Exercises In Negotiation Analysis Case Study Analysis


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Exercises In Negotiation Analysis Case Study Solution

Background and Facts

Exercises In Negotiation Analysis a workplace materials retailer for small and average sized services has actually recently been involved in planning for a merging with its rival House Deport, which has actually affected efficiency levels in departmentswith the senior supervisor associated with legal problems put forth by the federal Profession Commission. With the Marketing Head putting forward the information of his departure from the business in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the function in the future. With difficulties in the form of a possible cultural change and low staff member morale, the company wants a total reengineering initiative at the advertising department.

Trouble Statement

The potential cultural modification at the marketing department of Exercises In Negotiation Analysis is boosting unpredictability in the workplace leading to various difficulties for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing strategic choices since Stapes Inc. needed to desert its strategies of combining with Workplace Deport after the Federal Profession Payment's treatment in the process. Offered the truth that the store has a worldwide visibility with branches in UK, UNITED STATES, Canada and Germany, political consider each of these nations might be able to influence performance or tactical objectives. Federal Trade Compensation's antitrust suit versus the merger took up valuable time of the organization's senior monitoring suggesting that 'political' factors can have severe ramifications for a global business.

Economic Factors: Economic factors such as the development of local business in the global circumstance suggest that Exercises In Negotiation Analysis is flourishing in a setting where there is prospective development of organisations. Fact that store clients are mostly looking for office products for home offices suggests that the market has an increasing fad of entrepreneurs and also home based companies.

Social factors: Social fads in the economy reveal that customers are searching for benefit along with eye-catching costs. Market research demonstrates how the customer for Exercises In Negotiation Analysis does not have awareness concerning locating services which can provide a combination of convenience and also inexpensive.

Technological factors: Modern technology plays an important role in Exercises In Negotiation Analysis's organisation strategy specifically as the company is piloting Technology centers which would certainly offer technology sales as well as support in the type of memory upgrades, peripheral installments. (Summary of BUG in appendix 2).

OB Issues and Effects.

Numerous underlying Organizational Habits concerns can be seen in Exercises In Negotiation Analysis's case as highlighted in this area.

Apprehensions concerning social adjustment: There is uneasiness about a social adjustment that would certainly happen once Todd Krasnow leaves from his position as the Executive Vice President of Advertising And Marketing with a lot of the employee already revealing discontent over this prospective step. This expected change has actually developed stress in the work environment which has actually been paired with the previous anxiety of preparing the firm for a prospective merging with Residence Deport.

Difficult Work Setting for Newcomers: There is shortage of employees that can match the demanding atmosphere of a hectic organization. Not just does this result in trouble in discovering the right individuals, it puts tension on brand-new hires as can not stand up to the rate and also stress that the organization anticipates them to bear.

Dual Reporting Lines: Newcomers find this business culture cumbersome as well as tough to cope with specifically as dotted line partnerships are meant to be weak in general and also unbiased setup as well as efficiency assessment is still done by the solid line manager. This implies that beginners can lose clarity concerning their corresponding roles and objectives particularly as populated line reporting does not maintain them in straight interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles despite the fact that it had actually been speculated that the latter would certainly take Krasnow's position came as a blow to her spirits. Lewis may have been qualified as well as appropriate for the job yet the fact that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Anxiety & Job Instability: Anxiety and instability can be determined as 2 significant worries that Lewis would certainly be dealing with particularly as the merging has currently be cancelled as well as 2 elderly executives of the marketing department would certainly be leaving. The entire responsibility of the division would certainly be dropping on Lewis's shoulders that would certainly not just supervise of brining regarding a cultural adjustment but would certainly additionally need to show herself in her new duty.

Inappropriate Monitoring Style of Leader: Lewis's monitoring design and also its conflict with the advertising division's role can likewise be seen as an OB challenge especially as she has been used to dealing with issues in the operations department where workers are educated to concentrate on processes as well as get them. The marketing division on the other hand can be viewed as a group of individuals who are made use of to being supported by Krasnow that concentrated much more on outcome than processes.

