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Renault And Nissan A Marriage Of Reason Case Study Analysis

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Renault And Nissan A Marriage Of Reason Case Study Analysis

Background and Facts

Renault And Nissan A Marriage Of Reason an office supplies merchant for small as well as medium sized companies has actually just recently been associated with planning for a merging with its competitor Residence Deport, which has actually affected performance levels in departmentswith the elderly manager involved in legal issues presented by the federal Trade Commission. With the Marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the existing head of operations has been asked to take the function in the near future. With challenges in the kind of a possible social change as well as low employee spirits, the company is in need of a complete reengineering initiative at the advertising division.

Problem Statement

The potential cultural modification at the advertising department of Renault And Nissan A Marriage Of Reason is raising unpredictability in the working environment resulting in 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 impacting tactical decisions considering that Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Profession Commission's intervention in the process. Offered the reality that the shop has a worldwide presence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these countries might be able to impact efficiency or calculated goals. Federal Trade Payment's antitrust match versus the merging took up useful time of the company's senior administration recommending that 'political' factors can have severe implications for an international organisation.

Economic Factors: Economic factors such as the emergence of small businesses in the global circumstance recommend that Renault And Nissan A Marriage Of Reason is prospering in an environment where there is potential development of services. Along with this, reality that store clients are mainly looking for office supplies for office recommends that the marketplace has an increasing trend of entrepreneurs as well as online companies.

Social factors: Social patterns in the economic situation reveal that customers are seeking convenience along with eye-catching prices. Marketing research shows how the client for Renault And Nissan A Marriage Of Reason does not have awareness concerning finding solutions which can use a combination of ease as well as affordable.

Technological factors: Innovation plays an essential function in Renault And Nissan A Marriage Of Reason's company strategy especially as the company is piloting Innovation centers which would supply technology sales and also assistance in the form of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues and Symptoms.

Several underlying Organizational Actions problems can be seen in Renault And Nissan A Marriage Of Reason's case as highlighted in this section.

Apprehensions concerning cultural adjustment: There is apprehension about a social adjustment that would occur once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising with a lot of the employee currently revealing unhappiness over this potential action. This anticipated change has developed tension in the workplace which has actually been combined with the previous stress and anxiety of preparing the company for a possible merging with Residence Deport.

Difficult Task Setting for Newcomers: There is shortage of employees that can match the difficult atmosphere of a fast-paced organization. Not only does this result in difficulty in finding the right people, it places tension on new hires as can not hold up against the pace and also pressure that the company anticipates them to birth.

Twin Coverage Lines: Newcomers discover this organizational society troublesome and challenging to manage specifically as dotted line connections are implied to be weak as a whole and also unbiased setup and performance evaluation is still done by the solid line manager. This implies that beginners can lose quality about their respective roles and also goals especially as dotted line coverage does not maintain them in straight communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles even though it had actually been hypothesized that the latter would certainly take Krasnow's setting came as a strike to her spirits. Lewis may have been capable as well as proper for the work but the fact that Kransnow's departure would certainly make Coles a direct report to Lewis might have been the factor for Coles' resignation from services.

Anxiety & Task Insecurity: Anxiety as well as instability can be identified as two significant issues that Lewis would be taking care of especially as the merging has currently be terminated and also 2 senior execs of the advertising and marketing division would be leaving. The whole responsibility of the division would certainly be dropping on Lewis's shoulders that would certainly not just be in charge of brining about a social modification yet would certainly also need to show herself in her new role.

Inappropriate Monitoring Design of Leader: Lewis's management design and its incompatibility with the marketing department's function can likewise be seen as an OB obstacle especially as she has been utilized to managing problems in the operations department where personnel are taught to concentrate on procedures and also get them. The advertising and marketing department on the other hand can be viewed as a group of individuals that are used to being supported by Krasnow who focused more on result than procedures.

Interdepartmental Differences: Interdepartmental differences in between three departments, marketing, merchandizing and also procedures specifically over the allotment of the marketing mix can be identified as one more OB concern. Although the marketing department does not share the exact same vision as the various other 2 divisions relating to the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing as well as procedures divisions do not concur over the advertising mix appropriation amongst each other either.

Disintegration in Advertising Department: Disintegration between the advertising and marketing departments can be determined as another OB problem which might need more attention. The fact that the advertising and marketing areas in the marketing division are separated is preventing both divisions from acquiring from each various other's experience as well as expertise. Combination of marketing with merchandising and procedures would certainly become more difficult if the advertising and marketing department itself is broken down which can be another potential OB problem.

Renault And Nissan A Marriage Of Reason Analysis

Numerous concepts have actually been utilized to clarify the circumstances to obtain additional quality concerning the scenario at hand.

McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many supervisors believe that subordinates are easy as well as lazy, have little aspiration and resist modification. The tough variation of this theory emphasized threat, tight controls, risks and penalties. In time it generates reduced performance, refined sabotage and also rivalry (Offer, 2003). Although the circumstance at Renault And Nissan A Marriage Of Reason is not entirely complying with Concept X, it can be seen that brand-new hires are finding this environment instead difficult which may at some point cause a greater inclination of the management towards Concept X. As per McGregor's supported sight, which he called Concept Y, the essential task of the management is to organize organizational conditions to ensure that people can accomplish their very own goals best by routing their efforts towards business incentives. If individuals discover no contentment in their job, the monitoring would certainly have little selection but to depend on theory X and exterior control (Offer, 2003). Even while assessing Lewis's administration style, theory X may have appropriated in the procedures division to some extent however the Marketing department would call for reliance on Theory Y in order to get the creative thinking as well as originality from the teams.

