Case Study Vineyard Agency

RMIT University

School of Media and Communication

Managing Advertising – MKTG1188

Instructor: Jim Camm

CASE STUDY:

Vineyard Agency

Student: Priska Adela Riandi

Date: August 8, 2016

Statement of Problem

The problem facing Bill Vineyard is financial issues that caused by Tony’s new business style.

Situation Analysis

The following key issues affect Vineyard:

Internal

• Tony spent an enormous amount for entertainment.

• CFO worried about high number of write-off in March.

• Net income in March was less than half of last year net income.

External

• Vineyard Agency was one of the South’s most successful advertising agencies.

• Tragic events on September 11 2001 gave a huge negative impact to Vineyard.

• Advertising Age praised the agency after Tony worked there.

Discussion of Alternatives

1. Continue to employ Tony.

|PROS |CONS |

|Tony brings changes to revive the spirit of workers. They |He lived in extravagant lifestyle and applied it in this agency |

|strengthen the company (page 119). |too. He might change the image of agency culture (page 43). |

|He can convince other clients from totally different sector to | |

|choose Vineyard. | |

|Tony has commitment for this agency and that will make this | |

|agency stay in business (page 41). | |

Discussion of Alternatives (continued)

2. Limiting Tony’s entertainment expenses.

|PROS |CONS...