Chapter 10 Case Study
The Exley Chemical Company Case Analysis
1. A leading indicator of a problem within an organization is when sales and profits begin to drop off steadily over a substantial period of time. This is the case with Exley Chemical who previously had experience a positive ratio of net profits to sales but since the inception of the Product Development three years ago.
2. Conflicts between departments because product development started using a specialty sales force to conduct pilot marketing programs but this wasnâ€™t well received by the marketing department. ...view middle of the document...
e. Marketing, Production and Consumer Research)
III. Systems Affected
1. There is lack of communication via the current networking system between the marketing and product development. Databases are not updated on progress of pending projects for the benefit of marketing. Emails are not answered in a timely manner. This is a fast growing ever changing company. Employees need to feel like they are in the loop and get regular feedback as to how they are doing and what new changes are being made that will affect them.
2. A clear chain of command has not defined. Marketing should decide on the sales forecasts but the product department does that. The marketing department wants exclusive rights to interact with the customers. However, it is currently done by the product manager. Marketing should have information about all new product development. However, the development process is separate from the marketing. The division of work is unorganized. Managers have lost sight of its integration responsibilities.
3. There is competition among the divisions for capital, labor, management, and so forth. The interdependence within this organization is causing problems but if the departments would become more open, trusting, sharing of ideas things would turn around.
1. Dissolve the Product Development Division and increase staff in research, engineering and marketing to collectively coordinate projects. This option has to be carefully initiated because members from product development may not be well received in other departments and as a result there would still be a lot of conflict.
2. Re-examine the organization's structure and redevelop departments. This will allow for the reduction of competitiveness while motivating the employees to work in an open and trusting...