In the case study "Iggy's Bread of the World", Igor and Ludmilla Ivanovic, the unusual mission statement, and attempt of bringing social consciousness mentality to a for-profit business is being described. Igor and Ludmilla Ivanovic must decide on how to adjust the current leadership structure of the enterprise while trying to not lose control over the fundamentals.
Alexis Gendron; Kathleen L. McGinn
Harvard Business Review (801282-PDF-ENG)
November 13, 2000
Case questions answered:
- Describe the culture at Iggy’s Bread of the World. How has the culture helped and/or hindered the growth of Iggy’s?
- Imagine you are a board member making recommendations to the Ivanovics regarding both McRae’s proposal and the problems that the Ivanovics need to deal with in order to continue to be successful. What set of recommendations would you make?
- What specific suggestions do you have to help Iggy’s Bread of the World cope more effectively with changes that need to be made in their workplace?
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Case answers for Iggy's Bread of the World
Introduction – Iggy’s Bread of the World
Iggy’s Bread of the World is a successful premium baked goods company that is owned by Igor and Ludmilla Ivanovic. The Ivanovics opened Iggy’s in 1994 with three goals: producing quality products, providing a welcoming work environment for employees, and valuing customers. This philosophy has created enthusiastic customers and a strong organizational culture.
Igor and Ludmilla devoted themselves to the business, working long hours, and building personalized relationships with each of their employees. This devotion allowed the business to grow rapidly, and, eventually, the demand was so immense that Iggy could no longer accept new accounts.
Igor and Ludmilla noticed that Iggy’s needed transformation in order to continue its successful growth. Unfortunately, they lacked the business knowledge and experience to make the necessary adjustments; therefore, they decided that hiring an individual with more experience working with larger organizations was necessary. The Ivanovics hired Matthew McRae as Iggy’s Chief Operating Officer.
Matthew McRae took many unique steps while leading the business, causing significant changes within the organization. As Mathew discovered some backlash for his tactics, he developed a new, substantial proposal concerning his future employment. The Ivanovics are now left to decide whether or not they are willing to accept his requests.
Culture at Iggy’s
Organizational culture is a procedure of shared values, assumptions, and beliefs, which control how people behave in organizations (Schein, 2011). Iggy’s Bread of the World has a unique organizational culture that was developed by Igor and Ludmilla. The three following levels identify Iggy’s organizational culture: artifacts, espoused values, and basic underlying assumptions.
Artifacts are visible elements within an organization that can be recognized by people not part of the organization (Schein, 2001). Some of Iggy’s artifacts are state of the art ovens, all-natural and high-quality organic ingredients, work being done by hand, and foreign baking experts. By these artifacts, it is quickly apparent that Iggy’s puts a high emphasis on producing superior baked goods. These artifacts provide an understanding of a part of Iggy’s culture with people inside and outside of the organization.
Espoused values can be defined as established strategies, philosophies, and goals of an organization (Schein, 2001). Iggy’s Bread of the World has the strategy of producing baked goods with premium ingredients and production techniques, creating the best product and consumer satisfaction. This strategy expresses the company’s high commitment toward…