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Conclusion

Overall, it is evident that the product change gaffe that took place in April was induced by the failure

of the management to deal with two key operational issues. First, Arnott’s failed to institute the

correct procedures and processes in conducting market analysis. Consequently, it failed miserable

in determining the consumer tastes and preference leading it to design and package products that
not fancied by Shapes customers. Since the company maintains that extensive research
were
studies were conducted before the changing Shapes’ taste and texture, the blame can only be

heaped on how the researches were conducted to arrive at a totally irrelevant recommendation.
Secondly, its operational planning and control technique were also faulty. First, it manufactured
large batches of the new an improved products eventhough a proper testing in the market had not

been conducted thus incurring huge manufacturing expenses. Secondly, it also completely
misidentified its test subjects, utilizing a rather biased focus group instead of simply testing the
product in the real market by placing it on the shelves.

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