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Beers Case

Beers case

Use congruence model as a framework

Show congruence model

Have them take notes     Video =   9:40-50 minutes

                                          Analysis = 10-10:20

What problems?     Charlotte’s solutions = 10:20-10:40

                                          Windup = 10:40-10:50

      --Declining ad revenues     Class business = 10:50-11:00

      --Loss of big clients

      --Loss of confidence; morale

      --Perceived to be “beleaguered”

What causes?

            Environment- how changing?

            --fat environment in 80’s-- complacency

            --less relationship-oriented

            --declining advertising

            --globalizing firms

            --competition from boutiques

            --takeover by WPP
      Strategy—

            Core competencies

                  “class act” “Good to the last drop” (basis for brand print)

                  focus on advertising and direct marketing.

                  “Most local of multinationals..”
      Tasks—discipline-based focused

            Autonomy, low interdependence  
      Formal org

            High differentiation; low integration; “Fiefdoms” based on geo and function

            Weak center.   More local than multinational.

      Informal org

            Culture

                  Strong, cool, cerebral, ‘grotesquely polite,” political

                  Inertia

            Network

                  Fragmented, political

                  Lack of teamwork
      People

            Leadership: highly managerial; not inspiring

      Committed to old ways

            Focus on advertising competence

            Direct marketing

How were these problems addressed?

So, the lead change is in people:

      Phllips resigned WPP takeover, Charlotte Beers arrives

      Charlotte’s strengths as a leader? Did she align (inspire, motivate, direct) people?...