You have been contacted by your friend, the president of Fun Foods USA, for some advice. Fun Foods USA, distributes and markets snack foods that are sold in grocery stores. The firm is organized into geographic subunits: West Coast, Southwest, Southeast, Midwest and Northeast. Each unit has its own production, distribution and marketing functions. The company originally started in the mid-west but grew over the years by acquiring local snack food companies that catered to the local market: for example, a company in Ashville North Carolina that makes Moon Pies was acquired and became Fun Foods Southeast. The process of creating Fun Foods USA has been a great ride: Fun Foods USA has been the darling of Wall Street which has allowed them to raise capital and invest in the previously privately held snack food companies with good management and solid brands. 

Fun Foods USA's problem is that they are not a particularly low cost producer. Further, Americans are more mobile than they were before and regional preferences are not as strong as they were a generation ago. How would you advise your friend to reorganize the firm and explain the logic behind the reorganization?

Answer rating: 100% (QA)

I would advise your friend the president of Fun Foods USA to consider a strategic reorganization that aligns with changing market dynamics and enhance... View the full answer