R u n n i n g H e a d : S t r a t e g y o n t h e H i g h R o a d P a g e | 1

Strategy on the High Road

MGM465-1301A-06: Business Strategies

Phase 5 Individual Project

Sabrina Mergenthaler

Colorado Technical University Online

Professor Jamiel Vadell

February 11, 2013

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Abstract

Success is built upon the foundation of clearly defined goals; strategic decision-making

and management practices; and effective support measures (Clegg, Kornberger, & Pitsis, 2011).

In pushing the expansion of a company many considerations and analyses will be weighed in

order to plan and coordinate a strategic management plan. However, the course of action carried

out by the company is only valuable if it results in the desired effects (Couture, 2012 ).

Adaptability and communication are therefore crucial components contributing to the success of

plan implementation (Robbins & Coulture, 2009). To demonstrate how proper strategic planning

impacts the well-being of the company, this document will provide an analysis of and

management plan for High Road—a craft ice cream and sorbet designer and distributer based out

of Atlanta, Georgia, and seeking global awareness for their brand (High Road, n.d.). Using the

concepts of an integrated business strategy, a well-defined path will be served up to assist High

Road in achieving their goals.

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Introducing the High Road

The goal of High Road Ice Cream is to generate global brand awareness. Executive Chef

and CEO of High Road, Keith Schroeder clearly indicated this goal for the company during an

interview when he announced the team’s desire to become a global authority on ice cream

making (Love, 2012). From the kitchen of an artisan ice cream crafter and the will of a motivated

entrepreneur, the business sparked to life when Keith partnered with Hunter Thornton on a class

assignment. From classmate to business partner, the project—which was to draw up a business

plan—became the blueprints for the future these two would share in building the high road to

success (Pascual, n.d.). Backed by wife and Chief Marketing Officer Nicki Schroeder, the

business has already become a sensation on the high road to victory (High Road, n.d.).

Strategies along the Road

In the same way this company formulated their start, choosing the right strategies to

approach their goals has been supported by researching current trends, market predictions,

supply chain components, and many more internal and external factors which affect the business

itself and the industry with which it belongs (Introduction to Strategic Management, n.d.). One

thing to be said for the food and beverage industry (and particularly about ice cream)—in

depressions, sales go up. While all other industries take a major hit from people trying to spend

less, the sales of sweets and alcohol not only stay strong, but in most regions they rise (Senauer

& Seltzer, 2010). Among other researched facts to which the company was keen included the

lack of competition in the business-to-business ice cream market, and the fading quality of ice

cream products on the market (Pascual, n.d.).

High Road Ice Cream set out to put satisfaction back into eating ice cream by combining

new flavors and regional delicacies into their craft. Supported with the right texture and

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creaminess, High Road Ice Cream is in a league of its own for superiority among ice creams

(Borsky, 2012). While other companies are decreasing the quality and size of their brand, High

Road is restoring peoples love for ice cream in a variety of sizes (Senauer & Seltzer, 2010).

However, this ice cream is not just for anyone. The personal touch put into every batch of ice

cream calls for a particular consumer—and they go by ‘foodies’ (Love, 2012). Differentiated by

age, sex, race, and more, this very select audience holds a particular love for the foods they eat

(Grewal & Levy, 2012). The wholesome content of High Road Ice Cream is not only a personal

interest of this group of people, but provides just the niche-creating aspect required by the

company to gain an edge on competition and a handle on the cost (Grewal & Levy, 2012).

With their freshness in achieving their MBAs motivating strategic decision-making,

company partners Thornton and Schroeder have begun structuring the company for appropriate

growth—filling each position as the need and the right person arises (McCrimmon, 2008). With

the support of a small and family-like team, High Road is developing their future with like-

minded individuals with a common goal in achieving more (High Road, n.d.). The role of these

team players as the company grows will prove to be a huge benefit as the company restructures

and expands its culture and management practices (Clegg, Kornberger, & Pitsis, 2011).

