Goodyear Tire And Rubber Co 1986 Case Study Solution


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Goodyear Tire And Rubber Co 1986 Case Study Help

Background and Facts

Goodyear Tire And Rubber Co 1986 an office products store for tiny as well as medium sized companies has actually recently been involved in planning for a merger with its competitor Residence Deport, which has actually impacted efficiency levels in departmentswith the senior supervisor involved in lawful complications put forth by the government Trade Payment. With the Advertising and marketing Head putting forward the news of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the near future. With difficulties in the type of a prospective cultural change and low employee morale, the organization needs a complete reengineering initiative at the marketing department.

Issue Statement
Porter's 5 Forces Analysis
The prospective social change at the marketing department of Goodyear Tire And Rubber Co 1986 is raising uncertainty in the workplace leading to numerous challenges for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in impacting critical choices considering that Stapes Inc. needed to abandon its plans of combining with Workplace Deport after the Federal Trade Compensation's treatment at the same time. Provided the fact that the store has a worldwide existence with branches in UK, USA, Canada and also Germany, political factors in each of these countries may have the ability to affect efficiency or critical objectives. Federal Profession Compensation's antitrust match versus the merger occupied useful time of the organization's elderly administration recommending that 'political' factors can have significant implications for a worldwide company.

Economic Factors: Financial factors such as the emergence of small companies in the international situation suggest that Goodyear Tire And Rubber Co 1986 is thriving in an environment where there is prospective growth of businesses. Reality that shop consumers are primarily looking for workplace supplies for home offices suggests that the market has a rising trend of business owners and house based organisations.

Social factors: Social fads in the economic climate reveal that consumers are looking for benefit along with attractive prices. Market research demonstrates how the consumer for Goodyear Tire And Rubber Co 1986 does not have recognition regarding discovering options which can provide a mix of ease and affordable.

Technological factors: Modern technology plays an important duty in Goodyear Tire And Rubber Co 1986's organisation approach specifically as the organization is piloting Innovation centers which would certainly provide modern technology sales and assistance in the kind of memory upgrades, peripheral installments. (Recap of BUG in appendix 2).

OB Issues as well as Effects.

A number of underlying Organizational Behavior concerns can be seen in Goodyear Tire And Rubber Co 1986's case as highlighted in this area.

Apprehensions about cultural modification: There is apprehension about a cultural modification that would certainly happen when Todd Krasnow leaves from his setting as the Executive Vice President of Advertising with the majority of the team member currently showing unhappiness over this possible relocation. This predicted change has actually developed tension in the work environment which has actually been coupled with the past stress and anxiety of preparing the company for a potential merging with Residence Deport.
Pest Analysis
Difficult Task Atmosphere for Newcomers: There is lack of workers that can match the difficult atmosphere of a fast-paced organization. Not only does this lead to problem in locating the ideal people, it places stress and anxiety on new hires as can not stand up to the pace as well as stress that the company expects them to birth.

Dual Reporting Lines: Beginners find this business society troublesome and hard to manage particularly as populated line relationships are implied to be weaker generally and also objective setting and performance assessment is still done by the solid line supervisor. This suggests that newcomers can lose clarity about their particular functions and goals specifically as populated line coverage does not maintain them in direct interaction with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles even though it had actually been speculated that the latter would take Krasnow's position came as a blow to her spirits. Lewis may have been capable as well as ideal for the task however the truth that Kransnow's separation would make Coles a direct report to Lewis may have been the reason for Coles' resignation from services.

Concern & Job Insecurity: Anxiety as well as instability can be recognized as two major worries that Lewis would be handling particularly as the merging has actually currently be cancelled as well as two elderly executives of the marketing division would be leaving. The entire responsibility of the division would be dropping on Lewis's shoulders who would certainly not simply supervise of brining concerning a social change but would additionally need to prove herself in her brand-new role.

Incompatible Administration Design of Leader: Lewis's management style and its incompatibility with the advertising and marketing division's role can additionally be seen as an OB obstacle particularly as she has been made use of to handling concerns in the procedures department where personnel are shown to focus on procedures as well as get them right. The marketing division on the other hand can be viewed as a team of individuals who are used to being supported by Krasnow that focused extra on outcome than processes.

Interdepartmental Differences: Interdepartmental differences between 3 divisions, advertising, merchandizing and procedures specifically over the allotment of the advertising mix can be recognized as an additional OB concern. Although the advertising department does not share the same vision as the other two departments concerning the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing as well as operations divisions do not concur over the marketing mix allotment amongst each other either.

Disintegration in Advertising And Marketing Division: Disintegration between the marketing and advertising departments can be recognized as another OB problem which can need further interest. The reality that the advertising and marketing areas in the advertising department are separated is preventing both departments from acquiring from each other's experience and also experience. Assimilation of advertising with retailing as well as procedures would certainly become harder if the marketing department itself is degenerated which can be an additional prospective OB issue.

