SuperJuice Case

Luisa de la Cruz sat in her new office thinking about her company's future. After working her way

up the corporate ladder for 15 years, she has just been appointed CEO of SuperJuice, a Florida-

based company that makes juice and juice drinks that are marketed to high schools and

restaurants throughout the Southeast. For nearly two decades, SuperJuice has been the most

successful juice drink maker in the region. However, profits haven't risen for four straight years,

and several new competitors continue to steal market share. In fact, one of the new companies

was started by two former SuperJuice employees who left the company after top management

continually rejected their ideas for new exotic drink mixes or new approaches to marketing. It

made Luisa cringe to realize that the hottest selling drink flavors in Florida and several other

states had been invented in SuperJuice's own labs but were now being made and sold by a

competitor. Competitors were setting up drink carts at outdoor festivals and advertising with

jingles and slogans that caught the imaginations of the region's youth. Even Luisa's own 17-year-

old son often purchased her competitors' products, saying that "SuperJuice is for kids. This stuff is

hot."

SuperJuice management has always prided itself on the company's efficient set of systems, both

in the factory and at headquarters. Managers concentrated on making a high-quality product as

inexpensively as possible. "SuperJuice is like a well-oiled machine," Luisa told herself with some

pride. Most of the company's 200 employees had joined SuperJuice right out of high school or

college and liked the way the company operated. They showed up for work on time, performed

their jobs efficiently, and rarely complained. The long-standing rules and procedures, combined

with an organizational culture that reflected the traditional, family-oriented background of

SuperJuice's Cuban-born founder, contributed to a level of politeness and civility in the company

that sometimes seemed like a throwback to the 1950s. "SuperJuice is a calm and civilized place to

work in the midst of a rapidly changing, chaotic world," Luisa reflected with pleasure.

But her pleasure evaporated as she realized that the company could collapse beneath her if it

didn't somehow respond to the changes in the environment. She remembered the scandal that

had erupted several years ago when two new employees started "breaking the rules" and pushing

for changes in the company. The two worked odd hours, played rock music, and decorated their
offices with brightly colored posters, unique photographs, and fanciful "dream catchers" hung from

the ceiling. Occasionally, one would tape a note to his door that read, "Gone to the movies to get

my creative juices flowing!" Although both workers were highly productive, top management

quickly took action to try to bring the two back in line. They worried that this kind of attitude

would have a negative impact on the productivity of other employees, who were accustomed to

coming to work and putting in their solid eight hours. The previous CEO really blew his stack when

the two presented four new drink flavors they had concocted on the sly. He was so angry about

the unauthorized use of lab time that he nearly fired both employees on the spot. Luisa

remembered finding one of the employees in the lab dejectedly pouring the prototypes down the

drain. "You know you can't do anything new in this company," Luisa told her at that time. "It's just

not the SuperJuice way." Since that time, SuperJuice has lost a few other young, ambitious

employees who have chafed under the tight management control.

Luisa knew she was promoted because she had always followed the rules. But she also realized

that continuing to follow the rules could take this company she loved right into bankruptcy. She

knows the company has a lot of potential, starting with its loyal, committed workforce. But where

should she begin? Can SuperJuice really change itself into a forward-thinking, creative company?

SOURCE: Based on Suzy Wetlaufer, "What's Stifling the Creativity at CoolBurst?" Harvard Business Review (September-
October 1997), 36-40.

Questions

1. What are some of the social, political, and economic forces affecting SuperJuice and
calling for a new approach to management?
2. What do you believe Luisa needs to do first to begin a transformation at SuperJuice?
3. How would you suggest she turn SuperJuice into a learning organization? Think
about specific changes she can make to get all employees thinking of new and
exciting ways to revitalize the product line and way of doing business.

