Conflict in Organizations
Texana Petroleum Corporation
Background
The Texana Petroleum Corporation is a multi-million dollar company and major producer and marketer of petroleum products located in the southwest United States. Texana has five product divisions: Petroleum Products Division, Polymer and Chemicals Division, Molded Products Division, Packaging Products Division and Building Products Division. The President and Chief Executive Officer, Roger Holmes retired in 1993 and was replaced with Donald Irwin, brought in from a major chemical company. William Dutton, who had worked for Texana his entire career and reported to Roger Holmes, was appointed chairman of the board. Irwin and Dutton expanded the company’s involvement
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2. That Polymer and Chemicals Division is “not interested in what they are doing, particularly if it doesn’t have a large return for them.” These divisions clearly have a conflict because of differing goals.
3. Believe they cannot trust the Polymer and Chemicals Division even if it is received in writing. The end-use divisions perceive this as a threat to their individual divisions.
Managers from Polymer and Chemicals Division shot back with their concerns:
1. They feel that indeed the divisions are growing apart and therefore there is indeed a conflict between the divisions.
2. The other divisions are not looking at what products and services they have and leaving Polymer with products that will not show a profit. Polymer is pointing the finger back at the other divisions. This shows that there is no collaboration or cooperation between divisions.
3. Polymer feels that corporate is not doing enough to integrate the divisions. It appears that executive management is avoiding this conflict in hopes that it resolves itself. Sometimes this works, but in this case it appears to be getting worse as time goes on.
4. Polymer also states that their believe is that the other sister divisions are operating as “very closed organizations.” Therefore, Polymer believes the others are operating independently and the other divisions believe Polymer is too. Executive Management needs to step in to mediate these conflicts.
It
Problems inside Dynacorp: When Dynacorp has changed its structure, there are problems of linkage and alignment in the light of Strategic Design Lens. According to the new structure, Research and Advanced Development Group and Business Units (BUs) are
Bowcombe might also fear the exposure of their know-how so that the suppliers might produce their own products and could be Scotts’ competitors. It seems Bowcombe believes that the “in-mold labeling” is Scotts’ strong competitive advantage in the market, which their competitors don’t have, but I strongly this agree with this. Considering the very simple structure of the spreader and the process of in-mold labeling (it is just molding), it is not hard to imitate. Their competitors might not have this technology, but this kind of processes exist anywhere in other industries. It is very much imitatable, which infringes one of the VRIN of the Resource-Based View theory. Thus, their “in-mold labeling” would not be their competitive advantage. Scotts should not afraid provide their know-how to the contract suppliers, and it is not so difficult to teach them. Sooner or later their competitors would imitate this kind of resource only if the value of the in-mold label is significant to their customers.
In Texas, there is an economic powerhouse that not only runs deep beneath fields of cotton, but also reaches miles beyond the green pastures of cattle. Its multitude of uses in daily life also far outweighs the benefits of technology. This resource, greater than any other in Texas, is oil. In 1866 the first commercial oil well was dug near Nacogdoches, Texas but unfortunately the well came up dry. Thirty years later in 1894 oil was discovered in Corsicana, Texas by accident while a water well was being dug. This was the first economically significant discovery of oil in Texas. On January 10, 1901, Texas was catapulted into the era of oil and gas with the discovery at Spindletop. The Spindletop well, located south of Beaumont produced roughly
Strategic linking at Dynacorp was to be accomplished, in the first instance, by linking development, manufacturing, and marketing within each Business Unit through a change in the formal reporting structure. Carl Greystone expressed his conviction that a “tremendous amount of progress” has been made since these changes were instituted and that his personnel are “thinking about the business in new terms…” Even Greystone, however, was forced to admit that his group had been “consistently behind plan in both revenue and profit” for the past year and a half and that the “Business Unit presidents have expressed some frustration with the performance of his group.” Martha Pauley, a Branch Manager in Greystone’s division who supervised six teams that “handle
The main decision for Chembright is in regards to the pricing of their products specifically bleach, which is Chembright’s main product, and how their main competitor R.J. Poulson is pricing theirs bleach in order to get rid of the competition. This has caused Chembright to be unable to compete at these prices since there isn’t any profit margin for them if they lower their price as R.J. Poulson. Therefore Chembright has to stop the price war with R.J Poulson to be able to maintain their products in these markets. Now Chembright is facing the issue of how to retain their customer’s without lowering their prices, since regardless of
Without efficient resource allocation & lack of communication between R&D and Brands, the conflict between departments generated in following steps. Even more, each steps make overall inefficient resource management.
CompuCo is attempting to move from a domestic producer to that of an international producer. In order to achieve this feat, the company must have an international focus in regards to its overall business operations. It is quite apparent from the case, that CompuCo does not have the will or desire to be proactive with its international subsidiaries. In order to achieve greater international success, Dr. Durand must first alter the company culture. First, all international subsidiaries should be treated as a primary business irrespective of their individual performance. It seems, through reading the case, that much more emphasis is placed on French product development and applications that is given to its international counterparts. This is a detriment to business as many of CompuCo's international customers have differing tastes and sentiments in regards to product offerings. The case cites numerous examples of this between both French and American consumers. French consumers, for example, like to read product manuals and prefer complexity over simplicity. Their American counterparts however prefer ease of use, and a simple design. The company was slow to discern these changes in consumer demands and elected instead to emphasize its French product design. This created consumer ill-will and
The two divisions were often on different pages and experienced communication challenges. This created several pricing difficulties making it even harder to globally market the products. To further the problem, the ID felt as though their R&D received less than sufficient manufacturing resources, which limited the ability to forecast the global market.
They had this problem because they are not familiar with how to launching a completely brand new product line. This is outside of their comfort zone and therefore it has effectively stalled the product line due to lack of interest, conflicting interests, decentralized teams, and engineering issues. Individuals were not working cross-functionally but instead they focused heavily on their specific
• All of HP's other divisions are leaders in their particular products and DMD felt pressure to be a "winner" as well.
When one of these divisions is planning to do something, an advertising campaign for example, the division has to communicate with their superiors to get approval. Since the company’s hierarchy is so tall, communication has to travel back to corporate headquarters in the U.S, where the Executive Committee has the final decision making power for activities the divisions have proposed. Below is an organizational chart of the company.
This case describes how SK-II which is a fast-growing skin care product is becoming very popular with a price to match its performance. After being introduced in Hong Kong and in Taiwan, P&G believes that this brand has a strong global potential. At the conclusion of this case, the company is left thinking whether or not to grow into both the European and the Chinese market.
* The hydrocarbons and energy division can be shut down if costs incurred are more than profits
Moreover, the products were developed based on what the company believed the consumers wanted (O’Neill 2010). The group completely forgot one of the keys of success of every company, the customers and their needs.
Turnbull (1986) recommend that a major weakness is a one-sided focus on the activities of the manufacturer together, that negotiate in the flow of goods and services to the customer