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Goodyear Tire And Rubber Co 1986 Case Study Solution

CASE ANALYSIS

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Goodyear Tire And Rubber Co 1986 Case Study Solution

Background and Facts

Goodyear Tire And Rubber Co 1986 a workplace supplies store for small and also moderate sized organisations has actually just recently been involved in planning for a merger with its rival Home Deport, which has influenced performance degrees in departmentswith the elderly supervisor involved in lawful complications presented by the government Profession Commission. With the Marketing Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the future. With obstacles in the form of a potential cultural modification and low staff member morale, the organization is in need of a total reengineering effort at the advertising division.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective social adjustment at the advertising division of Goodyear Tire And Rubber Co 1986 is enhancing unpredictability in the working environment bring about different obstacles for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in affecting calculated decisions since Stapes Inc. needed to abandon its strategies of combining with Workplace Deport after the Federal Trade Commission's treatment in the process. Provided the truth that the store has an international presence with branches in UK, U.S.A., Canada and Germany, political consider each of these countries might be able to affect efficiency or critical goals. Federal Trade Compensation's antitrust suit against the merging used up valuable time of the organization's elderly monitoring recommending that 'political' factors can have severe ramifications for a global business.

Economic Factors: Financial factors such as the appearance of small businesses in the international circumstance suggest that Goodyear Tire And Rubber Co 1986 is flourishing in an atmosphere where there is possible development of services. Fact that shop clients are primarily looking for office supplies for home workplaces recommends that the market has a climbing trend of entrepreneurs and also residence based companies.

Social factors: Social patterns in the economic climate reveal that customers are looking for comfort along with appealing prices. Market research demonstrates how the consumer for Goodyear Tire And Rubber Co 1986 does not have awareness concerning discovering options which can offer a mix of ease and affordable.

Technical factors: Modern technology plays a crucial function in Goodyear Tire And Rubber Co 1986's business approach specifically as the organization is piloting Innovation facilities which would certainly offer technology sales and support in the type of memory upgrades, peripheral installments. (Recap of BUG in appendix 2).

OB Issues and also Symptoms.

Several underlying Business Actions issues can be seen in Goodyear Tire And Rubber Co 1986's case as highlighted in this area.

Concerns regarding social modification: There is uneasiness regarding a cultural modification that would certainly occur when Todd Krasnow leaves from his placement as the Exec Vice President of Marketing with most of the personnel currently showing unhappiness over this prospective move. This predicted modification has developed stress in the work environment which has been coupled with the previous tension of preparing the company for a possible merging with Home Deport.
Pest Analysis
Demanding Work Atmosphere for Newcomers: There is lack of personnel that can match the demanding setting of a hectic company. Not just does this cause difficulty in discovering the appropriate individuals, it places stress and anxiety on new hires as can not stand up to the speed and also stress that the organization anticipates them to bear.

Double Reporting Lines: Beginners find this business culture difficult and also challenging to deal with specifically as dotted line partnerships are implied to be weaker generally and also objective setting as well as performance evaluation is still done by the solid line supervisor. This suggests that newcomers can lose clarity about their particular functions as well as purposes especially as populated line coverage does not keep them in straight interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had actually been guessed that the last would certainly take Krasnow's setting came as a blow to her spirits. Lewis may have been capable and also appropriate for the job however the fact that Kransnow's departure would make Coles a straight record to Lewis might have been the factor for Coles' resignation from services.

Anxiety & Task Insecurity: Concern and insecurity can be identified as two significant issues that Lewis would certainly be dealing with especially as the merger has actually now be terminated as well as two elderly executives of the marketing division would be leaving. The entire responsibility of the division would certainly be falling on Lewis's shoulders that would certainly not simply supervise of brining regarding a cultural modification however would certainly likewise have to verify herself in her new role.

Incompatible Monitoring Design of Leader: Lewis's monitoring style and its conflict with the advertising department's function can likewise be seen as an OB difficulty specifically as she has actually been made use of to managing issues in the procedures division where employees are taught to concentrate on procedures and obtain them. The advertising and marketing division on the other hand can be viewed as a group of people that are made use of to being supported by Krasnow who focused a lot more on result than procedures.

Interdepartmental Arguments: Interdepartmental disputes in between 3 departments, advertising, merchandizing and also operations specifically over the allocation of the marketing mix can be identified as an additional OB worry. Although the advertising division does not share the very same vision as the other 2 departments relating to the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing and operations departments do not agree over the advertising mix allowance among one another either.

Fragmentation in Advertising And Marketing Department: Disintegration between the advertising and marketing departments can be identified as one more OB issue which might require additional focus. The truth that the marketing and advertising sections in the advertising and marketing division are separated is protecting against both departments from acquiring from each various other's experience as well as expertise. Assimilation of advertising and marketing with merchandising and also procedures would certainly come to be more difficult if the marketing division itself is disintegrated which can be one more possible OB worry.

Goodyear Tire And Rubber Co 1986 Analysis

Different theories have been made use of to clarify the circumstances to get additional clearness concerning the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors think that subordinates are passive and also lazy, have little aspiration and also withstand adjustment. The circumstance at Goodyear Tire And Rubber Co 1986 is not totally adhering to Concept X, it can be seen that brand-new hires are finding this atmosphere rather demanding which may at some point lead to a greater inclination of the monitoring in the direction of Concept X. Even while assessing Lewis's management design, concept X may have been suitable in the procedures division to some level but the Marketing division would certainly call for reliance on Concept Y in order to obtain the creativity and also originality from the teams.

