods namely: Procurement, IT Management, Service & HR and Infrastructure. 3.1 Primary activity improvements
Pillsbury understood that to begin their new strategic focus they had to Research. Improvements were made to this activity when they decided to gain competitive advantage by sharing information with their customers. Information sharing has proven to aid consumer preference. This is helpful because different regions may buy different goods compared to another region, so information sharing systems will for example help delivery times and stock shortages. This consumer demand knowledge could help operations in designating batches and prioritising setup times for certain products, decreasing delivery times to customers and making more efficient purchase choices with suppliers. An important aspect of leverage with

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