Alibabas Bonds Dilemma Location Timing And Pricing Case Study Solution


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Alibabas Bonds Dilemma Location Timing And Pricing Case Study Solution

Background and Facts

Alibabas Bonds Dilemma Location Timing And Pricing a workplace materials seller for small and medium sized services has recently been involved in preparing for a merger with its competitor House Deport, which has actually influenced efficiency levels in departmentswith the elderly manager associated with lawful problems put forth by the government Profession Commission. With the Advertising and marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the role in the near future. With challenges in the type of a potential social change as well as low worker morale, the organization wants a full reengineering effort at the marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The potential social adjustment at the advertising division of Alibabas Bonds Dilemma Location Timing And Pricing is boosting unpredictability in the working environment causing numerous difficulties for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting strategic choices given that Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Trade Compensation's treatment in the process. Given the truth that the shop has a worldwide presence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these countries might have the ability to affect performance or calculated goals. Federal Profession Compensation's antitrust match against the merging occupied important time of the organization's elderly management recommending that 'political' factors can have serious implications for a global service.

Economic Factors: Economic factors such as the introduction of local business in the international situation suggest that Alibabas Bonds Dilemma Location Timing And Pricing is growing in an atmosphere where there is potential development of businesses. Truth that store customers are primarily looking for workplace products for house workplaces suggests that the market has a rising trend of business owners and also residence based organisations.

Social factors: Social patterns in the economic climate show that customers are trying to find convenience in addition to attractive prices. Market research demonstrates how the customer for Alibabas Bonds Dilemma Location Timing And Pricing does not have understanding concerning locating services which can use a combination of ease as well as affordable.

Technological factors: Innovation plays a vital role in Alibabas Bonds Dilemma Location Timing And Pricing's service technique specifically as the company is piloting Technology centers which would supply innovation sales and also support in the kind of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues and Effects.

A number of underlying Organizational Behavior issues can be seen in Alibabas Bonds Dilemma Location Timing And Pricing's case as highlighted in this section.

Apprehensions regarding social change: There is worry regarding a social adjustment that would occur when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising with a lot of the staff members currently showing unhappiness over this possible action. This predicted adjustment has created stress in the office which has actually been paired with the previous stress and anxiety of preparing the company for a prospective merging with Home Deport.
Pest Analysis
Difficult Task Atmosphere for Newcomers: There is lack of workers that can match the stressful environment of a hectic company. Not only does this lead to difficulty in locating the ideal individuals, it places stress and anxiety on new hires as can not hold up against the speed as well as stress that the organization expects them to birth.

Double Reporting Lines: Novices locate this business society difficult as well as challenging to cope with specifically as populated line connections are suggested to be weaker as a whole and also unbiased setting and also performance examination is still done by the strong line supervisor. This indicates that newbies could shed quality concerning their particular roles as well as goals particularly as populated line coverage does not keep them in direct communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles although it had been guessed that the last would take Krasnow's placement came as a blow to her spirits. Lewis may have been qualified as well as suitable for the work yet the truth that Kransnow's separation would make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Anxiety & Job Instability: Worry as well as insecurity can be recognized as 2 significant worries that Lewis would certainly be handling particularly as the merging has now be cancelled and 2 senior executives of the advertising department would be leaving. The entire responsibility of the department would certainly be falling on Lewis's shoulders that would not just be in charge of brining about a social adjustment but would additionally have to prove herself in her brand-new role.

Incompatible Monitoring Design of Leader: Lewis's management style and also its incompatibility with the advertising division's function can additionally be viewed as an OB obstacle especially as she has actually been utilized to taking care of concerns in the operations division where employees are educated to focus on procedures and obtain them right. The advertising division on the other hand can be viewed as a group of individuals who are used to being nurtured by Krasnow that focused much more on result than processes.

Interdepartmental Disagreements: Interdepartmental disagreements in between 3 departments, advertising and marketing, merchandizing and procedures specifically over the allocation of the marketing mix can be determined as an additional OB issue. The marketing division does not share the exact same vision as the other two departments concerning the aloocation of the marketing mix twoards promos and advertsing, the merchandizing and also operations divisions do not agree over the marketing mix appropriation amongst one an additional either.

Fragmentation in Marketing Department: Fragmentation between the marketing and advertising departments can be determined as one more OB problem which could require additional attention. The reality that the marketing and advertising areas in the advertising department are separated is preventing both departments from acquiring from each various other's experience as well as proficiency. Combination of advertising with retailing and also procedures would come to be harder if the marketing division itself is degenerated which can be an additional prospective OB worry.

Alibabas Bonds Dilemma Location Timing And Pricing Analysis

Various concepts have been made use of to explain the scenarios to get more quality about the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many managers believe that staffs are passive and also lazy, have little aspiration and also stand up to change. The hard version of this concept highlighted threat, tight controls, threats and also penalties. Over time it creates low performance, refined sabotage as well as rivalry (Bargain, 2003). The circumstance at Alibabas Bonds Dilemma Location Timing And Pricing is not entirely complying with Concept X, it can be seen that new hires are finding this atmosphere instead stressful which might eventually lead to a greater disposition of the administration towards Concept X. As per McGregor's advocated view, which he called Theory Y, the important job of the management is to set up business problems so that individuals can attain their very own objectives best by guiding their initiatives towards organizational rewards. If individuals find no contentment in their work, the management would have little selection however to depend on concept X and outside control (Offer, 2003). Even while assessing Lewis's monitoring style, theory X may have been suitable in the operations department somewhat however the Advertising and marketing division would certainly require reliance on Concept Y to get the imagination and also creativity from the groups.

