Corporate New Ventures At Procter Gamble Case Study Analysis


Home >> Darden >> Corporate New Ventures At Procter Gamble >>

Corporate New Ventures At Procter Gamble Case Study Help

Background and Facts

Corporate New Ventures At Procter Gamble a workplace materials seller for little and moderate sized companies has just recently been associated with planning for a merger with its competitor Home Deport, which has influenced efficiency degrees in departmentswith the senior supervisor associated with legal difficulties put forth by the federal Profession Payment. With the Marketing Head advancing the information of his departure from the business in one year, Jeannie Lewis, the current head of procedures has been asked to take the function in the future. With obstacles in the type of a potential cultural change and also low staff member morale, the organization requires a total reengineering initiative at the marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The potential social change at the advertising and marketing division of Corporate New Ventures At Procter Gamble is boosting unpredictability in the working environment leading to different challenges 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 major role in influencing critical decisions since Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Profession Commission's intervention at the same time. Offered the truth that the store has a worldwide existence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations might have the ability to impact efficiency or tactical goals. Federal Trade Commission's antitrust suit against the merger occupied beneficial time of the company's senior management suggesting that 'political' factors can have serious ramifications for a worldwide service.

Economic Factors: Financial factors such as the development of local business in the worldwide scenario suggest that Corporate New Ventures At Procter Gamble is thriving in an atmosphere where there is potential development of businesses. Along with this, reality that shop customers are mainly searching for office supplies for office recommends that the market has a climbing trend of business owners and home based companies.

Social factors: Social patterns in the economy show that consumers are searching for convenience as well as eye-catching costs. Market research demonstrates how the consumer for Corporate New Ventures At Procter Gamble does not have understanding regarding discovering solutions which can provide a mix of convenience and low costs.

Technical factors: Modern technology plays a crucial duty in Corporate New Ventures At Procter Gamble's business technique especially as the organization is piloting Innovation facilities which would certainly provide modern technology sales as well as assistance in the type of memory upgrades, outer installations. (Summary of PEST in appendix 2).

OB Issues and Symptoms.

A number of underlying Organizational Behavior issues can be seen in Corporate New Ventures At Procter Gamble's case as highlighted in this area.

Concerns regarding cultural adjustment: There is apprehension regarding a cultural change that would certainly occur when Todd Krasnow leaves from his position as the Exec Vice President of Advertising with a lot of the employee already revealing unhappiness over this prospective relocation. This anticipated adjustment has produced stress in the work environment which has been combined with the previous anxiety of preparing the company for a potential merging with Residence Deport.
Pest Analysis
Demanding Work Setting for Newcomers: There is scarcity of employees that can match the stressful atmosphere of a busy company. Not just does this bring about difficulty in finding the appropriate people, it places anxiety on new hires as can not withstand the speed and stress that the company expects them to bear.

Dual Reporting Lines: Beginners locate this organizational society difficult as well as difficult to deal with especially as dotted line connections are suggested to be weaker as a whole and also unbiased setup and performance analysis is still done by the solid line supervisor. This suggests that newcomers can shed clearness concerning their particular roles and purposes especially as populated line coverage does not keep them in straight communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles even though it had actually been guessed that the latter would certainly take Krasnow's position came as a blow to her morale. Lewis may have been capable as well as suitable for the work however the truth that Kransnow's departure would make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Anxiety & Task Insecurity: Anxiety and insecurity can be determined as 2 significant problems that Lewis would be handling specifically as the merger has now be terminated and 2 senior executives of the advertising department would be leaving. The whole responsibility of the division would certainly be falling on Lewis's shoulders that would certainly not simply supervise of brining about a cultural adjustment however would also have to show herself in her new function.

Inappropriate Monitoring Style of Leader: Lewis's administration style and also its conflict with the advertising department's role can also be seen as an OB challenge especially as she has actually been used to dealing with problems in the operations division where personnel are instructed to concentrate on procedures as well as obtain them right. The advertising and marketing department on the various other hand can be seen as a team of individuals that are utilized to being nurtured by Krasnow that focused more on outcome than procedures.

Interdepartmental Differences: Interdepartmental disputes in between three divisions, marketing, merchandizing and also operations specifically over the allotment of the marketing mix can be identified as another OB problem. Although the advertising division does not share the very same vision as the various other two divisions regarding the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing as well as operations divisions do not agree over the advertising and marketing mix allocation among each other either.

Fragmentation in Marketing Department: Fragmentation between the advertising and marketing divisions can be identified as an additional OB problem which could need additional attention. The fact that the marketing and advertising areas in the advertising department are separated is protecting against both divisions from gaining from each various other's experience and competence. Combination of advertising with retailing as well as operations would certainly come to be more difficult if the marketing department itself is disintegrated which can be an additional prospective OB concern.

