Basic/Black Zale Youngman, Inc Essay

5107 words - 20 pages

Executive SummaryMs. 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 ContentsExecutive Summary 21.0 Introduction 41.1 Story 41.2 Brief introduction of advertising industry in North American & Asian 41.3 Basic/Black Zale Youngman, Inc 61.4 Organizational Culture 71.5 Relationship with Colgate-Palmolive 82.0 Problem Statement 93.0 Causes of the problems 103.1 Colgate-Palmolive Realigning its Global Advertising Business 103.2 BBZ's Problem 124.0 Solutions, Consequences, & Recommendations 125.0 Implementation 17Appendix I - References 241.0 Introduction1.1 StoryMs. 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 percent of this business was moving out.Why Colgate-Palmolive made this decision? Did BBZ not satisfy the client? In order to explain this, we need to review the history of the Advertising Industry and the development of the BBZ Company.1.2 Brief introduction of advertising industry in North American & AsianThe advertising industry is one of the most powerful institutions of modern society. It started with the invention of the printing press and it has always been connected with the media history in general. The history of advertising was divided into four periods [2]:- The first stage is from the very beginning until the early twentieth-century; it was the infant period and advertising became part of the economy gradually.- The beginning to the middle of the twentieth-century was the period of scientific development; advertisers searched for methods enabling them to work more effectively, and they also did market research as well as discovered psychology for advertising.- The next phase, dated from 1950 to 1980, is the era of television and social integration.- From 1980 until the present, the...

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