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


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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 and also moderate sized businesses has actually just recently been associated with preparing for a merging with its competitor Home Deport, which has influenced effectiveness degrees in departmentswith the senior supervisor involved in legal complications presented by the government Profession Compensation. With the Advertising Head advancing the news of his departure from the business in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the near future. With obstacles in the kind of a prospective cultural change and reduced employee morale, the company requires a complete reengineering effort at the advertising and marketing department.

Problem Statement

The prospective social adjustment at the advertising and marketing department of Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme is raising uncertainty in the working environment causing numerous obstacles for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting calculated choices considering that Stapes Inc. had to desert its strategies of combining with Workplace Deport after the Federal Trade Payment's intervention in the process. Given the fact that the store has a global existence with branches in UK, U.S.A., Canada and also Germany, political consider each of these countries may have the ability to impact performance or critical goals. Federal Profession Commission's antitrust fit against the merging used up beneficial time of the company's elderly monitoring recommending that 'political' factors can have major effects for an international organisation.

Economic Factors: Financial factors such as the introduction of small businesses in the global scenario recommend that Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme is thriving in a setting where there is prospective development of services. Reality that store customers are mainly looking for office materials for home offices recommends that the market has a rising pattern of entrepreneurs and also house based businesses.

Social factors: Social trends in the economy reveal that clients are trying to find ease as well as appealing rates. Marketing research demonstrates how the client for Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme does not have understanding concerning locating solutions which can supply a combination of ease as well as inexpensive.

Technical factors: Innovation plays an important role in Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme's service strategy particularly as the company is piloting Technology centers which would offer innovation sales and support in the kind of memory upgrades, outer setups. (Summary of PEST in appendix 2).

OB Issues as well as Manifestations.

Several underlying Business Behavior problems can be seen in Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme's case as highlighted in this area.

Apprehensions concerning cultural modification: There is worry concerning a social adjustment that would certainly happen when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising with a lot of the team member already showing discontent over this possible step. This anticipated adjustment has created stress and anxiety in the office which has actually been coupled with the past stress of preparing the company for a possible merger with Residence Deport.

Stressful Job Atmosphere for Newcomers: There is shortage of employees that can match the demanding setting of a busy company. Not only does this lead to problem in finding the ideal individuals, it puts anxiety on brand-new hires as can not endure the pace and stress that the company expects them to bear.

Dual Coverage Lines: Novices discover this organizational society cumbersome and challenging to manage specifically as populated line relationships are suggested to be weaker generally as well as objective setting and performance assessment is still done by the solid line manager. This means that newcomers could lose quality regarding their respective duties and goals especially as populated line coverage does not keep them in direct communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles despite the fact that it had been hypothesized that the latter would take Krasnow's setting came as a strike to her spirits. Lewis might have been capable and also suitable for the task however the fact that Kransnow's departure would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Task Insecurity: Worry and also instability can be identified as 2 major concerns that Lewis would certainly be taking care of particularly as the merger has actually now be cancelled and also two elderly executives of the advertising and marketing department would certainly be leaving. The entire obligation of the department would be falling on Lewis's shoulders that would not just be in charge of brining about a cultural change yet would certainly also have to prove herself in her new function.

Inappropriate Management Design of Leader: Lewis's monitoring design and also its conflict with the advertising division's duty can also be seen as an OB challenge particularly as she has been utilized to managing concerns in the procedures department where workers are instructed to concentrate on processes as well as obtain them. The advertising and marketing department on the other hand can be seen as a team of people that are used to being nurtured by Krasnow who concentrated more on result than processes.

Interdepartmental Disagreements: Interdepartmental disagreements in between three departments, advertising and marketing, merchandizing and also procedures specifically over the appropriation of the advertising and marketing mix can be recognized as one more OB worry. Although the marketing division does not share the very same vision as the various other two divisions regarding the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing and operations divisions do not concur over the advertising mix allocation amongst one another either.

Fragmentation in Marketing Department: Fragmentation in between the marketing and advertising departments can be identified as another OB issue which might require additional interest. The fact that the advertising and marketing areas in the advertising department are disconnected is avoiding both departments from obtaining from each various other's experience and know-how. Combination of advertising and marketing with retailing and operations would certainly come to be harder if the marketing department itself is degenerated which can be another possible OB problem.

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

Numerous concepts have been used to discuss the situations to get additional quality about the scenario handy.

McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many managers think that juniors are easy and careless, have little passion as well as withstand adjustment. The difficult version of this theory emphasized threat, limited controls, dangers and also penalties. Over time it produces reduced efficiency, refined sabotage and competition (Bargain, 2003). The scenario at Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme is not completely complying with Theory X, it can be seen that new hires are discovering this setting instead demanding which may eventually lead to a higher disposition of the management towards Concept X. According to McGregor's promoted view, which he called Theory Y, the vital task of the monitoring is to prepare business conditions to make sure that individuals can accomplish their very own goals best by guiding their initiatives towards organizational benefits. If individuals locate no contentment in their work, the management would have little option but to rely upon theory X as well as exterior control (Offer, 2003). Also while evaluating Lewis's management design, concept X may have been suitable in the procedures division to some extent yet the Advertising and marketing division would certainly need dependence on Concept Y in order to get the creativity and originality from the groups.

