POST GRADUATE PROGRAMME IN MANAGEMENT | 2024-25

INDIAN INSTITUTE OF MANAGEMENT INDORE

ORGANIZATIONAL CHANGE MANAGEMENT AND CONSULTING

Term -IV

Maple Leaf Foods: Changing the System

Submitted to: Prof. Ranjeet Nambudiri

Group-10

NAME ROLL NUMBER

MISHA SHAH 2023PGP202

MANSHA BAIRIGANJAN 2023PGP194
SHILPI SENGUPTA 2023PGP315
SIDDHANT BHURKUNDE 2020IPM135
YASHASVI DAVE 2023PGP428
KSITIJ SRIVASTAV 2023PGP178
I. SITUATIONAL ANALYSIS

A. Company Overview:

The case centers on Maple Leaf Foods (MLF), a diversified and integrated Agri-farms, meat,
and bakery business with a history spanning over a century. It was formed through the merger
of three companies: Maple Leaf Milling Company, Purity Flour Mills, and Toronto Elevators.
Its subsequent merger with Canada Packers established it as Canada's largest food processor.

Functions & Operations: The company primarily engaged in feed production, hog and poultry
farming, primary and secondary meat processing, and the production of fresh and frozen
bakery and pasta products, employing 12,500 people as of 2019.

Brands: Maple Leaf, Maple Leaf Prime, Maple Leaf Natural Selections, Country Naturals,
Mina, Greenfield Natural Meat Company, Lightlife, Field Roast Grain Meat Company.

Financials: In the fiscal year 2018-2019, the company reported net sales of CA$ 3.5 billion
and a net profit of CA$ 101.3 million.

Investments: A capital expenditure of CA$ 1 billion was invested in supply chain and operating
systems to consolidate outdated, inefficient plants and create a cost-competitive prepared-
meats manufacturing network. This led to significant growth in EBITDA margin and
profitability, albeit on a lower revenue base.

B. Organizational Goals of MLF:

Following are the key targets which MLF wanted to achieve-

● Profitability: Achieving financial stability and growth through sustainable practices.

● Market Leadership: Becoming a leader in sustainable protein production.
● Social Responsibility: Making a positive impact on society by improving food security and
promoting sustainable agriculture.
● Innovation: Continuously innovating to improve product quality and sustainability.

C. Food Industry Analysis: The meat industry faced severe challenges due to climate change,
resource depletion, population health concerns, food insecurity, and animal rights issues. The
global food system was responsible for 27% of greenhouse gas emissions. There was an urgent
need to provide environmentally sustainable, healthier food and ensure good food availability
for all.

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D. Analysis of Key Characters:

Michael McCain-
● Long time CEO and president of MLF has been serving for 25 consecutive years.
● Emerged as a shining example for crisis management for rightful dealing with the MLF
meat processing facility’s contamination incident leading to outbreak of listeriosis and
death of 23 people.
● He had a vision of transforming MLF into a sustainable enterprise and challenged his team
to explore all possible ways for achieving the same.

Lynda Kuhn-
● Joined MLF in 2002 as VP of investor and public relations.
● Played a key role in developing a strategic framework & action plan for embedding
sustainability into the company’s culture.
● Served as chair of the Maple Leaf Centre for Action on Food Insecurity advocating changes
to public policy, funding and co-creating innovative projects that advanced sustainable
food security.

II. SUSTAINABILITY INITIATIVE

Since 2014, sustainability has been a core component of MLF’s business strategy, integrated
into its operations, investments, and product marketing. Sustainable meat, sourced from animals
raised with minimal antibiotic use and in accordance with the Five Freedoms of animal welfare,
became a competitive advantage. This approach not only boosted revenue but also led to cost
savings through reduced energy and water usage.

The key reasons for MLF pursuing sustainability in initiative are listed below-
● Corporate Responsibility: Sustainability would help in addressing the societal and
environmental impact of food production by reducing carbon emissions and environment
footprint by 50% by 2025.
● Market Differentiation: MLF can leverage sustainability as a competitive advantage to
meet growing consumer demand for ethical and sustainable products.
● Long-term Profitability: Reducing operational costs through efficient energy, water use
and waste reduction would enhance profitability.

The sustainability initiative would also help MLF in achieving its vision of being the most
sustainable protein company on earth and its purpose to Raise the Good in Food.

Evaluating the Sustainability Initiative:

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Pros:
● It became a key competitive advantage that led to increased sales in the United States and
enhanced its brand image
● Reduced consumption of water, energy and waste generation showed tangible savings
● Using all-natural ingredients enhanced the company’s brand
● Sustainable meat segment and artisanal products had high growth prospect
● Plant protein market had high scope for innovation and expansion
● The initiative would lead to tapping into the growing market for sustainable and ethical
food products

Cons:
● Conventional meat segment had low growth
● Plant protein market was at a very nascent stage
● High initial costs associated with implementing sustainable practices and technologies
● Uncertainty about consumer acceptance and willingness to pay a premium for sustainable
products

III. PROBLEM STATEMENT

Converting sustainability from a strategy to a core part of the company’s culture.

The company was facing challenges in integrating sustainability in the way it operated, invested
capital and marketed its products. They also had to decide to see if they were going overboard in
implementing the culture that they thought to be the right thing.

