Executive Summary
Ms. Tess, the new president and CEO of the Basic/Black Zale Youngman Inc., was stunned at the first day in her new position. Because one of the company's most important clients, Colgate-Palmolive, decided to realign its worldwide advertising agency assignments, and moved most of its business out of BBZ.
This report analyzes what problems will be faced by BBZ due to the C&P's reassignment, described the characteristics and trends of advertising industry in North American and Asia. The report also attempts to find out why C&P make such decisions.
Several options have been presented for dealing with BBZ's problems according to the current environment and forecast of the future. For each option, the pros and cons are being analyzed. Finally the recommended solutions have been provided for BBZ's problems from the short term and long term aspect.
Table of Contents
Executive Summary 2
1.0 Introduction 4
1922 magazine advertisement for Palmolive Soap.
English: Palmolive Soap magazine ad from 1915
Deutsch: Colgate Uhr Jersey City1.1 Story 4
1.2 Brief introduction of advertising industry in North American & Asian 4
1.3 Basic/Black Zale Youngman, Inc 6
1.4 Organizational Culture 7
1.5 Relationship with Colgate-Palmolive 8
2.0 Problem Statement 9
3.0 Causes of the problems 10
3.1 Colgate-Palmolive Realigning its Global Advertising Business 10
3.2 BBZ's Problem 12
4.0 Solutions, Consequences, & Recommendations 12
5.0 Implementation 17
Appendix I - References 24
1.0 Introduction
1.1 Story
Ms. Tess felt lucky that she was promoted as the president and CEO of the Basic/Black Zale Youngman Inc. (BBZ) at the end of February 1994. However, she might never anticipate that she will be stunned at the first day in her new position. One of the company's most important clients, Colgate-Palmolive, decided to realign its worldwide advertising agency assignments, which would reduce the BBZ's share of Colgate-Palmolive billings from 60% to about 6-7%, and it means that approximately 90...