Mysore Ghee Stores Expansion Strategy For Clarified Butter Business Case Study Solution


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Mysore Ghee Stores Expansion Strategy For Clarified Butter Business Case Study Solution

Background and Facts

Mysore Ghee Stores Expansion Strategy For Clarified Butter Business an office products store for little and also average sized companies has just recently been involved in preparing for a merger with its rival Residence Deport, which has influenced efficiency levels in departmentswith the senior manager associated with legal complications put forth by the federal Profession Compensation. With the Advertising Head putting forward the news of his separation from the firm in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the future. With obstacles in the type of a possible cultural change as well as reduced worker spirits, the company wants a full reengineering effort at the marketing division.

Problem Declaration

The possible cultural change at the advertising and marketing department of Mysore Ghee Stores Expansion Strategy For Clarified Butter Business is enhancing uncertainty in the working environment leading to various challenges for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in affecting calculated decisions because Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Profession Compensation's treatment at the same time. Given the fact that the store has an international presence with branches in UK, USA, Canada as well as Germany, political factors in each of these countries might be able to affect performance or calculated goals. Federal Profession Commission's antitrust suit against the merging used up useful time of the company's senior administration recommending that 'political' factors can have significant effects for an international company.

Economic Factors: Financial factors such as the introduction of small businesses in the worldwide situation suggest that Mysore Ghee Stores Expansion Strategy For Clarified Butter Business is thriving in an atmosphere where there is prospective growth of companies. Along with this, fact that shop customers are mainly trying to find workplace supplies for office suggests that the market has a climbing trend of entrepreneurs as well as home based businesses.

Social factors: Social patterns in the economic climate reveal that customers are trying to find comfort along with appealing costs. Marketing research shows how the customer for Mysore Ghee Stores Expansion Strategy For Clarified Butter Business does not have understanding about finding solutions which can offer a mix of benefit as well as low costs.

Technological factors: Innovation plays a crucial duty in Mysore Ghee Stores Expansion Strategy For Clarified Butter Business's service strategy particularly as the organization is piloting Innovation centers which would certainly use technology sales as well as assistance in the kind of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).

OB Issues and Effects.

A number of underlying Organizational Actions issues can be seen in Mysore Ghee Stores Expansion Strategy For Clarified Butter Business's case as highlighted in this section.

Uneasiness about social change: There is worry concerning a social change that would occur when Todd Krasnow leaves from his placement as the Executive Vice President of Advertising And Marketing with most of the employee already revealing discontent over this possible action. This expected change has created anxiety in the work environment which has been coupled with the past stress of preparing the firm for a potential merging with House Deport.

Difficult Task Setting for Newcomers: There is shortage of employees that can match the stressful atmosphere of a busy organization. Not just does this lead to problem in discovering the best individuals, it places tension on new hires as can not withstand the speed as well as stress that the organization anticipates them to birth.

Twin Coverage Lines: Newcomers discover this business culture cumbersome as well as hard to handle especially as dotted line connections are indicated to be weak as a whole and also unbiased setup and efficiency analysis is still done by the solid line manager. This indicates that novices can shed clearness about their particular functions as well as purposes particularly as populated line reporting does not keep them in direct communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had actually been hypothesized that the last would take Krasnow's placement came as a blow to her morale. Lewis may have been qualified and also proper for the task yet the truth that Kransnow's departure would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Anxiety & Task Insecurity: Anxiety and also instability can be identified as 2 major concerns that Lewis would certainly be taking care of particularly as the merging has currently be terminated and also 2 elderly executives of the marketing division would certainly be leaving. The entire responsibility of the division would certainly be dropping on Lewis's shoulders that would not simply be in charge of brining about a social adjustment but would additionally have to confirm herself in her brand-new duty.

Inappropriate Monitoring Design of Leader: Lewis's administration design and also its conflict with the advertising and marketing department's duty can also be seen as an OB challenge particularly as she has actually been made use of to dealing with issues in the procedures department where employees are instructed to concentrate on processes and get them. The advertising division on the other hand can be seen as a group of individuals who are used to being supported by Krasnow that focused much more on output than procedures.

Interdepartmental Differences: Interdepartmental differences in between three departments, advertising, merchandizing and also operations specifically over the appropriation of the marketing mix can be recognized as another OB issue. Although the marketing department does not share the same vision as the various other 2 divisions concerning the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and also procedures departments do not agree over the marketing mix allotment among each other either.

Fragmentation in Advertising Department: Fragmentation between the marketing and advertising departments can be determined as another OB problem which could need additional focus. The reality that the marketing and advertising sections in the advertising and marketing department are disconnected is avoiding both divisions from gaining from each various other's experience as well as knowledge. Assimilation of advertising with retailing and also procedures would certainly become harder if the advertising and marketing department itself is degenerated which can be one more possible OB worry.

Mysore Ghee Stores Expansion Strategy For Clarified Butter Business Analysis

Various concepts have been used to clarify the circumstances to get additional quality about the circumstance handy.

McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers think that staffs are easy as well as lazy, have little aspiration and also withstand modification. The scenario at Mysore Ghee Stores Expansion Strategy For Clarified Butter Business is not completely adhering to Concept X, it can be seen that brand-new hires are locating this environment rather stressful which may eventually lead to a greater disposition of the management in the direction of Concept X. Even while analyzing Lewis's management style, theory X might have been appropriate in the procedures division to some degree yet the Marketing division would need reliance on Concept Y in order to get the imagination and also creativity from the teams.

