Jan Eriksson At Novartis Indonesia Turmoil In The Indonesian Pharmaceutical Industry Case Study Help


Home >> Darden >> Jan Eriksson At Novartis Indonesia Turmoil In The Indonesian Pharmaceutical Industry >>

Jan Eriksson At Novartis Indonesia Turmoil In The Indonesian Pharmaceutical Industry Case Study Analysis

Background and Facts

Jan Eriksson At Novartis Indonesia Turmoil In The Indonesian Pharmaceutical Industry a workplace materials seller for small and also medium sized organisations has actually recently been involved in preparing for a merger with its rival Residence Deport, which has actually impacted efficiency levels in departmentswith the elderly supervisor involved in legal issues presented by the government Profession Commission. With the Marketing Head advancing the news of his departure from the company in one year, Jeannie Lewis, the current head of operations has been asked to take the role in the future. With difficulties in the form of a prospective cultural adjustment and low worker morale, the organization requires a total reengineering initiative at the advertising division.

Trouble Declaration
Porter's 5 Forces Analysis
The possible social change at the marketing division of Jan Eriksson At Novartis Indonesia Turmoil In The Indonesian Pharmaceutical Industry is raising uncertainty in the working environment causing different 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 function in impacting calculated choices since Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Profession Compensation's intervention at the same time. Given the truth that the shop has an international visibility with branches in UK, USA, Canada and also Germany, political consider each of these nations might be able to affect performance or tactical objectives. Federal Profession Commission's antitrust fit against the merging used up beneficial time of the organization's senior management suggesting that 'political' factors can have severe implications for an international service.

Economic Factors: Financial factors such as the development of small businesses in the international situation recommend that Jan Eriksson At Novartis Indonesia Turmoil In The Indonesian Pharmaceutical Industry is flourishing in an environment where there is potential growth of services. Along with this, truth that store consumers are mostly searching for office products for office recommends that the marketplace has a rising pattern of business owners as well as home services.

Social factors: Social trends in the economic climate reveal that customers are looking for convenience as well as attractive prices. Market research shows how the consumer for Jan Eriksson At Novartis Indonesia Turmoil In The Indonesian Pharmaceutical Industry does not have understanding concerning finding solutions which can offer a combination of comfort as well as affordable.

Technological factors: Technology plays an important duty in Jan Eriksson At Novartis Indonesia Turmoil In The Indonesian Pharmaceutical Industry's business technique specifically as the company is piloting Technology facilities which would certainly supply innovation sales and also assistance in the kind of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues as well as Effects.

Numerous underlying Organizational Actions issues can be seen in Jan Eriksson At Novartis Indonesia Turmoil In The Indonesian Pharmaceutical Industry's case as highlighted in this section.

Worries regarding cultural modification: There is uneasiness about a social adjustment that would certainly take place as soon as Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising with most of the employee already revealing unhappiness over this potential step. This expected modification has created anxiety in the workplace which has actually been combined with the previous anxiety of preparing the company for a prospective merger with Residence Deport.
Pest Analysis
Stressful Task Environment for Newcomers: There is shortage of personnel that can match the demanding atmosphere of a busy company. Not only does this result in trouble in discovering the ideal people, it puts anxiety on brand-new hires as can not hold up against the rate and also stress that the organization anticipates them to birth.

Twin Coverage Lines: Beginners discover this business society troublesome and hard to manage particularly as dotted line relationships are suggested to be weak generally and also unbiased setup as well as efficiency assessment is still done by the solid line manager. This implies that newcomers might lose clearness about their particular duties and purposes specifically as populated line reporting does not maintain them in straight communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles although it had actually been speculated that the last would certainly take Krasnow's position came as a strike to her morale. Lewis may have been qualified and also appropriate for the task however the fact that Kransnow's separation would make Coles a straight report to Lewis might have been the factor for Coles' resignation from services.

Anxiety & Task Instability: Concern and also insecurity can be identified as two significant problems that Lewis would certainly be dealing with particularly as the merger has currently be cancelled and 2 elderly execs of the marketing department would be leaving. The entire responsibility of the division would be dropping on Lewis's shoulders who would certainly not just supervise of brining concerning a cultural modification however would additionally need to prove herself in her brand-new function.

Incompatible Administration Style of Leader: Lewis's monitoring style and its conflict with the advertising division's duty can also be seen as an OB challenge especially as she has been made use of to dealing with issues in the procedures division where employees are educated to concentrate on processes and obtain them. The advertising division on the various other hand can be seen as a group of people who are utilized to being supported by Krasnow that focused much more on result than procedures.

Interdepartmental Disputes: Interdepartmental differences in between 3 departments, advertising, merchandizing as well as operations specifically over the appropriation of the advertising and marketing mix can be recognized as an additional OB concern. The advertising and marketing department does not share the very same vision as the various other two divisions pertaining to the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing as well as procedures divisions do not agree over the advertising and marketing mix allowance among one another either.

Disintegration in Advertising And Marketing Department: Fragmentation in between the advertising and marketing divisions can be identified as an additional OB problem which can require additional focus. The reality that the advertising and marketing sections in the advertising department are detached is protecting against both divisions from obtaining from each various other's experience as well as knowledge. Integration of marketing with retailing and also operations would certainly become more difficult if the marketing department itself is degenerated which can be another prospective OB problem.

