Gold Coast Advertising - Problem: George Stein sat in his...

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Problem: George Stein sat in his large ofFce overlooking Chicago’s Michigan Avenue. As CEO of Gold Coast Advertising he seemed to always be confronted with one problem or another. Today was no exception. George had just come out of a long meeting with Jim Gerard, head of the Board for the small advertising agency. Jim was concerned about a growing problem with lowered sales expectations and a decreasing customer base. Jim warned George that something had to be done quickly or Jim would have to go to the Board for action. George acknowledged that sales were down but attributed this to general economic conditions. He assured Jim that the problems would be addressed immediately. As George pondered his next course of action, he admitted to himself that the customer base of GCA was slowly decreasing. The agency did not quite understand the reason for this decrease. Many regular customers were not coming back and the rate of new customers seemed to be slowly declining. GCA’s competitors seemed to be doing well. George did not understand the problem. What Do Customers Want? GCA was a Chicago-based advertising agency that developed campaigns and promotions for small- and medium-sized Frms. Their expertise was in the retail area, but they worked with a wide range of Frms from the food service industry to the medical Feld. GCA competed on price and speed of product development. Advertising in the retail area was competitive and price had always been important. Also, since retail fashions change rapidly, speed in advertising development was thought to be critical. George reminded himself that price and speed had always been what customers wanted. Now he felt confused that he really didn’t know his customers. This was just another crisis that would pass, he told himself. But he needed to deal with it immediately. Laura Reyes Gold Coast Advertising is in a serious stage of business implosion. They have the capability to service four major industries with their advertising tactics and yet they have a “declining customer base”. They have also recognized and accepted lower sales expectations. Why have these issues been accepted but yet not addressed? Top management does not have a clear understanding of this imposition that could result in financial disaster. This weakness can be overcome with a fierce implementation of a plan-do-study-act cycle. In a plan-do-study-act cycle, companies can find the root cause of their business issues as long as they are dedicated to continuous improvement. Gold Coast Advertising has already identified two major concerns which is part of the planning process. An in depth study of sales performance and their clients would focus on their key areas of improvement. Surveys would be a great way to understand what clients want in advertising. The company should also examine their biggest competitor’s prices, products and services. Once this planning process has been mapped out, we can execute our plans to take corrective action.
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Gold Coast Advertising - Problem: George Stein sat in his...

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