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Alcan A Anticipating Industry Change Case Study Solution

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Background and Facts

Alcan A Anticipating Industry Change a workplace materials store for little and also moderate sized services has lately been involved in planning for a merger with its competitor Home Deport, which has actually influenced effectiveness degrees in departmentswith the senior manager associated with legal issues put forth by the government Trade Commission. With the Marketing Head advancing the news of his separation from the business in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the future. With obstacles in the form of a possible social modification and reduced staff member morale, the company is in need of a complete reengineering effort at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising and marketing division of Alcan A Anticipating Industry Change is boosting uncertainty in the working environment bring about various difficulties for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting calculated choices considering that Stapes Inc. had to desert its plans of combining with Office Deport after the Federal Profession Payment's treatment at the same time. Offered the reality that the shop has a worldwide existence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these nations may be able to influence performance or critical objectives. Federal Trade Payment's antitrust suit versus the merging occupied important time of the organization's elderly management suggesting that 'political' factors can have major ramifications for an international business.

Economic Factors: Financial factors such as the introduction of small businesses in the international circumstance recommend that Alcan A Anticipating Industry Change is flourishing in an atmosphere where there is possible development of organisations. Along with this, truth that store customers are primarily seeking workplace products for home offices recommends that the market has a climbing fad of business owners as well as online services.

Social factors: Social trends in the economic climate show that consumers are trying to find benefit as well as appealing costs. Market research shows how the customer for Alcan A Anticipating Industry Change does not have understanding regarding locating solutions which can provide a combination of benefit as well as inexpensive.

Technological factors: Technology plays a vital function in Alcan A Anticipating Industry Change's service approach especially as the company is piloting Innovation centers which would offer innovation sales and also support in the type of memory upgrades, peripheral installations. (Recap of PARASITE in appendix 2).

OB Issues as well as Symptoms.

Numerous underlying Organizational Behavior issues can be seen in Alcan A Anticipating Industry Change's case as highlighted in this area.

Concerns regarding cultural change: There is uneasiness about a social modification that would take place once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising with most of the staff members already revealing unhappiness over this potential action. This anticipated adjustment has produced stress and anxiety in the work environment which has been combined with the past anxiety of preparing the firm for a possible merging with Home Deport.
Pest Analysis
Stressful Job Setting for Newcomers: There is lack of workers that can match the difficult environment of a busy organization. Not just does this cause difficulty in discovering the best individuals, it puts stress on brand-new hires as can not stand up to the pace as well as stress that the company anticipates them to birth.

Double Coverage Lines: Novices discover this organizational society difficult as well as tough to cope with especially as populated line partnerships are meant to be weaker as a whole as well as objective setting as well as performance evaluation is still done by the solid line supervisor. This suggests that newbies might lose clearness regarding their particular roles as well as purposes specifically as dotted line reporting does not maintain them in direct communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles even though it had actually been hypothesized that the last would certainly take Krasnow's setting came as a strike to her morale. Lewis may have been capable and appropriate for the job yet the fact that Kransnow's departure would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Task Instability: Fear and also insecurity can be recognized as 2 major worries that Lewis would certainly be managing especially as the merging has now be terminated and also 2 elderly executives of the advertising and marketing division would certainly be leaving. The entire responsibility of the department would be dropping on Lewis's shoulders that would certainly not simply supervise of brining concerning a social modification yet would certainly also have to confirm herself in her new role.

Incompatible Management Style of Leader: Lewis's management design and its incompatibility with the marketing division's role can also be viewed as an OB difficulty specifically as she has actually been made use of to taking care of problems in the procedures department where personnel are taught to focus on procedures and get them right. The advertising division on the other hand can be seen as a group of individuals that are used to being supported by Krasnow that concentrated much more on result than procedures.

Interdepartmental Arguments: Interdepartmental disputes between 3 divisions, advertising and marketing, merchandizing as well as operations respectively over the allocation of the advertising mix can be identified as another OB issue. Although the advertising and marketing division does not share the very same vision as the various other 2 divisions pertaining to the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing as well as operations divisions do not concur over the marketing mix allotment amongst one another either.

Fragmentation in Marketing Division: Fragmentation in between the marketing and advertising divisions can be recognized as another OB issue which might require additional focus. The fact that the advertising and marketing areas in the advertising division are separated is avoiding both departments from acquiring from each other's experience and expertise. Assimilation of marketing with retailing and also procedures would become more difficult if the advertising and marketing department itself is broken down which can be another possible OB worry.

Alcan A Anticipating Industry Change Analysis

Various theories have actually been utilized to describe the circumstances to obtain more clarity concerning the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors believe that subordinates are easy as well as lazy, have little passion and also stand up to change. The hard variation of this concept emphasized coercion, limited controls, dangers as well as punishments. In time it produces low productivity, refined sabotage and also competition (Offer, 2003). The circumstance at Alcan A Anticipating Industry Change is not completely following Concept X, it can be seen that brand-new hires are finding this atmosphere rather demanding which might eventually lead to a greater inclination of the administration towards Concept X. Based on McGregor's supported sight, which he called Theory Y, the crucial task of the monitoring is to arrange organizational problems to ensure that individuals can achieve their own objectives best by guiding their initiatives in the direction of business benefits. If people discover no satisfaction in their job, the monitoring would have little choice but to rely upon concept X as well as outside control (Offer, 2003). Also while analyzing Lewis's monitoring design, theory X might have appropriated in the operations department somewhat but the Advertising division would require dependence on Concept Y in order to get the creative thinking as well as creativity from the groups.

