Executive Summary

Iggys Bread of the World was opened by Igor Ivanovic along with his wife Ludmilla. Iggys became very popular for the quality of its organic bread in a short time span. The main reason behind their success was their passion for baking and strong organization culture with satisfied and engaged employees. Ludmilla concentrated on involving employees in the every aspect of business so they considered themselves as integral part of business. However, as time passed, Ludmilla was finding it hard to strike a balance between her responsibilities towards the business and her family. But the situation changed when Ludmilla and Igor decided to grow the company bigger and suggested to bring in Matthew McRae as the new COO. McRae and his team formed a corporate organization and did not focus on the old Iggy's culture and involvement of employees. Ivanovic need to decide about future of business, they have option of letting McRae quit and hire new management who understands Iggys culture or run Iggy as small admired business.

Table of Contents
Situation Analysis ......................................................................................................................................... 3 Problem Statement ........................................................................................................................................ 3 Options .......................................................................................................................................................... 4 Criteria for evaluation ................................................................................................................................... 4 Evaluation of options .................................................................................................................................... 4 Recommendation .......................................................................................................................................... 5 Action Plan.................................................................................................................................................... 5

Situation Analysis
Iggys Bread of the World was opened by Igor Ivanovic along with his wife Ludmilla. Igor had passion for baking and Ludmilla had a dream to open her restaurant. Iggys became very popular for the quality of its bread in a short time span and was soon supplying bread to many of the most prestigious accounts in Boston. Their success was based solely on word of mouth and high quality of product. Both had a vision to create sustainable healthy business based on 3 principles: Delivering highest quality organic bread Developing a strong organization culture with satisfied and engaged employees Developing a strong Community with long standing relationship with customers by providing best customer experience

Igor and Ludmilla were personally involved in the bakerys operations and ensured that Iggys employees were also involved in every aspect of the business. Ludmilla concentrated on involving employees in the every aspect of business so they considered themselves as integral part of business. The idea behind Iggy's was not to promise a high payment for carrot-and-stick motivational factors but to focus on employee engagement and bonding. But as family responsibilities grew, Ludmilla found it hard to strike a balance between her responsibilities towards the business and her family. She gradually became less involved with the business. Igor and Ludmilla had strong trust in their employees to make the right decisions and personally intervened only when a significant issue needed their attention. The situation changed when Ludmilla and Igor decided to grow the company bigger and suggested to bring in Matthew McRae as the new COO to relieve her husband Igor from too much overtime at work. The new COO hired a new management staff and employees felt the isolated from the operations and new culture whereas Ludmilla followed a strategy of transparency and involvement. McRae and his team formed a corporate organization and did not focus on the old Iggy's culture about employee involvement. The situation deteriorated further, and McRae and his team even began to take crucial decisions without Igors consent. When Igor confronted McRae with the situation, McRae presented a letter of resignation. But later McRae asked for pay hike and autonomy. Now Ivanovic need to decide future of business and about inclusion of McRae in business after knowing his intentions

Problem Statement
What decision should Ivanovics take for future of business?

Options
1. Accept the proposal of McRae and allow him to run business 2. Ask McRae to quit and run it as small admired business 3. Let Igor take control of bakery and hire new management for business growth

Criteria for evaluation

1. Quality and Reputation of Iggys Bread 2. Growth: Ensure Expansion of Business 3. Organization culture and Employee satisfaction

Dhsfdj
Quality and Reputation

Organization culture Growth

Accept McRae Proposal No No May be

Small admired business Yes Yes No

New Management Yes May be Yes

Evaluation of options
1. Accept the proposal of McRae and allow him to run business Ivanovics decide to accept proposal and management style of McRae. Employees will feel neglected and there will lose their motivation. Motivated and highly employees contributed to their quality of bread and unique organization culture but after this decision a lot of employees may decide to quit. As McRae was successful business manager, he might be able to scale and expand business but Iggys did not just offer bread, but they were attracted by organization culture.

2. Ask McRae to quit and run it as small admired business This decision will send a positive message to employees and more importantly abide by dreams and principles of Ivanovics. Money was never their motive of doing business nor could they preserve their organization culture will scaling. Running a small but highly reputed business might be most satisfying for them. To solve their financial problems they could innovate more on their offerings as most of their clients were quality conscious, they would appreciate quality and innovation with some increment in price 3. Let Igor take control of bakery and hire new management for business growth Let Igor do what he is best at, making best quality bread, and bring new management who understands and believes in preserving culture of Iggys. This will ensure growth of organization but employees might not be satisfied. Employees are accustomed to family like culture at Iggys and preserve value system of organization will be very difficult.

Recommendation
After taking into consideration all the options and their practical feasibility, it is recommended that Ivanovics should ask McRae to quit and run Iggy as small but admirable business

Action Plan
1. Meet with McRae and ask him to quit 2. Schedule small party for all employees and ask for support of all employees 3. Igor should run business but ludmilla should support her

Words used: Total Report: 1152 Content: 1026 Executive Summary: 126