Exercises In Negotiation Analysis Case Study Solution


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Exercises In Negotiation Analysis Case Study Solution

Background and Facts

Exercises In Negotiation Analysis a workplace products store for little and average sized services has actually lately been associated with planning for a merger with its competitor House Deport, which has affected efficiency degrees in departmentswith the elderly supervisor involved in legal difficulties put forth by the government Profession Compensation. With the Advertising and marketing Head advancing the information of his departure from the firm in one year, Jeannie Lewis, the current head of operations has been asked to take the duty in the near future. With obstacles in the form of a potential cultural adjustment and reduced worker spirits, the company needs a full reengineering effort at the advertising and marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The possible social adjustment at the advertising and marketing department of Exercises In Negotiation Analysis is raising uncertainty in the workplace resulting in various difficulties 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 calculated decisions because Stapes Inc. had to abandon its plans of merging with Workplace Deport after the Federal Profession Commission's intervention while doing so. Offered the fact that the shop has a global presence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these nations may have the ability to influence efficiency or strategic objectives. Federal Trade Commission's antitrust match against the merging used up important time of the organization's elderly management suggesting that 'political' factors can have severe implications for an international organisation.

Economic Factors: Economic factors such as the development of small businesses in the worldwide scenario recommend that Exercises In Negotiation Analysis is flourishing in an environment where there is prospective growth of organisations. Truth that shop consumers are mainly looking for office materials for house offices recommends that the market has a rising fad of entrepreneurs and also home based businesses.

Social factors: Social patterns in the economic climate show that consumers are seeking comfort in addition to eye-catching prices. Marketing research demonstrates how the consumer for Exercises In Negotiation Analysis does not have awareness about locating services which can provide a combination of benefit and also affordable.

Technological factors: Innovation plays an essential function in Exercises In Negotiation Analysis's business technique especially as the organization is piloting Modern technology facilities which would certainly use innovation sales as well as support in the kind of memory upgrades, outer installations. (Summary of INSECT in appendix 2).

OB Issues and also Effects.

A number of underlying Business Behavior issues can be seen in Exercises In Negotiation Analysis's case as highlighted in this area.

Uneasiness about cultural change: There is uneasiness concerning a social modification that would certainly occur once Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Marketing with a lot of the employee already revealing discontent over this possible move. This anticipated modification has created stress in the work environment which has been paired with the past stress and anxiety of preparing the company for a prospective merger with House Deport.
Pest Analysis
Difficult Task Setting for Newcomers: There is lack of employees that can match the stressful atmosphere of a fast-paced company. Not just does this bring about difficulty in locating the right individuals, it puts stress and anxiety on brand-new hires as can not stand up to the speed as well as pressure that the company anticipates them to bear.

Twin Coverage Lines: Novices find this organizational society cumbersome and tough to manage especially as dotted line connections are meant to be weaker as a whole and also unbiased setup and efficiency evaluation is still done by the solid line manager. This suggests that beginners could shed clarity regarding their particular roles as well as purposes especially as dotted line reporting does not keep them in direct communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles although it had actually been guessed that the last would take Krasnow's placement came as a blow to her morale. Lewis may have been qualified and ideal for the task but the fact that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the reason for Coles' resignation from services.

Anxiety & Task Instability: Anxiety and insecurity can be recognized as two significant issues that Lewis would be dealing with specifically as the merging has now be cancelled and also two senior executives of the advertising department would certainly be leaving. The entire obligation of the department would be falling on Lewis's shoulders who would not just supervise of brining concerning a cultural adjustment however would likewise need to prove herself in her brand-new function.

Incompatible Administration Design of Leader: Lewis's management design as well as its incompatibility with the marketing division's function can also be seen as an OB challenge particularly as she has been made use of to dealing with concerns in the procedures department where personnel are taught to concentrate on procedures as well as get them. The advertising and marketing department on the various other hand can be seen as a group of people that are used to being nurtured by Krasnow that concentrated a lot more on output than processes.

Interdepartmental Differences: Interdepartmental disagreements between 3 divisions, marketing, merchandizing and also procedures specifically over the allocation of the marketing mix can be recognized as one more OB worry. The advertising division does not share the exact same vision as the various other two departments regarding the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and operations departments do not agree over the marketing mix allocation among one another either.

Disintegration in Advertising And Marketing Division: Disintegration between the marketing and advertising departments can be recognized as an additional OB concern which can need further focus. The fact that the marketing and advertising sections in the marketing division are detached is protecting against both departments from acquiring from each other's experience and also experience. Assimilation of advertising and marketing with merchandising and procedures would certainly end up being harder if the marketing department itself is degenerated which can be another prospective OB issue.

Exercises In Negotiation Analysis Analysis

Different theories have actually been made use of to explain the situations to obtain additional clarity about the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of supervisors believe that juniors are easy and careless, have little aspiration and also resist adjustment. The scenario at Exercises In Negotiation Analysis is not totally adhering to Theory X, it can be seen that brand-new hires are locating this setting rather difficult which may ultimately lead to a better inclination of the administration in the direction of Theory X. Also while assessing Lewis's administration style, concept X might have been suitable in the operations division to some degree however the Advertising division would certainly call for reliance on Concept Y in order to obtain the creative thinking as well as creativity from the teams.

