Menu

Agriums Ill Fated Bid To Acquire Cf Industries Holdings Case Study Help

CASE SOLUTION

Home >> Harvard >> Agriums Ill Fated Bid To Acquire Cf Industries Holdings >>

Agriums Ill Fated Bid To Acquire Cf Industries Holdings Case Study Analysis

Background and Facts

Agriums Ill Fated Bid To Acquire Cf Industries Holdings an office supplies store for little as well as medium sized companies has actually just recently been involved in planning for a merger with its competitor Home Deport, which has influenced efficiency degrees in departmentswith the elderly manager associated with legal issues put forth by the government Trade Payment. With the Advertising Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the duty in the future. With difficulties in the form of a possible social adjustment as well as low worker spirits, the organization is in need of a complete reengineering initiative at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising department of Agriums Ill Fated Bid To Acquire Cf Industries Holdings is increasing unpredictability in the working environment resulting in various obstacles 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 significant role in affecting critical decisions since Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Profession Payment's treatment while doing so. Provided the fact that the shop has an international presence with branches in UK, USA, Canada and Germany, political factors in each of these nations might have the ability to affect efficiency or tactical goals. Federal Profession Commission's antitrust suit against the merging occupied valuable time of the company's elderly administration recommending that 'political' factors can have significant effects for an international organisation.

Economic Factors: Financial factors such as the appearance of small companies in the worldwide situation recommend that Agriums Ill Fated Bid To Acquire Cf Industries Holdings is prospering in a setting where there is prospective development of businesses. In addition to this, reality that store consumers are mainly searching for office supplies for home offices recommends that the market has an increasing pattern of business owners as well as home based organisations.

Social factors: Social fads in the economy reveal that clients are seeking comfort as well as attractive prices. Market research shows how the consumer for Agriums Ill Fated Bid To Acquire Cf Industries Holdings does not have understanding regarding finding options which can offer a combination of benefit and also low costs.

Technical factors: Modern technology plays a vital role in Agriums Ill Fated Bid To Acquire Cf Industries Holdings's business approach specifically as the organization is piloting Modern technology centers which would certainly use technology sales as well as assistance in the kind of memory upgrades, peripheral installments. (Summary of PEST in appendix 2).

OB Issues and Effects.

A number of underlying Business Behavior concerns can be seen in Agriums Ill Fated Bid To Acquire Cf Industries Holdings's case as highlighted in this section.

Uneasiness concerning cultural change: There is uneasiness concerning a social change that would take place when Todd Krasnow leaves from his position as the Exec Vice Head Of State of Marketing with the majority of the team member currently showing discontent over this potential action. This anticipated adjustment has produced stress in the work environment which has been combined with the past stress of preparing the firm for a potential merger with Residence Deport.
Pest Analysis
Demanding Task Setting for Newcomers: There is shortage of personnel that can match the demanding setting of a fast-paced organization. Not only does this bring about trouble in finding the ideal individuals, it puts stress and anxiety on brand-new hires as can not withstand the pace and stress that the company anticipates them to birth.

Dual Coverage Lines: Newcomers locate this business society difficult as well as tough to cope with particularly as populated line relationships are implied to be weaker as a whole and unbiased setup as well as efficiency analysis is still done by the solid line supervisor. This suggests that novices could lose clarity about their respective functions and purposes particularly as populated line reporting does not keep them in direct interaction 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 certainly take Krasnow's setting came as a strike to her spirits. Lewis might have been capable as well as proper for the task however the reality that Kransnow's departure would certainly make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Anxiety & Work Instability: Worry as well as instability can be determined as 2 major worries that Lewis would certainly be taking care of particularly as the merging has actually now be cancelled and also two senior executives of the advertising and marketing department would certainly be leaving. The entire obligation of the division would be dropping on Lewis's shoulders that would not simply supervise of brining about a social modification but would additionally need to prove herself in her brand-new function.

