Strategic Management Case Study Iggy\'s Case Study

Strategic Management Case Study for Iggy's Bread Of The World

Igor and Ludmilla Ivanovic tried to bring a social consciousness mentality to their for-profit enterprise. Describe how their mission statement and business model is perhaps different from that of a regular bakery.

Ludmilla Ivanovic attempted to encapsulate her husband's personal philosophy towards baking by crafting the company Mission Statement for Iggy's Bread of the World. This Mission Statement pledges that Igor and Ludmilla will "make breads of the highest quality and then deliver them daily to our customers with the highest standards of service and integrity & #8230; (while also) creating a nurturing and respectful environment at our workplace that fosters cooperation, communication and a sense of accomplishment for all employees." By trying to instill their business model with a socially-conscious platform, however, the Ivanovics have differentiated themselves from the competition posed by traditional bakeries. Igor's steadfast refusal to use non-organic ingredients in his recipes -- despite the significant savings this would bring to the bakery's bottom line -- is a strategic management risk of the highest order, because every enterprise must remain financially viable if its Mission Statement is to be effectively pursued. While regular bakery's remained content to utilize inexpensive processed ingredients, offering consumers a lower-quality product for a lower price, Iggy's Bread of the World recognized that differentiation was key to their bakery's success. By identifying a niche market within the overall industry -- that of wholly organic, unprocessed baked goods -- and firmly establishing themselves as the leader within this niche, the Ivanovics and Iggy's Bread of the World have positioned themselves as the preferred alternative for progressive consumers who are willing to pay a premium for healthy, delicious and all-natural food.

2.) As you read through the case, Identify 5 decisions that were made by the Ivanovics and that you believe could have been made differently, based on what you have learned in this course. For each one, specify what would have been a better decision and why you believe it would have led to a stronger outcome.

The first crucial decision made by the Ivanovics after deciding to open Iggy's Bread of the World concerned location, and while they could have opted to remain in New York City, their appraisal of the market as oversaturated was very likely an accurate analysis. Moving to the Boston suburb of Watertown, Massachusetts was a savvy business decision, because niche eateries are prevalent in urban areas, but retain their novelty in less populated regions. Similarly, Igor's decision to mix and shape his dough by hand, while paying homage to the traditions of his forebearers, artificially increased the financial burden faced by the bakery. Although this strategy has paid dividends in the form of customer loyalty, Igor may have been better served by learning to integrate traditional methods with modern technology in innovative ways. Ludmilla's desire to include every employee within as many aspects of the business as possible, while a laudable sentiment, also proved to be untenable due to the cultural diversity of the bakery's workforce. The bakery should have considered this aspect of the Mission Statement to be applicable only to tenured employees who are already firmly established in the U.S. Expanding the business to a Cambridge location was another curious decision in terms of strategic management theory, because the Ivanovics still lacked the managerial competency to supervise a more complex enterprise. The bakery would have benefited from delaying this step until suitable CEO and COO candidates could be identified and hired. Finally, the choice to hire McRae for the position of COO was another mistake, because although he possessed the requisite education and experience in the business realm, it was unclear whether or not he shared the same managerial philosophies as the Ivanovics.