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Case Analysis - Part 1- Maple Lodge Farms

Case Analysis - Part 1- Maple Lodge Farms 1

Table of Contents

Introduction 3

Company Background 3

External and Internal Factors which Influenced Organizational Change 4

Evaluation Which drove the Organizational Vision to Change 4

Challenges in Implementing Change Management……………………………………………5

Alternatives and Recommendations to Improve Change Management……………………..6

Conclusion 7

References 8
Case Analysis - Part 1- Maple Lodge Farms 1

Introduction:

Maple Leaf Foods (MLF) faced an out break of listeriosis in August of 2008, for which the CEO

Michael McCain took responsibility for the crisis, influencing him to re-examine the direction of

the organization. McCain’s sense of responsibility drove him to be an executive sponsor who

appointed VP Lynda Khun to review external and internal factors for a developing and managing

the management organizational change towards a strategy of sustainability, social responsibility

which would be embodied into MLF’s culture. Khun’s mandate took time because of research

into marketing trends, speaking to food retailers, experts, and consultants -while holding

meetings with senior managers- until a clear vision, values, and direction was reached which

both the organization and its stakeholders agreed upon. There were changes made to the

organizational structure, divesting of assets which were not part of the core business. This would

free up monetary capital which would be reinvested in infrastructure, technology, training for

employees.

Company Background:

Maple Leaf Foods Inc. was established in 1991 through the merger of Maple Leaf Mills Limited

and Canada Packers Inc. In 1995, McCain Capital acquired controlling interest and Michael
Case Analysis - Part 1- Maple Lodge Farms 1

McCain became CEO. Over the next few years MLF made acquisitions companies in the US and

Canada which produced bread, pasta, pork processing operation, and established a manufacturing

base (Maple Leaf Foods, 2021). The company had multiple brands Maple Leaf Prime,

Schneiders, Mina, etc. and were doing business in Canada, United States and Asia. By 2014 the

company strategy was to sell its non-protein businesses due to the rise in the Canadian dollar and

as an initiative its profitability to focus on its protein offerings (Maple Leaf Foods, 2021). At the

same time, MLF was able to use those funds to reinvest into it’s supply chain, IT systems, update

its manufacturing network which in turnaround MLF’s EBITA margins, revenue and structural

profitability and a Canadian geographical layout. By 2017 MLF had over 12,500 employees and

a new mission statement and vision of which it was proud. It incorporated within its company

culture and practices social responsibility, with sustainability at its core from raising stock that

was antibiotic free, addressing the social impact on food uncertainty and other issues (Bansal et

al,2020)

External and Internal Factors which Influenced Organizational Change:

With the listeriosis outbreak in 2008, MCMain made a public apology through various social

media platforms taking responsibility and initiated an investigation. As a leader his reaction was

similar to that of the Tylenol crisis that Johnson & Johnson, halting production, doing recalls.

“Response to the crisis confirmed, promptness and appropriate timing are important components

of a good apology”(Kellerman, 2014, para.31). McCain took it to a step further committing to

becoming a food leader and reorganize the company’s mission and values. This helped to

mitigate the damage to the company’s reputation and lead it towards new path. Other external

issues were that meat industry was experiencing with resource depletion, consumer health
Case Analysis - Part 1- Maple Lodge Farms 1

concerns, climate changes, focus on animal rights, carbon footprint, and global food insecurity

was growing (Bansal et al,2020). As an organization staying abreast with external changes,

which requires them to be proactive to meet the changing environment or else lag behind the

competition and loose market position and revenue. It is important to reassess and look at both

short and long-term objectives to respond to external factors.

Internal factors which pushed for change was that MLF had grown and expanded into many

other business and countries. MLF was juggling too many things at the same time, in fact,

financial costs, revenues, and profit ratios were showing that long-term profitability would be

affected. Selling its non-core businesses would generate revenue that could address the issues of

aging, manufacturing infrastructure, inefficient plants, operating systems. At the same time

employees were not as motivated, lacked skills to meet industry requirements, while questioning

what the organization represented and which direction it was heading towards (Bansal et al,

2020). MLF had grown but when assessing internal factors there was discord, stagnation and it

was not responding to the changing environment. “The dynamic of failure leading companies can

become stuck in the modes of thinking and working that brought them their initial success. When

business conditions change, their once-winning formulas instead bring failure.” (Sull, 2014)