Inappropriate Monitoring Style of Leader: Lewis's monitoring style as well as its conflict with the advertising division's role can additionally be seen as an OB challenge particularly as she has actually been made use of to handling issues in the operations division where personnel are taught to focus on processes and get them. The advertising division on the various other hand can be viewed as a team of individuals that are utilized to being supported by Krasnow that concentrated more on outcome than processes.

Interdepartmental Differences: Interdepartmental arguments in between 3 departments, marketing, merchandizing and also operations respectively over the allocation of the marketing mix can be identified as another OB concern. Although the marketing department does not share the exact same vision as the various other two departments concerning the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and also operations departments do not agree over the advertising and marketing mix allotment amongst each other either.

Fragmentation in Marketing Department: Fragmentation in between the marketing and advertising departments can be recognized as an additional OB problem which could need further focus. The reality that the advertising and marketing areas in the marketing department are separated is protecting against both divisions from obtaining from each other's experience and competence. Combination of marketing with merchandising as well as operations would end up being more difficult if the advertising division itself is degenerated which can be an additional possible OB concern.

Agriums Ill Fated Bid To Acquire Cf Industries Holdings Analysis

Numerous concepts have been made use of to explain the scenarios to get additional clearness regarding the situation available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of managers think that staffs are easy and lazy, have little passion as well as stand up to change. The hard variation of this theory stressed coercion, tight controls, dangers and punishments. Gradually it generates reduced performance, refined sabotage and rivalry (Bargain, 2003). Although the circumstance at Agriums Ill Fated Bid To Acquire Cf Industries Holdings is not completely adhering to Theory X, it can be seen that new hires are locating this atmosphere instead demanding which may at some point bring about a higher inclination of the management towards Concept X. Based on McGregor's advocated view, which he called Concept Y, the crucial job of the administration is to arrange business problems to ensure that people can accomplish their very own goals best by guiding their initiatives in the direction of organizational incentives. If people discover no fulfillment in their work, the administration would certainly have little selection however to rely upon theory X and also exterior control (Bargain, 2003). Even while analyzing Lewis's monitoring style, concept X may have been suitable in the operations department somewhat however the Marketing department would certainly call for reliance on Theory Y to get the imagination and also originality from the teams.

Tuckman's Team effort Concept: As far as Lewis's problem concerning bringing harmony in between the advertising and marketing and advertising division is worried, this would originally lead to clash as gone over by Bruce Tuckman in his 'Teamwork Concept'. By combining the advertising and marketing and advertising and marketing division's job, there may be the exact same initial detach which could lead to the 2nd phase of 'storming' where the teams challenge one another.

Bridges' Transition Design: According To William Bridge's concept (appendix 4), individuals are rather awkward with change, which is obvious by the situation at Agriums Ill Fated Bid To Acquire Cf Industries Holdings The situation can be viewed as a regular training course of life if is examined according to Bridge's concept where he discusses that people experience 3 phases of change when they experience change. 'Closing, losing as well as Releasing', The Neutral Zone and 'The New Starting' (Bridges, 2004). When individuals are presented with adjustment, they enter phase one therefore there may be emotions like despair, unpredictability, aggravation, rage, concern, rejection and disorientation.The circumstance at the advertising division of Agriums Ill Fated Bid To Acquire Cf Industries Holdings is similar so Lewis can get comfy with the concept that it is not extraordinary behavior. In the 2nd stage, there may be a requirement to bridge the gap in between the brand-new and also old society so Lewis may have to encounter this experience once Krasnow leaves. There might be low spirits and reduced efficiency at this phase which need to not be taken as a problem. It is during this stage that Lewis will have to provide advice to the division to ensure that they can locate an orientation. It can be seen exactly how Krasnow has actually already made this shift easier by making Lewis get associated with the department a year prior to his actual separation. According to Bridges' Design, phase three will certainly produce visibility to learning, High energy and commitment as people will certainly accept the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Requirement hierarchy: The OB issue pertaining to instability at the office has actually been caused to start with by the modification in administration and secondly by the truth that the merging will certainly no more be initiated. Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has goes over the importance of 'safety needs as being a lower level demand of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel safe and also unharmed' goes to the second level of demands. Before an employee can be made to create psychologically, he requires to have his 'Physiological 'as well as 'Security' requires met. This suggests that unless the employees are made to really feel safe regarding their present employment status in Agriums Ill Fated Bid To Acquire Cf Industries Holdings they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Agriums Ill Fated Bid To Acquire Cf Industries Holdings Case Study



Ramification of Analysis.

