South Asian Academy of Management

Synopsis

In early 2024, Imran Aziz, General Manager of Esta Pakistan, a subsidiary of the multinational chemicals and inks company Esta, faced significant operational and cultural challenges. Anonymous complaints of ethical misconduct, many politically motivated, led to pressure from headquarters for a formal investigation. Simultaneously, the company’s market share dropped from 10% to 7%, operational inefficiencies persisted, and R&D stagnated, weakening its competitive edge. Leadership instability, including the recent departures of key sales executives, further demotivated employees and created a toxic work environment where issues were escalated directly to headquarters. Imran recognized the need for senior managers and employees to model the company’s core values of ethics, integrity, collaboration, and customer focus. Advised by his C-level coach, Imran considered using Edgar Schein’s Organizational Culture Model to address these challenges and explored three potential strategies: 1) Implementing a Values-Driven Leadership Program, 2) Establishing Cross-Functional Collaboration Initiatives, and 3) Reinforcing Ethical Standards through Internal Policies and Communication.

Intended Learning Outcomes (ILOs)

By the end of this case discussion, students should be able to:

1. Diagnose organizational culture using Schein’s Model and apply it to real-world business challenges.
2. Evaluate the role of leadership in shaping an organization’s culture and how it impacts performance.
3. Assess strategic alternatives for addressing cultural and operational issues.
4. Formulate an action plan to align organizational culture with business strategy.

Suitable Program and Course

• Program: MBA, Executive Education
• Course: Organizational Behavior, Leadership, and Strategic Management.

Questions for Discussion

1. What’s the key issue depicted in this case?
2. How should Imran proceed?  Assess the three alternatives in terms of their pros and cons and choose the most effective course of action for Esta Pakistan. Fill in the Table given in Appendix C.
3. Considering Schein’s Model, what steps should Imran take to improve the three layers of organizational culture at Esta Pakistan? Fill in the Table given in Appendix B.
4. What lessons from this case can you apply in your own organization?

Authors: Professor Jawad Syed

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