Jan Eriksson At Novartis Indonesia Turmoil In The Indonesian Pharmaceutical Industry Analysis

Different concepts have actually been utilized to discuss the situations to obtain further clarity about the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers think that subordinates are passive as well as lazy, have little aspiration and stand up to change. The scenario at Jan Eriksson At Novartis Indonesia Turmoil In The Indonesian Pharmaceutical Industry is not entirely following Theory X, it can be seen that new hires are discovering this atmosphere rather demanding which might ultimately lead to a better disposition of the management towards Theory X. Also while analyzing Lewis's management design, theory X might have been appropriate in the operations department to some extent but the Advertising and marketing department would certainly call for reliance on Concept Y in order to obtain the creative thinking and also originality from the groups.

Tuckman's Synergy Concept: As far as Lewis's problem regarding bringing harmony between the advertising and marketing as well as advertising department is concerned, this would at first lead to conflict as discussed by Bruce Tuckman in his 'Synergy Theory'. By integrating the advertising and marketing and advertising and marketing department's job, there might be the very same preliminary separate which might lead to the 2nd phase of 'storming' where the groups challenge one an additional.

When individuals are presented with modification, they get in stage one and also so there might be emotions like sadness, unpredictability, disappointment, rage, concern, denial and also disorientation.The situation at the advertising division of Jan Eriksson At Novartis Indonesia Turmoil In The Indonesian Pharmaceutical Industry is similar so Lewis can get comfy with the concept that it is not extraordinary actions. It is during this stage that Lewis will have to provide assistance to the department so that they can find a sense of instructions. It can be seen exactly how Krasnow has already made this shift much easier by making Lewis get included in the department a year before his actual separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has discusses the significance of 'safety and security requires as being a lower level need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel safe and secure as well as out of danger' is at the 2nd level of requirements. Before a staff member can be made to establish emotionally, he requires to have his 'Physical 'and also 'Safety and security' needs met.

SWOT Analysis for Jan Eriksson At Novartis Indonesia Turmoil In The Indonesian Pharmaceutical Industry Case Study

Effects of Analysis.

The OB analysis has actually checked out numerous theories to recognize exactly how to handle the current scenario handy. The adhering to 3 choices have been recommended to help Lewis handle the business obstacles in the advertising department. Each of these alternatives has actually been suggested for alleviating the change needed to bring the marketing department in line with the requirements of the market and for making the cultural modification that would certainly comply with as soon as the present leader leaves.

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

Examination of Alternatives.

Combination of Advertising And Marketing & Advertising Functions: The internal advertising company of Jan Eriksson At Novartis Indonesia Turmoil In The Indonesian Pharmaceutical Industry is already stamina for the organization in regards to conserving up on expenses connected to advertising and marketing and also promotion. Given that no new recruitment has been done after Bridget Cole's departure with the coverage line being straight appointed to Krasnow for the advertising and marketing feature, this is a favorable opportunity for incorporating the advertising and marketing functions. Judith Shapiro who has actually earlier been talked to by Lewis during the earlier merging days has know-how in business-to-business advertising in addition to agency and retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to deal with both marketing and advertising features.

The advantage of this method is that it will certainly integrate both functions while lowering the need for hiring an extra resource for advertising. In addition to this, Lewis would be heading the advertising and marketing division and all the same her replacement would be required for the present role that she is doing. The drawback of this option is that external hiring might produce bitterness from inner workers that may be eying the setting of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting as well as Production: Given the competitive stress and also high quality work called for from the marketing company, it is advised that Lewis ought to allow the manufacturing system to be a different function from the advertising and marketing device. Since most marketing companies had these 2 features as different devices, it makes more sense to follow the norm.

Integration of Marketing with Workflows: Since Lewis is already dealing with the advertising as well as procedures departments concurrently; it makes good sense to integrate the two features since she has actually been efficiently taking care of both ends. The reality that both divisions currently have major differences over appropriation of sources recommends that this integration may have the ability to bring about harmony especially as Lewis would be heading both ends.However there are various downsides of this action specifically as it would certainly put excessive worry over Lewis's shoulders. The truth that Lewis has to adapt her monitoring design for the advertising division suggests that these two departments would certainly be culturally varied. Lewis might not be able to use one kind of leadership design to both departments which can result in inefficiency in either one of the two features.


An analysis of the 3 alternatives shows that assimilation of advertising as well as procedures would certainly not be a viable move because of the huge distinctions in between both divisions despite the fact that currently Lewis is dealing with both. While splitting up of the manufacturing function might have been a beneficial move for the advertising division, the fact that it would mean putting a third feature under Lewis's wing suggests this ought to be prevented too. The combination of the marketing department is the very best option in regards to getting the ideal results from the division. An activity plan for this option is reviewed listed below.

Activity Plan.
Lewis will take over the duty of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

Production function will continue to be component of advertising and marketing under marketing function.

Lewis will certainly separate herself from procedures.

An autonomous management style with employee empowerment will certainly be utilized in advertising department.

Open door plan and emphasis on cross departmental communication will certainly be aimed at removing dissonance.

Contingency strategy.

If the integration does not work out as prepared, a contingency strategy would adhere to which would divide the production function from the advertising and marketing feature to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the marketing department without an SVP. Because case the production function will most definitely be separated by placing it under an SVP production.