The OB analysis has considered different theories to understand just how to cope with the present situation available. The following three choices have been proposed to aid Lewis manage the business obstacles in the advertising and marketing department. Each of these choices has been proposed for easing the transition needed to bring the advertising and marketing division in accordance with the demands of the marketplace as well as for making the social adjustment that would adhere to once the existing leader leaves.

Combination of advertising and marketing features. Dividing Adverting and Manufacturing functions. Assimilation of Advertising with Operations.

Evaluation of Alternatives.

Combination of Advertising And Marketing & Marketing Functions: The internal advertising and marketing company of Agriums Ill Fated Bid To Acquire Cf Industries Holdings is already stamina for the company in regards to conserving up on expenses related to advertising and marketing and promotion. Because no brand-new recruitment has actually been done after Bridget Cole's separation with the coverage line being directly appointed to Krasnow for the advertising feature, this is a desirable chance for incorporating the advertising and marketing functions. Judith Shapiro who has earlier been interviewed by Lewis during the earlier merger days has proficiency in business-to-business advertising and marketing along with company and retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to deal with both marketing and advertising features.

The advantage of this approach is that it will incorporate the two features while lowering the demand for working with an added source for advertising. Lewis would be heading the advertising department and also in any type of case her substitute would be required for the existing role that she is performing. The disadvantage of this alternative is that external hiring may produce animosity from interior personnel who may be considering the placement of EVP after Lewis takes control of Krasnow's position.

Separating Adverting as well as Manufacturing: Provided the affordable stress and high top quality work needed from the advertising and marketing agency, it is recommended that Lewis needs to allow the production device to be a separate feature from the advertising and marketing system. Because most marketing companies had these two functions as different systems, it makes more feeling to adhere to the standard.

Integration of Advertising with Operations: Because Lewis is already dealing with the marketing as well as operations divisions simultaneously; it makes sense to integrate both features because she has been effectively taking care of both ends. The reality that the two divisions currently have significant differences over appropriation of resources recommends that this integration might have the ability to bring about harmony specifically as Lewis would certainly be heading both ends.However there are different drawbacks of this relocation especially as it would place too much worry over Lewis's shoulders. The reality that Lewis needs to adjust her monitoring design for the advertising division recommends that these two departments would certainly be culturally diverse. Lewis might not be able to apply one kind of leadership style to both divisions which can result in ineffectiveness in either one of the two functions.

Suggestion.



An examination of the three alternatives suggests that integration of advertising and marketing and also operations would certainly not be a viable relocation as a result of the large distinctions between both departments despite the fact that presently Lewis is handling both. While splitting up of the production feature may have been a desirable step for the marketing division, the reality that it would certainly indicate putting a 3rd feature under Lewis's wing implies this must be avoided as well. The integration of the advertising and marketing division is the most effective choice in regards to obtaining the ideal arise from the division. An action prepare for this option is discussed listed below.

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

Advertising and Marketing features would be combined.

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

Manufacturing feature will continue to be part of advertising under marketing feature.

Lewis will separate herself from operations.

An autonomous leadership style with employee empowerment will be made use of in advertising and marketing division.

Open up door plan and emphasis on cross department interaction will be focused on removing discord.

Backup strategy.

If the combination does not exercise as prepared, a backup plan would certainly comply with which would separate the manufacturing function from the advertising and marketing feature to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will be heading the marketing department without an SVP. Because case the manufacturing function will absolutely be divided by placing it under an SVP manufacturing.