Pumping Iron At Cliffs Associates The Circored Iron Ore Reduction Plant In Trinidad Case Study Analysis


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Pumping Iron At Cliffs Associates The Circored Iron Ore Reduction Plant In Trinidad Case Study Solution

Background and Facts

Pumping Iron At Cliffs Associates The Circored Iron Ore Reduction Plant In Trinidad an office supplies retailer for little and also medium sized services has actually recently been associated with preparing for a merger with its rival House Deport, which has actually influenced performance levels in departmentswith the elderly supervisor involved in lawful issues presented by the federal Profession Payment. With the Advertising Head putting forward the information of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the role in the future. With difficulties in the type of a prospective cultural modification as well as reduced worker spirits, the organization is in need of a complete reengineering effort at the advertising and marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective cultural change at the advertising and marketing division of Pumping Iron At Cliffs Associates The Circored Iron Ore Reduction Plant In Trinidad is enhancing unpredictability in the workplace leading to various obstacles for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing tactical choices because Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Profession Compensation's treatment at the same time. Offered the reality that the shop has an international existence with branches in UK, USA, Canada as well as Germany, political consider each of these nations might be able to influence performance or tactical goals. Federal Trade Compensation's antitrust suit against the merger used up useful time of the company's elderly administration recommending that 'political' factors can have significant ramifications for an international company.

Economic Factors: Financial factors such as the development of small companies in the global situation suggest that Pumping Iron At Cliffs Associates The Circored Iron Ore Reduction Plant In Trinidad is prospering in an atmosphere where there is possible growth of businesses. Reality that shop clients are primarily looking for workplace supplies for home offices suggests that the market has an increasing trend of entrepreneurs and house based organisations.

Social factors: Social patterns in the economy show that consumers are looking for comfort along with eye-catching rates. Market research demonstrates how the customer for Pumping Iron At Cliffs Associates The Circored Iron Ore Reduction Plant In Trinidad lacks awareness concerning finding solutions which can offer a mix of ease and low costs.

Technical factors: Technology plays a crucial function in Pumping Iron At Cliffs Associates The Circored Iron Ore Reduction Plant In Trinidad's organisation strategy specifically as the company is piloting Modern technology centers which would certainly supply modern technology sales and also assistance in the type of memory upgrades, peripheral installations. (Recap of INSECT in appendix 2).

OB Issues and Manifestations.

Several underlying Business Actions concerns can be seen in Pumping Iron At Cliffs Associates The Circored Iron Ore Reduction Plant In Trinidad's case as highlighted in this area.

Worries concerning cultural adjustment: There is uneasiness about a social adjustment that would occur as soon as Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising with the majority of the staff members already showing discontent over this possible action. This predicted adjustment has actually developed stress in the work environment which has been combined with the previous anxiety of preparing the company for a potential merger with Home Deport.
Pest Analysis
Stressful Task Environment for Newcomers: There is scarcity of workers that can match the difficult environment of a hectic organization. Not just does this bring about problem in discovering the best individuals, it puts anxiety on new hires as can not withstand the speed as well as stress that the company expects them to birth.

Dual Reporting Lines: Novices find this organizational society difficult and also difficult to cope with especially as dotted line partnerships are suggested to be weak in general and also unbiased setting as well as efficiency evaluation is still done by the solid line manager. This suggests that newbies might shed clearness concerning their corresponding duties and goals particularly as dotted line coverage does not keep them in straight interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles even though it had been hypothesized that the last would take Krasnow's placement came as a blow to her morale. Lewis might have been qualified and also proper for the job however the reality that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Anxiety & Work Insecurity: Worry and also instability can be identified as 2 major issues that Lewis would be handling specifically as the merging has actually now be terminated and also two senior execs of the advertising and marketing department would be leaving. The whole duty of the department would be dropping on Lewis's shoulders that would certainly not just supervise of brining regarding a social modification yet would likewise have to show herself in her brand-new function.

Incompatible Management Design of Leader: Lewis's administration design and its conflict with the marketing department's role can also be seen as an OB challenge particularly as she has been made use of to managing concerns in the procedures division where personnel are educated to concentrate on processes and also get them. The advertising and marketing division on the other hand can be seen as a group of individuals that are made use of to being nurtured by Krasnow that focused more on outcome than processes.

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

Disintegration in Advertising Department: Disintegration in between the advertising and marketing departments can be identified as one more OB problem which could require further focus. The truth that the marketing and advertising sections in the advertising department are disconnected is avoiding both divisions from gaining from each other's experience as well as proficiency. Assimilation of marketing with retailing and also operations would come to be harder if the advertising and marketing department itself is broken down which can be one more prospective OB problem.

Pumping Iron At Cliffs Associates The Circored Iron Ore Reduction Plant In Trinidad Analysis

Numerous theories have actually been made use of to discuss the circumstances to get more clarity concerning the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers believe that subordinates are passive as well as lazy, have little ambition and resist change. The situation at Pumping Iron At Cliffs Associates The Circored Iron Ore Reduction Plant In Trinidad is not entirely adhering to Concept X, it can be seen that new hires are locating this environment instead stressful which might ultimately lead to a greater disposition of the monitoring in the direction of Concept X. Even while evaluating Lewis's monitoring style, concept X might have been appropriate in the procedures department to some degree but the Advertising division would call for reliance on Concept Y in order to get the imagination and also creativity from the teams.

