Organizational Developement At Coors
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Transcript of Organizational Developement At Coors
SUBMITTED by :PURVA VERMA
CASE IN BRIEF Adolph Coors company was located in
the Rocky Mountain foothills in Golden, Colorado.
A $350 million company with a cult like following.
Faced major competitor challenges in 1970’s.
The owners considered the company as their platform to voice their political views.
It faced major labor problems in 1977 which led to the company’s boycott by the AFL-CIO.
The labourers wanted a better compensation plan and better employment conditions and treatment.
This boycott was also aided by the offensive social and political remarks made by the founders earlier.
It led to a drop in the in it’s market share from 40% to 14% in seven years.
This boycott lasted for 10 years.
SWOT
Strength Adolph Coors Company 350 million $ corporation Sales people had been with the company since
end of world war II Cult following
Weakness
Owners spent more time on political agendas rather than selling beers which offended a lot of people.
Labour issues Unions organized a boycott to punish Coors
for its labour practices Negotiations done were poorly executed Attempt to counter losses by expanding
nationwide created a shift in market share and no profits.
Opportunities
Agreement that the company would not orchestrate a campaign against the union and union would not attack any Coors future organizing attempt.
Being located in a place like Rocky Mountains in 1970’ s gave them the advantage of gaining community trust and loyalty by doing small things for them.
Company regaining thousands of accounts since the boycott.
Threats
Political intervention by the Coors and hence occasional public remarks lead to offending people.
Labor Problems
AFL-CIO boycott
Future organizing campaigns
TRENDS
Beer is a summer drink. People prefer beer due to a low
alcoholic content. Low calorie beers are also available. Appeals to younger generation.
THOMAS KILMAN CONFLICT MANAGEMENT MODEL
QUESTION NO. 1-Handling disagreements The company ‘s final offer was
unacceptable. The labour’s anger is understandable
and their planned strike in the busiest brewery season made the worst possible damage to the company.
This succeeded in getting Coors banned along with other political , social and competitive factors.
The way they handled this disagreement was by competing and controlling.
It is assertive and uncooperative – an individual pursues his or her own concerns at the other person’s expense.
This is a power-oriented mode, in which one uses whatever power seems appropriate to win one’s own position.
In this case, Coors used their assumed superiority and the labour used Coors weaknesses and political conditions to win and very nearly they did.
QUESTION NO. 2-Advice by the consultant1. To deal with competition, my advice would be
to: Increase the advertising budget New and dynamic employees as salespeople
as well as managers The owners needed to spend more time
running the company than political commentary.
2. My advice to maintain the company’s political position would be:
Stop using the company as a personal vehicle for social commentary.
Be a conservative or to stay neutral. Restrict their outspokenness about the
Black, Hispanic, Gay, and Feminist communities
3. The conflict with labor could have been avoided had they been given their rights and respect.
4. Despite their boycott, the company took 11 years to start negotiation which should have been avoided to avoid losing their market share as well as reputation.
5. The concept of organizational development should have been in cooperated in the company.
6. Various conflict management techniques could have been used like Collaboration which creates which creates a win - win situation. Or a compromise could have been made earlier than waiting 11 years.
7. Implementing all these changes would have solved the boycott issue.
QUESTION NO. 3
• A process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about
– Encompasses a wide range of conflicts that people experience in organizations
• Incompatibility of goals• Differences over interpretations of facts• Disagreements based on behavioral
expectations
THE CONFLICT PROCESS
Distributive versus Integrative Bargaining
Bargaining Distributive IntegrativeCharacteristic Bargaining Bargaining
Goal Get as much of pie Expand the pie
as possible
Motivation Win-Lose Win-Win
Focus Positions Interests
Information Low HighSharing
Duration of Short term Long termrelationships
RECOMMENDATIONS• Conflict Resolution Techniques• Problem solving
• Expansion of resources
• Compromise
• Bringing in outsiders
• Restructuring the organization
• Appointing a devil’s advocate
• Offer the labor compensation plans like ESOP, subsidised loans, health plans like insurance.
Staking Out the Bargaining Zone
CONCLUSION
Coors maintained an authoritative outlook for near 11 years and resisted neutrality which cost their company a lot.
Their outspokenness and anti union attitude won them many enemies.
They resisted third party intervention. Only after an effort put in by the company to
treat their employees right did they win back their thousands of accounts.
THANK YOU