Chattanooga Case Analysis

In: Business and Management

Submitted By RobertV10
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Chattanooga Ice Cream Inc. (CIC) is the smallest of the three divisions of the Chattanooga Food Corporation. The Ice Cream Division has experienced declining sales and profitability for four consecutive years and in 1996 lost their third largest customer. The CIC leadership team led by Charles Moore needs to offset the losses and turn the division around to profitability however the dysfunctional management team could not agree on a plan. This paper will examine the dysfunctions of the management team and how Charles Moore’s Leadership contributed to the dysfunctions. The paper will recommend solutions that Charles and the management team could perform to resolve their conflicts build trust and define short term as well as long term goals that will build a strong team and return the company to profitability.

Chattanooga Ice Cream Inc. (CIC) is a producer of mid-priced basic ice cream products (5 main flavors) and a completely owned subsidiary of Chattanooga Food Corporation. The CIC division president and general manager is Charlie Moore and has held this position since his promotion in 1993, see Figure 1 for the organizational chart. CIC is one of the largest regional manufacturers of ice cream with most of their sales to supermarkets and food chains.
The Chattanooga Food Corporation (CFC) is a family-controlled enterprise that was founded in 1936 by Charlie Moore’s grandfather. CFC consists of three divisions of which the Ice Cream Division is the smallest of the three, with revenues of $150 million USD per year. Chattanooga Food Corporation as a whole was performing well; the Ice Cream Division had experienced declining sales and profitability for four consecutive years. CIC revenue dropped from $185 million to $150 million and in 1996, lost their third largest customer Stay & Shop (switched to Sealtest brand) with revenues of 6.5 million. This latest loss…...

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