Air India Maharaja In Debt Trap Case Study Analysis


Home >> Chicago Booth >> Air India Maharaja In Debt Trap >>

Air India Maharaja In Debt Trap Case Study Help

Background and Facts

Air India Maharaja In Debt Trap a workplace products merchant for tiny and also medium sized businesses has actually just recently been involved in planning for a merging with its competitor Residence Deport, which has impacted efficiency degrees in departmentswith the senior supervisor associated with lawful issues presented by the federal Profession Payment. With the Advertising Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the duty in the future. With challenges in the form of a prospective cultural change and reduced staff member spirits, the company requires a total reengineering initiative at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The potential cultural modification at the advertising and marketing division of Air India Maharaja In Debt Trap is enhancing uncertainty in the working environment leading to different obstacles for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing critical choices because Stapes Inc. had to desert its plans of combining with Office Deport after the Federal Profession Payment's treatment in the process. Given the truth that the store has a worldwide presence with branches in UK, USA, Canada and also Germany, political consider each of these countries may be able to impact performance or calculated objectives. Federal Trade Payment's antitrust suit against the merging took up beneficial time of the organization's senior administration recommending that 'political' factors can have serious effects for an international business.

Economic Factors: Financial factors such as the introduction of small companies in the global scenario suggest that Air India Maharaja In Debt Trap is thriving in a setting where there is potential growth of organisations. Truth that store consumers are primarily looking for office materials for residence offices recommends that the market has a climbing pattern of entrepreneurs as well as home based services.

Social factors: Social trends in the economic climate show that customers are searching for benefit as well as eye-catching prices. Market research demonstrates how the consumer for Air India Maharaja In Debt Trap lacks recognition regarding locating solutions which can use a mix of comfort and also low costs.

Technical factors: Innovation plays a vital role in Air India Maharaja In Debt Trap's organisation technique especially as the organization is piloting Innovation facilities which would offer modern technology sales and also assistance in the form of memory upgrades, outer setups. (Summary of BUG in appendix 2).

OB Issues as well as Symptoms.

Numerous underlying Organizational Habits concerns can be seen in Air India Maharaja In Debt Trap's case as highlighted in this area.

Concerns about cultural adjustment: There is worry regarding a cultural modification that would certainly happen as soon as Todd Krasnow leaves from his position as the Executive Vice President of Advertising And Marketing with most of the staff members already showing unhappiness over this possible move. This predicted modification has actually created stress in the office which has been coupled with the previous anxiety of preparing the firm for a potential merging with Home Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is lack of workers that can match the demanding environment of a hectic organization. Not just does this result in trouble in discovering the right people, it puts anxiety on new hires as can not hold up against the speed and stress that the company anticipates them to birth.

Double Coverage Lines: Novices locate this business culture troublesome and tough to handle especially as dotted line partnerships are indicated to be weak generally as well as unbiased setup as well as efficiency examination is still done by the solid line manager. This means that newbies can shed clarity concerning their particular functions and also goals specifically as populated line coverage does not maintain them in straight interaction with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles although it had actually been guessed that the latter would certainly take Krasnow's position came as an impact to her spirits. Lewis might have been capable and also appropriate for the work however the truth that Kransnow's separation would certainly make Coles a straight record to Lewis might have been the factor for Coles' resignation from services.

Concern & Job Instability: Fear and also insecurity can be determined as 2 major problems that Lewis would be managing especially as the merging has actually currently be terminated and two senior executives of the advertising and marketing division would be leaving. The whole obligation of the division would certainly be falling on Lewis's shoulders that would certainly not just be in charge of brining about a cultural adjustment however would additionally have to confirm herself in her brand-new role.

Inappropriate Monitoring Style of Leader: Lewis's monitoring design as well as its incompatibility with the marketing division's function can additionally be seen as an OB obstacle especially as she has actually been made use of to managing concerns in the procedures department where workers are taught to concentrate on procedures and also get them. The advertising and marketing division on the various other hand can be seen as a group of individuals who are made use of to being supported by Krasnow who focused more on output than procedures.

Interdepartmental Disagreements: Interdepartmental arguments between three departments, advertising and marketing, merchandizing as well as operations specifically over the appropriation of the marketing mix can be recognized as one more OB problem. Although the advertising division does not share the exact same vision as the various other two departments regarding the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing as well as operations divisions do not agree over the advertising and marketing mix appropriation among one another either.

Disintegration in Advertising Division: Disintegration between the marketing and advertising departments can be identified as another OB concern which can require more attention. The reality that the marketing and advertising sections in the marketing division are separated is stopping both divisions from gaining from each various other's experience as well as expertise. Assimilation of advertising and marketing with merchandising and also procedures would become more difficult if the advertising department itself is broken down which can be an additional possible OB problem.