High Road also recognizes that need for their culture and practices to extend beyond the

product and internal structures, though (Introduction to Strategic Management and Advanced

Research, n.d.). As distributers, their company identity is not only distributed on the label of the

packages in which it arrives, but in the announcement of the delivery guy—who oddly enough

resembles the guy on the Monopoly board—as he proclaims “I am here to deliver the best ice

cream in the world” (Borsky, 2012)! High Road employees also participate in events such as

marathons, local food-tasting venues, and speaking opportunities, which aid in creating

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familiarity and identification with the

brand; as well as builds upon an

accepted role in demonstrating social

responsibility [ (Grewal & Levy,

2012) (High Road, n.d.)].

Through management

practices like these which set

standards and expectations, High Road has achieved making a name for itself and continues to

see the results of such diligence. However, as a company seeking entrance into a global market,

there is no better time than the present to consider how to go about getting there (Robbins &

Coulture, 2009). As challenges along the way can be anticipated, coordinating the path for global

awareness must be adaptable and consider potential threats and methods of response. Preparation

for transition on any scale, though, will require persistence and care in communicating and

implementing decisions through strategic supportive measures (Couture, 2012 ).

Strategies to Grow on

Success on the global scale will require a series of integrated growth and marketing

strategies that correlate with the company’s goals. There are many ways in which companies can

implement growth strategies, including:

Concentration—in which companies attempt to meet growth goals by expanding

on core business functions and consider new products and markets (Couture, 2012

). For High Road, the sky is the limit as they are members of the food and

beverage industry operated by a chef. As the inventor of his company’s future, he

is limited only by what he is willing to attempt in the kitchen and beyond. For

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example, if he chooses to incorporate Tofutti, cakes, cook books, and pet treats

among other things into his line of products; or opens a larger facility in which

tours take on a whole new meaning and distribution can soar. The business could

not only build a variety of product lines, but could become commendable for the

creation of jobs in the current economy.

Currently the company relies immensely on sales to chefs, hotels, and

other high-end distributers. Expanding by means of franchise opportunities

spreads the brand, in addition to providing a new resource for the company. This

opens the door for the company to really test the waters on becoming distributers

on a nation-wide and world-wide basis. Other means of concentration would

include the events in which the company participated and hosted that reflect the

company’s social responsiveness (Gul, 2007). A great example would be a

company team participating in an event such as the Susan G. Komen Race for the

Cure. They could vend at the event as well as be active participants and even

sponsors. As these strategies will generate brand familiarity among a particular

consumer, the product will become a commodity that people desire (Winer,

2004).

Vertical integrating—in which companies grow by obtaining control of their

supply chain and distribution chain (Couture, 2012 ). In order for High Road to

gain absolute control of their supply chain, they would require the ability to grow

or create their own ingredients. While it is feasible the company could invest in a

growing facility to accommodate some needs, the extent of this measure would

not be one that could be immediately taken to encompass the scale of which

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would be necessary to generate global awareness. Especially as the company

begins expanding, the need for additional factories, fresh local products and

suppliers, and freighting capabilities will all impact this company’s ability to take

full advantage of vertical integration strategy. Other components of the supply

chain to consider involve the packaging, marketing, human resource components,

and more (Robbins & Coulture, 2009).

To encompass control of the distribution chain, High Road would require

an investment in refrigerated semis in order to process shipping, and possibly

considering franchising opportunities in store front locations and push carts in

cities like New York (Couture, 2012 ). Over time, the demand for the ice cream

would result in the need for expanded facilities. As facilities expand, so do the

capabilities of the company (Grewal & Levy, 2012). In the meantime, the

company can contract with specific stores to carry their brand exclusively,

position their product more strategically in the store (e.g. stand out refrigerators),

and/or create traditionally and seasonably available flavors to generate hype and

excitement when flavors come and go (Winer, 2004).

Horizontal integration—in which companies expand by merging with or acquiring

competitors (Couture, 2012 ). While this can certainly push High Road in the

right direction—it can also ruin the company’s reputation with their target

audience (Winer, 2004). High Road ice cream is available in Whole Foods

markets because it is among a growing trend in food tastes, and that trend is

keeping it real (Senauer & Seltzer, 2010). As food lovers shift to a more natural

and less process preference, careful consideration of who to buddy-up with will

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certainly prove pivotal for High Road Ice Cream (Industry statistics and projected

growth, 2010). A wise decision on the company’s part would be to team up with

any of the handful of 100% natural food manufacturers whose plans do not

include selling out to companies like Kraft which have effectively reduced the

natural qualities of organic food [ (Couture, 2012 ), (Aliano, 2012)].