Tuckman's Synergy Concept: As far as Lewis's issue regarding bringing consistency in between the marketing and advertising department is worried, this would initially result in contrast as discussed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). According to Tuckman's concept shown in appendix 3, during the preliminary stage of team growth, people may not bond, as they are busy finding their area in the group. By incorporating the marketing and advertising division's work, there might be the same preliminary detach which could lead to the second phase of 'storming' where the groups challenge each other. It is only throughout the 3rd stage or 'norming' when they would come together to share ideas before the group can bring around synergy in the fourth stage 'performing'.

Bridges' Transition Design: According To William Bridge's concept (appendix 4), individuals are quite uneasy with change, which is apparent by the circumstance at Renault And Nissan A Marriage Of Reason The scenario can be viewed as a normal course of life if is researched according to Bridge's concept where he discusses that people undergo 3 stages of change when they experience modification. 'Ending, shedding and also Letting go', The Neutral Area and 'The New Starting' (Bridges, 2004). When people exist with adjustment, they go into stage one and so there may be feelings like sadness, unpredictability, aggravation, rage, concern, rejection and disorientation.The situation at the marketing department of Renault And Nissan A Marriage Of Reason is similar so Lewis can get comfy with the suggestion that it is not remarkable behavior. In the second phase, there might be a need to bridge the gap in between the brand-new and old culture so Lewis may have to encounter this challenge once Krasnow leaves. There might be low morale and also low efficiency at this phase which need to not be taken as a setback. It is during this stage that Lewis will need to give assistance to the division so that they can find an orientation. It can be seen exactly how Krasnow has currently made this change simpler by making Lewis obtain associated with the department a year prior to his real departure. As per Bridges' Model, phase three will certainly bring about openness to learning, High energy as well as commitment as people will welcome the adjustment (Bridges, 2004).

Maslow's Demand power structure: The OB concern pertaining to insecurity at the work environment has been set off to start with by the adjustment in monitoring and also second of all by the truth that the merging will no more be initiated. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has discusses the relevance of 'protection requires as being a lower degree requirement of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel safe and unharmed' is at the second degree of requirements. Prior to an employee can be made to establish emotionally, he requires to have his 'Physical 'and also 'Safety and security' needs met. This indicates that unless the workers are made to really feel safe concerning their current work condition in Renault And Nissan A Marriage Of Reason they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Renault And Nissan A Marriage Of Reason Case Study



Effects of Analysis.

The OB analysis has actually considered various concepts to understand just how to manage the current circumstance handy. The complying with three alternatives have actually been recommended to help Lewis take care of the business difficulties in the marketing department. Each of these choices has actually been recommended for reducing the change needed to bring the marketing division in line with the demands of the marketplace and also for making the cultural adjustment that would follow as soon as the existing leader leaves.

Combination of advertising and marketing features. Dividing Adverting as well as Manufacturing functions. Assimilation of Advertising And Marketing with Operations.

Analysis of Alternatives.

Integration of Marketing & Advertising Functions: The in-house marketing firm of Renault And Nissan A Marriage Of Reason is already strength for the company in terms of saving up on expenses connected to marketing as well as promo. Considering that no brand-new employment has actually been done after Bridget Cole's separation with the coverage line being straight designated to Krasnow for the advertising and marketing feature, this is a desirable possibility for incorporating the marketing and advertising functions. Judith Shapiro who has earlier been interviewed by Lewis during the earlier merger days has proficiency in business-to-business advertising along with agency as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to take care of both advertising and marketing features.

The benefit of this approach is that it will certainly incorporate both features while decreasing the need for employing an additional resource for advertising and marketing. Lewis would certainly be heading the advertising and marketing division as well as in any kind of case her replacement would be required for the existing function that she is performing. The downside of this choice is that exterior hiring might produce bitterness from internal personnel who may be considering the position of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting as well as Manufacturing: Given the competitive pressures and also top quality job called for from the advertising agency, it is suggested that Lewis ought to enable the production device to be a different function from the marketing unit. Given that the majority of advertising agencies had these two features as different systems, it makes more sense to comply with the norm. Both features might be able to concentrate on their core turns on much more efficiently. The negative aspect of this approach would be that additional costs would certainly have to be borne for establishing up separate production features. Along with this, a production head may need to be hired which might enhance overheads for the organization.

Combination of Advertising with Procedures: Considering that Lewis is currently taking care of the advertising as well as operations departments concurrently; it makes good sense to incorporate the two features since she has actually been efficiently taking care of both ends. The fact that both departments already have significant differences over allotment of resources recommends that this integration may have the ability to bring about consistency particularly as Lewis would be heading both ends.However there are different disadvantages of this action especially as it would place way too much worry over Lewis's shoulders. The reality that Lewis needs to adapt her monitoring design for the advertising and marketing division recommends that these two departments would be culturally varied. Along with this, Lewis may not be able to apply one kind of leadership style to both departments which can result in ineffectiveness in either one of both functions.

Recommendation.



An examination of the three options indicates that integration of marketing as well as procedures would not be a viable step due to the huge distinctions in between the two departments despite the reality that presently Lewis is managing both. While separation of the manufacturing feature may have been a beneficial action for the marketing division, the reality that it would certainly suggest placing a third function under Lewis's wing suggests this need to be prevented.

Activity Plan.

Lewis will take control of the role of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would be combined.

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

Manufacturing feature will certainly remain part of advertising under advertising and marketing function.

Lewis will certainly separate herself from procedures.

An autonomous leadership style with staff member empowerment will certainly be utilized in advertising and marketing division.

Open door policy as well as focus on cross department interaction will be focused on eliminating dissonance.

Contingency strategy.

If the integration does not work out as planned, a contingency strategy would adhere to which would certainly divide the production feature from the marketing feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the marketing department without an SVP. In that case the manufacturing function will certainly be separated by positioning it under an SVP manufacturing.