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 Analysis

Background and Facts

Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme an office materials merchant for tiny as well as average sized services has actually recently been involved in preparing for a merging with its competitor House Deport, which has actually influenced performance degrees in departmentswith the elderly manager involved in legal complications put forth by the government Trade Payment. With the Advertising Head putting forward the news of his departure from the firm in one year, Jeannie Lewis, the current head of procedures has been asked to take the role in the future. With challenges in the form of a potential social adjustment and reduced employee spirits, the organization wants a full reengineering initiative at the advertising and marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The possible social change at the marketing division of Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme is enhancing unpredictability in the workplace causing different challenges 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 role in impacting strategic choices given that Stapes Inc. had to abandon its strategies of merging with Workplace Deport after the Federal Profession Compensation's intervention while doing so. Offered the truth that the store has a global existence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these countries might be able to impact performance or tactical goals. Federal Profession Commission's antitrust fit against the merger used up useful time of the company's elderly management suggesting that 'political' factors can have major implications for an international business.

Economic Factors: Economic factors such as the appearance of small companies in the worldwide circumstance recommend that Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme is growing in an environment where there is possible development of businesses. Fact that store clients are primarily looking for office products for house workplaces recommends that the market has a rising pattern of entrepreneurs as well as home based companies.

Social factors: Social fads in the economic situation reveal that clients are trying to find ease along with eye-catching rates. Market research demonstrates how the customer for Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme lacks awareness about finding options which can supply a combination of convenience and also low costs.

Technical factors: Innovation plays an important function in Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme's service strategy specifically as the organization is piloting Modern technology facilities which would supply modern technology sales as well as assistance in the form of memory upgrades, outer installations. (Summary of PEST in appendix 2).

OB Issues and also Manifestations.

Numerous underlying Organizational 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 worry about a social change that would happen as soon as Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising with the majority of the personnel already showing discontent over this potential move. This anticipated change has actually created tension in the work environment which has been paired with the previous anxiety of preparing the company for a possible merger with House Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is scarcity of workers that can match the stressful setting of a hectic company. Not just does this bring about trouble in finding the ideal people, it places stress and anxiety on brand-new hires as can not withstand the pace and stress that the organization anticipates them to bear.

Twin Reporting Lines: Novices find this business culture cumbersome and hard to manage particularly as dotted line partnerships are meant to be weaker in general and also objective setup and also efficiency analysis is still done by the solid line supervisor. This suggests that newbies might lose clarity regarding their particular duties and objectives specifically as dotted line reporting does not keep them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles despite the fact that it had been guessed that the last would take Krasnow's position came as a blow to her morale. Lewis may have been qualified as well as ideal for the work however the truth that Kransnow's departure would certainly make Coles a direct report to Lewis might have been the factor for Coles' resignation from services.

Concern & Job Instability: Worry as well as insecurity can be identified as 2 major issues that Lewis would be dealing with especially as the merger has actually now be cancelled and also 2 elderly executives of the advertising and marketing division would certainly be leaving. The entire obligation of the department would be falling on Lewis's shoulders that would certainly not just be in charge of brining about a social modification yet would certainly additionally need to verify herself in her new role.

Inappropriate Administration Style of Leader: Lewis's management design as well as its conflict with the advertising division's function can also be seen as an OB difficulty specifically as she has actually been made use of to handling issues in the operations department where workers are taught to concentrate on procedures as well as obtain them. The marketing department on the various other hand can be seen as a group of individuals that are used to being nurtured by Krasnow who concentrated more on outcome than processes.

Interdepartmental Differences: Interdepartmental arguments between 3 departments, marketing, merchandizing and operations respectively over the allocation of the advertising mix can be recognized as an additional OB worry. The advertising and marketing department does not share the exact same vision as the other two divisions pertaining to the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and also operations divisions do not agree over the marketing mix allowance amongst one an additional either.

Disintegration in Advertising And Marketing Division: Fragmentation between the marketing and advertising divisions can be recognized as one more OB problem which might require further interest. The reality that the advertising and marketing areas in the advertising and marketing department are detached is stopping both departments from acquiring from each other's experience and competence. Integration of marketing with retailing as well as operations would end up being harder if the advertising and marketing department itself is broken down which can be an additional possible OB problem.

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

Various theories have been used to clarify the conditions to get more clearness about the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most managers believe that staffs are passive as well as careless, have little passion and also stand up to modification. The difficult version of this concept stressed coercion, tight controls, risks and also punishments. In time it generates low productivity, refined sabotage and also competition (Deal, 2003). Although the scenario at Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme is not entirely following Concept X, it can be seen that new hires are locating this atmosphere instead difficult which may eventually result in a greater inclination of the monitoring in the direction of Theory X. Based on McGregor's promoted view, which he called Concept Y, the essential task of the administration is to organize organizational conditions to make sure that individuals can accomplish their own objectives best by directing their initiatives towards organizational rewards. If individuals locate no satisfaction in their job, the monitoring would certainly have little choice however to rely on concept X and also outside control (Deal, 2003). Even while analyzing Lewis's monitoring style, theory X may have appropriated in the operations division to some extent but the Advertising department would call for dependence on Concept Y in order to get the creative thinking and originality from the groups.