Tuckman's Teamwork Concept: As for Lewis's worry about bringing harmony in between the marketing and advertising department is concerned, this would originally bring about conflict as discussed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). As per Tuckman's concept displayed in appendix 3, during the first stage of team development, people might not bond, as they are active locating their place in the team. By integrating the marketing and advertising department's work, there may be the same initial detach which can bring about the 2nd stage of 'storming' where the teams challenge each other. Nevertheless, it is only throughout the third phase or 'norming' when they would certainly come together to share suggestions before the group can bring about harmony in the 4th stage 'carrying out'.

Bridges' Shift Design: Based On William Bridge's concept (appendix 4), individuals are fairly uncomfortable with adjustment, which is evident by the situation at Alcan A Anticipating Industry Change The circumstance can be seen as a typical course of life if is examined as per Bridge's concept where he explains that individuals experience three stages of shift when they experience change. 'Closing, shedding as well as Releasing', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When individuals exist with change, they get in phase one and so there may be feelings like sadness, unpredictability, aggravation, rage, fear, denial and disorientation.The circumstance at the advertising and marketing department of Alcan A Anticipating Industry Change is similar so Lewis can obtain comfy with the concept that it is not phenomenal habits. In the second stage, there may be a need to link the space in between the brand-new and also old society so Lewis may have to face this challenge as soon as Krasnow leaves. There might be low morale and also low performance at this stage which must not be taken as a setback. It is during this stage that Lewis will certainly need to give advice to the division to ensure that they can locate an orientation. It can be seen how Krasnow has actually currently made this transition much easier by making Lewis get involved in the department a year prior to his real departure. According to Bridges' Design, phase 3 will bring about openness to understanding, High power and dedication as individuals will certainly accept the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Requirement power structure: The OB problem related to insecurity at the office has actually been activated firstly by the adjustment in management and also second of all by the fact that the merging will certainly no longer be launched. Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has reviews the significance of 'security requires as being a lower degree need of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the requirement to really feel protected and unharmed' goes to the 2nd level of requirements. Before an employee can be made to develop psychologically, he requires to have his 'Physical 'and 'Safety' requires satisfied. This shows that unless the personnel are made to feel protected about their existing work standing in Alcan A Anticipating Industry Change they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Alcan A Anticipating Industry Change Case Study



Effects of Analysis.

The OB analysis has checked out various concepts to understand how to deal with the current situation handy. The adhering to 3 alternatives have been suggested to help Lewis manage the business obstacles in the advertising and marketing division. Each of these choices has been recommended for reducing the shift required to bring the advertising department in accordance with the demands of the market and also for making the cultural modification that would certainly follow once the current leader leaves.

Integration of marketing and advertising functions. Dividing Adverting and Production functions. Assimilation of Marketing with Workflow.

Assessment of Alternatives.

Assimilation of Advertising & Marketing Functions: The internal advertising firm of Alcan A Anticipating Industry Change is already stamina for the company in terms of saving up on overheads related to advertising as well as promotion. Because no brand-new employment has actually been done after Bridget Cole's departure with the coverage line being directly designated to Krasnow for the advertising and marketing function, this is a positive possibility for integrating the advertising and marketing features. Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merging days has competence in business-to-business advertising and marketing in addition to company and retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to manage both marketing and advertising functions.

The advantage of this approach is that it will incorporate both functions while decreasing the demand for working with an extra resource for advertising and marketing. Lewis would be heading the marketing department as well as in any case her substitute would be needed for the existing role that she is executing. The drawback of this choice is that outside hiring may cause bitterness from internal personnel that may be considering the placement of EVP after Lewis takes over Krasnow's position.

Separating Adverting and Production: Given the competitive stress and also premium quality work needed from the ad agency, it is suggested that Lewis ought to enable the manufacturing system to be a separate function from the marketing system. Because most advertising agencies had these 2 features as separate systems, it makes even more feeling to follow the norm. In addition to this, both functions might be able to concentrate on their core turns on a lot more effectively. The downside of this method would be that additional expenses would certainly have to be birthed for setting up different production features. Along with this, a production head may have to be hired which can raise expenses for the organization.

Assimilation of Advertising with Operations: Considering that Lewis is currently looking after the advertising and also operations departments concurrently; it makes sense to integrate the two functions given that she has been efficiently caring for both ends. The truth that both departments currently have significant distinctions over appropriation of sources recommends that this integration may be able to bring about harmony especially as Lewis would certainly be heading both ends.However there are various disadvantages of this relocation especially as it would certainly put too much burden over Lewis's shoulders. The reality that Lewis has to adapt her monitoring style for the advertising and marketing department suggests that these two divisions would certainly be culturally varied. Along with this, Lewis may not have the ability to apply one sort of management style to both departments which might cause inefficiency in either one of both functions.

Suggestion.



An examination of the 3 alternatives shows that integration of advertising as well as procedures would certainly not be a feasible step due to the substantial distinctions between the 2 departments despite the fact that currently Lewis is managing both. While separation of the manufacturing feature may have been a positive step for the marketing department, the reality that it would imply putting a third feature under Lewis's wing suggests this need to be avoided.

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

Advertising and Marketing features would be merged.

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

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

Lewis will separate herself from procedures.

An autonomous leadership design with worker empowerment will certainly be utilized in advertising division.

Open door plan and focus on cross departmental communication will be targeted at getting rid of dissonance.

Backup plan.

If the assimilation does not exercise as intended, a contingency strategy would certainly follow which would separate the production function from the advertising function to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the marketing department without an SVP. In that case the production feature will definitely be divided by putting it under an SVP manufacturing.