Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme Case Study Help


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Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme Case Study Solution

Background and Facts

Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme a workplace supplies seller for little as well as average sized businesses has actually recently been involved in planning for a merger with its rival House Deport, which has affected performance levels in departmentswith the elderly supervisor associated with legal problems put forth by the federal Profession Payment. With the Advertising and marketing Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the duty in the future. With difficulties in the form of a prospective cultural change as well as reduced employee spirits, the organization wants a complete reengineering initiative at the marketing division.

Problem Statement
Porter's 5 Forces Analysis
The prospective social change at the advertising and marketing department of Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme is enhancing uncertainty in the workplace causing numerous difficulties for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in influencing strategic decisions since Stapes Inc. had to abandon its strategies of merging with Workplace Deport after the Federal Trade Payment's intervention at the same time. Given the fact that the store has a global existence with branches in UK, USA, Canada and Germany, political consider each of these nations may be able to impact efficiency or tactical goals. Federal Profession Payment's antitrust fit versus the merging occupied useful time of the organization's elderly administration recommending that 'political' factors can have major effects for a worldwide company.

Economic Factors: Financial factors such as the development of small businesses in the global situation recommend that Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme is thriving in an atmosphere where there is prospective growth of organisations. Along with this, truth that shop consumers are mainly searching for office products for home offices recommends that the marketplace has a climbing fad of entrepreneurs and also home companies.

Social factors: Social patterns in the economic climate show that customers are searching for benefit as well as appealing costs. Marketing research demonstrates how the client for Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme lacks understanding concerning locating solutions which can provide a mix of comfort and affordable.

Technological factors: Technology plays a vital role in Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme's service strategy specifically as the organization is piloting Innovation facilities which would supply innovation sales as well as assistance in the form of memory upgrades, outer installations. (Summary of PEST in appendix 2).

OB Issues and also Symptoms.

A number of underlying Business Actions problems can be seen in Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme's case as highlighted in this section.

Worries regarding cultural change: There is uneasiness concerning a social change that would certainly happen when Todd Krasnow leaves from his position as the Exec Vice President of Marketing with the majority of the team member currently showing unhappiness over this potential step. This expected modification has actually developed stress in the office which has actually been combined with the previous anxiety of preparing the company for a prospective merger with Residence Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is scarcity of workers that can match the demanding setting of a fast-paced company. Not only does this lead to problem in discovering the right people, it puts anxiety on brand-new hires as can not stand up to the pace as well as stress that the company anticipates them to bear.

Twin Coverage Lines: Novices find this organizational culture difficult and also hard to cope with particularly as dotted line connections are suggested to be weak in general and also objective setup as well as efficiency evaluation is still done by the solid line supervisor. This indicates that newcomers can shed clarity concerning their corresponding duties as well as goals specifically as populated line reporting does not maintain them in direct communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had actually been speculated that the last would certainly take Krasnow's placement came as a strike to her morale. Lewis may have been qualified and also appropriate for the task however the reality that Kransnow's separation would make Coles a straight report to Lewis might have been the factor for Coles' resignation from services.

Fear & Work Instability: Anxiety as well as instability can be recognized as two significant worries that Lewis would certainly be dealing with specifically as the merger has actually now be cancelled and 2 elderly executives of the marketing division would be leaving. The whole duty of the division would certainly be falling on Lewis's shoulders who would certainly not just supervise of brining concerning a cultural change yet would also have to confirm herself in her brand-new function.

Incompatible Monitoring Style of Leader: Lewis's monitoring design and its conflict with the marketing division's role can likewise be seen as an OB obstacle particularly as she has been made use of to handling problems in the operations division where workers are instructed to focus on processes as well as get them right. The marketing department on the other hand can be viewed as a group of individuals who are utilized to being supported by Krasnow who focused more on result than procedures.

Interdepartmental Differences: Interdepartmental disagreements between 3 departments, advertising, merchandizing and operations respectively over the allocation of the advertising and marketing mix can be identified as one more OB issue. The marketing division does not share the exact same vision as the other 2 departments regarding the aloocation of the marketing mix twoards promos and advertsing, the merchandizing and procedures departments do not concur over the marketing mix allocation amongst one another either.

Fragmentation in Marketing Department: Fragmentation between the advertising and marketing divisions can be determined as one more OB issue which could require additional attention. The fact that the marketing and advertising sections in the marketing division are detached is preventing both departments from acquiring from each other's experience and also know-how. Assimilation of marketing with merchandising as well as procedures would certainly end up being more difficult if the advertising division itself is degenerated which can be another potential OB problem.

Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme Analysis

Various concepts have been used to describe the scenarios to get more clarity about the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most managers believe that juniors are passive as well as lazy, have little ambition and stand up to change. The situation at Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme is not totally adhering to Concept X, it can be seen that new hires are locating this atmosphere rather difficult which may at some point lead to a better disposition of the monitoring in the direction of Concept X. Also while analyzing Lewis's management design, concept X may have been appropriate in the procedures division to some extent however the Advertising and marketing division would require reliance on Theory Y in order to obtain the creative thinking as well as originality from the groups.

Tuckman's Synergy Concept: As far as Lewis's issue regarding bringing consistency in between the marketing and advertising division is worried, this would originally result in clash as reviewed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). According to Tuckman's concept shown in appendix 3, throughout the first stage of group growth, individuals may not bond, as they are busy discovering their place in the group. By combining the advertising and marketing department's work, there might be the same preliminary separate which might cause the second phase of 'storming' where the teams challenge one another. Nevertheless, it is only throughout the third stage or 'norming' when they would certainly collaborate to share ideas prior to the team can cause synergy in the fourth stage 'performing'.

When people are offered with adjustment, they enter stage one as well as so there might be emotions like unhappiness, uncertainty, irritation, anger, fear, rejection and disorientation.The scenario at the advertising division of Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme is similar so Lewis can obtain comfy with the concept that it is not phenomenal habits. It is throughout this stage that Lewis will certainly have to provide guidance to the department so that they can locate a sense of instructions. It can be seen exactly how Krasnow has already made this change less complicated by making Lewis get entailed in the division a year prior to his actual separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has goes over the value of 'protection needs as being a reduced degree need of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel safe and out of threat' is at the second degree of demands. Before a worker can be made to establish psychologically, he requires to have his 'Physiological 'and 'Security' requires met.

SWOT Analysis for Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme Case Study

Ramification of Analysis.

The OB analysis has actually looked at various theories to comprehend exactly how to cope with the present scenario at hand. The adhering to 3 choices have been proposed to assist Lewis manage the business challenges in the marketing department. Each of these choices has actually been proposed for reducing the shift needed to bring the marketing department in accordance with the needs of the marketplace and also for making the cultural adjustment that would certainly adhere to once the present leader leaves.

Integration of marketing and advertising functions. Dividing Adverting and also Production functions. Combination of Marketing with Procedures.

Examination of Alternatives.

Combination of Marketing & Marketing Functions: The in-house advertising company of Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme is currently stamina for the company in terms of conserving up on overheads related to advertising and also promotion. Since no brand-new recruitment has been done after Bridget Cole's separation with the reporting line being directly assigned to Krasnow for the marketing feature, this is a beneficial possibility for integrating the advertising and marketing functions. Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merging days has expertise in business-to-business advertising and marketing together with company and also retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to take care of both advertising and marketing features.

The advantage of this strategy is that it will certainly incorporate the two features while decreasing the need for hiring an extra resource for marketing. In addition to this, Lewis would be heading the advertising department and regardless her replacement would certainly be needed for the present duty that she is executing. The downside of this choice is that external hiring might cause bitterness from internal personnel who might be looking at the position of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and Production: Provided the affordable pressures and excellent quality job needed from the advertising agency, it is advised that Lewis should permit the production unit to be a different function from the advertising and marketing system. Given that the majority of advertising agencies had these two functions as different units, it makes more feeling to adhere to the norm. Both features may be able to focus on their core triggers more effectively. Nevertheless, the downside of this technique would certainly be that added prices would need to be birthed for establishing separate production functions. A production head might have to be worked with which might boost overheads for the organization.

Integration of Advertising And Marketing with Operations: Since Lewis is already taking care of the marketing and procedures divisions simultaneously; it makes sense to incorporate the 2 functions since she has actually been successfully taking treatment of both ends. The truth that Lewis has to adjust her monitoring design for the advertising department recommends that these two divisions would certainly be culturally diverse.


An analysis of the 3 options indicates that assimilation of advertising and marketing and procedures would certainly not be a practical step due to the large differences in between the 2 divisions in spite of the fact that currently Lewis is dealing with both. While splitting up of the production function might have been a desirable relocation for the advertising and marketing division, the fact that it would mean putting a 3rd feature under Lewis's wing suggests this must be avoided.

Activity Plan.
Lewis will certainly take over the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

Manufacturing feature will certainly stay part of advertising under marketing feature.

Lewis will certainly separate herself from procedures.

An autonomous management style with worker empowerment will certainly be used in marketing division.

Open up door policy as well as emphasis on cross department interaction will certainly be aimed at getting rid of disharmony.

Contingency strategy.

If the integration does not work out as prepared, a backup strategy would follow which would certainly separate the manufacturing function from the advertising and marketing feature to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising and marketing department without an SVP. In that case the production function will definitely be divided by positioning it under an SVP production.