your final milestone submission should address the following requirements:
1. Compile your prior milestones into one polished, final paper that incorporate any suggestions for improvement from your instructor in prior weeks.
2. Create a presentation, the first few slides should briefly outline the highlights of your milestone paper.
3. The remainder of your presentation is meant to be a pitch of your own idea for a quality management program. Your pitch should address the following questions:
a. Who will you include on the deployment team and why?
b. How will you structure and manage the team to optimize their success?
c. What quality management tool are you proposing be implemented and why?
d. Why is this particular tool a good fit for this organization or the problem you are trying to solve?
e. How will the new tool you are proposing impact overall quality (service quality or product quality)?
Your final milestone submission should follow APA format, be well supported with a minimum of five recent sources, and be a minimum of 20 slides long.
Week 3 Assignment
January 28, 2023
Hello Fresh: Strategy and Structure
Hello Fresh has a different business model than those of retailers or grocers. With their “Pull Model”, they focus on working upstream, which essentially eliminates the need for wholesalers or distributors. After determining which produce is in season and finding the most cost-effective prices, Hello Fresh works closely with its growers and producers to ensure customers receive fresh, seasonal, and healthy ingredients for their meals (1). Since the majority of their deliverables are perishable, Hello Fresh keeps a low inventory model to reduce waste. From here, customers are able to choose which options they want in their meal kits, whether it be family friendly or a vegan option. Customers have the option of the base meals that are included in their original pricing, or they can upgrade certain meals for more premium items. Offering the upgrades is a smart strategy to use, who can pass up an upgrade to premium steak for only $4?
With almost 7.5 million subscribers, its hard to imagine growing from this point. But Hello Fresh has a growth strategy that is based on 3 main levers:
Total addressable market (TAM) penetration – growing the core business and increasing the penetration in all existing markets
TAM expansion: Launching new geographies, internationalizing our existing brand portfolio, and expanding our offering by building new ventures or acquiring further companies
Better monetization of our customer base: Expanding our product range to other categories and previously non-penetrated meal occasions such as lunch and breakfast (2)
Hello Fresh is working on other avenues with meal kits, such as breakfast and lunch and also options that offer the meals already prepared. Capturing a larger part of consumers food budget is one of their optimal goals. Adding options like the Hello Fresh Market, where customers can add on side dishes and desserts has become wildly popular. Hello Fresh uses science, cold hard data, and experience to drive their decision making. Whether it be a product decision or market launch, Hello Fresh is not doing so without the analytical data and evidence. But what about their competitors and how they fare in the same market. Let’s take a look at Blue Apron and see how their strategies compare.
Blue Apron, Hello Fresh and Plated all hit the US market around the same time. In 2017 Blue Apron hit the market with a 1.9-billion-dollar valuation. That soon changed and the days of billion-dollar valuations are gone as the expected demand for meal kit services was not met. With Covid-19 and businesses being closed, especially restaurants, meal kit services were on the rise. However now the company’s management team is trying to right-size the business while keeping pace with shifting consumer trends and advancing technologies (3).
In an interview with Food Business News, Linda Findlay, President and CEO of Blue Apron said “We're using technology to create curated experiences that have a long-term great margin profile.” Blue Apron knows they need to focus on innovation, quality and the customer experience if they are to compete in the market as it is now. Like Hello Fresh, they are also adding ready to go meals, breakfast items and other add on to increase the satisfaction of customers. During the pandemic, Linda knew that this boost wouldn’t last and decided to focus on innovation while other companies were focusing on the demand only. “Prior to the pandemic cooking at home was growing, but the pandemic spiked everything,” Ms. Findley said. “Post pandemic it has settled, but it has settled at a higher level.” (4)
Hello Fresh and Blue Apron are surprisingly similar in their strategies and business models. However, Hello Fresh has made a bigger splash with their marketing campaigns and has made brand awareness explode. I know I do not see ads for Blue Apron very often, if at all. What I do see is Hello Fresh, everywhere. Pricing seems to be almost equal for what is offered after any promotions of course. What consumers should be looking at most in these types of situations, is quality. Who has the better product and who can maintain the quality of that product over a lasting period of time. So now I ask, who do you choose?
