(1) In the beginning of the case McGraw thinks he has "never encountered such a complex business challenge" as the one he currently faces. By the end of the case, after he has read the ideas listed in the four memos, McGraw can’t believe he ever thought the investment issue was "going to be a hard one." What changed the president’s perspective? What strategic decision-making process does McGraw pursue? In the first instance, McGraw thought that the problem in his Division was so complex and did not know what direction to take in his upcoming Strategic Plan presentation to his boss. After reading all the memos sent by his managers, he got many ideas on how to tackle the issue. The strategic decision making that he took was to carefully read …show more content…

Additionally, they needed to inculcate in the minds of the internal customers that the Division’s number one goal for the years lied in invigorating OM brand growth. This would hopefully begin to turn around the volumes while holding the line in operating income. After all it was the OM’s falling portfolio that was causing the critical threats outlined by McTiernan. The second best strategy would be the one recommended by Jim Longstreet: “Broadening and contemporizing our product lines against consumer needs” Inventing a 4th major category within the processed meats would address changing consumer lifestyles. These were within the solution recommendations given by McTernian: 1. Broaden and contemporize its product lines against emerging health and convenience trends 2. Carefully allocate its investment monies e.g. in Advertising and Promotion budgets a. b. c. Add new benefits to OM/LR products Strengthen/diversify lines via another acquisition Internally develop new products that tap the new needs

The least viable solution would be the one recommended by Rob Goodman – LR Category Manager: “There is a need to reconsider the Investment Strategy with emphasis of backing the winner: LR”. This