Unit 5 Case Study Chobani

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Apr 3, 2024

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Nakisha Owens Park University MBA 522: Organizational Behavior and Leadership Unit 2 - Case Study 6.1: Netflix Dr. Greg Moore

Hamdi Ulukaya launched Chobani, an American company that specializes in Greek yogurt, in 2005. Ulukaya, originally from Turkey, relocated to the United States in the 1990s with the intention of furthering his education. Chobani gained widespread recognition and became a prominent figure in the dairy sector due to his clear vision and unwavering commitment to creating top-notch, nourishing yogurt. Ulukaya's devotion to the community and his belief in the ability of businesses to drive social transformation are clearly demonstrated via Chobani's endeavors. A different approach Ulukaya's distinctive approach to running his business is his most important attribute, distinguishing him from most business owners by exemplifying his management philosophy of leading from the front. “It’s clear that a great leader cannot be defined by a set of specific attributes, rather, great leaders are defined by what makes them different from everyone else.” (Neck et al., 2019, pg. 369). His business management style encompasses both formal and informal leadership approaches. Ulukaya recognized the necessity of assuming a formal leadership role due to his lack of experience in the manufacturing industry. He understood the importance of making well-informed decisions to guarantee the success of his new business venture. However, his most prominent attribute lies in his genuine concern for people, which aligns more with an informal leadership style. (Neck et al., 2019, pg. 370). Recognizing his gift in empathy, he harnessed this quality to establish and expand his business. He generously compensated his employees, surpassing their prior salaries, and granted them equity in the company. Chobani has quickly emerged as the leading vendor of Greek yogurt in the United States. “It took less than five years for Chobani to sell over $1 billion in yogurt. A figure that officially made them the top seller of Greek yogurt in the United States” (Ariella, 2021).

Chobani’s Philosophy Chobani's philosophy and principles are centered on the principle that all individuals should have the opportunity to enjoy delectable, nourishing, and top-notch food. Chobani views this as a fundamental entitlement rather than a special privilege (Chobani® | the Chobani Way, n.d.). The company is dedicated to producing goods that are not only delicious but also manufactured with real and natural ingredients. Their commitment to openness and sustainability is clearly demonstrated through their methods, which include sourcing milk from nearby farms and minimizing their impact on the environment, while actively promoting diversity and inclusion. Potential Weakness in Chobani Philosophy Chobani's business philosophy prioritizes customer satisfaction through the production of a healthy, natural, and safe product. This philosophy also extends to their treatment of employees. In any business, when employees feel valued, respected, and included as part of the team, they are more likely to remain loyal to the company. Chobani's investment in employees leads to cost and time savings by reducing employee turnover and eliminating the need for training new staff, which incurs additional expenses and time loss. However, it is worth noting that there is a potential vulnerability that may present a challenge to the company philosophy, which is the sole commitment to natural ingredients. This could result in difficulties in achieving scalability and cost-efficiency. Acquiring premium natural products can incur higher costs and be susceptible to variations in supply and demand. An example of this is their decision to discontinue their Ultra-filtered milk line due to inflation (Leach, 2022). Nevertheless, as Chobani experiences further grow, upholding a comparable

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degree of dedication to pure ingredients may provide difficulties in relation to manufacturing expenses, maybe leading to increased prices for customers or jeopardizing profit margins. Managers vs Leaders Leadership and management are separate yet interconnected abilities, each possessing unique subtleties and demands “realistically, not all managers are leaders, nor for that matter all leaders’ managers” (Neck et al., 2020, p. 340). The distinction resides in the level of focus and attention to detail; leaders favor innovation, analytical thinking, and long-term objectives, whereas managers prioritize effectiveness, implementation, and immediate goals. Consequently, an individual can thrive in one position while facing difficulties in another, since the necessary skill sets, although related, are not the same. Hamdi Ulukaya, in my perspective, exemplifies attributes of both a leader and a manager. He exhibits exemplary leadership by effectively inspiring and motivating others to work towards a shared goal. His active engagement in the daily operations of the business demonstrates his managerial ability, supervising multiple facets of the organization to ensure optimal performance and achievement. In essence, Ulukaya's leadership style combines strategic foresight with effective operational oversight, making him a leader and manager within Chobani. In conclusion, Ulukaya's legacy serves as an inspirational instance of how devotion, ingenuity, and leadership can bring about significant transformation. Through his strong business knowledge and unrelenting dedication to quality and integrity, he transformed Chobani from a simple idea and vison into an industry leader in the food marketplace.

References Ariella, S. (2023, May 12). 15 largest yogurt companies and brands in the world . Zippia. https://www.zippia.com/advice/largest-yogurt-companies/ Chobani® | The Chobani Way . (n.d.). https://www.chobani.com/about Leach, T. (2022, April 27). Chobani ends Ultra-Filtered milk production after less than 3 months . Dairy Herd Managment. Retrieved February 9, 2024, from https://www.dairyherd.com/news/business/chobani-ends-ultra-filtered-milk-production- after-less-3-months#:~:text=Chobani%20is%20making%20the%20decision,main %20reason%20for%20the%20discontinuation. Neck, C. P., Houghton, J. D., & Murray, E. L. (2019). Organizational behavior: A Skill-Building Approach . SAGE Publications, Incorporated.

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