Organizational Developement At Coors
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Organizational Developement At Coors



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Organizational Developement At Coors Organizational Developement At Coors Presentation Transcript

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