Tuckman's Synergy Theory: As far as Lewis's issue about bringing consistency in between the marketing and advertising department is concerned, this would initially bring about contrast as gone over by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). As per Tuckman's concept received appendix 3, throughout the initial stage of team growth, people may not bond, as they are hectic discovering their place in the team. By incorporating the marketing and advertising department's work, there may be the same first disconnect which can bring about the second phase of 'storming' where the groups test each other. It is just throughout the 3rd phase or 'norming' when they would certainly come together to share concepts prior to the group can bring about synergy in the fourth stage 'performing'.

Bridges' Transition Model: As per William Bridge's theory (appendix 4), individuals are quite uncomfortable with modification, which is noticeable by the scenario at Goodyear Tire And Rubber Co 1986 The scenario can be viewed as a regular course of life if is studied based on Bridge's concept where he discusses that people go through 3 stages of change when they experience change. 'Closing, shedding and Releasing', The Neutral Area and 'The New Starting' (Bridges, 2004). When people exist with change, they enter stage one therefore there might be emotions like despair, unpredictability, aggravation, rage, concern, rejection as well as disorientation.The situation at the advertising division of Goodyear Tire And Rubber Co 1986 is similar so Lewis can get comfortable with the concept that it is not extraordinary behavior. In the second stage, there might be a requirement to link the void between the new and old society so Lewis might have to encounter this ordeal as soon as Krasnow leaves. There may be reduced morale and reduced efficiency at this stage which must not be taken as an obstacle. It is during this phase that Lewis will need to give guidance to the department so that they can locate an orientation. It can be seen how Krasnow has already made this transition easier by making Lewis get involved in the department a year before his actual separation. According to Bridges' Design, phase three will certainly bring about visibility to learning, High energy as well as dedication as people will accept the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Need hierarchy: The OB concern pertaining to instability at the office has actually been activated firstly by the adjustment in management and secondly by the reality that the merger will no longer be started. Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has discusses the relevance of 'security requires as being a lower level need of a human for setting off motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the demand to really feel protected and untouched' goes to the 2nd degree of requirements. Prior to an employee can be made to develop psychologically, he needs to have his 'Physical 'as well as 'Security' needs met. This suggests that unless the personnel are made to feel safe and secure about their current work condition in Goodyear Tire And Rubber Co 1986 they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Goodyear Tire And Rubber Co 1986 Case Study



Implication of Analysis.

The OB analysis has actually looked at numerous theories to understand how to manage the existing situation at hand. The adhering to 3 choices have actually been recommended to aid Lewis handle the organizational challenges in the advertising and marketing division. Each of these choices has actually been proposed for relieving the shift needed to bring the advertising department in line with the requirements of the market and also for making the cultural modification that would adhere to as soon as the present leader leaves.

Integration of advertising and marketing features. Separating Adverting and Production functions. Assimilation of Marketing with Procedures.

Assessment of Alternatives.

Integration of Marketing & Advertising And Marketing Functions: The in-house marketing company of Goodyear Tire And Rubber Co 1986 is currently stamina for the organization in terms of saving up on expenses associated with marketing and promotion. Since no brand-new employment has actually been done after Bridget Cole's separation with the reporting line being directly appointed to Krasnow for the marketing feature, this is a favorable possibility for incorporating the advertising and marketing functions. Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merger days has experience in business-to-business marketing together with company and also retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to handle both marketing and advertising features.

The benefit of this method is that it will certainly incorporate the two features while minimizing the requirement for employing an additional resource for marketing. Along with this, Lewis would certainly be heading the advertising division and in any case her substitute would be needed for the existing duty that she is executing. The disadvantage of this alternative is that exterior hiring might cause bitterness from internal personnel who may be eying the placement of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and also Manufacturing: Given the affordable stress and also high quality job required from the advertising and marketing agency, it is advised that Lewis needs to permit the manufacturing device to be a separate function from the marketing unit. Considering that a lot of advertising and marketing agencies had these 2 functions as different devices, it makes even more sense to comply with the norm.

Integration of Marketing with Workflows: Given that Lewis is already looking after the marketing and operations departments concurrently; it makes sense to integrate both features given that she has actually been effectively caring for both ends. The reality that both divisions currently have major differences over allotment of resources recommends that this integration may be able to cause harmony especially as Lewis would be heading both ends.However there are various drawbacks of this move especially as it would certainly place too much burden over Lewis's shoulders. The fact that Lewis has to adjust her monitoring style for the advertising and marketing division recommends that these two divisions would be culturally diverse. In addition to this, Lewis may not have the ability to apply one sort of management style to both departments which can lead to ineffectiveness in either among the two functions.

Referral.



An assessment of the three options suggests that combination of advertising and marketing and also procedures would not be a practical move due to the vast differences between the two divisions regardless of the fact that currently Lewis is dealing with both. While splitting up of the manufacturing feature might have been a desirable relocation for the advertising and marketing department, the fact that it would suggest putting a third function under Lewis's wing suggests this ought to be stayed clear of.

Action Plan.
Recommendation
Lewis will certainly take control of the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

Judith Shapiro will certainly be hired to take Lewis's area as SVP of marketing and advertising.

Production function will certainly stay part of marketing under marketing feature.

Lewis will certainly separate herself from procedures.

An autonomous management design with worker empowerment will certainly be utilized in advertising department.

Open door policy and also focus on cross department communication will be targeted at eliminating disharmony.

Contingency strategy.

If the assimilation does not exercise as prepared, a backup strategy would follow which would certainly divide the manufacturing feature from the advertising function to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will be heading the marketing department without an SVP. Because case the production function will certainly be divided by putting it under an SVP manufacturing.