Tuckman's Synergy Theory: As far as Lewis's problem concerning bringing consistency between the marketing and marketing division is concerned, this would originally lead to contrast as reviewed by Bruce Tuckman in his 'Team effort Theory'. By integrating the advertising and marketing as well as marketing department's job, there might be the exact same initial disconnect which can lead to the 2nd stage of 'storming' where the groups test one an additional.

Bridges' Transition Model: Based On William Bridge's concept (appendix 4), people are rather unpleasant with change, which is obvious by the scenario at Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme The scenario can be viewed as a regular training course of life if is studied as per Bridge's concept where he explains that individuals experience 3 stages of change when they experience change. 'Ending, shedding and also Letting go', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When people are presented with change, they go into stage one therefore there may be feelings like unhappiness, uncertainty, irritation, anger, concern, rejection as well as disorientation.The scenario at the advertising department of Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme is comparable so Lewis can get comfy with the idea that it is not phenomenal behavior. In the 2nd stage, there might be a demand to connect the gap between the brand-new and also old culture so Lewis may have to encounter this challenge when Krasnow leaves. There might be low spirits as well as low efficiency at this phase which should not be taken as an obstacle. It is during this phase that Lewis will have to offer support to the division to make sure that they can find an orientation. It can be seen exactly how Krasnow has actually currently made this transition much easier by making Lewis get associated with the division a year prior to his real departure. Based on Bridges' Version, phase 3 will certainly produce openness to understanding, High energy and dedication as individuals will certainly welcome the change (Bridges, 2004).

Maslow's Need pecking order: The OB problem related to insecurity at the workplace has been triggered to start with by the adjustment in monitoring as well as secondly by the reality that the merging will no more be started. Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has reviews the value of 'safety requires as being a lower degree need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel safe and untouched' goes to the 2nd level of demands. Before a worker can be made to develop emotionally, he requires to have his 'Physiological 'and 'Safety and security' requires fulfilled. This indicates that unless the workers are made to feel protected about their current employment status in Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme they may not get to 'Self-Fulfillment'. (King, 2009).

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 taken a look at different theories to understand exactly how to handle the current scenario at hand. The adhering to 3 options have actually been recommended to help Lewis deal with the organizational challenges in the marketing department. Each of these alternatives has actually been proposed for easing the change required to bring the marketing division according to the demands of the marketplace and also for making the cultural modification that would certainly comply with when the present leader leaves.

Combination of advertising and marketing features. Dividing Adverting as well as Manufacturing features. Integration of Marketing with Operations.

Evaluation of Alternatives.

Integration of Marketing & Advertising Functions: The in-house advertising and marketing firm of Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme is currently toughness for the organization in terms of conserving up on expenses related to marketing as well as promo. Since no brand-new recruitment has been done after Bridget Cole's separation with the reporting line being directly assigned to Krasnow for the advertising feature, this is a positive possibility for incorporating the advertising and marketing features. Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merging days has competence in business-to-business advertising in addition to agency and also retail advertising and marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to manage both marketing and advertising features.

The benefit of this strategy is that it will integrate the two functions while reducing the demand for hiring an added source for marketing. Lewis would certainly be heading the advertising division and also in any case her substitute would certainly be needed for the present role that she is carrying out. The downside of this option is that outside hiring might cause resentment from internal personnel who might be considering the position of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and also Production: Provided the affordable pressures and high quality work called for from the advertising agency, it is recommended that Lewis should enable the production device to be a different feature from the advertising and marketing unit. Given that the majority of advertising agencies had these 2 functions as separate devices, it makes more feeling to adhere to the norm. Both functions may be able to concentrate on their core triggers more successfully. The negative aspect of this method would certainly be that added prices would have to be borne for setting up separate production functions. A production head might have to be hired which might raise expenses for the organization.

Integration of Advertising with Workflows: Because Lewis is already taking treatment of the marketing and also procedures departments concurrently; it makes feeling to integrate the 2 features since she has actually been efficiently taking care of both ends. The truth that Lewis has to adjust her monitoring design for the marketing department suggests that these two departments would certainly be culturally varied.


An examination of the 3 choices indicates that assimilation of advertising and marketing and also procedures would certainly not be a viable step because of the substantial distinctions between both departments although that presently Lewis is handling both. While separation of the manufacturing function might have been a desirable action for the advertising and marketing division, the fact that it would certainly indicate placing a 3rd function under Lewis's wing indicates this must be stayed clear of. The combination of the advertising division is the most effective alternative in terms of obtaining the ideal arise from the division. An action plan for this option is discussed listed below.

Activity Strategy.

Lewis will certainly take over the role of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would be merged.

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

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

Lewis will divide herself from operations.

A democratic management design with worker empowerment will be made use of in marketing department.

Open up door policy and also focus on cross department interaction will be aimed at getting rid of discord.

Contingency strategy.

If the integration does not work out as planned, a contingency strategy would follow which would divide the production function from the advertising function to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising department without an SVP. Because case the manufacturing feature will absolutely be separated by placing it under an SVP production.