Tuckman's Synergy Concept: Regarding Lewis's worry regarding bringing harmony between the marketing and advertising department is concerned, this would originally bring about contrast as gone over by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). According to Tuckman's theory shown in appendix 3, throughout the initial phase of group growth, individuals might not bond, as they are active locating their location in the team. By incorporating the advertising and marketing division's work, there may coincide first separate which can result in the 2nd phase of 'storming' where the teams test one another. Nevertheless, it is just throughout the 3rd phase or 'norming' when they would integrate to share concepts prior to the group can produce synergy in the 4th stage 'executing'.

Bridges' Change Model: Based On William Bridge's concept (appendix 4), individuals are quite uncomfortable with adjustment, which is apparent by the circumstance at Mysore Ghee Stores Expansion Strategy For Clarified Butter Business The situation can be seen as a normal program of life if is studied according to Bridge's concept where he describes that people experience three stages of change when they experience modification. 'Closing, losing and Letting go', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When individuals exist with modification, they get in phase one therefore there might be feelings like sadness, unpredictability, irritation, temper, anxiety, denial and also disorientation.The scenario at the marketing division of Mysore Ghee Stores Expansion Strategy For Clarified Butter Business is comparable so Lewis can get comfortable with the suggestion that it is not amazing actions. In the 2nd phase, there may be a need to bridge the gap in between the brand-new and old society so Lewis might need to face this experience when Krasnow leaves. There might be low spirits as well as reduced efficiency at this stage which must not be taken as a problem. It is during this stage that Lewis will have to give assistance to the department so that they can discover a sense of direction. It can be seen how Krasnow has currently made this shift much easier by making Lewis get associated with the department a year before his real departure. Based on Bridges' Design, stage 3 will cause visibility to learning, High power as well as commitment as people will certainly accept the adjustment (Bridges, 2004).

Maslow's Demand power structure: The OB concern pertaining to insecurity at the workplace has actually been activated firstly by the change in management and also second of all by the reality that the merging will certainly no longer be launched. Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has discusses the significance of 'protection requires as being a reduced level requirement of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel protected and also untouched' goes to the second level of requirements. Prior to a worker can be made to establish mentally, he needs to have his 'Physiological 'and also 'Safety and security' needs fulfilled. This suggests that unless the employees are made to feel safe regarding their existing work condition in Mysore Ghee Stores Expansion Strategy For Clarified Butter Business they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Mysore Ghee Stores Expansion Strategy For Clarified Butter Business Case Study

Ramification of Analysis.

The OB analysis has actually checked out different concepts to comprehend just how to cope with the current circumstance at hand. The complying with 3 options have been recommended to assist Lewis manage the organizational challenges in the marketing division. Each of these alternatives has been proposed for reducing the change needed to bring the marketing division in accordance with the requirements of the market and for making the social modification that would certainly adhere to as soon as the present leader leaves.

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

Examination of Alternatives.

Combination of Marketing & Marketing Functions: The internal advertising company of Mysore Ghee Stores Expansion Strategy For Clarified Butter Business is already stamina for the organization in terms of conserving up on expenses connected to marketing and promo. Considering that no brand-new recruitment has actually been done after Bridget Cole's separation with the reporting line being straight assigned to Krasnow for the advertising and marketing feature, this is a positive opportunity for integrating the advertising and marketing features. Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merger days has proficiency in business-to-business advertising and marketing in addition to agency and also retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to take care of both marketing and advertising features.

The advantage of this strategy is that it will integrate both features while minimizing the need for working with an additional resource for marketing. Along with this, Lewis would be heading the marketing division and also regardless her substitute would certainly be required for the present role that she is executing. The downside of this alternative is that external hiring may produce bitterness from interior personnel who may be considering the position of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Production: Given the affordable pressures as well as high quality work called for from the marketing firm, it is advised that Lewis should enable the manufacturing system to be a separate feature from the advertising system. Considering that the majority of marketing agencies had these two features as different devices, it makes even more sense to comply with the standard.

Assimilation of Marketing with Operations: Considering that Lewis is currently taking care of the marketing and operations divisions simultaneously; it makes feeling to incorporate the 2 features since she has been efficiently taking treatment of both ends. The truth that Lewis has to adapt her monitoring design for the advertising division suggests that these 2 divisions would be culturally diverse.


An examination of the 3 options shows that combination of marketing and procedures would not be a possible relocation due to the huge differences between the two divisions in spite of the truth that currently Lewis is handling both. While splitting up of the manufacturing feature might have been a beneficial relocation for the advertising and marketing division, the truth that it would certainly suggest positioning a 3rd function under Lewis's wing means this ought to be stayed clear of.

Activity Strategy.

Lewis will certainly take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

Manufacturing feature will certainly continue to be component of marketing under advertising and marketing function.

Lewis will divide herself from procedures.

A democratic management style with staff member empowerment will be used in advertising division.

Open door plan and emphasis on cross departmental interaction will certainly be targeted at getting rid of discord.

Backup strategy.

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