SOURCE: Based on Suzy Wetlaufer, "What's Stifling the Creativity at CoolBurst?" Harvard Business Review (September-
October 1997), 36-40.
SuperJuice CASE ANALYSIS

SOLUTION#1

QI. Summary

The new CEO of SuperJuice Company, Luisa de la Cruz, was thinking about the present and future status of the firm and
some of the complexities it’s dealing with. For four straight years, its profits have not risen and many competitors keep on
venturing on the same line of business. Back when the days that SuperJuice was looked up by newly graduates as a highly-
profiled company in which everyone wants to work in. Luisa told with pride that the employees then were on time for work,
efficient in performing their jobs, and complained rarely. SuperJuice is a calm and civilized place to work amidst the rapidly
changing chaotic world. Because of its inability to adapt to the occurring changes in the market, it encountered problems in
the following aspects:

A. Social Forces

SuperJuice was a traditional, family-oriented workplace. It just followed and preserved the bylaws implemented by the
predecessors of Luisa. It did not adapt to the changing demands of the people and of the external environment. Proposals of
the employees with regard to creating new products were just taken for granted.

B. Political Forces
SuperJuice’s management has been autocratic since its establishment. People working for it have only been following rules
set by the company’s CEO and would not attend to the recommendations raised by its employees, although potential market
could be clearly seen. The CEO and the managers did not think of new ways to differentiate or make their products unique
and creative. Only the rules determine the actions and decisions of everyone else. Further changes are prohibited.
C. Economic Forces
Due to the changing preferences and tastes of customers/consumers, the SuperJuice was not able to compete head-on
with its competitors and thus, was outmaneuvered in terms of marketing and sales unlike before when it was starting up and
had no close competitors.
 SOLUTION#2

1. What are some of the social, political, and economic forces affecting SuperJuice and
calling for a new approach to management ?
There are environmental forces impacting the success of SuperJuice. The social forces include
minority managers and employees. The new CEO, Luisa de la Cruz, is a minority and has been a part
of a strong organizational culture. She has in the past followed the rules and procedures in a tightly
contorted bureaucratic organization. The company has been a family-run organization. It has a culture
that can be characterized as diversified and operating with politeness and civility. Social change has
brought about a new era with contemporary music, unique photographs, brightly colored posters, and
fanciful dream catchers hung from the ceiling. The two new employees worked odd hours and posted
signs on their doors such as Gone to the movies to get my creative juices flowing. Management
intervened and put a stop to this type of creativity in favor of the traditional management approach of
tight control. The political forces at work represent a closed system. Top management would not
support new ideas and new products. An additional political force was the tight management control of
human behavior at work. The economic environmental forces are characterized by the fact that profits
have not increased in the last four years. Competition has entered the market place, and there has
been a loss of market share due to the traditional approach undertaken by This edition is intended for
use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
New product ideas and other suggestions to improve the company s sales and profits were
suppressed by top management. If this company is to survive, Luisa must develop a new approach to
management. A participative approach characterized by empowering employees in regards to new
product ideas and other suggestions must be forthcoming. To gain employee loyalty and commitment,
Lusia must develop and adapt a strong organizational culture--one that fosters a sense of identity,
belonging, and respect for her employees.
2. What do you believe Luisa needs to do first to begin a transformation at SuperJuice?
Luisa needs to transform a traditional bureaucratic organization into a new creative learning
organization. She must take on a leadership role and create an organizational culture that will reflect
the attributes of a new learning organization. The organization must be restricted in a way that is built
upon strategies to meet the organizations goals of increased market share and profits.
3. How would you suggest she turn SuperJuice into a learning organization? Think about
specific changes she can make to get all employees thinking of new an exciting ways to
revitalize the SuperJuice product line and way of doing business.
To change SuperJuice into a learning organization Luisa must be inspired to effectuate the new wave
of leadership in managing people at work. She must communicate to management and employees the
need for a change of employee attitude to engender creativity at work. A strong organizational culture
is needed to improve upon morale and performance at work. Participation and employee
empowerment must be forthcoming to develop new products and methods of operation. Open
information where Luisa creates an open door policy with employees is essential. The creation of a
fun- type atmosphere where employees can come and go, generate new ideas, be involved in problem
resolution, and be aware of what s going on is essential. Finally, Luisa could create the concept of
self-managed teams. Cross-functional teams could be a benefit to SuperJuice on special projects in
marketing their product line to customers. A specific change Luisa can make is the creation of an
organizational culture built upon rewards. The idea of teams sharing responsibility and empowering
these teams with the freedom to develop new fruit juice products is indicative of a strong culture. An
open system built upon employee enthusiasm to brainstorm and come up with suggestions concerning
cost effective measures shall be rewarded.