Corporate New Ventures At Procter Gamble Case Study Solution


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Corporate New Ventures At Procter Gamble Case Study Solution

Background and Facts

Corporate New Ventures At Procter Gamble an office supplies store for little as well as medium sized businesses has recently been associated with preparing for a merger with its competitor House Deport, which has affected effectiveness degrees in departmentswith the senior manager involved in lawful complications presented by the federal Trade Commission. With the Advertising and marketing Head advancing the information of his departure from the business in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the near future. With obstacles in the form of a possible social adjustment and also low worker morale, the company is in need of a full reengineering initiative at the advertising division.

Issue Declaration

The possible social change at the advertising and marketing department of Corporate New Ventures At Procter Gamble is raising unpredictability in the working environment causing various obstacles for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing critical decisions because Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Profession Payment's intervention while doing so. Given the reality that the store has a global existence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these countries might have the ability to affect efficiency or critical goals. Federal Profession Payment's antitrust suit versus the merging occupied beneficial time of the company's elderly administration recommending that 'political' factors can have significant implications for a global company.

Economic Factors: Economic factors such as the emergence of local business in the international circumstance suggest that Corporate New Ventures At Procter Gamble is growing in an atmosphere where there is prospective growth of services. In addition to this, fact that store consumers are primarily trying to find office products for office suggests that the market has a climbing pattern of entrepreneurs as well as online businesses.

Social factors: Social fads in the economy reveal that customers are trying to find benefit in addition to appealing rates. Market research demonstrates how the client for Corporate New Ventures At Procter Gamble lacks recognition concerning locating remedies which can provide a mix of benefit and also inexpensive.

Technical factors: Innovation plays a crucial function in Corporate New Ventures At Procter Gamble's organisation technique especially as the organization is piloting Modern technology centers which would use technology sales and also support in the kind of memory upgrades, peripheral setups. (Summary of PEST in appendix 2).

OB Issues and Manifestations.

Several underlying Organizational Actions problems can be seen in Corporate New Ventures At Procter Gamble's case as highlighted in this section.

Concerns about cultural modification: There is apprehension about a social modification that would take place once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising with most of the team member already showing unhappiness over this prospective relocation. This anticipated adjustment has developed stress in the work environment which has been coupled with the past tension of preparing the company for a possible merger with House Deport.

Stressful Task Setting for Newcomers: There is lack of employees that can match the difficult atmosphere of a hectic company. Not just does this bring about difficulty in discovering the best people, it places stress on brand-new hires as can not withstand the rate and also pressure that the organization anticipates them to birth.

Twin Coverage Lines: Novices discover this organizational culture difficult and challenging to deal with particularly as dotted line connections are meant to be weaker in general as well as objective setup as well as performance assessment is still done by the strong line manager. This implies that novices can lose clarity concerning their respective functions and objectives especially as populated line reporting does not maintain them in direct communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had been speculated that the latter would certainly take Krasnow's setting came as a blow to her spirits. Lewis might have been capable and suitable for the work yet the truth that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Job Instability: Concern and insecurity can be determined as 2 major concerns that Lewis would certainly be dealing with specifically as the merging has currently be terminated and also two senior execs of the marketing division would be leaving. The whole responsibility of the department would certainly be dropping on Lewis's shoulders who would not just be in charge of brining regarding a social change however would certainly likewise have to verify herself in her new function.

Inappropriate Administration Style of Leader: Lewis's management style and also its incompatibility with the marketing department's duty can additionally be seen as an OB challenge specifically as she has been used to taking care of issues in the procedures division where employees are taught to concentrate on procedures and also get them. The advertising division on the various other hand can be seen as a team of individuals who are utilized to being nurtured by Krasnow that focused a lot more on result than processes.

Interdepartmental Disagreements: Interdepartmental arguments in between three departments, advertising and marketing, merchandizing and procedures specifically over the appropriation of the advertising mix can be identified as one more OB issue. Although the advertising and marketing department does not share the exact same vision as the various other 2 divisions pertaining to the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing as well as operations divisions do not concur over the marketing mix appropriation amongst one another either.

Disintegration in Advertising And Marketing Department: Disintegration between the marketing and advertising divisions can be identified as one more OB concern which might need additional attention. The fact that the marketing and advertising areas in the marketing division are detached is preventing both divisions from obtaining from each various other's experience and expertise. Assimilation of marketing with retailing and operations would come to be harder if the marketing department itself is degenerated which can be one more possible OB concern.

Corporate New Ventures At Procter Gamble Analysis

Various concepts have actually been utilized to explain the conditions to get additional clearness concerning the scenario available.

McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers think that staffs are passive and careless, have little aspiration as well as resist adjustment. The tough variation of this concept stressed coercion, tight controls, risks as well as penalties. With time it generates reduced performance, refined sabotage and rivalry (Offer, 2003). Although the situation at Corporate New Ventures At Procter Gamble is not entirely complying with Theory X, it can be seen that brand-new hires are finding this atmosphere instead difficult which may ultimately bring about a greater inclination of the management towards Theory X. As per McGregor's promoted sight, which he called Theory Y, the necessary job of the monitoring is to prepare business conditions to make sure that individuals can accomplish their own objectives best by directing their efforts towards organizational incentives. If people discover no fulfillment in their work, the management would have little option yet to count on concept X and also external control (Deal, 2003). Also while examining Lewis's administration design, theory X may have been suitable in the operations department somewhat yet the Advertising division would certainly require dependence on Concept Y to get the creative thinking as well as creativity from the groups.

Tuckman's Synergy Concept: As far as Lewis's problem concerning bringing harmony in between the advertising and advertising division is concerned, this would originally lead to clash as reviewed by Bruce Tuckman in his 'Teamwork Concept'. By incorporating the marketing as well as advertising and marketing department's job, there might be the very same preliminary detach which might lead to the second stage of 'storming' where the groups challenge one another.

When individuals are offered with modification, they get in phase one and so there may be feelings like sadness, uncertainty, frustration, temper, fear, denial and disorientation.The situation at the advertising and marketing division of Corporate New Ventures At Procter Gamble is comparable so Lewis can obtain comfy with the concept that it is not phenomenal behavior. It is during this phase that Lewis will have to give guidance to the division so that they can find a sense of direction. It can be seen exactly how Krasnow has actually currently made this change simpler by making Lewis get entailed in the department a year prior to his real departure.

Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has discusses the relevance of 'security requires as being a reduced degree demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel safe and secure and out of threat' is at the 2nd degree of needs. Prior to a worker can be made to establish psychologically, he needs to have his 'Physical 'as well as 'Safety' requires met.

SWOT Analysis for Corporate New Ventures At Procter Gamble Case Study

Ramification of Analysis.

The OB analysis has taken a look at various theories to comprehend exactly how to cope with the existing situation available. The complying with 3 choices have actually been proposed to help Lewis manage the business challenges in the advertising and marketing division. Each of these alternatives has actually been proposed for easing the transition required to bring the advertising and marketing division in accordance with the needs of the marketplace and for making the social adjustment that would adhere to when the present leader leaves.

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

Evaluation of Alternatives.

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

The advantage of this strategy is that it will incorporate the two features while decreasing the requirement for working with an extra source for advertising. In addition to this, Lewis would certainly be heading the marketing division as well as in any case her replacement would be needed for the existing duty that she is performing. The negative aspect of this option is that external hiring may bring about resentment from interior workers who might be eying the setting of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and also Manufacturing: Given the competitive pressures and high quality job needed from the ad agency, it is recommended that Lewis needs to enable the manufacturing device to be a different feature from the marketing device. Given that a lot of ad agency had these two features as separate systems, it makes even more sense to comply with the norm. Along with this, both functions might be able to concentrate on their core activates a lot more efficiently. Nevertheless, the negative aspect of this technique would certainly be that extra prices would certainly have to be birthed for setting up different production functions. Along with this, a production head may need to be hired which could boost expenses for the company.

Integration of Marketing with Operations: Considering that Lewis is currently caring for the advertising and marketing as well as procedures departments simultaneously; it makes sense to integrate the two functions since she has been effectively taking care of both ends. The fact that the two departments currently have significant differences over appropriation of sources suggests that this combination may have the ability to produce consistency especially as Lewis would certainly be heading both ends.However there are numerous downsides of this relocation particularly as it would certainly put excessive burden over Lewis's shoulders. The fact that Lewis needs to adapt her management design for the advertising department suggests that these 2 divisions would certainly be culturally diverse. Lewis may not be able to apply one type of management style to both divisions which can result in inadequacy in either one of the two features.


An examination of the 3 alternatives shows that integration of advertising and marketing and also procedures would certainly not be a feasible action due to the huge differences between the two divisions regardless of the fact that presently Lewis is taking care of both. While separation of the production function might have been a positive move for the advertising division, the truth that it would indicate positioning a 3rd feature under Lewis's wing indicates this should be prevented.

Action Plan.

Lewis will take control of 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 place as SVP of advertising and marketing.

Manufacturing feature will stay component of marketing under advertising function.

Lewis will divide herself from procedures.

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

Open door plan and also focus on cross departmental communication will be targeted at removing disharmony.

Backup plan.

If the assimilation does not work out as intended, a contingency strategy would certainly adhere to which would certainly divide the production feature from the advertising and marketing feature to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising department without an SVP. Because case the production feature will most definitely be separated by putting it under an SVP production.