Corporate New Ventures At Procter Gamble Analysis

Numerous theories have been utilized to clarify the conditions to obtain further clarity regarding the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers believe that juniors are passive as well as lazy, have little aspiration and withstand adjustment. The tough variation of this theory emphasized threat, limited controls, hazards and punishments. With time it creates low efficiency, refined sabotage and competition (Bargain, 2003). The scenario at Corporate New Ventures At Procter Gamble is not completely following Concept X, it can be seen that brand-new hires are locating this atmosphere instead demanding which might eventually lead to a better inclination of the management towards Concept X. As per McGregor's advocated sight, which he called Theory Y, the essential task of the monitoring is to arrange organizational conditions to make sure that people can achieve their very own goals best by routing their efforts in the direction of organizational rewards. If people find no contentment in their work, the monitoring would certainly have little option yet to rely on theory X and outside control (Deal, 2003). Also while evaluating Lewis's management design, concept X may have been suitable in the operations department to some extent yet the Marketing department would need dependence on Theory Y to get the imagination as well as originality from the teams.

Tuckman's Synergy Concept: As much as Lewis's concern regarding bringing harmony between the advertising and also marketing department is worried, this would originally lead to clash as discussed by Bruce Tuckman in his 'Team effort Theory'. By integrating the advertising and marketing division's work, there may be the same first separate which might lead to the 2nd stage of 'storming' where the teams challenge one an additional.

Bridges' Shift Model: As per William Bridge's theory (appendix 4), individuals are quite uncomfortable with modification, which is apparent by the circumstance at Corporate New Ventures At Procter Gamble The circumstance can be seen as a regular training course of life if is researched as per Bridge's concept where he describes that people experience 3 phases of transition when they experience modification. 'End, shedding and also Letting go', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When people exist with modification, they go into stage one and so there might be emotions like despair, uncertainty, irritation, anger, fear, rejection as well as disorientation.The circumstance at the marketing department of Corporate New Ventures At Procter Gamble is comparable so Lewis can get comfortable with the idea that it is not phenomenal habits. In the second stage, there may be a need to link the gap between the new and old society so Lewis might have to encounter this experience when Krasnow leaves. There might be reduced spirits and also reduced productivity at this stage which ought to not be taken as a trouble. It is during this phase that Lewis will have to give assistance to the department to make sure that they can discover an orientation. It can be seen how Krasnow has already made this change easier by making Lewis get associated with the division a year before his actual departure. As per Bridges' Model, phase 3 will certainly cause openness to knowing, High energy and dedication as individuals will certainly embrace the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has discusses the importance of 'security needs as being a reduced level requirement of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel protected as well as out of danger' is at the second level of requirements. Prior to an employee can be made to create psychologically, he requires to have his 'Physiological 'as well as 'Safety and security' needs met.

SWOT Analysis for Corporate New Ventures At Procter Gamble Case Study

Implication of Analysis.

The OB analysis has looked at numerous theories to understand just how to deal with the existing situation available. The complying with three options have been suggested to aid Lewis deal with the organizational challenges in the advertising division. Each of these options has been recommended for relieving the change needed to bring the marketing division in accordance with the demands of the marketplace as well as for making the social modification that would certainly adhere to as soon as the current leader leaves.

Integration of advertising and marketing functions. Dividing Adverting as well as Production features. Combination of Advertising with Procedures.

Assessment of Alternatives.

Assimilation of Advertising And Marketing & Advertising Functions: The internal marketing agency of Corporate New Ventures At Procter Gamble is already stamina for the company in regards to conserving up on expenses connected to marketing and promo. Since no brand-new employment has actually been done after Bridget Cole's departure with the coverage line being straight appointed to Krasnow for the advertising feature, this is a desirable chance for integrating the advertising and marketing functions. Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merging days has know-how in business-to-business advertising in addition to firm and also retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to manage both marketing and advertising features.

The advantage of this method is that it will integrate the two functions while minimizing the need for hiring an additional resource for marketing. Lewis would be heading the advertising department and in any case her substitute would be needed for the existing function that she is executing. The drawback of this alternative is that outside hiring may cause animosity from inner employees that might be looking at the setting of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and also Production: Given the affordable stress as well as high top quality work called for from the advertising company, it is suggested that Lewis ought to enable the production system to be a different function from the advertising and marketing device. Because a lot of marketing firms had these 2 functions as different systems, it makes more feeling to follow the norm.

Combination of Advertising And Marketing with Operations: Because Lewis is already taking treatment of the advertising and marketing and procedures divisions simultaneously; it makes sense to integrate the 2 features since she has been successfully taking care of both ends. The truth that Lewis has to adapt her management design for the marketing department recommends that these 2 divisions would certainly be culturally diverse.


An evaluation of the 3 alternatives shows that integration of advertising and marketing as well as procedures would certainly not be a feasible relocation because of the large distinctions between the two departments despite the fact that presently Lewis is dealing with both. While splitting up of the production feature may have been a favorable action for the marketing division, the reality that it would certainly imply positioning a third function under Lewis's wing implies this ought to be avoided. The combination of the marketing department is the most effective alternative in regards to getting the ideal results from the division. An action prepare for this alternative is gone over below.

Activity Plan.
Lewis will take control of the function of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be combined.

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

Manufacturing function will certainly remain component of advertising under advertising function.

Lewis will divide herself from operations.

A democratic leadership style with employee empowerment will certainly be used in advertising and marketing department.

Open door policy and also emphasis on cross departmental interaction will certainly be focused on getting rid of discord.

Backup plan.

If the combination does not work out as planned, a backup strategy would certainly adhere to which would certainly separate the production function from the advertising and marketing function to decrease the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will be heading the advertising and marketing division without an SVP. In that case the manufacturing feature will absolutely be divided by positioning it under an SVP manufacturing.