RICAHRD MURPHY AND THE BISCUITE COMPANY Harvard Case Solution & Analysis

Ricahrd Murphy and the Biscuite Company Case Solution

Introduction

Biscuit and company limited was established in 1930. In 1949, nineteen years after its incorporation,Gareth Eastern purchased biscuit and company. At the time of purchase, the main product of the company was crisp bread but after the purchase,Biscuit and Co diversified its product line. With the introduction of crackers, muesli crisp bread, rice cakes, bag snacks, and cercal bars.

Gareth Eastern was the CEO of the Biscuit and Co, he was very successful and treated his employees like a family, he always evaluated the performance of his employees on daily basis and rewarded them for their loyalty;he rarely fire anyone, even if the performance of an employee was not up to par. This reason motivated the employees at Biscuit and Co to work hard for their leader, which increased the performance of the company.

When the CEO of the Biscuit and Co decided to diversify its product line, it was basically  diculous move for the Biscuit and Co to enter into the unknown market. Since the company was only focusing on manufacturing, Gareth Eastern felt at that time that the company is not focusing on the marketing.The. company is going to diversifying their product line,in order to do that, Biscuit and Co has to provide awareness of their new product line and this way the customers will become attracted to the products. In result, the profitability of the company will increase.  The CEO of the company offered his son Andrew Eastern, as the operation director of the company, Andrew was not experienced for this type of leadership. As an operation director, Andrew Eastern was focusing on sales, production, and maintained margin.However,he was not focusing on the cost of the company, which had an effect on the profitability of the company. The name of Biscuit Company began to weaken in UK, because of the flattened sales, poor marketing, and increased competition. Therefore,the company realized that necessary changes can be taken and as a result, they appointed Richard Murphy as a marketer in order to improve performance of the company.

Problem statement

Richard Murphy has taken the many steps in order to enhance the profitability of the company, he was considered marketing alone as the main part of the business, and he had many ideas for transforming the company from traditional approach for business to modern approach for it. The steps that Murphy took were not liked by the internal stakeholders, such as employees and the managing director.

Issued faced by Murphy

A series of problems accrued when Murphy wanted to bring change in the company.In actuality, an internal war was going on between Murphy on one side with his ideas of change and on the other side, internal stakeholders with high traditional values and team loyalty. Before joining the Biscuit and Co,Richard Murphy had many ideas about the change that he will make in order to give the company a more profitable position.However,he was unable to do anything freely after he joined the company, as it was very difficult for Murphy to operate in that environment.

Murphy wants to bring change in the company to make it more profitable but the older employees of the company are not supporting the Murphy change.The reason is that they have more sentimental values and these changes will actually effect their jobs, so therefore they do not support Murphy. Therefore,Murphy replaced the old employees with new employees,despite the fact that old employees were more hardworking. Murphy has to effectively communicate about the change with the old employees, and educate them why this change is important for the organization.

Along with this, Murphy became worried about the marketing of the products and thus, hired a young team of employees because they were energetic and have potential to accept the external opportunities. New young employees in sales department will attract more customers.Moreover, whenever new young employees are hired, it creates conflict between older and new employees................

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