Reinventing the organisation - Heinz Europe
A Heinz case study

Page 1: Introduction

The business writer, Charles Handy, illustrates the need for organisations to reinvent themselves by the sigmoid curve - effectively an ‘S’ shape on its side. An organisation which appears to be successful is on the upward growth path of the curve (point A). At this time, the organisation is making high sales and profits and is able to pay healthy dividends to shareholders. You may...
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Page 2: Organisational structure

In business, it makes sense to concentrate on what you do best – your best lines. All organisations therefore need to build organisational structures which make it easy to: concentrate on best lines identify new opportunities arising in these areas channel resources and initiatives into best lines and particularly into new opportunities effectively manage best lines and...
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Page 3: Economies of scale

One of the basic facts of business life which relates to large scale production is that if you can gain the greatest share of a market, you will be able to produce at lower unit cost than rival producers of similar products. It is not hard to see why. The company which sells most is best placed to: take advantage of the latest advances in technology spread marketing and advertising costs over a...
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Page 4: Management

In line with the move to focus on product categories, Heinz’s management has also changed its focus towards a pan-European outlook. Management within the organisation is now thinking on a European-wide basis. Teams are being formed across Europe to share a single business philosophy where there are no country barriers. The sales structure at the company retains its local focus, however, as...
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Page 5: Identifying new opportunities

The newly reinvented Heinz will only be successful if it is able to identify and develop new opportunities. We have already identified two recent examples of Heinz’s inventiveness using new plant and investment in technology new to Heinz – tomato flavoured pizza crusts and baked bean pizzas. Another excellent example of Heinz’s ability to seize new opportunities is the way it has...
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Page 6: Conclusion

By operating through a strategic European category structure, Heinz is now able to identify top-line growth opportunities and not just focus attention on geographic markets as it did previously. It is this change in organisational structure which has enabled Heinz to create the sort of organisation with a competitive edge that can ‘deliver the 21st century early’. It is only by...
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