Goodyear Tire And Rubber Co 1988 Case Study Help


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Goodyear Tire And Rubber Co 1988 Case Study Help

Background and Facts

Goodyear Tire And Rubber Co 1988 an office supplies merchant for small and also moderate sized services has lately been associated with preparing for a merger with its competitor Residence Deport, which has actually affected performance levels in departmentswith the senior manager associated with legal problems presented by the government Trade Payment. With the Advertising and marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the duty in the future. With challenges in the kind of a possible cultural adjustment as well as low staff member spirits, the organization needs a complete reengineering initiative at the advertising department.

Issue Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising and marketing division of Goodyear Tire And Rubber Co 1988 is raising uncertainty in the working environment leading to numerous challenges for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in affecting critical decisions given that Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Trade Commission's treatment in the process. Provided the truth that the store has an international existence with branches in UK, USA, Canada and also Germany, political consider each of these nations may have the ability to influence efficiency or critical goals. Federal Trade Payment's antitrust suit against the merging used up valuable time of the company's elderly monitoring recommending that 'political' factors can have significant ramifications for a global service.

Economic Factors: Financial factors such as the emergence of small companies in the global situation recommend that Goodyear Tire And Rubber Co 1988 is thriving in a setting where there is potential development of companies. Along with this, reality that store consumers are primarily seeking office materials for office suggests that the marketplace has a climbing pattern of business owners as well as home based companies.

Social factors: Social trends in the economy reveal that customers are trying to find convenience in addition to appealing rates. Market research demonstrates how the client for Goodyear Tire And Rubber Co 1988 lacks recognition about finding solutions which can use a combination of benefit as well as low costs.

Technological factors: Modern technology plays an important function in Goodyear Tire And Rubber Co 1988's service strategy particularly as the organization is piloting Technology facilities which would provide innovation sales as well as assistance in the kind of memory upgrades, peripheral setups. (Summary of BUG in appendix 2).

OB Issues and Symptoms.

Numerous underlying Business Actions concerns can be seen in Goodyear Tire And Rubber Co 1988's case as highlighted in this section.

Uneasiness about cultural modification: There is concern concerning a social modification that would certainly happen when Todd Krasnow leaves from his setting as the Executive Vice President of Advertising with most of the team member currently revealing discontent over this prospective relocation. This predicted adjustment has developed anxiety in the workplace which has actually been combined with the previous stress and anxiety of preparing the firm for a possible merging with Home Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is lack of personnel that can match the difficult environment of a busy company. Not just does this lead to trouble in discovering the right people, it places tension on new hires as can not stand up to the speed and also pressure that the company expects them to bear.

Double Coverage Lines: Newbies locate this business culture difficult as well as difficult to deal with particularly as populated line connections are implied to be weak generally and also objective setting and efficiency analysis is still done by the strong line supervisor. This means that newcomers might shed clarity about their corresponding roles and also objectives particularly as populated line coverage does not keep them in direct communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles although it had actually been hypothesized that the latter would certainly take Krasnow's placement came as a blow to her morale. Lewis might have been qualified and also proper for the task however the truth that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from services.

Fear & Task Insecurity: Concern as well as insecurity can be recognized as 2 significant issues that Lewis would certainly be taking care of particularly as the merger has actually now be cancelled and 2 elderly execs of the advertising and marketing department would certainly be leaving. The entire responsibility of the department would be falling on Lewis's shoulders who would certainly not just be in charge of brining regarding a cultural change however would certainly also need to verify herself in her brand-new duty.

Incompatible Management Style of Leader: Lewis's management design and its incompatibility with the advertising and marketing division's duty can additionally be seen as an OB challenge specifically as she has been used to handling concerns in the operations division where workers are shown to concentrate on processes and also obtain them. The advertising department on the various other hand can be viewed as a team of people that are made use of to being supported by Krasnow who focused extra on outcome than processes.

Interdepartmental Arguments: Interdepartmental arguments between three departments, marketing, merchandizing as well as operations specifically over the appropriation of the advertising and marketing mix can be identified as one more OB concern. Although the advertising division does not share the exact same vision as the other 2 divisions pertaining to the aloocation of the marketing mix twoards promos and advertsing, the merchandizing and also operations divisions do not concur over the marketing mix allowance among each other either.

Fragmentation in Advertising Division: Fragmentation in between the advertising and marketing departments can be determined as one more OB issue which might require more attention. The reality that the marketing and advertising sections in the advertising and marketing department are separated is avoiding both departments from obtaining from each various other's experience as well as competence. Combination of marketing with merchandising and procedures would become harder if the marketing department itself is disintegrated which can be another possible OB problem.

Goodyear Tire And Rubber Co 1988 Analysis

Various concepts have been made use of to describe the scenarios to get additional clarity regarding the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers think that staffs are easy and lazy, have little aspiration and also stand up to change. The situation at Goodyear Tire And Rubber Co 1988 is not completely complying with Theory X, it can be seen that new hires are discovering this environment instead difficult which might eventually lead to a greater disposition of the monitoring in the direction of Theory X. Even while examining Lewis's monitoring style, theory X may have been suitable in the procedures department to some extent however the Advertising and marketing division would certainly require dependence on Theory Y in order to get the imagination and also originality from the teams.