Tuckman's Synergy Theory: As much as Lewis's concern about bringing harmony between the advertising and marketing and advertising and marketing division is worried, this would initially lead to clash as reviewed by Bruce Tuckman in his 'Teamwork Concept'. By integrating the marketing as well as marketing department's work, there might be the exact same preliminary detach which could lead to the second phase of 'storming' where the groups test one an additional.

Bridges' Shift Model: Based On William Bridge's concept (appendix 4), individuals are quite awkward with modification, which is apparent by the scenario at Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme The circumstance can be viewed as a normal training course of life if is examined based on Bridge's theory where he discusses that individuals go through 3 phases of transition when they experience change. 'Closing, losing and Letting go', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When people exist with modification, they get in phase one and so there might be emotions like sadness, unpredictability, aggravation, rage, fear, rejection as well as disorientation.The situation at the advertising and marketing division of Gold Seal Engineering Products Pvt Ltd Challenges Facing A Developing Country Sme is similar so Lewis can get comfy with the suggestion that it is not remarkable habits. In the second phase, there might be a requirement to link the gap in between the new and old culture so Lewis may need to face this ordeal when Krasnow leaves. There may be reduced morale as well as reduced efficiency at this phase which should not be taken as a setback. It is during this stage that Lewis will have to provide support to the department to make sure that they can locate a sense of direction. It can be seen exactly how Krasnow has actually already made this change simpler by making Lewis obtain involved in the department a year prior to his actual departure. According to Bridges' Design, phase three will produce visibility to discovering, High power and commitment as people will welcome the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has discusses the relevance of 'safety needs as being a reduced degree need of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel protected and out of danger' is at the 2nd level of demands. Before an employee can be made to establish mentally, he needs to have his 'Physiological 'as well as 'Safety' needs fulfilled.

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

Implication of Analysis.

The OB analysis has taken a look at different theories to recognize just how to handle the present circumstance at hand. The following 3 choices have actually been suggested to help Lewis handle the organizational difficulties in the advertising and marketing division. Each of these options has actually been proposed for reducing the shift required to bring the marketing division according to the needs of the marketplace and also for making the social modification that would certainly follow once the present leader leaves.

Combination of marketing and advertising functions. Separating Adverting and Manufacturing features. Combination of Advertising And Marketing with Procedures.

Examination of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merging days has proficiency in business-to-business advertising along with agency and retail advertising and marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to take care of both advertising and marketing as well as marketing functions.

The benefit of this method is that it will incorporate both features while lowering the need for employing an added resource for advertising. Along with this, Lewis would be heading the advertising and marketing department and all the same her substitute would certainly be needed for the present function that she is performing. The downside of this option is that outside hiring may cause resentment from internal workers who may be considering the setting of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and also Production: Given the competitive pressures and also high quality job called for from the advertising and marketing company, it is advised that Lewis needs to permit the production system to be a different function from the advertising and marketing system. Since many marketing firms had these two features as different units, it makes more sense to adhere to the norm.

Integration of Marketing with Procedures: Because Lewis is currently dealing with the marketing as well as operations divisions at the same time; it makes sense to integrate both functions given that she has been effectively caring for both ends. The fact that the two departments currently have significant differences over appropriation of sources recommends that this combination might be able to cause consistency specifically as Lewis would be heading both ends.However there are different negative aspects of this move specifically as it would certainly place excessive burden over Lewis's shoulders. The truth that Lewis has to adapt her administration style for the marketing division suggests that these two departments would certainly be culturally varied. Lewis might not be able to apply one type of management design to both divisions which can result in ineffectiveness in either one of the two functions.


An evaluation of the 3 options suggests that combination of advertising as well as operations would not be a practical move due to the substantial differences between the two departments despite the fact that presently Lewis is dealing with both. While splitting up of the production function may have been a favorable step for the advertising department, the fact that it would imply putting a 3rd function under Lewis's wing indicates this must be stayed clear of.

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

Advertising and Marketing functions would be merged.

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

Production function will certainly stay component of advertising under advertising feature.

Lewis will separate herself from procedures.

An autonomous management design with staff member empowerment will certainly be made use of in advertising division.

Open door policy and also focus on cross departmental interaction will be focused on getting rid of dissonance.

Contingency plan.

If the assimilation does not exercise as intended, a backup plan would adhere to which would certainly separate the manufacturing function from the advertising and marketing feature to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will be heading the marketing division without an SVP. In that case the manufacturing function will certainly be divided by placing it under an SVP production.