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Mars Dog Foods makes and sells dog food for puppies and adults. It has been a leader in the industry for more than 25 years. Until recently, the company has successfully pursued a low-cost strategy by selling a limited number of food recipes and holding down manufacturing costs. However, Mars Dog has lately struggled to maintain profitability because many new competitors offer low-cost food choices. Thus, the leadership team has decided it is time to change its strategic focus.

Mars Dog's extensive market research shows that niche dog food markets have emerged where pet owners are willing to pay more for hypoallergenic food made only with all-natural ingredients. There are only a few competitors in this market space, and most do not have Mars Dog's excellent reputation. The company's leadership believes they can manufacture hypoallergenic dog food to dominate niche markets. By distinguishing itself from the competition, Mars Dog's leadership believes they can make a sustainable competitive advantage.

Having considered market factors and its manufacturing capacity, Mars Dog will shift from a current low-cost strategy to a differentiation strategy by manufacturing hypoallergenic dog food. Mars Dog must now make many tactical decisions in various functional areas of the company to support its new strategic approach. Its priority is to restructure the product development function. They will hire and retain talented veterinary nutritionists and food allergists. The company will also hire operations specialists. Finally, the leadership recognizes that job redesign will be needed, and they must consider how to bring current employees up to speed. Clearly, Mars Dog has a lot of work to do to ensure a successful implementation of its new strategic approach.

Questions:

1. Strategic planning at all levels of the organization can be divided into four steps. Which step in the strategic planning process led Mars Dog Food's management to change its focus?

2. Following Mars Dog's shift in competitive strategy, what must the company's HR professionals consider?

What kinds of challenges could Mars Dogface in the areas of recruitment, training, and compensation?

Reference no: EM132889035

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