CASE-3-Leo-Burnett-Company-unlocked.pdf - THE LEO BURNETT...

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9B03M052 THE LEO BURNETT COMPANY LTD.: VIRTUAL TEAM MANAGEMENT Elizabeth O’Neil prepared this case under the supervision of Professor Joerg Dietz and Fernando Olivera solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) [email protected]; . Copyright © 2003, Richard Ivey School of Business Foundation Version: 2019-01-08 Janet Carmichael, global account director for The Leo Burnett Company Ltd. (LB), United Kingdom, sat in her office wondering how to structure her global advertising team. The team was responsible for the introduction of a skin care product of one of LB’s most important clients, Ontann Beauty Care (OBC). The product had launched in the Canadian and Taiwanese test markets earlier that year. Taiwanese sales and awareness levels for the product had been high but were low for the Canadian market. Typically, at this stage in the launch process, Carmichael would decentralize the communications management in each market, but the poor performance in the Canadian market left her with a difficult decision: should she maintain centralized control over the Canadian side of her team? In three days, she would leave for meetings at LB’s Toronto, Canada office, where the team would expect her decision. THE LEO BURNETT COMPANY LTD. BACKGROUND LB, which was founded in Chicago in 1935, was one of North America’s premier advertising agencies. It had created numerous well-recognized North American brand icons, including The Marlboro Man, Kellogg’s Tony the Tiger, and the Pillsbury Dough Boy. In 2000, LB merged with two other global agencies to form b|com 3 (the actual company name), one of the largest advertising holding companies in the world, but each LB office retained the Leo Burnett company name. LB had expanded around the globe to include 93 offices in 83 markets. The company employed approximately 9,000 people, and worldwide revenues were approximately US$9 billion. LB Services and Products As a full-service agency, LB offered the complete range of marketing and communications services and products (see Exhibits 1 and 2). The company’s marketing philosophy was to build “brand belief.” The idea driving this philosophy was that true loyalty went beyond mere buying behavior. LB defined “believers” as customers who demonstrated both a believing attitude and loyal purchase behavior. The

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