IV. ANALYSIS

❖ MLF’s Environment Analysis-

External Environment Analysis:

● Economic Factors: MLF operates in the food processing industry, which is highly sensitive
to economic conditions such as inflation, consumer spending, and global trade dynamics. The
2008 financial crisis posed significant challenges to the growth of the industry as a whole.
● Regulatory Factors: Strict food safety and environmental regulations impacted MLF's
operations, especially after the 2008 listeriosis outbreak, necessitating stringent compliance
measures.
● Technological Factors: Innovations in food processing and sustainability practices are
crucial for maintaining competitive advantage.
● Social Factors: Consumer preferences shifting towards healthier, sustainable, and ethically
produced food products, driving MLF's sustainability initiatives.

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 ● Competitive Factors: MLF faces competition from both domestic and international food
processing companies, requiring continuous improvement in efficiency and product quality.

Internal Environment Analysis:

● Leadership and Management: McCain's leadership has been pivotal in steering MLF through
crises and towards sustainability.
● Organizational Culture: A focus on sustainability and social responsibility has become
integral to MLF's culture, driven by leaders like Lynda Kuhn.
● Resources and Capabilities: MLF has significant investments in its supply chain, facilities,
and sustainability initiatives, positioning it well to leverage its capabilities for long-term
growth.

❖ Open system model:

• Inputs
➔ Raw materials: Meat, animal feed and other food products required.
➔ Human resources: Workers, managers, their technical capabilities and skills.
➔ Financial resources: Investments, capital, and funding.
➔ Information: Market trends, consumer preferences, and technological advancements.

• Transformation Process
➔ Production processes: Slaughtering, processing, packaging, and distribution of meat
products.
➔ Innovation and technology: Implementation of new technologies for improving
efficiency and safety.
➔ Management practices: Leadership decisions, strategy formulation, and
organizational culture changes.

• Outputs
➔ Final products: Packaged meat and food products sold to consumers.
➔ By-products: Waste products and any other secondary outputs from the production
process.
➔ Information: Feedback to stakeholders, such as customers, regulators, and investors.

• Feedback
➔ Customer feedback: Reviews, complaints, and satisfaction surveys.
➔ Regulatory feedback: Compliance checks and food safety audits.

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 ➔ Market performance: Sales data, market share analysis, and competitive
benchmarking.

❖ MEASUREMENT OF ORGANIZATIONAL EFFECTIVENESS

MLF achieved organizational effectiveness through the following approaches as detailed

below-

● Goal Approach: MLF was working on meeting the pressing societal needs through sustainable
meat production and working on providing sustainable food security.
● Resource-Based Approach: MLF successfully generated bottom line savings through
reduction in energy and water usage.
● Internal Process Approach: 30 strategic initiatives came up from the multi-function focus
group employees for achieving the company’s strategic blueprint of “raising the good in food”.
● Strategic Constituents Approach: MLF has to build available skills, supplier base and support
institutions in boosting capacity and innovation.

Effectiveness Criteria for Evaluation:

● Goal Achievement: MLF has made notable progress in meeting its sustainability objectives
and regaining public trust after a crisis. CEO McCain enlisted Kuhn to develop a strategic
framework and action plan to integrate sustainability into the company's business practices.
MLF's strategy of producing sustainable meat expanded its sales in the US. Additionally, its
efficient energy and water usage methods yielded significant tangible benefits.
● Resource Efficiency: The company invested in efficient production systems and sustainability
practices by consolidating outdated, inefficient facilities and establishing cost-competitive
meat manufacturing units.
● Stakeholder Satisfaction: MLF has consistently balanced the interests of its stakeholders,
including consumers, employees, and the community. In response to the meat contamination
crisis of August 2008, MLF acted swiftly by initiating a full recall and taking full responsibility
through proactive TV spots and news conferences.

❖ Evaluating MLF's Effectiveness

Diagnosis as a Consultant:
● Conducting Interviews: Engaging with key stakeholders to understand their perspectives on
MLF’s sustainability efforts and organizational culture.
● Reviewing Performance Metrics: Analyzing financial performance, sustainability reports,
and employee satisfaction surveys to assess progress and identify areas for improvement.

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● Benchmarking: Comparing MLF’s practices with industry best practices to identify gaps and
opportunities for enhancement.
● SWOT Analysis: Performing a comprehensive SWOT analysis to understand MLF’s
strengths, weaknesses, opportunities, and threats in the context of its sustainability initiatives.

Applying the Open Systems Model:

● Inputs: MLF gathers information, energy, and people resources from its environment. This
includes consumer feedback, regulatory guidelines, and employee expertise.
● Transformations: The company undergoes social and technological transformations by
incorporating sustainability practices into its processes and fostering a culture of responsibility.
● Outputs: MLF produces goods (sustainable food products), services (community support
programs), and ideas (innovations in food safety and sustainability). Feedback from these
outputs is used to further refine and enhance operations.

V. CONCLUSION

Maple Leaf Foods has navigated significant challenges and positioned itself as a leader in
sustainable food production. By applying the open system model, pursuing clear sustainability
goals, and balancing the pros and cons of its sustainability vision, MLF can continue to enhance
its organizational effectiveness. As a consultant, a thorough diagnosis involving stakeholder
engagement, performance review, benchmarking, and SWOT analysis would provide actionable
insights to further MLF's sustainability journey.

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