Leo Burnett Canada must decide how it should organize to provide Internet advertising services to current and potential clients. Treating the interactive group as a separate business entity has the advantages of maintaining a separate, entrepreneurial culture, to continue to develop technical and creative skills that are Internet specific, and to grow Leo Burnett's client base. Or, Leo Burnett can make the interactive group an integral part of the main agency, which provides an enhanced ability to develop and offer integrated marketing communication strategies for its clients. This strategy is most likely to lead to stronger relationships with existing clients, but is less likely to enable Leo Burnett to attract new business. The case is also an excellent platform for discussions related to the differences between full service and specialized advertising boutiques and "tech shops" that focus on Internet advertising. Students, if encouraged to visit several case-related Web sites, will develop a fuller understanding of the different types of agencies that exist and the services they offer. This focus naturally leads to a discussion of how the Internet is leading to changes in full-service agencies.
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