Charlotte beers at O&M worldwide Case Solution & Answer

Charlotte beers at O&M worldwide Case Solution

Question: 1

Triggers behind the process of transformation:

The main trigger behind the transformation of vision was that the company was facing internal and external problems. Globalization had changed the demand of customers, and now the customers wanted advertisement service at lower cost, and due to its internal weaknesses; the firm was facing issues of high cost, and was unable to adopt changes in the demand.

Question: 2

Critical analysis

The route cause was the changing customer demand due to the globalization, and the inability of the firm to manage and adopt the change internally, because there was limited co-ordination among the staff. The globalization had increased the customers’ demand for more global communication. The competition had increased from international as well as domestic agencies, and on the other hand; the agencies were chosen for the merger, to achieve the economy of scale and become the mega agencies. The external competitive environment created an intense pressure on Ogilvy & Mather Worldwide.

In such an uncertain and rapidly changing environment; there must be an adoptive organization culture and structure,because the firm can respond to such challenges by using its internal strengths.So in this case,a flexible and adaptive organizational structure was necessary for the success, survival and future growth of Ogilvy & Mather Worldwide. But Ogilvy & Mather Worldwide was facing so many internal conflicts in adopting such external change, which was a big threat for the company

The quality of work was decreasing day by day, the firm had to bear high agency costs, and along with that, the cost of operation was very high.  So it was difficult for Ogilvy & Mather Worldwide to provide low-cost services for the clients. These internal conflicts and issues led the company towards facing external challenges from its competitors. The clients were switching to the competitors that were offering advertising services at a lower cost. The newly appointed CEO recognized that the core clients were switching to the competitors, which was causing Ogilvy & Mather Worldwide to lose its profit to its competitors. The question was raised on the future growth and survival of Ogilvy & Mather Worldwide in the highly competitive environment, as it had numerous internal weaknesses. As the agency was losing its core clients; its revenue were also decreasing and there was a lack of financial discipline as well.

So there was a need to manage the internal conflicts and to respond to the external threads for survival and future growth of the company.

Question: 3

Critical evaluation of actions

To respond to the external threat; the company had decided to formulate a new strategic vision. So the vision was transformed by the new CEO, as she made a group of top executives and involved them in the transformation of vision, following which, a new vision was formulated that included the concept of brand stewardship.The brand stewardship concept is loved by customers but not by the lower staff of Ogilvy & Mather Worldwide. If this vision is implemented properly; it will create a competitive advantage. It will differentiate Ogilvy & Mather from its  competitors……………………..

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