Evaluation Which drove the Organizational Vision to Change

McCain’s response to all the external and internal factors was to ask VP Kuhn to review, assess

and develop a sustainability strategy that was not only a tactical move but visionary. Stagnation

in revenue, growth, employee, deficiencies in quality and processes are factors which need to be

addressed. Kuhn needed to build a solid case for why change was required and which direction

the MLF needed to adhere to implement the new organization vision of sustainability as its
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central purpose. As a change leader her team brought on consultants to analyze the industry and

the financial impact it would have on the protein market and how to make changes to meet the

sustainability requirements. They also met with food retailers, culinary experts, non-profit animal

and wilderness protection to ask their opinions on what consumers were looking for. All of this

information lead to the understanding that the market was looking for more protein options and it

was ready for innovation and expansion (Bansal et al, 2020). By finding the change drivers MLF

now had a better understanding of what objectives and strategies would be required to work

towards change. Change leaders must have facts and knowledge to make a proposal for the

changes to convince others who will be affected by it. Considering this information and using it

to create an organizational vision is the next step in guiding the change management initiative A

clear vision is important it drives people to identify exactly what they are attempting to achieve.

The envisioned future operates as the superglue that keeps the organization together during

change. It motivates people to buy into the changed direction, especially if the end destination is

attractive to them (Beatty, 2016, pg. 46).

Challenges in Implementing Change Management:

Before any change can be implemented MLF had to communicate to their employees, get their

feedback, buy in and support. Hiring consultants to interview leaders, managers, and employees

from every business unit to make sure everyone group was represented and providing feed back

on anything that might have been missed initially. It was important to understand that there

would be support for the “ the idea of making sustainability the company’s purpose and vision

connected with employees and also how employees could advance this purpose and vision

through” (Bansal et al, 2020). Once a consensus is reached the next challenge was aligning the
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vision to create a shared statement and values and strategic initiatives. It takes time to implement

change it does not occur right away. There are critical paths which must be followed in a

sequence. There can be delays and a pause to reassess if the direction is moving forward or it

needs to be reviewed. Communication is key in order to make sure that everyone is aware of

each stage because at the same time the business still needs to continue to function and serve its

clients. Communication by leaders such as McCain and Kuhn who have been with MLF for

years helps to maintain credibility, direction and sustain motivation.

Alternatives and Recommendations to Improve Change Management:

Change takes time and does not happen over time. For MLF this process started in 2013 Kuhn

outlined a framework and action plan for implementing the sustainability to be incorporated into

the organizational culture and business processes. The three incentives were the following- first

to lobby for public policies to be modified, second, promoting and financing innovative ventures

that would help in providing reliable access to a ample quantity of affordable and healthy food,

third, helping to transfer knowledge to others who are working towards food security (Bansal et

al, 2020). At the same time, it is important to keep encouraging the company’s employees that

the change will be beneficial to all and to be patient with the changes that were being

implemented. Keeping an eye and reminding everyone what is the reason for driving change

internal and external factors in order to respond to changing trends. Once the change has be

implemented taking pride in the change and rewarding the employees if possible for sticking

through the change process. Advocating for continuous improvement and not permitting

employees to fall back in to being complacent but asking for their involvement and suggestions.

McCain continues to question his management team on how improvement can be continuously
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made to the organization.“ It is much easier to keep doing things the way in which we are

accustomed to. Consequently, organizations must identify, develop, and retain a cadre of capable

change champions in order to lead the change initiative(s)” (Judge, 2012, pg. 21)

Conclusion:

MLF is a great example of an organization that was faced with a critical issue, which is used to

take accountability and re-examine what they need to do in response to changing trends, by

reinventing themselves in a way which would be satisfying ethically, financial, and responsibly.

It is easy to fall back into a routine pattern keeping in mind to continue to monitor the business

environment systematically and often for change drivers. Thereby allowing the organization

structure to manage and respond to changes.

Case Analysis - Part 1- Maple Lodge Farms 1

References:

Bansal, P., Montgomery, W., & MacMillan, K. (2020). Maple Leaf Foods: Changing the system.

Ivey Publishing.

Beatty, C. A. (2016). The Easy, Hard & Tough Work of Managing Change. Queen’s University

IRC. Retrieved from https://irc.queensu.ca/wp-content/uploads/articles/the-easy-hard-and-

tough-work-of-managing-change-carol-beatty.pdf

Judge, W (2012). Focusing on Organizational Change. Saylor Foundation. Print.

Kellerman, B. (2014, August 01). When should a leader apologize-and when not? Retrieved

October 14, 2021, from https://hbr.org/2006/04/when-should-a-leader-apologize-and-when-

not

Maple Leaf Foods.com (n.d, 2021) Maple Leaf Foods history: Who we are. Retrieved October

15, 2021, from https://www.mapleleaffoods.com/who-we-are/our-history/

Sull, D. (2014, August 01). Why good companies go bad. Retrieved October 14, 2021, from

https://hbr.org/1999/07/why-good-companies-go-bad