All Star

In: Business and Management

Submitted By carlcarl
Words 12535
Pages 51
August 2014

ALL STAR Foods Canada Ltd.

ALL STAR Foods International (ALL STAR) is a large international manufacturer of snack foods, including potato chips, nacho chips, and pretzels, that are sold under the Tasty Crunch brand name. ALL STAR has operations throughout North America and Europe, and its international head office is located in Chicago. Consolidated net sales are in excess of US$1 billion, and ALL STAR’s shares are traded publicly on the New York Stock Exchange. In Canada, ALL STAR operates through its wholly owned subsidiary, ALL STAR Foods Canada Ltd. (ASFC or the Company). ASFC has facilities located across Canada and sales in excess of CDN$150 million. Its head office is located in Toronto, Ontario. Over the past several years, ASFC’s sales have grown slowly and its financial results have been relatively weak. Consequently, ALL STAR initiated a major restructuring of ASFC at the beginning of 2010. This resulted in the replacement of almost all the senior management staff. Bruce Tate, a senior manager in ALL STAR’s operations in the United States, was appointed President of ASFC. His mandate was to double the size of the Canadian operations and to generate a pre-tax profit margin in excess of 10% within a period of five years.

Management Team and Responsibilities
By December 2010, Bruce and all six vice-presidents of ASFC were relatively new to the Company. An organizational chart for ASFC is presented as Appendix A. Background information on the members of the management team is presented below, together with the responsibilities of each position. Bruce Tate, President: Bruce Tate was made President of ASFC in the course of the restructuring efforts in 2010. Immediately prior to that time, he was the senior manager of ALL STAR’s

© 2014 The Society of Management Accountants of Canada. All rights reserved.…...

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