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Le Petit Chef Case Solution

Solution Id Length Case Author Case Publisher
1034 642 Words (3 Pages) Alan MacCormack, Sandra J. Sucher, Suraj Rangashayi Harvard Business School : 602080
This solution includes: A Word File A Word File

Given the current scenario, given the market dynamics i.e. the market being highly competitive and mature, Gagne should fund project A. This project will incur a high amount of investment in terms of technology development. This would enable the company to manufacture the new intelligent line of microwave cooking appliances. This will not only give Le Petit Chef an advantage over other competitors in terms of better product offering but would help solve other issues that the company is currently facing. Firstly, as Francois Truc from R&D identifies, in order to survive in the market they need to develop high-end appliances with pronounced functional capabilities. The mixture of ingredients placed in the cavity and the amount of units produced is another problem that can be eliminated through this. This will also enable the company to reduce the range of products.

Following questions are answered in this case study solution

  1. What should Gagne do? Specifically, which projects should she fund and why? How should she handle the executive meeting?

  2. What factors explain Le Petit Chef poor performance? What actions would you recommend to remedy the situation?

Case Analysis for Le Petit Chef

The company is currently confused between quality and quantity; they must stop emphasizing the variety and range of products and focus on a limited but high-quality product line. This will enable the manufacturing department to increase production volumes. This will also help the company achieve economies of scale since it would produce more and sales would also rise due to the increasing quality. Marketing and sales would also have to work in coherence to effectively market the limited range of products. They would be highlighting the functional aspects of the products and emphasize on high-end technology in their campaigns.

Gagne should handle the executive meeting very tactfully. She should present the fact that they need to be competitive in terms of product offerings, and they can do this by funding project A. The approach should be tactful since the atmosphere in the executive meeting would already be tensed hence she would need to justify her decision.

Q2. What factors explain Le Petit Chef poor performance? What actions would you recommend to remedy the situation?

Le Petit Chef has witnessed poor performance, and there are many factors that have added towards this meager performance. One of the main factors for this is the lack of a clear vision in the organization.

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