1. Goel, S. (2022, September 17). Healthy business model & marketing strategy of HelloFresh. The Strategy Story. https://thestrategystory.com/2022/09/17/hellofresh-business-model-marketing-strategy/
2. (2022, October 19). Growing HelloFresh – Strategy, Expansion & New Product Development. Hello Fresh Group. https://www.hellofreshgroup.com/en/newsroom/stories/growing-hellofresh-strategy-expansion-and-new-product-development/
3. Nunes, K. (2022, September 29). Blue Apron moving beyond meals to selling experiences. Food Business News. https://www.foodbusinessnews.net/articles/22312-blue-apron-moving-beyond-meals-to-selling-experiences
4. Nunes, K. (2022, September 29). Blue Apron moving beyond meals to selling experiences. Food Business News. https://www.foodbusinessnews.net/articles/22312-blue-apron-moving-beyond-meals-to-selling-experiences
Running Head: LEADERSHIP 1
February 18, 2023
Chief Operating Officer (COO) of HelloFresh: "Uwe Voss" is the COO of HelloFresh and is responsible for overseeing the company's operations. His leadership style is characterized by a focus on efficiency, standardization, and optimization (Claes et al., 2020). He is a detail-oriented leader who values data-driven decision-making and has implemented several initiatives to improve operational efficiency at HelloFresh, such as investing in automation and logistics optimization.
1. The leadership style used by HelloFresh has proven to be effective in driving growth and innovation in the meal-kit delivery industry. However, whether it is the most appropriate leadership style depends on various factors, including the company's goals, culture, and values. While HelloFresh's leadership team has been successful in driving rapid growth and customer satisfaction, there have been concerns about employee engagement and work-life balance (Kassai, 2022). Ultimately, the appropriateness of HelloFresh's leadership style depends on the company's ability to balance its drive for growth and innovation with its commitment to employee well-being and corporate social responsibility.
2. While HelloFresh's leadership team shares a common commitment to innovation, growth, and customer satisfaction, there may be variations in leadership styles from one area to another. Different divisions of the company may require different approaches to leadership depending on their specific goals, challenges, and operating environments (Lehn et al., 2023). For example, the leadership style used in the finance team may be more analytical and data-driven, while the style used in the marketing team may be more creative and customer-centric. Ultimately, the appropriateness of a consistent leadership style depends on the company's ability to balance consistency with flexibility and to tailor its leadership approach to the needs of each division while maintaining a common vision and set of values.
3. HelloFresh and Blue Apron are two of the leading players in the meal-kit delivery industry, and both companies have different leadership styles that reflect their respective priorities and values. While HelloFresh's leadership style emphasizes innovation, growth, and operational efficiency, Blue Apron's leadership style is characterized by a focus on sustainability, quality, and customer satisfaction (Lyashenko et al., 2022). Both approaches have proven to be effective in driving growth and building brand loyalty, but which one is better depends on various factors, including the company's goals, culture, and values (Beattie et al., 2023). Ultimately, the most effective leadership style is one that is aligned with the company's vision, and that enables it to achieve its strategic objectives while upholding its core values.
In the end, it is concluded that "HelloFresh", being a big company, has an excellent leadership style that helps the company in making more progress and success. The company is also using numerous strategies to advance its leadership styles so that it can maintain its position in the market.
Abdullah, Z., Saad, N., Amran, N. A., & Ibrahim, M. (2020). Leadership Styles and Attributes of Prominent Women Business Leaders: A Case Study. Journal of Business Management and Accounting, 10(1), 1-27.
Beattie, M., Carolan, C., Macaden, L., Maciver, A., Dingwall, L., Macgilleeathain, R., & Schoultz, M. (2023). Care, home workers, experiences of stress and coping during COVID‐19 pandemic: A mixed methods study. Nursing Open, 10(2), 687-703.
Buchanan, D. A., & Hällgren, M. (2019). Surviving a zombie apocalypse: Leadership configurations in extreme contexts. Management Learning, 50(2), 152-170.
Claes, J., & STEILS, N. Dans le cadre d'une promotion d'un produit alimentaire, l'intention d'achat par le consommateur est-elle supérieure dans le cas du marketing via un Youtubeur comparé au marketing via une campagne télévisuelle? Cas de HelloFresh.
Kassai, Á. (2022). The four leadership styles of entrepreneurs: a competency-based model for entrepreneurial leadership. Vezetéstudomány/Budapest Management Review, 53(5), 16-31.
Lehn, F., Goossens, Y., & Schmidt, T. (2023). Economic and environmental assessment of food waste reduction measures–Trialing a time-temperature indicator on salmon in HelloFresh meal boxes. Journal of Cleaner Production, 136183.
Lyashenko, V., Shapran, O., & Kipa, M. A. (2022). Comparative Analysis of Price Dynamics for Shares of HelloFresh SE, Danone SA, Coca-Cola Co, and McDonald's.
Seeger, D. W. (2020). Follower perception of leadership communication and leadership style significantly predicting follower job satisfaction among Ohio community college employees. Bowling Green State University.
