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Background
Background
Adam Bowen
James Monsees
History
- Met at Stanford -- make a product to be the "rational future of smoking"
- Founded Ploom
- Ploom debuts Pax
- Sell Ploom to Japanese tobacco company JTI
- Rebrand as Pax Labs
- Pax Labs launches the JUUL
- JUUL launched as independent company
History
The JUUL
- E-cigarette that contains nicotine salts, bezoic acids, propylene glycol and glycerine
- Many flavors
- Smell less, easy to use and sleek design
- "The patented technology inspired a raft of followers because it allows high levels of nicotine to be inhaled more easily and with less irritation" according to the U.S. Centers for Disease Control and Prevention.
Product
Company
- # of employees: 1,200
- Valuation: $24 billion
- Price per share: $90
Company
Performance Timeline
JUUL Sales Skyrocket by 700%
Altria investment-- Valuation: $38b
Market share for e-cigs: over 70%
Bad press about youth
Health issues surface
FDA Investigation on mkg
Performance
2019
2020
2018
2017
2015
2016
Pax lab launches JUUL
San Francisco bans e-cigs
Cuts back on staff
Sued by 3 states
CEO laid off -- no more advertisting
Altria cuts back investment-- Valuation falls : $24b
Organizational Behavior at JUUL
Analysis
1. Motivation
2. Organizational Culture
MOTIVATION
Two-Factor Theory
Self-Determination Theory
1.
Motivation
Motivators
Hygiene factors
TFT
Achievement
Recognition
Work itself
Advancement
Growth
Relationship with supervisor
Work conditions
Salary
Relationship with peers
Extrinsic Factors
Intrinsic Factors
SDT
Pay offs
(Altria deal bonus)
Stock options
Altruistic mission
(JUUL name)
Company Culture
Industrial Level
National Level
2.
Org Culture
e-cigarette
tobacco
health contiousness
Hofstede insight
Company Culture characteristics
Customer Orientation
Integrity
-> Mission statement
-> Product
Company Culture
-> Hooking teens on it
-> Harrasment
-> Firing as backlash
-> Contaminated pods
Climate
do not report this matter any further
create a device beneficial for customer and do not use it
CLIMATE
"win at all cost"
CEO fired
16% employees laid off
decisions of CEO are not to be challenged
Culture Change
Evidence of culture change period for JUUL or just a move to protect themselves?
Lewin`s 3 step model
Unfreezing
Changing
Refrezzing
Develop a plan to sustain the c hange
· Involve employees
· Encourage action
· Analyze the need
· Gather support
· Communicate
· Address uncertainties
Takeaways
- Motivation
- extrinsic & intrinsic rewards
- Managers present but not directly involved/interested
- Better HR -> value integrity
- JUUL`s culture is a liability (specially integrity & customer oriented)
- For JUUL to survive they need a culture change
Citations
The Muse. (2020). The Muse brings you inside the office of JUUL Labs. [online] Available at: https://www.themuse.com/profiles/juullabs [Accessed 25 Feb. 2020].
Vox. (2020). The vape company Juul said it doesn’t target teens. Its early ads tell a different story.. [online] Available at: https://www.vox.com/2019/1/25/18194953/vape-juul-e-cigarette-marketing [Accessed 25 Feb. 2020].
Reuters. (2020). Juul disregarded early evidence it was hooking teens. [online] Available at: https://www.reuters.com/investigates/special-report/juul-ecigarette/ [Accessed 25 Feb. 2020].
LaVito, A. (2020). Former Juul executive sues over retaliation, claims company knowingly sold tainted nicotine pods. [online] CNBC. Available at: https://www.cnbc.com/2019/10/30/former-juul-executive-sues-over-retaliation-claims-company-knowingly-sold-tainted-pods.html [Accessed 25 Feb. 2020].
Anon, (2020). [online] Available at: https://www.forbes.com/sites/kenrickcai/2019/12/03/juul-sexual-harassment-lawsuit/#600a12d97e72 [Accessed 25 Feb. 2020].
Gizmodo. (2020). Juul Is in Deep Shit With the FDA for Claiming Its Vape Products Were Safer Than Cigarettes. [online] Available at: https://gizmodo.com/juul-is-in-deep-shit-with-the-fda-for-claiming-its-vape-1837992046 [Accessed 25 Feb. 2020].
Our Story: A Smoking Alternative for Adults. Retrieved February 23, 2020, from https://www.juul.com/our-story
Brodwin, E. (2019, October 31). The precarious path of e-cig startup Juul: From Silicon Valley darling to $24 billion behemoth under criminal investigation. Retrieved February 23, 2020, from https://www.businessinsider.com/juul-timeline-from-startup-to-tobacco-company-challenges-bans-2019-9?IR=T#march-2018-dozens-of-outlets-report-that-juuling-is-an-epidemic-at-high-schools-11