Tuckman's Team effort Concept: As far as Lewis's concern concerning bringing harmony between the marketing as well as advertising division is worried, this would originally lead to conflict as gone over by Bruce Tuckman in his 'Teamwork Theory'. By integrating the advertising as well as marketing department's work, there might be the exact same first detach which might lead to the 2nd phase of 'storming' where the teams test one another.

Bridges' Transition Design: According To William Bridge's theory (appendix 4), people are quite uncomfortable with change, which is noticeable by the circumstance at Exercises In Negotiation Analysis The scenario can be viewed as a normal training course of life if is researched as per Bridge's theory where he clarifies that people experience 3 stages of shift when they experience change. 'Ending, losing and Letting go', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When people exist with adjustment, they go into phase one therefore there might be emotions like despair, uncertainty, stress, anger, worry, denial as well as disorientation.The situation at the marketing division of Exercises In Negotiation Analysis is comparable so Lewis can get comfortable with the concept that it is not phenomenal behavior. In the second phase, there may be a demand to bridge the void between the brand-new and old society so Lewis may need to encounter this challenge as soon as Krasnow leaves. There may be reduced spirits as well as low performance at this phase which need to not be taken as a trouble. It is during this stage that Lewis will need to give guidance to the division to make sure that they can locate a sense of direction. It can be seen just how Krasnow has currently made this shift much easier by making Lewis get associated with the department a year before his real separation. Based on Bridges' Model, phase 3 will bring about openness to knowing, High power and also commitment as people will accept the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has discusses the relevance of 'safety needs as being a lower level need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel protected as well as out of threat' is at the second degree of requirements. Prior to a staff member can be made to establish emotionally, he needs to have his 'Physiological 'and 'Security' needs satisfied.

SWOT Analysis for Exercises In Negotiation Analysis Case Study

Ramification of Analysis.

The OB analysis has checked out various theories to comprehend how to handle the current situation at hand. The adhering to 3 options have been proposed to aid Lewis take care of the business difficulties in the advertising division. Each of these options has actually been suggested for relieving the shift needed to bring the advertising division in accordance with the demands of the marketplace and for making the cultural change that would adhere to as soon as the present leader leaves.

Integration of marketing and advertising functions. Dividing Adverting and also Production functions. Assimilation of Advertising And Marketing with Operations.

Examination of Alternatives.

Integration of Advertising & Advertising And Marketing Functions: The in-house marketing firm of Exercises In Negotiation Analysis is already toughness for the organization in terms of conserving up on overheads related to advertising as well as promo. Since no new recruitment has actually been done after Bridget Cole's separation with the coverage line being straight designated to Krasnow for the advertising and marketing function, this is a beneficial opportunity for incorporating the advertising and marketing functions. Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merger days has knowledge in business-to-business advertising along with agency as well as retail advertising and marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to manage both marketing and advertising functions.

The benefit of this approach is that it will integrate the two features while minimizing the need for employing an added resource for advertising. Along with this, Lewis would certainly be heading the advertising department and all the same her substitute would be required for the existing role that she is executing. The downside of this option is that exterior hiring might produce bitterness from interior personnel who might be looking at the position of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Production: Given the competitive pressures as well as high quality work required from the advertising agency, it is advised that Lewis ought to allow the production system to be a separate feature from the marketing system. Because many ad agency had these 2 functions as separate units, it makes even more sense to comply with the norm. Along with this, both features may be able to concentrate on their core turns on a lot more efficiently. However, the disadvantage of this technique would be that extra costs would certainly need to be birthed for setting up separate manufacturing features. A manufacturing head may have to be worked with which might raise overheads for the company.

Assimilation of Advertising And Marketing with Operations: Given that Lewis is already taking treatment of the advertising and also operations departments concurrently; it makes sense to incorporate the 2 functions since she has actually been efficiently taking treatment of both ends. The fact that Lewis has to adapt her administration style for the advertising department suggests that these two divisions would certainly be culturally varied.


An analysis of the three alternatives shows that integration of marketing and also operations would certainly not be a possible relocation because of the large differences in between both departments although that presently Lewis is managing both. While separation of the production function may have been a beneficial action for the advertising division, the truth that it would suggest putting a 3rd feature under Lewis's wing implies this need to be avoided also. The combination of the advertising and marketing division is the most effective choice in terms of obtaining the optimum arise from the department. An action plan for this choice is gone over listed below.

Activity Plan.
Lewis will take over the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would be combined.

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

Manufacturing feature will remain component of advertising and marketing under advertising function.

Lewis will certainly divide herself from procedures.

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

Open door policy and also focus on cross department interaction will certainly be targeted at getting rid of disharmony.

Backup strategy.

If the integration does not work out as intended, a backup plan would adhere to which would separate the production feature from the marketing function to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising division without an SVP. In that case the production feature will definitely be separated by placing it under an SVP production.