The Exley Chemical Company Case Analysis

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THE EXLEY CHEMICAL COMPNAY CASE ANALYSIS FORM
Name: Tonya Malone
I. Problems
A. Macro: focuses on aggregate economics (countries, industries, etc.) 1. A competitor is about to patent a new process for the product of polymers. 2. Each division head works on the project that makes the most for them, but it doesn’t necessarily help bring new products to the market. 3. There is a lack of coordination within the company’s operations. 4. The company is experiencing a decrease in sales and profits. 5. There are operational conflicts within the major departments. 6. There is no uniformity of command.

B. Micro: focuses on the choices of individual actors (people, firms)
1. The existing structure cannot adequately coordinate complex projects. 2. Sales executives tend to question the sales estimates issued by the product managers. 3. The coordination between marketing and the new product development department is insufficient. 4. The product development division is experiencing problems with the marketing division. 5. The product manager has been unsuccessful in coordinating the activities. 6. The company is having difficulties in producing a team concept within the departments.

II. Causes
1. The product development division was given responsibility for market research, but the tasks of sales analysis and forecasting remained in the marketing division. 2. For each separate group of products, a project manager was appointed who was responsible for the coordination of all company activities for the product. 3. Estimates are usually based on the total product market rather than on Exley’s share, which often tends to inflate sales estimates. 4. Implementation of separate divisions to handle product development has disrupted the previous cohesive interaction between prior existing divisions. A new product development division has taken on a life of its own, opting to market its new developments instead of passing the new products...
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