Interdepartmental Arguments: Interdepartmental arguments in between 3 divisions, marketing, merchandizing and also operations specifically over the allotment of the advertising and marketing mix can be recognized as another OB issue. Although the advertising and marketing department does not share the same vision as the various other 2 departments relating to the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and also procedures divisions do not agree over the advertising and marketing mix allocation amongst one another either.

Fragmentation in Advertising And Marketing Division: Fragmentation between the marketing and advertising departments can be determined as another OB issue which can need additional interest. The reality that the advertising and marketing sections in the marketing division are disconnected is avoiding both departments from acquiring from each various other's experience as well as proficiency. Integration of advertising and marketing with merchandising as well as operations would come to be more difficult if the advertising division itself is broken down which can be one more potential OB worry.

Exercises In Negotiation Analysis Analysis

Different theories have actually been used to clarify the scenarios to obtain more clarity regarding the circumstance handy.

McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most managers believe that staffs are passive as well as careless, have little ambition and withstand adjustment. The difficult version of this theory highlighted coercion, tight controls, dangers and also penalties. In time it produces low efficiency, subtle sabotage and competition (Deal, 2003). Although the scenario at Exercises In Negotiation Analysis is not totally adhering to Theory X, it can be seen that brand-new hires are finding this setting instead demanding which may at some point lead to a higher disposition of the management in the direction of Theory X. According to McGregor's promoted view, which he called Theory Y, the important job of the management is to prepare organizational conditions to ensure that people can attain their very own goals best by guiding their initiatives in the direction of organizational incentives. If individuals discover no satisfaction in their job, the administration would have little option yet to rely on theory X and exterior control (Bargain, 2003). Also while examining Lewis's management design, theory X may have appropriated in the operations division to some extent but the Advertising and marketing division would require reliance on Theory Y to get the creative thinking and creativity from the groups.

Tuckman's Synergy Concept: As far as Lewis's concern about bringing harmony in between the advertising and marketing division is worried, this would initially cause conflict as talked about by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). As per Tuckman's concept shown in appendix 3, during the first stage of group development, people might not bond, as they are active finding their location in the group. By incorporating the marketing and advertising department's job, there might be the same first disconnect which could cause the second stage of 'storming' where the groups test each other. Nevertheless, it is just throughout the 3rd stage or 'norming' when they would certainly collaborate to share ideas prior to the team can cause synergy in the fourth stage 'executing'.

Bridges' Transition Model: According To William Bridge's theory (appendix 4), individuals are rather awkward with adjustment, which is apparent by the circumstance at Exercises In Negotiation Analysis The scenario can be viewed as a typical program of life if is researched according to Bridge's theory where he explains that individuals go through three phases of transition when they experience change. 'Ending, losing and Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When people exist with adjustment, they go into stage one therefore there may be emotions like unhappiness, uncertainty, stress, rage, concern, denial as well as disorientation.The situation at the advertising and marketing department of Exercises In Negotiation Analysis is comparable so Lewis can obtain comfortable with the suggestion that it is not amazing actions. In the second stage, there may be a need to bridge the space in between the new and also old culture so Lewis might need to encounter this challenge when Krasnow leaves. There may be reduced morale as well as reduced productivity at this phase which need to not be taken as a trouble. It is throughout this phase that Lewis will certainly need to provide guidance to the department to make sure that they can discover a sense of direction. It can be seen exactly how Krasnow has already made this change less complicated by making Lewis get associated with the department a year prior to his actual departure. Based on Bridges' Model, phase three will bring about openness to learning, High power and also dedication as individuals will accept the modification (Bridges, 2004).

