tssp ogilvy case analysis group 1

8/2/2019 TSSP Ogilvy Case Analysis Group 1

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Crisis of O & M in late 1980s

WPP group acquiring O&M

Group 1:

Ashish Pandey (G11-069)

Paul Sunny (G11-093)

Sudhanshu Vardhan (G11-110)

Sunil Mohta (G11-113)


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Problems due to WPP group

acquisition of O&M

The takeover of O&M by WPP was hostile.

CEO Kenneth Roman was opposed to this

takeover and finally left the organization.

Top creative and account executives left

following CEO Ken.

There was a lack of trust, an air of conflict,adversaries and invasion.


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acquisition of O&M

New CEO Graham Phillips lacked inspirational

leadership qualities.

There was failure of leadership and work

environment was politically charged and work

deteriorated.

The agency lost major advertising assignments

from Uniliver, Shell, American Express etc.


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acquisition of O&M

Statement of an Ogilvy executive

People who were loyal Ogilvy employees,

believers for years, disengaged. They threw their

hands and said , This Place is falling apart.

It appears from the surface that the crisis ofO & M in late 1980s due to WPP group

acquiring it.


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Real cause of O&M debacle

The statement of an executive highlights cause

As clients demanded lower costs and greater

service, Ogilvy & Mather like many large

agencies at the time was slow to make

adjustments.

Instead of changing the organization according

to the changing environment they just kept

doing the same thing better.


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The agencys organisational structure was

complex and outdated to deliver value toclients in a changed advertising industry

coupled with internal politics that hinderedrenewal.

Budgets were not reduced at local offices,even as large clients pushed Ogilvy to

streamline and centralize their accounts. This

increased the cost of operations.


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CEO Phillips stepped down as he was not able toturnaround the organization.

Charlotte Beers was appointed the next CEO.

Globalization of the clients. Clients believed thatO&M was lacking insight into the consumer.

Client believed that O&M employees were

uninvolved, distant and reserved.

Each department Creative Account, Media and

Research were working as separate entities.


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Conclusion

The crisis of O & M in late 1980s was due to

change in external environment and its failure

to change itself according to the environment.

The problem was further aggravated by hostile

takeover by WPP.

tssp ogilvy case analysis group 1

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