SUBMITTED by :PURVA VERMA
CASE IN BRIEF <ul><li>Adolph Coors company was located in the Rocky Mountain foothills in Golden, Colorado. </li></ul><ul>...
<ul><li>It faced major labor problems in 1977 which led to the company’s boycott by the AFL-CIO. </li></ul><ul><li>The lab...
SWOT <ul><li>Strength </li></ul><ul><li>Adolph Coors  Company </li></ul><ul><li>350 million $ corporation </li></ul><ul><l...
Weakness <ul><li>Owners spent more time on political agendas rather than selling beers which offended a lot of people. </l...
Opportunities  <ul><li>Agreement that the company would not orchestrate a campaign against the union and union would not a...
Threats <ul><li>Political intervention by the Coors and hence occasional public remarks lead to offending people. </li></u...
TRENDS <ul><li>Beer is a summer drink. </li></ul><ul><li>People prefer beer due to a low alcoholic content. </li></ul><ul>...
THOMAS KILMAN CONFLICT MANAGEMENT MODEL
QUESTION NO. 1-Handling disagreements <ul><li>The company ‘s final offer was unacceptable. </li></ul><ul><li>The labour’s ...
<ul><li>The way they handled this disagreement was by competing and controlling. </li></ul><ul><li>It is assertive and unc...
QUESTION NO. 2-Advice by the consultant <ul><li>To deal with competition, my advice would be to: </li></ul><ul><li>Increas...
<ul><li>Be a conservative or to stay neutral. </li></ul><ul><li>Restrict their outspokenness about the Black, Hispanic, Ga...
<ul><li>5. The concept of organizational development should have been in cooperated in the company. </li></ul><ul><li>6. V...
QUESTION NO. 3 <ul><ul><li>A process that begins when one party perceives that another party has negatively affected, or i...
THE CONFLICT PROCESS
Distributive versus Integrative Bargaining Bargaining  Distributive  Integrative Characteristic  Bargaining  Bargaining   ...
RECOMMENDATIONS <ul><li>Conflict Resolution Techniques </li></ul><ul><li>Problem solving </li></ul><ul><li>Expansion of re...
Staking Out the Bargaining Zone
 
CONCLUSION <ul><li>Coors maintained an authoritative outlook for near 11 years and resisted neutrality which cost their co...
<ul><li>THANK YOU  </li></ul>
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Organizational Developement At Coors

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Organizational Developement At Coors

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

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