Goodyear Tire And Rubber Co 1986 Analysis

Various concepts have actually been made use of to explain the scenarios to get more quality about the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most managers think that staffs are easy and also careless, have little passion and also resist adjustment. The scenario at Goodyear Tire And Rubber Co 1986 is not totally complying with Concept X, it can be seen that brand-new hires are discovering this atmosphere rather difficult which may eventually lead to a better disposition of the monitoring in the direction of Theory X. Even while assessing Lewis's management design, concept X might have been appropriate in the procedures department to some degree but the Advertising and marketing division would certainly require reliance on Concept Y in order to get the creative thinking and also originality from the teams.

Tuckman's Teamwork Theory: As far as Lewis's issue about bringing consistency in between the marketing as well as advertising department is concerned, this would at first lead to clash as reviewed by Bruce Tuckman in his 'Teamwork Concept'. By integrating the advertising and marketing as well as marketing division's job, there may be the exact same first detach which can lead to the 2nd phase of 'storming' where the teams test one an additional.

Bridges' Transition Model: As per William Bridge's theory (appendix 4), individuals are quite uneasy with adjustment, which is noticeable by the circumstance at Goodyear Tire And Rubber Co 1986 The scenario can be viewed as a typical training course of life if is examined according to Bridge's theory where he discusses that individuals go through three phases of transition when they experience adjustment. 'End, losing and Letting go', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When people exist with change, they enter phase one and so there may be emotions like despair, unpredictability, stress, anger, fear, denial as well as disorientation.The scenario at the advertising division of Goodyear Tire And Rubber Co 1986 is comparable so Lewis can get comfortable with the suggestion that it is not extraordinary habits. In the 2nd phase, there may be a need to bridge the space in between the brand-new as well as old culture so Lewis may have to face this challenge once Krasnow leaves. There might be low spirits as well as reduced productivity at this stage which must not be taken as a trouble. It is throughout this stage that Lewis will certainly need to offer advice to the department so that they can find an orientation. It can be seen just how Krasnow has actually currently made this transition simpler by making Lewis obtain involved in the division a year before his real departure. According to Bridges' Design, stage three will certainly cause visibility to discovering, High energy and dedication as people will certainly accept the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Demand power structure: The OB issue related to insecurity at the work environment has been activated firstly by the adjustment in administration and also second of all by the fact that the merging will no more be started. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has goes over the importance of 'safety and security requires as being a lower degree need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel safe and secure and also safe' is at the 2nd degree of requirements. Before an employee can be made to create emotionally, he requires to have his 'Physical 'as well as 'Safety and security' requires met. This shows that unless the personnel are made to really feel safe and secure concerning their existing work standing in Goodyear Tire And Rubber Co 1986 they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Goodyear Tire And Rubber Co 1986 Case Study

Effects of Analysis.

The OB analysis has taken a look at numerous theories to understand just how to handle the current circumstance at hand. The following three alternatives have actually been proposed to aid Lewis deal with the organizational obstacles in the advertising division. Each of these alternatives has actually been recommended for relieving the change required to bring the marketing department in line with the needs of the marketplace and also for making the social modification that would certainly comply with as soon as the current leader leaves.

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

Analysis of Alternatives.

Judith Shapiro who has actually earlier been spoken with by Lewis throughout the earlier merging days has competence in business-to-business advertising along with company and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to deal with both marketing as well as advertising functions.

The benefit of this strategy is that it will certainly integrate both features while lowering the requirement for employing an additional source for advertising. In addition to this, Lewis would be heading the marketing department and all the same her replacement would certainly be needed for the present duty that she is performing. The negative aspect of this alternative is that outside hiring might produce bitterness from internal workers that might be eying the setting of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and also Production: Offered the affordable stress as well as premium quality job required from the ad agency, it is advised that Lewis should enable the production device to be a separate feature from the advertising system. Since a lot of advertising agencies had these 2 features as separate units, it makes more sense to adhere to the norm. Along with this, both features might have the ability to focus on their core turns on extra effectively. However, the negative aspect of this approach would certainly be that added expenses would certainly have to be borne for establishing separate manufacturing features. A production head may have to be worked with which might enhance overheads for the organization.

Assimilation of Marketing with Operations: Since Lewis is already taking care of the advertising and marketing and procedures departments simultaneously; it makes sense to incorporate the two features because she has been efficiently taking care of both ends. The fact that Lewis has to adjust her management style for the marketing division suggests that these 2 departments would be culturally varied.


An examination of the three choices suggests that integration of advertising and marketing as well as procedures would not be a possible step because of the huge distinctions between the two divisions although that presently Lewis is dealing with both. While separation of the production function may have been a favorable relocation for the advertising division, the reality that it would certainly suggest placing a 3rd feature under Lewis's wing implies this need to be avoided. The combination of the marketing department is the best option in terms of obtaining the ideal results from the division. An action plan for this alternative is reviewed below.

Action Strategy.
Lewis will certainly take over the role of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

Manufacturing feature will certainly stay component of advertising and marketing under advertising function.

Lewis will certainly divide herself from operations.

An autonomous leadership design with worker empowerment will be made use of in advertising division.

Open up door policy as well as focus on cross departmental communication will be targeted at eliminating discord.

Backup plan.

If the combination does not exercise as planned, a contingency plan would follow which would divide the manufacturing feature from the marketing function to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the marketing department without an SVP. In that case the manufacturing function will most definitely be divided by putting it under an SVP production.