Quality, value, satisfaction, trust, a

Growth. The growth stage of Millie Company is summarized in Figure 2. This causal
map begins with a remarkably beneficial decision by Mr. Shore. He approaches a large
Supermarket chain in the Ontario Province of Canada with a proposition to manufacture a
Kosher potato chip for the Jewish holidays. This unique offer, marketing tactic, is accepted; for
the first time, Millie is able to gain product placement in a large supermarket chain with stores in
several Provinces (without offering shelf allowances). With the product's acceptance in one
chain, the other' three largest chains quickly follow this lead (box 3). Thus, the third proposition
described is supported: strategy-making in the entrepreneurial mode is characterized by dramatic
leaps forward in the face of uncertainty; the organization makes dramatic gains with high risk of
failure.
Figure 3 here.
.
Note also that Mr. Shore continues to pursue rapid growth through-out the growth stage
(see boxes 6 and 15 in Figure 3). He is unwilling to transform strategymaking from the
entrepreneur mode to an adaptive, or planning, mode.
Two decisions made by Mr. Shore to continue sales growth were judged to be very bad
moves (??) by the three judges: the decisions shown in boxes 6 and 15. Millie's batch process
versus competitors' continuous process requires substantially higher unit costs (see box 11 in
Figure 2).
Thus, offering the Millie product at a price lower than competitors' prices provides
substantially less margin to cover costs and generate profits. Also, lessons from the Profit Impact
of Marketing Strategies (PIMS 1980) include the folly of little market share brands companies
attempting to compete head-on against much larger foes (box 15); successful small firms are
243