Maslow's Need pecking order: The OB problem pertaining to instability at the work environment has actually been set off firstly by the modification in management and also second of all by the fact that the merger will certainly no longer be initiated. Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has goes over the relevance of 'security requires as being a lower level need of a human for setting off inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to really feel safe as well as safe' is at the 2nd degree of demands. Before an employee can be made to develop mentally, he needs to have his 'Physical 'and 'Security' requires satisfied. This indicates that unless the personnel are made to feel safe concerning their present work condition in Exercises In Negotiation Analysis they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Exercises In Negotiation Analysis Case Study

Ramification of Analysis.

The OB analysis has actually looked at various theories to comprehend how to handle the existing circumstance at hand. The adhering to three alternatives have been recommended to assist Lewis deal with the organizational obstacles in the advertising and marketing division. Each of these alternatives has actually been suggested for easing the transition needed to bring the advertising and marketing department according to the demands of the marketplace as well as for making the cultural modification that would certainly adhere to as soon as the present leader leaves.

Combination of marketing and advertising functions. Dividing Adverting and also Manufacturing features. Assimilation of Marketing with Workflow.

Analysis of Alternatives.

Assimilation of Advertising & Marketing Functions: The internal advertising and marketing firm of Exercises In Negotiation Analysis is already toughness for the organization in terms of saving up on overheads related to marketing and promotion. Since no brand-new recruitment has been done after Bridget Cole's separation with the reporting line being straight designated to Krasnow for the advertising feature, this is a positive possibility for incorporating the marketing and advertising features. Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merging days has competence in business-to-business advertising together with company and retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to manage both marketing and advertising functions.

The benefit of this strategy is that it will certainly integrate both features while decreasing the demand for hiring an added source for advertising and marketing. Lewis would certainly be heading the advertising department and also in any case her substitute would certainly be required for the present duty that she is doing. The disadvantage of this choice is that exterior hiring might bring about bitterness from interior employees that may be looking at the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Production: Given the affordable stress and excellent quality job needed from the advertising agency, it is suggested that Lewis needs to allow the manufacturing system to be a separate function from the advertising device. Considering that the majority of ad agency had these two functions as different units, it makes more feeling to adhere to the norm. Along with this, both features might be able to concentrate on their core triggers more effectively. However, the negative aspect of this approach would certainly be that extra expenses would have to be birthed for establishing separate production features. A manufacturing head might have to be worked with which might increase overheads for the organization.

Integration of Marketing with Procedures: Since Lewis is already dealing with the advertising and also procedures departments simultaneously; it makes good sense to incorporate the two features given that she has actually been successfully caring for both ends. The truth that the two departments currently have significant distinctions over allocation of resources recommends that this assimilation might have the ability to produce consistency especially as Lewis would certainly be heading both ends.However there are numerous negative aspects of this step specifically as it would place too much concern over Lewis's shoulders. The truth that Lewis has to adjust her administration design for the advertising and marketing division recommends that these two departments would be culturally diverse. In addition to this, Lewis may not be able to apply one type of leadership style to both divisions which might result in inadequacy in either one of the two functions.


An analysis of the three choices suggests that integration of advertising and marketing and procedures would certainly not be a viable move because of the huge distinctions in between both divisions although that currently Lewis is dealing with both. While splitting up of the manufacturing feature might have been a desirable move for the advertising division, the reality that it would indicate positioning a third function under Lewis's wing means this need to be avoided as well. The integration of the advertising division is the best alternative in regards to getting the ideal results from the department. An activity plan for this option is discussed listed below.

Activity Strategy.

Lewis will take over the role of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

Manufacturing feature will certainly stay component of marketing under advertising function.

Lewis will separate herself from operations.

An autonomous leadership design with employee empowerment will be made use of in advertising department.

Open up door policy and emphasis on cross departmental interaction will be focused on getting rid of dissonance.

Contingency plan.

If the combination does not work out as planned, a contingency plan would certainly follow which would divide the manufacturing function from the advertising feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising department without an SVP. Because case the production function will most definitely be divided by putting it under an SVP production.