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.
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.
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.
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 across the entire organization.
What is needed in order to turn the fortunes of the organization around is a complete change of the existing cultures (Organizational Culture, 2010).. The culture of doing things as have always been done, needs to go and its place taken over by a culture of flexibility, adaptability and innovativeness. This calls for a change of policies and retraining of workers.
Anonymous (2010). Organizational Culture. September 8, 2011. Retrieved from http://managementconsultingcourses.com/Lesson35OrganisationalCulture.pdf Reeves M. & Deimler M. (2011). Adaptability: The New Competitive Advantage. September 8, 2011. Retrieved from http://hbr.org/2011/07/adaptability-the-new-competitive-advantage/ar/1