Tuckman's Team effort Theory: As for Lewis's concern concerning bringing harmony in between the advertising and marketing department is concerned, this would initially lead to conflict as talked about by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). As per Tuckman's concept received appendix 3, throughout the first phase of team development, individuals might not bond, as they are hectic locating their area in the team. By integrating the advertising and marketing department's work, there might coincide first detach which could lead to the second stage of 'storming' where the teams challenge each other. It is just throughout the third phase or 'norming' when they would come with each other to share concepts prior to the team can bring about harmony in the 4th stage 'performing'.

Bridges' Change Model: Based On William Bridge's theory (appendix 4), people are quite unpleasant with adjustment, which is apparent by the situation at Pumping Iron At Cliffs Associates The Circored Iron Ore Reduction Plant In Trinidad The circumstance can be viewed as a normal course of life if is studied as per Bridge's theory where he describes that individuals undergo three phases of shift when they experience modification. 'End, losing as well as Letting go', The Neutral Area and 'The New Starting' (Bridges, 2004). When people are presented with adjustment, they go into stage one and so there may be emotions like sadness, uncertainty, frustration, temper, fear, rejection and disorientation.The scenario at the advertising and marketing department of Pumping Iron At Cliffs Associates The Circored Iron Ore Reduction Plant In Trinidad is similar so Lewis can get comfy with the concept that it is not amazing behavior. In the 2nd stage, there may be a demand to link the void between the new and old culture so Lewis may need to face this challenge when Krasnow leaves. There may be reduced morale as well as low performance at this stage which need to not be taken as a problem. It is during this phase that Lewis will need to provide advice to the department to ensure that they can discover an orientation. It can be seen just how Krasnow has already made this change easier by making Lewis get involved in the department a year prior to his actual separation. As per Bridges' Model, phase 3 will certainly bring about visibility to learning, High power and also dedication as people will accept the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has talks about the significance of 'protection needs as being a lower degree need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel safe and also out of danger' is at the second level of needs. Before a staff member can be made to establish psychologically, he requires to have his 'Physiological 'and also 'Safety' requires met.

SWOT Analysis for Pumping Iron At Cliffs Associates The Circored Iron Ore Reduction Plant In Trinidad Case Study

Effects of Analysis.

The OB analysis has actually looked at different concepts to recognize just how to cope with the current scenario at hand. The adhering to three choices have been proposed to aid Lewis take care of the business challenges in the marketing division. Each of these alternatives has actually been recommended for alleviating the change needed to bring the advertising and marketing division in line with the needs of the marketplace and for making the social change that would certainly comply with as soon as the current leader leaves.

Combination of marketing and advertising functions. Separating Adverting and Manufacturing functions. Combination of Marketing with Operations.

Examination of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis during the earlier merger days has knowledge 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 and marketing to take care of both advertising and also marketing functions.

The advantage of this method is that it will certainly integrate the two features while decreasing the demand for employing an extra source for marketing. Lewis would be heading the advertising department and also in any case her substitute would be needed for the present role that she is performing. The downside of this alternative is that external hiring might cause animosity from internal workers who may be eying the setting of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and Manufacturing: Given the affordable stress as well as top quality work called for from the advertising agency, it is advised that Lewis must permit the production unit to be a separate feature from the advertising and marketing system. Since many advertising agencies had these 2 functions as different systems, it makes more feeling to follow the standard. Along with this, both functions may be able to concentrate on their core activates extra successfully. Nevertheless, the disadvantage of this technique would be that additional costs would certainly need to be borne for establishing separate production features. A production head might have to be hired which can enhance overheads for the company.

Assimilation of Marketing with Operations: Since Lewis is currently dealing with the advertising and marketing and also operations departments concurrently; it makes good sense to integrate the two features because she has been effectively looking after both ends. The reality that both divisions currently have significant distinctions over allotment of resources recommends that this combination might have the ability to cause consistency specifically as Lewis would certainly be heading both ends.However there are numerous drawbacks of this step especially as it would certainly place excessive burden over Lewis's shoulders. The truth that Lewis needs to adjust her management design for the marketing division suggests that these 2 divisions would be culturally varied. Lewis might not be able to apply one type of leadership design to both divisions which might result in inefficiency in either one of the 2 features.


An analysis of the 3 alternatives indicates that combination of marketing as well as procedures would not be a feasible move due to the substantial differences in between the two divisions regardless of the reality that currently Lewis is managing both. While separation of the manufacturing function may have been a beneficial step for the marketing department, the truth that it would certainly indicate putting a 3rd function under Lewis's wing suggests this must be avoided.

Action Plan.
Lewis will certainly take over the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be combined.

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

Production feature will continue to be component of advertising under marketing feature.

Lewis will certainly divide herself from operations.

A democratic management style with employee empowerment will certainly be utilized in advertising department.

Open up door policy and also focus on cross departmental communication will certainly be aimed at removing dissonance.

Backup strategy.

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