Smaczne Jadło Case Study

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The “Smaczne Jadło” company was founded in 1992 after the takeover of a state-owned company “Smalczyk”. Originally Smaczne Jadło dealt in slaughter and processing of porkers. Having relatively well-developed own chain of points of purchase of livestock in the Wielkopolska region, the company was not concerned about meat for processing. The President Leopold Kabanowski, the pork butcher with 30 years’ work experience had always considered food processing great foundations for business development. “People will always have to eat” – he used to say. Soon he started to restructure the plants, he retrofitted the machine park, he expanded production profile by cold cuts production and introduced HACCP. Dynamically developing market laid the foundations …show more content…
In 2008 Leopold decided to hand over the helm to Artur, who gained education at overseas universities in the USA. The company did not suffer severely from the crisis due to quite inflexible demand for food, but predominantly as a result of considerable trust and satisfaction of the customers who appreciated good taste of the produced traditional cold cuts. At the moment of the legacy transfer, the company had a well-equipped butcher’s in Pobiedziska and a chain of 12 shops in nearby localities, it employed 212 people (29 of whom constituted administration staff), had also good cash flow and recognizable brand. Artur never had a sentimental attachment to meat processing, yet he declared that he could sell anything to anybody. He treated the takeover of the family business as a challenge and started to introduce changes which, in his opinion, were to result in triplication of the company income. The father was negatively surprised by the first changes, but he decided not to interfere in his son’s business so as not to undermine his authority and he assumed that modern trends in business sometimes require painful …show more content…
Considerable investments in the new specialist machine park required high financial outlays. Smaczne Jadło started to lose liquidity, however, reduced production allowed reduction of wage costs due to dismissal of about 60 staff members. Simultaneously the marketing department was expanded by 5 people, and the department’s task was to seek sales markets in Russia. The first successes in the Russian market inspired Artur Kabanowski to continue to reduce the local market-oriented production and to invest in international expansion. In search of savings and resources for investments he closed 6 company-owned shops, the rest of them he sold to the competitors. Since 2012 the situation had been getting more complicated. The Russians kept raising product quality-related standards, moreover, they started to demand different quality certificates and to conduct numerous audits. The company had increasing problems with liquidity, yet banks continued to grant credits trusting that these were only temporary problems (although visible increasing nervousness of the bankers). In 2014, when the Russians imposed a complete embargo on Polish pork as a result of the suspected African plague, the company faced the spectre of the company closedown. The anxious father decided to support his son in this difficult situation, and invited several think tanks from Poznań University of Economics to prepare a project meant to revive the company. The company waits for the effects of the

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