Founded consider the interests of all stakeholders
Founded in 1988, Dippin Dotes was started by a research microbiologist Curt Jones who invented an innovative method of making frozen desserts at extremely low temperatures to better preserve their nutritional content. This paper will discuss the key strategic issues which should be considered by the management of Dippin Dotes for realigning its vision, mission and objectives and contributing to its competitive advantages.
Attempting to establish cause-and-effect relations between the current situation in the company and the main underlying causes, it can be stated that the company focused on short-term goals which were incompatible with its long-term mission (Dess, Lumpkin, and Eisner 430).
Looking for immediate revenues, Dippin Dotes understated the importance of contributing to the future development of the company. To realign the vision, mission and objectives, the senior management of the company should consider the vision when formulating the business objectives and short-term targets.
Spending too much money and efforts on defending the patents on production of cryogenically encapsulated ice-cream, the company did not manage to prevent the competition from the companies producing analogous products Mini Melts Inc., MolliCoolz LLC and Kemps LLc’s IttiBitz. Dippin Dotes.
Taking into account the increased competition in the market sector, Dippin Dotes has to decide between the increase of its franchise and development of a new product which can be stored in normal freezers. Therefore, the company decides between pursuing short-term business targets and observing the interests of all its stakeholders. In that regard, it is recommended to equally consider the interests of all stakeholders and accurately analyze the sources and vitality of its resources to select the most appropriate option.
One of the main weaknesses of the Dippin Dotes’ strategy is the difficulties of storing the products under the required extra low temperatures. Due to this peculiarity, until late 1990s, the products of the company remained an exotic treat which could be found in a few places. Though this requirement is interconnected with the specifics of the production process, this inconvenience significantly decreased the popularity of the product among retailers.
Dots ’n’ Cream was the first product which could be stored in traditional refrigerators and was the only attempt of the company to adapt to the life circle of the industry it is competing in. Therefore, development of a new product complying with the growing requirements of the market could be an effective solution which would allow considering the interests of all stakeholders and creating a competitive advantage.
Previously, the main motives of the top executives of Dippin Dots regarding the diversification of the products were focusing on creating new flavors but preserving the same technologies.
In that regard, it is recommended to shift the main emphasis towards creating new technologies to comply with the consumers’ growing demands. Generally speaking, the company promoting itself as ‘the ice-cream of the future’ should consider the requirements of the present-day market and align its mission with the life circle of the industry it is competing in.
Analyzing the key strategic issues of Dippin Dots, it can be stated that there is disparity between the company’s vision, mission and objectives which should be realigned for the purpose of adapting to the actual environment and contributing to its competitive advantages. Deciding between the increase of franchise and development of new products, the top executives of Dippin Dotes should equally consider the interests of all stakeholders.
Dess, Gregory, Tom Lumpkin, and Alan Eisner. Strategic Management: Text and Cases. New York, McGraw Hill, 2009. Print.