Running Head: MANAGEMENT ASSIGNMENT 1
February 12th 2023
1. In most organizations, a formal performance evaluation process is considered a best practice for several reasons. A well-designed performance evaluation process can provide valuable feedback to employees, help identify areas for improvement, support career development, and align employee performance with the organization's goals and objectives. In the case of HelloFresh, a formal performance evaluation process would likely be beneficial for similar reasons (Kopelowicz et al., 2023). It could help to ensure that employees are aligned with the company's mission and values, and help identify areas where they can improve or where additional support or resources may be necessary. Additionally, a performance evaluation process could provide valuable data to support decision-making around promotions, pay increases, and other personnel-related decisions. Overall, implementing a formal performance evaluation process in HelloFresh would likely be a positive step for the company and its employees. However, it's important to design and implement such a process thoughtfully, with the participation of all stakeholders, to ensure that it is fair, transparent, and effective (Guler et al., 2023).
2. A well-designed reward system can be a powerful tool for motivating employees and fostering a positive work environment. The reward system that I will use to motivate workers includes adding the elements such as; base pay, bonuses, stock options, commission-based pay, retirement plans, health insurance, paid holidays and vacations, opportunities for professional development, and appreciation programs. A competitive base salary is a fundamental component of any reward system, and HelloFresh needs to ensure that its employees are fairly compensated for the work they do (Liles IV et al., 2023). Commission-based pay can be a powerful motivator, as it provides employees with the opportunity to earn additional income based on their performance. This can be particularly effective in sales roles, where individual performance is easily quantifiable. Moreover, bonuses can be used to recognize and reward employees for exceptional performance, teamwork, meeting specific goals, or contributing to the company's overall success (Wang, 2023). Also, stock options can be a valuable component of a reward system, as they give employees a direct financial stake in the success of the company. A comprehensive benefits package, including health insurance, retirement plans, and paid time off, can help to attract and retain employees. Paid vacations and holidays will help employees recharge and recharge, which can ultimately lead to better performance and increased engagement. Providing employees with opportunities for training, career advancement, and professional development can help to increase their skills and engagement (Liu et al., 2023). Lastly, recognizing and appreciating programs will be arranged for employees to boost their morale and motivation. It will aid to create an environment of hard work and competition among the employees to work hard and more efficiently.
a. Communication and involvement of all stakeholders: Before rolling out the new reward system, it's important to involve all stakeholders, including employees, managers, and HR, in the change process. It will help to ensure that everyone understands the new system and has the opportunity to provide feedback and ask questions (Fang et al., 2023).
Clear and concise communication: Communicating the purpose and benefits of the new reward system, and how it will impact employees, is critical to the success of the change. The communication should be clear, concise, and easily understood by all employees.
Training and support: Providing training and support to employees on the new reward system can help to ease the transition and ensure that everyone can understand and utilize the new system effectively.
Phased Implementation: Rolling out the new reward system gradually, rather than all at once, can help to minimize any disruptions and ensure a smooth transition (Wang, 2023).
b. It is important to be transparent in communication about the new reward system, while also respecting any confidential information, such as individual employee compensation. Employees should be provided with clear and concise information on the new system while maintaining the confidentiality of individual compensation information.
c. Change can be challenging, and there may be some resistance or roadblocks to the transition to the new reward system. Some of the most common reasons for resistance include a lack of understanding of the new system, concerns about how the new system will impact individual compensation, and general resistance to change. To proactively address these roadblocks, it is important to communicate the purpose and benefits of the new system, provide training and support to employees, and involve employees in the change process. Additionally, it is important to be open and responsive to feedback and concerns and to address any issues as they arise. By involving all stakeholders, clearly communicating the purpose and benefits of the new reward system, providing training and support, and proactively addressing any roadblocks or resistance, Hello Fresh can successfully transition to the new system and ensure that it is effectively implemented and embraced by all employees (Wang, 2023).
References: Guler, E., Karakus, M., & Uludag, S. (2023). Blockchain-enhanced cross-ISP spectrum assignment framework in SDONs: SpectrumChain. Computer Networks, 109579. Fang, C. H., & Feng, K. T. (2023). QoE-Maximized Beam Assignment and Rate Control for Dynamic mm-Wave-Based Full-Duplex Small Cell Networks. IEEE Open Journal of the Communications Society. Kopelowicz, A., Nandy, K., Ruiz, M. E., Polzin, R., Kurator, K., & Wali, S. (2023). Improving Self-management of Type 2 Diabetes in Latinx Patients: Protocol for a Sequential Multiple Assignment Randomized Trial Involving Community Health Workers, Registered Nurses, and Family Members. JMIR Research Protocols, 12(1), e44793. Liles IV, J. M., Robbins, M. J., & Lunday, B. J. (2023). Improving defensive air battle management by solving a stochastic dynamic assignment problem via approximate dynamic programming. European Journal of Operational Research, 305(3), 1435-1449. Liu, M., Ding, Y., Sun, L., Zhang, R., Dong, Y., Zhao, Z., … & Liu, C. (2023). Green Airline-Fleet Assignment with Uncertain Passenger Demand and Fuel Price. Sustainability, 15(2), 899. Wang, D. & Liao, F. (2023). Formulation and solution for calibrating boundedly rational activity-travel assignment: An exploratory study. Communications in Transportation Research, 100092. Wang, S. H. (2023). Effective assignment of work items for an engineering consulting project based on consulting engineer selection matrix. Journal of the Chinese Institute of Engineers, 1-13.
