case study of the old family bank

Topics: Organizational studies, The Culture, Change Pages: 2 (411 words) Published: September 22, 2013
Case: The Grayson Chemical Company

Problems
Macro
The major problem presented in this case is that The Grayson Chemical Company is experiencing a decline in earning and sales. The board of directors of the company has brought in a new company president to help in turning things around for the company. The new president now faces the enormous task of returning the company into a growth path and profitability.

Micro
There are also micro-problems that emerge in this case that may hinder the new president from solving the macro-problem. One of these micro-problems is an existing culture of conservatism and rigidity in running the activities of company. The new president views this culture as a challenge that may hinder him from implementing appropriate strategies for turning the company around. The second micro-problem is existing sharp differences in opinion among the directors of the company. Each is offering different advice to the new president.

Causes
The main cause of the problems identified in the case is lack of flexibility and adoptability by the organization to new changes (Reeves & Deimler, 2010). It is stated in the case that the company had in the past experience a stable and profitable spell before things standing going bad. There is clear picture that the company still continued to rely on strategies that gave it past success despite times and market conditions having changed. This lack of adaptability has seen the company fail to improve it competitiveness by embracing new opportunities and addressing new challenges that come with time.

System Affected
The reliance by the company on old traditional ways of doing things has affected almost every aspect of the organization. It has become part of the organization culture to do things because they have always been done that way and this culture has affected the entire organization (Organizational Culture, 2010). When a problem arises from the culture of the organization it usually cuts...
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