Tuckman's Team effort Concept: As far as Lewis's issue regarding bringing consistency between the marketing and advertising department is worried, this would initially result in conflict as gone over by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's theory shown in appendix 3, throughout the first stage of group growth, people may not bond, as they are active locating their area in the team. By incorporating the advertising and marketing division's work, there might be the same initial detach which can result in the second phase of 'storming' where the teams challenge each other. Nevertheless, it is only throughout the third stage or 'norming' when they would collaborate to share ideas before the group can cause harmony in the fourth phase 'performing'.

Bridges' Transition Model: As per William Bridge's theory (appendix 4), people are fairly uncomfortable with change, which is apparent by the situation at Alibabas Bonds Dilemma Location Timing And Pricing The situation can be seen as a typical program of life if is examined according to Bridge's concept where he describes that people undergo 3 stages of transition when they experience adjustment. 'End, losing as well as Letting go', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When individuals are presented with change, they go into phase one therefore there might be feelings like unhappiness, uncertainty, aggravation, temper, worry, rejection and also disorientation.The scenario at the marketing division of Alibabas Bonds Dilemma Location Timing And Pricing is comparable so Lewis can obtain comfy with the concept that it is not extraordinary habits. In the second phase, there may be a demand to bridge the gap between the new and old culture so Lewis might have to encounter this experience as soon as Krasnow leaves. There might be reduced morale and reduced efficiency at this phase which must not be taken as a trouble. It is throughout this stage that Lewis will certainly have to give support to the division to ensure that they can discover a sense of direction. It can be seen just how Krasnow has actually already made this transition simpler by making Lewis obtain involved in the division a year before his actual departure. According to Bridges' Design, phase 3 will certainly cause openness to understanding, High power and also dedication as individuals will welcome the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has reviews the relevance of 'safety needs as being a lower degree need of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel secure as well as out of danger' is at the 2nd level of requirements. Prior to a worker can be made to develop psychologically, he needs to have his 'Physical 'as well as 'Security' requires fulfilled.

SWOT Analysis for Alibabas Bonds Dilemma Location Timing And Pricing Case Study

Implication of Analysis.

The OB analysis has considered various theories to recognize just how to manage the current situation available. The following 3 alternatives have been recommended to assist Lewis take care of the organizational difficulties in the marketing division. Each of these choices has actually been suggested for reducing the change required to bring the advertising division in accordance with the requirements of the market and for making the social modification that would follow as soon as the present leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting as well as Manufacturing functions. Combination of Advertising with Procedures.

Examination of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merger days has experience in business-to-business advertising along with agency and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to take care of both marketing as well as advertising features.

The benefit of this method is that it will incorporate the two functions while minimizing the demand for employing an added resource for advertising. In addition to this, Lewis would be heading the advertising and marketing division as well as in any case her replacement would be needed for the current duty that she is doing. The drawback of this choice is that outside hiring might bring about animosity from internal employees who may be considering the placement of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and Manufacturing: Offered the competitive stress and also premium quality work called for from the advertising agency, it is recommended that Lewis ought to allow the production device to be a different function from the advertising system. Because the majority of ad agency had these 2 features as separate systems, it makes even more sense to comply with the standard. Both features might be able to concentrate on their core triggers more successfully. Nonetheless, the disadvantage of this method would be that extra costs would have to be birthed for establishing different production features. A production head may have to be hired which can increase overheads for the company.

Combination of Advertising And Marketing with Procedures: Given that Lewis is already taking treatment of the advertising and procedures departments at the same time; it makes feeling to incorporate the two features because she has been efficiently taking treatment of both ends. The reality that Lewis has to adjust her monitoring style for the advertising department recommends that these 2 departments would be culturally diverse.


An examination of the 3 alternatives shows that combination of advertising and also procedures would certainly not be a feasible action because of the large differences between the two divisions despite the fact that currently Lewis is dealing with both. While splitting up of the production function may have been a favorable action for the advertising and marketing department, the truth that it would certainly suggest placing a 3rd feature under Lewis's wing implies this should be prevented. The integration of the marketing division is the very best option in terms of obtaining the optimal results from the division. An activity prepare for this choice is talked about below.

Action Strategy.
Lewis will take over the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

Production function will certainly continue to be part of marketing under advertising feature.

Lewis will divide herself from operations.

A democratic leadership style with worker empowerment will be used in advertising and marketing department.

Open door plan and also emphasis on cross departmental communication will certainly be targeted at eliminating disharmony.

Backup strategy.

If the integration does not work out as prepared, a backup plan would certainly comply with which would divide the manufacturing feature from the advertising and marketing feature to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising and marketing department without an SVP. In that case the production feature will absolutely be separated by placing it under an SVP production.