Subject category:
Production and Operations Management
Published by:
MIT Sloan School of Management
Version: February 19, 2019
Length: 30 pages
Data source: Field research
Notes: This item is part of a free case collection. For terms & conditions go to www.thecasecentre.org/freecaseterms
Abstract
This case describes how leaders at Mud Bay, a chain of pet products based in Pacific Northwest, changed the way they operated their business from 2014 to 2017. They adopted a framework that included heavy investment in people with operational choices that leverage that investment by increasing productivity and contribution of employees. Changes included raising wages by 24 percent, increasing percentage of employees who worked more than 30 hours a week - and hence received benefits - from 69 percent to 82 percent, implementing employee stock ownership program, eliminating offerings that weren't consistent with value proposition, reducing product variety, cross-training employees, and smoothing workload. These changes resulted in lower employee turnover, higher productivity, and increased customer satisfaction and sales. The case describes why Mud Bay's co-CEO's adopted this framework and how they implemented change. The decision point of the case is whether Mud Bay should reduce its hours in 2017. Reducing the hours could increase productivity and employee experience but it may also hurt sales. This case is part of the MIT Sloan free case collection (visit www.thecasecentre.org/mitsloanfreecases for more information on the collection).
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Time period
The events covered by this case took place in 2018.Geographical setting
Region:
Americas
Country:
United States
Featured company
Mud Bay
Type:
Privately held
Featured protagonist
- Tracy Yamane (female)
About
Abstract
This case describes how leaders at Mud Bay, a chain of pet products based in Pacific Northwest, changed the way they operated their business from 2014 to 2017. They adopted a framework that included heavy investment in people with operational choices that leverage that investment by increasing productivity and contribution of employees. Changes included raising wages by 24 percent, increasing percentage of employees who worked more than 30 hours a week - and hence received benefits - from 69 percent to 82 percent, implementing employee stock ownership program, eliminating offerings that weren't consistent with value proposition, reducing product variety, cross-training employees, and smoothing workload. These changes resulted in lower employee turnover, higher productivity, and increased customer satisfaction and sales. The case describes why Mud Bay's co-CEO's adopted this framework and how they implemented change. The decision point of the case is whether Mud Bay should reduce its hours in 2017. Reducing the hours could increase productivity and employee experience but it may also hurt sales. This case is part of the MIT Sloan free case collection (visit www.thecasecentre.org/mitsloanfreecases for more information on the collection).
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Settings
Time period
The events covered by this case took place in 2018.Geographical setting
Region:
Americas
Country:
United States
Featured company
Mud Bay
Type:
Privately held
Featured protagonist
- Tracy Yamane (female)