Executive Summary
This report is written to provide an insight into the case study of “Iggy’s Bread of the
World”. This report has been written from a neutral perspective. Iggy’s is a bakery started
by a passionate couple who have a zeal for serving the customers with the finest organic
bread, respecting employees and serving the customers. As the company grows large, the
couple, the Ivanovics, start losing their personal touch which earlier they could extend to
every employee. When they finally bring in external managers, problems start to arise
between the managers and the Ivanovics.
This report defines the problem crisply and the alternatives are then put forth out of which
the one recommended is that the couple must reinstate McRae and promise him a hike in
salary only when he manages to fulfil certain conditions like improving the bottomline as a
percentage of the total revenue, improving the employee morale and a few more.
Then a well drafted action plan is also included so as to help implement the recommended
alternative.
Table of Contents
Introduction
Iggy’s Bread of the World was started by Igor and Ludmilla together because of their
complementary passions. Igor wanted the customers to experience high quality organic
bread and Ludmilla wanted to get into restaurant business as an entrepreneur. The business
due to the quality of the product and its unique taste grew rapidly which needed no
advertisement at all but its fame spread only by word of mouth. They maintained high
employee morale levels through direct communication, training, unique benefits and a
fostered a culture of inclusion.
However with to rapid growth increased the need for a professional for looking after the
operations of the company. They decided to bring in a COO, Mathew McRae, who in turn,
hired an external management team and the dynamics of Iggy’s changed. While the new
management team brought a level of expertise to the business that didn’t previously exist,
they were aloof from the employees and didn’t relate to the ‘Iggy’s way of working. In the
beginning the Ivanovics were excited about the new team but gradually they could also see
the growing discontent among the employees. Also, McRae had hired two employees
without consulting Ivanovics. This along with McRae’s resistance to Ivanovics
interference in the management strained their relationship. McRae wrote an angry letter of
resignation which he took back the next day. The Ivanovics were very hurt by the personal
attacks that McRae had made in the letter. However, they decided to sort out the issue with