Tuckman's Teamwork Theory: As much as Lewis's problem concerning bringing harmony in between the advertising and marketing as well as advertising division is concerned, this would at first lead to clash as talked about by Bruce Tuckman in his 'Teamwork Concept'. By combining the advertising as well as advertising and marketing division's job, there may be the very same first detach which could lead to the second stage of 'storming' where the teams test one another.

Bridges' Shift Design: Based On William Bridge's concept (appendix 4), people are rather uneasy with adjustment, which is evident by the circumstance at Goodyear Tire And Rubber Co 1988 The circumstance can be viewed as a normal training course of life if is researched according to Bridge's concept where he describes that people undergo 3 phases of transition when they experience modification. 'End, losing as well as Releasing', The Neutral Zone and 'The New Starting' (Bridges, 2004). When people are presented with adjustment, they enter phase one and so there may be emotions like despair, uncertainty, irritation, rage, anxiety, rejection and also disorientation.The circumstance at the advertising department of Goodyear Tire And Rubber Co 1988 is similar so Lewis can obtain comfy with the concept that it is not remarkable habits. In the 2nd phase, there may be a need to link the void between the new and old society so Lewis may need to encounter this challenge as soon as Krasnow leaves. There may be low morale and low productivity at this phase which ought to not be taken as a trouble. It is throughout this phase that Lewis will have to provide support to the department to make sure that they can find an orientation. It can be seen just how Krasnow has currently made this change less complicated by making Lewis get associated with the division a year prior to his actual departure. According to Bridges' Version, stage 3 will produce openness to knowing, High power and also commitment as people will certainly embrace the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has discusses the importance of 'security requires as being a reduced level requirement of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel protected and out of danger' is at the second level of requirements. Before a staff member can be made to develop emotionally, he needs to have his 'Physical 'and 'Safety' requires satisfied.

SWOT Analysis for Goodyear Tire And Rubber Co 1988 Case Study

Ramification of Analysis.

The OB analysis has actually checked out different theories to understand how to cope with the current situation handy. The following three alternatives have been suggested to help Lewis take care of the organizational challenges in the marketing department. Each of these choices has been recommended for relieving the transition needed to bring the marketing division in accordance with the demands of the marketplace and also for making the social modification that would certainly follow as soon as the existing leader leaves.

Integration of advertising and marketing functions. Dividing Adverting and also Production functions. Integration of Advertising And Marketing with Workflow.

Evaluation of Alternatives.

Assimilation of Advertising And Marketing & Advertising And Marketing Functions: The in-house marketing company of Goodyear Tire And Rubber Co 1988 is currently toughness for the organization in regards to saving up on overheads related to advertising and also promotion. Since no new employment has been done after Bridget Cole's departure with the coverage line being straight appointed to Krasnow for the marketing function, this is a positive chance for incorporating the advertising and marketing functions. Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merger days has proficiency in business-to-business advertising and marketing in addition to firm as well as retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to manage both advertising and marketing features.

The benefit of this method is that it will certainly incorporate the two features while minimizing the requirement for working with an extra source for advertising and marketing. Lewis would be heading the advertising and marketing division as well as in any case her substitute would be needed for the existing duty that she is performing. The downside of this option is that external hiring might bring about resentment from interior employees that might be eying the setting of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and Production: Given the competitive stress and also high top quality job required from the advertising company, it is suggested that Lewis ought to enable the production device to be a different feature from the marketing system. Given that the majority of advertising firms had these two functions as separate units, it makes more sense to adhere to the norm.

Assimilation of Advertising And Marketing with Procedures: Because Lewis is currently taking treatment of the advertising and also operations divisions at the same time; it makes feeling to integrate the two functions given that she has actually been efficiently taking treatment of both ends. The fact that Lewis has to adjust her management style for the advertising department suggests that these two departments would be culturally diverse.


An evaluation of the 3 options indicates that assimilation of advertising and also procedures would certainly not be a feasible relocation as a result of the vast distinctions in between the two divisions despite the fact that currently Lewis is managing both. While separation of the production function might have been a beneficial move for the marketing division, the fact that it would certainly imply placing a 3rd function under Lewis's wing implies this must be prevented. The combination of the marketing division is the best choice in terms of obtaining the optimum results from the department. An action prepare for this alternative is discussed below.

Action Strategy.
Lewis will certainly take control of the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be merged.

Judith Shapiro will certainly be worked with to take Lewis's location as SVP of marketing and advertising.

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

Lewis will certainly separate herself from operations.

An autonomous leadership style with employee empowerment will certainly be used in marketing division.

Open up door plan and emphasis on cross departmental communication will be targeted at removing discord.

Contingency plan.

If the combination does not work out as intended, a backup strategy would certainly follow which would divide the production function from the marketing function to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will be heading the marketing department without an SVP. Because case the manufacturing feature will certainly be separated by positioning it under an SVP production.