Menu

Air Products Pursuit Of Airgas A Case Study Help

CASE HELP

Home >> Harvard >> Air Products Pursuit Of Airgas A >>

Air Products Pursuit Of Airgas A Case Study Analysis

Background and Facts

Air Products Pursuit Of Airgas A a workplace supplies store for little and medium sized organisations has lately been associated with planning for a merger with its competitor Residence Deport, which has actually impacted effectiveness degrees in departmentswith the elderly supervisor associated with lawful difficulties put forth by the federal Profession Compensation. With the Advertising and marketing Head putting forward the news of his separation from the firm in one year, Jeannie Lewis, the current head of operations has actually been asked to take the function in the near future. With difficulties in the type of a possible cultural change and also low employee spirits, the company wants a total reengineering initiative at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The possible cultural modification at the marketing division of Air Products Pursuit Of Airgas A is boosting unpredictability in the workplace leading to numerous 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 major duty in affecting tactical choices given that Stapes Inc. needed to desert its strategies of combining with Office Deport after the Federal Trade Payment's intervention in the process. Provided the truth that the store has an international existence with branches in UK, U.S.A., Canada and Germany, political consider each of these nations may be able to influence performance or strategic goals. Federal Trade Commission's antitrust match versus the merging used up important time of the organization's elderly administration recommending that 'political' factors can have major effects for an international business.

Economic Factors: Economic factors such as the introduction of small companies in the worldwide situation recommend that Air Products Pursuit Of Airgas A is flourishing in a setting where there is potential growth of services. In addition to this, truth that store clients are primarily trying to find workplace materials for office suggests that the marketplace has a climbing fad of business owners as well as home based businesses.

Social factors: Social patterns in the economy reveal that clients are looking for ease along with attractive rates. Marketing research demonstrates how the consumer for Air Products Pursuit Of Airgas A lacks awareness regarding finding solutions which can offer a mix of comfort and also low costs.

Technological factors: Modern technology plays a vital function in Air Products Pursuit Of Airgas A's business approach particularly as the company is piloting Modern technology facilities which would offer modern technology sales as well as support in the form of memory upgrades, peripheral installations. (Summary of INSECT in appendix 2).

OB Issues and also Effects.

Several underlying Organizational Actions concerns can be seen in Air Products Pursuit Of Airgas A's case as highlighted in this area.

Concerns regarding social adjustment: There is worry about a social adjustment that would certainly occur once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Marketing with the majority of the employee currently showing unhappiness over this potential action. This expected change has actually developed stress in the office which has actually been paired with the past stress and anxiety of preparing the company for a possible merging with House Deport.
Pest Analysis
Stressful Task Setting for Newcomers: There is scarcity of employees that can match the difficult setting of a busy company. Not just does this lead to trouble in finding the best people, it places tension on brand-new hires as can not withstand the pace and also stress that the organization expects them to bear.

Dual Reporting Lines: Novices find this organizational culture troublesome as well as challenging to manage particularly as dotted line partnerships are suggested to be weaker in general and also objective setting as well as performance evaluation is still done by the strong line supervisor. This indicates that newcomers might shed quality regarding their particular functions and goals especially as populated line coverage does not maintain them in direct interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles even though it had actually been hypothesized that the latter would take Krasnow's position came as an impact to her morale. Lewis might have been qualified and also suitable for the job however the fact that Kransnow's separation would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Worry & Task Insecurity: Fear as well as insecurity can be determined as two major worries that Lewis would certainly be dealing with specifically as the merger has currently be terminated as well as two elderly executives of the advertising division would certainly be leaving. The entire responsibility of the division would be falling on Lewis's shoulders that would not just be in charge of brining about a social change but would certainly additionally have to show herself in her brand-new function.

Incompatible Monitoring Design of Leader: Lewis's management style and its conflict with the advertising department's role can also be viewed as an OB obstacle particularly as she has actually been made use of to taking care of problems in the operations department where personnel are educated to focus on processes and get them right. The advertising and marketing department on the other hand can be seen as a team of people that are used to being supported by Krasnow that concentrated extra on result than procedures.

Interdepartmental Differences: Interdepartmental arguments between 3 divisions, advertising, merchandizing as well as operations respectively over the appropriation of the marketing mix can be recognized as another OB problem. The advertising and marketing department does not share the same vision as the other 2 divisions pertaining to the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and also operations departments do not agree over the marketing mix allowance among one another either.

Fragmentation in Advertising Department: Disintegration in between the advertising and marketing departments can be determined as another OB issue which could require additional interest. The reality that the advertising and marketing areas in the advertising and marketing department are separated is avoiding both departments from getting from each various other's experience as well as know-how. Combination of marketing with retailing as well as procedures would become more difficult if the marketing department itself is degenerated which can be an additional prospective OB worry.

Air Products Pursuit Of Airgas A Analysis

Numerous theories have been made use of to clarify the circumstances to obtain more quality concerning the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of managers believe that subordinates are easy and lazy, have little aspiration and resist adjustment. The difficult variation of this theory highlighted threat, tight controls, dangers and penalties. With time it produces low productivity, refined sabotage and also competition (Bargain, 2003). Although the circumstance at Air Products Pursuit Of Airgas A is not totally adhering to Theory X, it can be seen that brand-new hires are discovering this environment instead stressful which may eventually bring about a better disposition of the management towards Concept X. Based on McGregor's promoted sight, which he called Theory Y, the vital task of the administration is to organize business conditions to make sure that individuals can accomplish their own objectives best by directing their initiatives in the direction of business incentives. If individuals locate no fulfillment in their job, the management would have little selection however to count on concept X and exterior control (Deal, 2003). Even while evaluating Lewis's administration design, concept X might have appropriated in the operations division somewhat yet the Marketing division would certainly call for dependence on Concept Y in order to get the imagination as well as creativity from the teams.