In an effort to move operations globally, weighing the trade policies and

economic environments will be a necessary factor of selecting the right foreign

company with which to integrate (Couture, 2012 ). Fortunately, corporate leaders

have tools available to assist them in making effective decisions and monitoring

the effects of their choices (Vadell, 2013). As they will inevitably be the reason

for success or failure, their decisions and the processes in which they use to apply

them will ultimately define how well the leaders’ researched their cause.

Familiarity will enable them to put the right supports in place to better drive their

company mission forward (Wild & Wild, 2012).

Diversification—in which a company expands by entering into new industries

(Couture, 2012 ). For High Road—entering new industries is relatively simple

because food is welcome in just about every industry. Having briefly mentioned

the idea of a line of pet products, the elaboration is that even foodies often have

pets. They trendfully love to take their pets places and buy them all types of

things—including treats. If High Road made an ice cream for pets they could

offer their line in pet stores, and expand their pet-related products to include a

fabulous line of leashes, collars, toys, and clothing under a High Road label.

Diversification in this sense can also include a different target audience—such as

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a line of vegetable inspired desserts for kids or wine flavored ice cream for the

wine connoisseur.

Because the team is made up of entrepreneurs—and successful ones at that

—the opportunity to share their knowledge and experiences opens the door to

many opportunities in expanding brand awareness. Already the company

participates in speaking events, but if they diversified, they could initiate an

organization for entrepreneurs unlike any that already exist. They could even

entertain the idea of opening a school of ice cream making. If they start small by

offering classes locally at colleges and universities, they build a following of

newly graduated chefs and business leaders who believe in their story of growth

and would love their expertise.

In their global endeavors, diversification will take on a tremendous role

from the ingredients to the consumer (Copponex, 2012). From tastes and culture

in the kitchen to management practices and the floor, experimentation in all

cultural ingredients will decide whether High Road can succeed in the global

market (Wild & Wild, 2012).

International—in which the company utilizes mergers and/or acquisitions, internal

developments, or strategic partnerships to grow (Couture, 2012 ). This is the end

goal for High Road. To expand their global interests, the leaders of High Road

must venture out to develop familiarity with the places of interest; the policies and

economics of those places; connections with the business leaders of the region; a

keen awareness of the customs and culture; and a willingness to adapt. In this

enterprise, it would be of special interest to High Road to have established chefs

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who can be positioned to operate these foreign locations by the set standards. As

some terms do not translate the same, mission statements, slogans, logos, and

other material should be masterfully considered before High Road enters a foreign

domain with any potentially offensive terms (Factors to Consider, n.d.).

Challenges Ahead

Although proper integration of any of the strategies outlined above will provide some

measurable difference for High Road, the mission to global acceptance is a long and arduous

one. The leaders of High Road have already experienced magnificent growth that may have been

underestimated. However, that immense growth casts a light on the possibility of being closer to

the goal of becoming a global company. Some of the challenges the company will have to

overcome in order to achieve this goal include ensuring the integrity of their product among

other things. As the saying goes—nothing is quite like the original. As the product contributes so

significantly to the competitive advantage, can the High Road effectively reproduce the genius

behind the ice cream on a scale that meets a global demand without sacrificing any of the

qualities that make it a perfect ice cream?

Additionally, High Road has a family-oriented management style, they are active in

social media, and cater to a certain type of consumer. As the company expands, the need for

varied management styles will arise, time management practices will be more sensitive, and the

consumer base is likely to gain some new entrants. Because all of these changes can significantly

thwart the company’s advances, versatility and quick response is necessary to undo any incurred

damages, or re-route the company’s direction on any goal. This means having the right people in

place to guide and support the versatility of the company through building an open-environment.

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It is possible for High Road to achieve this level of success, but it will require acting on the

strategies that will move the company forward (Robbins & Coulture, 2009).

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