Hello Fresh: Culture
Back in 2011, former students of Otto Beisheim Graduate School of Management at Wissenschaftliche Hochschule fur Unternehmensfuhrung (1.) teamed up and had a brilliant idea for a meal delivery service. Dominik Richter and Thomas Griesel founded Hello Fresh in Germany, with healthy eating in mind and a way to break into the “food at home” market. They began operating in 2012 and targeting high density populations in Berlin, Amsterdam and London. They were quickly becoming an in-demand service in Europe which forced them to expand and become available nationwide. They were not able to do this alone, they had the help of many investors and at times it seemed a bit rocky.
Hello Fresh was growing, growing, growing! By 2022, Hello Fresh was established in 19 different countries and were buying out the competitors left and right. They have bought Green Chef, EveryPlate, Chef’s Plate, Factor, and YouFoodz. You hear about them on the radio, tv, almost every social media platform and through their brand ambassadors. With 2021 being their best year in revenue to date (2022 data not yet available) and 2021 being the height of the pandemic, will data for 2022 be as promising or will we start to see a decline in revenue with the pandemic slowly coming to a halt (2.).
When it comes to culture, Hello Fresh has had some negative light shed on the company. Richter and Griesel were known for not communicating with their employees and keeping a social distance. They acted as “execution machines” and expected the same from the other offices, managers and employees. Turnover rates were high and there were lawsuits on the horizon. This was the culture of the company. When an ex-CEO of the US division was asked to comment on an intern who was suing the company, he replied with, “ If he's complaining about work conditions, I'll show you the Rocket office in Southeast Asia that we were running," he says. He slid the device across the table, revealing a photo of a sweaty, crowded workroom. "That's 320 people in a 60-people room. And, yes, I was working there too (3)."
By early June 2015, five of the American ops managers, including the chief operating officer, had quit. "It was hard to see the vision anymore," the first manager says. It was a literal revolving door at Hello Fresh across all the centers. There seemed to lack structure, morals, ethics, and even common sense. Morale was on the decline and it created a sense of lawlessness. Employees would arrive to work late, or not at all. When they did come, they would be intoxicated or noticeably on drugs. When management did try and step in, there were reports of slashed tires, threats, calls to the police etc. Customer service/retention was an entirely different but still as alarming environment. Employees were told to be aggressive, more aggressive than bill collectors. It was considered to be along the lines of harassment, stalker behavior. With Hello Fresh having such a high churn rate, it is no wonder they are pulling out all the stops. Fully 83% of HelloFresh's customers churn out after six months (4).
The more research I do on Hello Fresh, the more it is changing my perspective on the company. There seem to be more negative articles, publications and records than there is good. One former CEO had shed light on how he was instructed to hide numbers from reports, exclude certain data sets etc all so the investors wouldn’t back out. While Hello Fresh denies this, it is starting to become clear that this company will go to any length to keep its funding and status. I strongly feel the entire company needs an overhaul on all management and leadership positions. When it comes down to it, businesses cannot operate with employees doing their job. Let’s start with vetting the right people for the job. Train them and then train them again. Establish a coaching system, where help is available if it is needed. Mandatory leadership classes for everyone in a management position.
Having structure is important in running a successful business. When you think about your business model, you also need to think of how you are going to achieve that. The ethics and culture of your company is a major part to growth and inclusivity. Ultimately, if your employees are satisfied, your business will run more efficiently and effectively. Let’s reduce the turnover rate and have lasting employees who will help you grow your business. Furthermore, I would not support a company who did not support me. We are not living in the “olden days” where we were treated poorly, verbally abused and in other scenarios, sexually harassed. We are the future of companies and how we run them is going to determine their success.
1. (n.d.). History of Hello Fresh. Cleverism. https://www.cleverism.com/company/hellofresh/
2. (2021, November 26). 10 Years HelloFresh: From Start-up to Scale-up. Hello Fresh Group. https://www.hellofreshgroup.com/en/newsroom/stories/10-years-hellofresh-from-start-up-to-scale-up/
3. Helm, B. (n.d.). The World's Most Ruthless Food Startup: The Inside Story of How HelloFresh Clawed Its Way to the Top. INC.COM. https://www.inc.com/magazine/201808/burt-helm/hellofresh.html
4. McCarthy, D. (2017, October 14). The World's Most Ruthless Food Startup: The Inside Story of How HelloFresh Clawed Its Way to the Top. LinkedIn. https://www.linkedin.com/pulse/hellofresh-has-bigger-customer-retention-problem-than-daniel-mccarthy
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