On Avery Island, LA in 1868, Edmund McIlhenny first created Tabasco Sauce. Now known as the quintessential pepper sauce, Tabasco can be easily found around the world and has even been brought to space. The company\u2019s success has been significantly driven by strong alignment between its business and operating models, and thus, this is an example of a highly effective organization.<\/p>\n
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Business Model \u2013 Value Creation and Capture<\/strong><\/p>\n The self-proclaimed creator of the hot sauce market, Tabasco provides customers with a consistently delicious pepper sauce. Due to its extensive distribution networks, the \u201coriginal red sauce\u201d can be found in 180 countries and territories (as well as in soldiers\u2019 MREs) and is often requested by brand name. The bottle\u2019s label is recognizable around the world and has been customized to cater to 22 different languages and dialects. Simply put, Tabasco is synonymous with hot sauce.<\/p>\n <\/p>\n Operating Model \u2013 Transforming Assets into Valuable Actions<\/strong><\/p>\n Production of the iconic pepper sauce has changed little over the company\u2019s 147 year history. The process begins with a McIlhenny family member selecting the ideal Capsicum Frutescens seeds, which are grown onsite on Avery Island. Originally, peppers were only grown on Avery Island; however, now the majority of the volume is farmed in Latin America, where the peppers can blossom better protected from hurricanes and diseases.<\/p>\n In August, once the peppers have matured to exude a red hue, farmers assess the color of the pepper with a small wooden dowel, \u201cle petit baton rouge,<\/em>\u201d to ensure that the pepper is appropriately ripe for picking. The next step, following the handpicking of the peppers, is to mash the peppers and mix them with Avery Island salt. The mixture is then stored in oak barrels, which are covered in more Avery Island salt to create a protective barrier.<\/p>\n This \u201cpepper mash\u201d is aged for three years and, after being inspected by a McIlhenny family member, is combined with 100 grain distilled vinegar. This final mixture is stirred daily and, after thirty days, is strained to remove any skins, pulp, and\/or seeds in the fluid. Lastly, the sauce is bottled via a modern bottling system. Originally, cologne bottles were used and a sprinkler filament topped the bottles.<\/p>\n <\/p>\n Model Alignment<\/strong><\/p>\n Critical to Tabasco\u2019s success are several key competitive advantages.<\/p>\n These factors (patent, family, seeds, and salt) significantly impact the business\u2019 performance because they help to ensure a consistent product and flavor. Moreover, by growing the peppers in a more protected environment, pepper crop yields are more predicable, which enables the company to regularly produce 720,000 bottles of Tabasco sauce a day.<\/p>\n Lastly, employment opportunities in the region surrounding Avery Island are limited and Tabasco employee loyalty is extremely high \u2013 in fact, being a second or third generation employee is not unheard of (i.e. mothers and fathers, along with their grown children, can all be found working for Tabasco). The company is also an attractive employer since it offers full health and dental benefits, along with retirement plan. Thus, employee turnover is not a challenge the company faces.<\/p>\n All of these factors have contributed to the creation and maintenance of the Tabasco product and brand, the original hot sauce.<\/p>\n <\/p>\n <\/p>\n Sources:<\/p>\n <\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Effectively aligning business and operating models: the catalyst for creating and maintaining the Tabasco product and brand. <\/p>\n","protected":false},"author":473,"featured_media":6740,"comment_status":"open","ping_status":"closed","template":"","categories":[512,63,1035,33,1033,1034],"class_list":["post-6672","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-brand","category-consumer-goods","category-family-owned","category-food","category-louisiana","category-tabasco"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/the-tom-challenge-tom-winners-and-losers-assignment\/","yoast_head":"\n\n
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