Exley Chemical Case Analysis

Exley Chemical Case Analysis

Introduction

The purpose of this analysis is to offer insight into difficulties experienced by Exley Chemical Company. Case analysis will provide an objective view of the identified problems (both macro and micro), the causes, affected systems, alternatives and recommendations. In a collaborative effort, this report reflects multiple observations and opinions regarding the case analysis.

Analysis

I. Problems

A. Macro

• Lack of coordination within the companies operations

• Decrease in sales and profits.

• Operational conflicts within the major departments

• This type of structure is inappropriate for this company

• There is no uniformity of command

B. Micro

• The coordination between marketing and the new product development department was insufficient.

• The Product development had problems with marketing.

• The Product manager quarrels with the marketing department

• Product manager was unsuccessful in coordinating the activities.

• The company was having difficulties in producing a team concept within the departments.

II. Causes:

• Implementation of separate division to handle product development has disrupted the previous cohesive interaction between prior existing divisions. New product development division has taken on a life of its own, opting to market its new developments instead of passing the new products to the other divisions to handle their usual responsibilities.

• In spite of its independence of other teams with regard to product development and marketing, the new division still needs those other divisions for reports they generate. Customer service is being handled in a different manner than the established customers are accustomed to. This inconsistency and redundancy (having two sales people from the same company visiting the same customers) may be partially responsible for the reduction in sales percentages of the chemical and plastics markets.

• Inconsistency in calculating sales estimates is causing misinformation to be produced since the norm within Exley is to use total market as opposed to their share of the market.

• The self-proclaimed independence of this new division is causing rivalry among the other divisions that previously collaborated effectively.

• The company realizes that there was a need to move a product development department closer to the production line but the modeling effect did not take place causing the conflicts to arise in command.

• Too many levels of the organizational chart developed too many department heads and not enough communication/coordination efforts between departments (i.e. Marketing, Production