Air India Maharaja In Debt Trap Analysis

Numerous theories have been made use of to explain the conditions to obtain additional clearness about the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of managers believe that juniors are passive and lazy, have little aspiration as well as stand up to change. The tough version of this theory stressed browbeating, tight controls, risks and also penalties. In time it generates low performance, refined sabotage and also rivalry (Offer, 2003). Although the situation at Air India Maharaja In Debt Trap is not completely following Concept X, it can be seen that brand-new hires are finding this setting rather difficult which might ultimately bring about a greater inclination of the monitoring towards Concept X. According to McGregor's supported sight, which he called Theory Y, the essential job of the administration is to set up organizational problems so that individuals can achieve their own objectives best by routing their initiatives in the direction of business benefits. If people find no complete satisfaction in their work, the administration would have little selection but to rely on concept X and external control (Deal, 2003). Even while examining Lewis's monitoring style, theory X might have been suitable in the procedures division to some extent yet the Advertising and marketing division would certainly require dependence on Theory Y to get the creative thinking and also originality from the teams.

Tuckman's Teamwork Theory: Regarding Lewis's worry concerning bringing consistency in between the marketing and advertising department is worried, this would originally result in conflict as gone over by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, during the first stage of group advancement, individuals may not bond, as they are active discovering their area in the team. By incorporating the advertising and marketing division's job, there may coincide preliminary separate which can lead to the 2nd stage of 'storming' where the groups challenge each other. It is only throughout the 3rd stage or 'norming' when they would come with each other to share ideas before the group can bring around harmony in the 4th phase 'executing'.

When people are offered with change, they go into stage one and also so there might be feelings like despair, unpredictability, stress, rage, anxiety, denial as well as disorientation.The circumstance at the advertising division of Air India Maharaja In Debt Trap is similar so Lewis can obtain comfy with the idea that it is not remarkable habits. It is during this stage that Lewis will certainly have to give support to the division so that they can locate a sense of direction. It can be seen exactly how Krasnow has already made this shift easier by making Lewis obtain involved in the department a year before his real departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has discusses the importance of 'security requires as being a lower level need of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel protected and out of risk' is at the second degree of requirements. Before an employee can be made to create emotionally, he requires to have his 'Physiological 'and also 'Safety and security' needs met.

SWOT Analysis for Air India Maharaja In Debt Trap Case Study

Ramification of Analysis.

The OB analysis has considered numerous theories to understand how to manage the present circumstance available. The complying with 3 choices have actually been recommended to assist Lewis deal with the business challenges in the advertising and marketing division. Each of these alternatives has been proposed for easing the transition required to bring the advertising division in accordance with the requirements of the marketplace and also for making the cultural modification that would comply with when the existing leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting as well as Production functions. Integration of Advertising with Workflow.

Examination of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis during the earlier merging days has competence in business-to-business advertising along with agency and also retail advertising and marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to take care of both marketing as well as marketing features.

The benefit of this approach is that it will certainly integrate both functions while reducing the need for employing an added resource for advertising. Lewis would certainly be heading the advertising division and in any kind of case her substitute would be required for the existing duty that she is executing. The downside of this option is that outside hiring may bring about animosity from inner personnel who might be eying the position of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting as well as Manufacturing: Offered the affordable stress as well as excellent quality job called for from the advertising agency, it is suggested that Lewis must permit the production device to be a different function from the advertising and marketing system. Since a lot of advertising agencies had these two functions as separate devices, it makes even more sense to comply with the standard. Along with this, both features might have the ability to concentrate on their core triggers more efficiently. The disadvantage of this technique would be that extra expenses would certainly have to be borne for setting up different manufacturing features. Along with this, a manufacturing head might need to be hired which can boost overheads for the organization.

Integration of Advertising with Operations: Because Lewis is currently looking after the marketing and procedures departments at the same time; it makes good sense to incorporate both functions since she has actually been efficiently looking after both ends. The reality that both departments currently have significant differences over allotment of resources recommends that this combination may have the ability to produce consistency specifically as Lewis would certainly be heading both ends.However there are different negative aspects of this move particularly as it would place way too much concern over Lewis's shoulders. The fact that Lewis needs to adjust her administration design for the marketing department recommends that these 2 departments would be culturally varied. Lewis might not be able to apply one type of leadership design to both departments which can result in inadequacy in either one of the 2 functions.


An evaluation of the three alternatives indicates that integration of advertising and marketing and procedures would not be a viable action due to the large distinctions between the 2 divisions regardless of the reality that currently Lewis is taking care of both. While splitting up of the manufacturing function may have been a favorable move for the marketing department, the truth that it would imply placing a 3rd feature under Lewis's wing suggests this ought to be stayed clear of.

Action Strategy.
Lewis will take control of the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

Judith Shapiro will be employed to take Lewis's place as SVP of marketing and advertising.

Manufacturing feature will certainly continue to be part of marketing under advertising feature.

Lewis will certainly divide herself from procedures.

A democratic leadership design with employee empowerment will be made use of in advertising division.

Open door policy as well as emphasis on cross department communication will certainly be targeted at getting rid of dissonance.

Contingency strategy.

If the combination does not exercise as planned, a contingency plan would comply with which would certainly divide the production feature from the advertising function to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing department without an SVP. In that case the manufacturing feature will most definitely be separated by positioning it under an SVP manufacturing.