Tuckman's Synergy Theory: As much as Lewis's problem regarding bringing harmony between the advertising and marketing as well as advertising department is concerned, this would originally lead to conflict as talked about by Bruce Tuckman in his 'Teamwork Concept'. By integrating the advertising and marketing and also marketing division's work, there may be the same preliminary disconnect which might lead to the 2nd stage of 'storming' where the teams challenge one another.

Bridges' Transition Design: According To William Bridge's theory (appendix 4), people are rather uncomfortable with adjustment, which is noticeable by the situation at Air Products Pursuit Of Airgas A The scenario can be viewed as a regular training course of life if is researched according to Bridge's concept where he describes that individuals undergo 3 stages of change when they experience modification. 'End, shedding and Letting go', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When people exist with modification, they go into stage one therefore there might be feelings like despair, unpredictability, disappointment, rage, worry, rejection as well as disorientation.The situation at the advertising department of Air Products Pursuit Of Airgas A is similar so Lewis can obtain comfortable with the suggestion that it is not remarkable habits. In the 2nd stage, there may be a demand to link the gap between the brand-new and old culture so Lewis might need to encounter this experience once Krasnow leaves. There may be reduced spirits as well as reduced efficiency at this stage which need to not be taken as an obstacle. It is during this stage that Lewis will need to offer guidance to the division to ensure that they can find a sense of direction. It can be seen exactly how Krasnow has actually currently made this transition much easier by making Lewis obtain involved in the department a year before his real departure. As per Bridges' Version, phase 3 will certainly cause openness to knowing, High power and dedication as people will accept the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has reviews the value of 'protection needs as being a reduced degree need of a human for activating 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 risk' is at the second degree of requirements. Before an employee can be made to create mentally, he needs to have his 'Physiological 'as well as 'Security' needs satisfied.

SWOT Analysis for Air Products Pursuit Of Airgas A Case Study



Effects of Analysis.

The OB analysis has taken a look at numerous theories to comprehend exactly how to cope with the present circumstance available. The following three options have actually been suggested to assist Lewis manage the organizational difficulties in the marketing division. Each of these choices has actually been proposed for reducing the shift needed to bring the advertising and marketing division in accordance with the needs of the marketplace and also for making the social change that would comply with once the existing leader leaves.

Combination of marketing and advertising features. Dividing Adverting as well as Manufacturing functions. Combination of Marketing with Operations.

Evaluation of Alternatives.

Integration of Marketing & Marketing Functions: The in-house advertising and marketing firm of Air Products Pursuit Of Airgas A is already stamina for the company in regards to conserving up on expenses related to marketing and also promo. Considering that no brand-new employment has actually been done after Bridget Cole's departure with the reporting line being directly appointed to Krasnow for the advertising function, this is a beneficial chance for incorporating the marketing and advertising features. Judith Shapiro who has earlier been spoken with by Lewis during the earlier merger days has competence in business-to-business marketing in addition to agency and also retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to deal with both marketing and advertising functions.

The advantage of this technique is that it will integrate the two features while reducing the need for employing an additional resource for advertising and marketing. In addition to this, Lewis would be heading the advertising division and also all the same her substitute would certainly be needed for the present duty that she is executing. The disadvantage of this choice is that outside hiring might cause resentment from interior workers that might be eying the setting of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting as well as Manufacturing: Given the affordable stress and premium quality job required from the ad agency, it is advised that Lewis ought to permit the production system to be a different function from the advertising system. Because most advertising agencies had these two features as different systems, it makes even more sense to adhere to the norm. In addition to this, both functions might be able to focus on their core turns on a lot more efficiently. The downside of this approach would certainly be that extra expenses would certainly have to be borne for establishing up separate production features. In addition to this, a production head may need to be hired which can increase overheads for the company.

Assimilation of Advertising And Marketing with Workflows: Since Lewis is already dealing with the advertising as well as operations departments simultaneously; it makes sense to integrate both features considering that she has actually been effectively dealing with both ends. The truth that the two departments already have major differences over appropriation of resources recommends that this combination might have the ability to bring about harmony specifically as Lewis would certainly be heading both ends.However there are different drawbacks of this move specifically as it would place way too much concern over Lewis's shoulders. The fact that Lewis has to adapt her management style for the marketing division suggests that these two divisions would certainly be culturally varied. 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 2 functions.

Referral.



An assessment of the 3 options suggests that integration of advertising and marketing as well as procedures would certainly not be a feasible relocation because of the large distinctions between both divisions despite the fact that currently Lewis is dealing with both. While splitting up of the production function might have been a favorable step for the advertising division, the reality that it would imply putting a 3rd feature under Lewis's wing implies this ought to be prevented also. The combination of the advertising and marketing department is the most effective option in terms of obtaining the optimal arise from the department. An action plan for this alternative is reviewed listed below.

Action Strategy.
Recommendation
Lewis will certainly take control of the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

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

Lewis will divide herself from operations.

A democratic management style with employee empowerment will certainly be made use of in advertising and marketing division.

Open door policy and also emphasis on cross department communication will be aimed at eliminating disharmony.

Backup strategy.

If the assimilation does not work out as planned, a backup strategy would certainly adhere to which would certainly separate the manufacturing feature from the advertising function to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising and marketing department without an SVP. Because case the manufacturing function will certainly be divided by positioning it under an SVP manufacturing.