The Exley Chemical Company Analysis

The Exley Chemical Company AnalysisMuhao ZhouAbstractThe Exley chemical come with is a major chemical manufacturer making primarily industrial chemicals, plastics, and consumer products. Company sales and profits contrive grown, and its ratio of net profits to sales I about average for the industry. However, in the last year, both sales and profits have been disappointing. G1The company thinks it is the problem of parvenu products constantly being introduced into the farm animal and methods are changing constantly. This is not the major reason about company lost competition. G2G3The major problem is internal combat amidst team members and departments. other problem is poor leadership and direction of distributively department. Managers must(prenominal) find and implement ways that al natural depression Exley Chemical Company operate efficiently. Conflict resoluteness and enceinte group discussion may help the company G4achieve the goal.G5G6Exley Chemical CompanyCase a nalysisInternal conflict problems are inevitable in spite of appearance an agreement no matter the structure. The problems will exist unless companys managers recognize the situation and fix the problems. The cause of these problems is a result of G7departments conflict, unclear goals, disobedience, and lack of parleys between each department.G8G9G10Conflicts were created with almost all the departments. The product development subdivision using a small force of specialty sales people to conduct take flight grocerying programs an initiative which was not well received by merchandise people. The product division was given responsibility for market research. However, these still remained in the market division. After these things, the company pit up a product manager for each group of products. This made company has to a greater extent problems. G11First, the Product manager quarrels with the marketing department. The product manager often visits customers to embark on feedba ck while marketing executives are doing the same thing at same time. At this period of time, customers often get confused by this. The marketing vice president thinks that the product development intervenes their work. This should be marketing developments work. G12G13Second, the calculating sales estimates are causing misinformation to be produced since the normG14al inside the companyG15 is to use the total market as opposed to their share of the market.G16 The product development group did not follow companys guidelines. They were doing this in their own way. G17Third, the company neglected the G18customers ideas and competitors in industry. When most customers give advice for the company, they did not give feedback on this. The competitors have a lower price of the similar products compare with Exley. Each division offer works on the project that makes the most for their division. They want to G19G20G21maximize the potential of their department. This is not the companys goal a fter examining the environs of Exleys business. G22Organizational environments are everything beyond the boundaries of organizations that can directly or indirectly affect performance and outcomes. It includes external agents that directly affect the organization, such as suppliers, customers, regulators, and competitors, as well as indirect influences in the wider cultural, political, and economic context. at that place are two classes of environments called general environment and industry structure or task environment. In this case, Exley companys general environment is certain and simple. Technologically, the company is dependent on new products innovation. At industry structure or task environment, as defined by Michael Porter, an organizations task environment consists of fine forces supplier power, emptor power, threats of substitutes, threats of launch and rivalry among competitions. G23G24At this point, Exley Company is moderated competitive and high school pressure on profits. The threats of entry are low. It is difficult and costly to enter this market. Chemical industry needs high knowledge research people to keep innovation and equipment is expensive to obtain. The threats of substitute products are high. The competitors always have methods to get more market share with a lower price or new products. The force of suppliers power is low because the resources are available anywhere. The customers forces are high. The buyers are willing to pay a low price for similar products. Finally, rivalry among firms is severe. The Exley chemical company current is the average of the total industry which indicates that they have a lot of competitors. G25G26G27G28G29G30The company is facing the threats from buyer power and rivalry among competitions but none of them get noticed by the company.G31G32G33G34G35G36G37G38G39G40G41G42G43Exley chemical company establish the product development division to manage the change magnitude number of new products. The pro duct development division was charged with coordinating in developing new products, including recommending manufacturing capacity, sales programs, and so on. The company has found the problems and conflict in several departments. The role of this division is like OD practician. G44Based on the book, OD is vitally dependent on effective diagnosis to access how the organization in functioning and to choose an appropriate change intervention. refreshing 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. It is difficult to coordinate the companies operations under this division. The director of product development division who should have the expertise and experience to work with members on the issues like an OD practitioner but the self-proclaimed independence of this new division is causing conflicts among the other divisions that previous ly collaborated effectively. New division could not figure out the problems of lack communication between each division. G45G46Exley chemical companys organization structure is also a big problem. The company is a matrix organization. Matrix organizational designs originally evolved in the aerospace industry, where changing customer demands and technological conditions caused managers to focus on lateral relationships between functions to develop a conciliative and adaptable system of resources and procedures, and to achieve a series of project objectives. On the positive side, it allows multiple orientations. New products or projects can be implemented speedily by using people flexible and moving between product and functional orientations as circumstances demand. It can maintain consistency among departments and projects by requiring communication among managers. Unfortunately, Exley chemical company did not get any advantage on that organization structure. G47G48G49There are m iscommunicate with each divisions managers and unable to shift emphasis by environment changes. Matrix structures are motivating and exciting for many people. On the negative side, the company without balancing between product and functional forms which lower the overall performance. The crisis management and conflicts under inconsistent demands by this structure. Matrix structures are appropriate under three important conditions. First, there must be G50outside pressures for a dual focus. Exley chemical company has a unique research department which focuses on innovation new productsG51. They also have different products in several markets. Second, the organization must process a large amount of information. When external environmental demands change, the company should have to make a proper decision. Exley Company cannot process a large amount of information. G52G53G54Most important information from competitors and customers were ignored by the company because of the lack of commu nications and team collaboration inefficiently in the organization. G55G56G57Third, there must be pressures for shared resources. When customer demands vary greatly and technological requirements are strict, valuable human and physical resources are likely to be scarce. Exley chemical company efficacy fail under this structure if any of these conditions are not met. G58G59Recommendations for Exley chemical companyBased on the analysis above, I would recommend an intergroup conflict intervention and select an OD professional from outside to training and helping organization managers.Intergroup conflict intervention is designed specifically to help two or more groups or departments within an organization resolve dysfunctional conflicts. In this case, there are conflicts between the different divisions as to who is responsible for what and when. Whether it between the product division and the marketing division, or the sales department and the marketing division, each of them must be able to overcome these problems. According to Blake and his associates, the basic strategy for improving intergroup relationships consists of a ten-step procedure. For Exley chemical company to apply this intergroup conflict intervention, the external OD practitioner should obtain all these department managers agreement to work together. OD practitioner set a time for managers to meet. The next thing is OD practitioner with managers describe the purpose and objectives of the meeting to develop better mutual relationships, explore the perceptions the groups have of each other and formulate plans for improving the relationship. The OD practitioner lets each group managers answer the questions and describes other managers. In this case, I would question the managers what is your department goal and what is your farm out? and what do you think other departments goal and what is their job? After they completing their questions, each group managers should present their answers. By this p oint, the misperceptions and discrepancies have been brought to light. The managers of the company could thoroughly study each other job and goals. At last, G60G61G62managers are asked to set a specific plan of action for solving problems and for improving their relationships. There will be a follow-up meeting about how these problems implemented and identify any further problems that have emerged. G63G64 Intergroup conflict intervention will keep the companies goals in reason and everyone working in the same direction.G65G66G67G68G69Another recommendation is Exley chemical company should find an external consultant or OD practitioner to find and solve companys problems. The current product development division seems like a role of OD but they are not experienced and professional to solve the conflicts among the departments in an organization.G70G71ConclusionMatrix structure organization like Exley chemical company has its own advantages and disadvantages. I would not recommend th at Exley chemical company restructures the organization. G72The major problems of Exley chemical company are conflicts among each department. Lack of communication of departments causes each department just work on their own project. G73Intergroup Conflict intervention and OD practitioner will help managers achieve their task and solve organizations problems.G74G75G76G77