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Ambuja Cements And Holcim India Merger Case Study Analysis

CASE ANALYSIS

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Ambuja Cements And Holcim India Merger Case Study Solution

Background and Facts

Ambuja Cements And Holcim India Merger an office supplies retailer for small and medium sized organisations has actually lately been involved in preparing for a merger with its competitor House Deport, which has actually influenced efficiency degrees in departmentswith the elderly manager associated with lawful complications put forth by the federal Profession Commission. With the Marketing Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the present head of procedures has been asked to take the duty in the future. With challenges in the form of a prospective cultural adjustment and low worker morale, the company is in need of a complete reengineering effort at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The potential cultural modification at the marketing division of Ambuja Cements And Holcim India Merger is enhancing unpredictability in the working environment bring about various challenges 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 duty in affecting strategic decisions considering that Stapes Inc. needed to desert its strategies of combining with Workplace Deport after the Federal Profession Payment's treatment at the same time. Given the fact that the shop has an international visibility with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries might be able to influence performance or tactical goals. Federal Trade Commission's antitrust match against the merger took up valuable time of the company's senior monitoring suggesting that 'political' factors can have major effects for a worldwide business.

Economic Factors: Financial factors such as the appearance of small businesses in the worldwide scenario recommend that Ambuja Cements And Holcim India Merger is prospering in an environment where there is potential development of businesses. Along with this, fact that shop clients are mostly trying to find workplace materials for office recommends that the market has a rising fad of entrepreneurs and online services.

Social factors: Social fads in the economic climate reveal that clients are trying to find convenience along with eye-catching prices. Marketing research shows how the customer for Ambuja Cements And Holcim India Merger lacks awareness regarding finding services which can supply a combination of comfort as well as affordable.

Technical factors: Modern technology plays an essential duty in Ambuja Cements And Holcim India Merger's business strategy especially as the company is piloting Modern technology facilities which would certainly offer technology sales as well as assistance in the kind of memory upgrades, peripheral setups. (Recap of BUG in appendix 2).

OB Issues and Manifestations.

Numerous underlying Business Behavior issues can be seen in Ambuja Cements And Holcim India Merger's case as highlighted in this area.

Apprehensions about cultural change: There is worry concerning a social change that would occur as soon as Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising And Marketing with most of the personnel already showing discontent over this possible relocation. This predicted change has actually developed anxiety in the office which has actually been coupled with the past tension of preparing the company for a potential merger with House Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is shortage of employees that can match the difficult setting of a fast-paced company. Not only does this result in problem in discovering the ideal people, it places stress on new hires as can not stand up to the rate and also stress that the company anticipates them to bear.

Dual Coverage Lines: Novices discover this organizational culture cumbersome and also tough to deal with specifically as dotted line partnerships are meant to be weak as a whole as well as unbiased setup and also performance assessment is still done by the solid line manager. This indicates that beginners might shed quality about their corresponding roles and also goals particularly as dotted line coverage does not maintain them in direct communication 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 been hypothesized that the last would certainly take Krasnow's placement came as an impact to her spirits. Lewis may have been qualified and also proper for the work however the truth that Kransnow's departure would make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Worry & Work Insecurity: Fear and also insecurity can be determined as 2 major issues that Lewis would be managing particularly as the merging has currently be cancelled and two senior execs of the advertising and marketing department would be leaving. The whole duty of the department would certainly be falling on Lewis's shoulders who would not simply supervise of brining regarding a social change however would certainly additionally have to prove herself in her new duty.

Inappropriate Monitoring Style of Leader: Lewis's monitoring design as well as its conflict with the advertising department's duty can also be viewed as an OB difficulty specifically as she has actually been made use of to taking care of problems in the operations department where personnel are shown to focus on processes and also get them right. The advertising and marketing department on the various other hand can be viewed as a group of individuals that are used to being nurtured by Krasnow that focused more on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental disputes in between 3 divisions, advertising and marketing, merchandizing as well as operations respectively over the allowance of the advertising and marketing mix can be recognized as an additional OB issue. Although the advertising and marketing division does not share the same vision as the various other two divisions concerning the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing as well as operations departments do not agree over the marketing mix allotment amongst each other either.

Disintegration in Advertising Department: Fragmentation in between the marketing and advertising divisions can be determined as an additional OB issue which can require additional focus. The truth that the advertising and marketing sections in the advertising and marketing division are detached is preventing both departments from gaining from each other's experience as well as knowledge. Combination of marketing with retailing and also procedures would certainly end up being more difficult if the advertising department itself is broken down which can be one more possible OB problem.

Ambuja Cements And Holcim India Merger Analysis

Various theories have been used to discuss the scenarios to obtain more clearness concerning the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of supervisors think that staffs are easy and also careless, have little passion and resist adjustment. The situation at Ambuja Cements And Holcim India Merger is not entirely complying with Theory X, it can be seen that brand-new hires are discovering this atmosphere rather stressful which may ultimately lead to a higher disposition of the administration towards Theory X. Even while analyzing Lewis's management style, concept X might have been suitable in the procedures division to some extent but the Advertising and marketing department would require dependence on Theory Y in order to obtain the creative thinking as well as originality from the groups.

Tuckman's Teamwork Concept: As much as Lewis's issue concerning bringing harmony between the marketing and advertising and marketing division is concerned, this would at first lead to contrast as talked about by Bruce Tuckman in his 'Teamwork Concept'. By combining the advertising and advertising and marketing division's job, there may be the same initial detach which can lead to the 2nd stage of 'storming' where the groups test one another.

When individuals are offered with change, they get in stage one and also so there may be emotions like unhappiness, unpredictability, irritation, temper, fear, denial and also disorientation.The scenario at the marketing department of Ambuja Cements And Holcim India Merger is similar so Lewis can obtain comfortable with the suggestion that it is not phenomenal behavior. It is throughout this stage that Lewis will certainly have to provide guidance to the division so that they can locate a sense of instructions. It can be seen how Krasnow has already made this shift less complicated by making Lewis obtain involved in the division a year before his actual departure.
Vrio Analysis
Maslow's Demand hierarchy: The OB concern related to instability at the office has been set off firstly by the change in administration and also second of all by the truth that the merger will no more be launched. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has goes over the value of 'protection needs as being a reduced degree demand of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel safe and secure as well as out of danger' goes to the 2nd level of requirements. Prior to a staff member can be made to develop psychologically, he requires to have his 'Physiological 'as well as 'Security' requires met. This suggests that unless the employees are made to really feel protected about their existing work status in Ambuja Cements And Holcim India Merger they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Ambuja Cements And Holcim India Merger Case Study



Effects of Analysis.

The OB analysis has actually taken a look at numerous concepts to understand exactly how to manage the present situation handy. The following 3 options have been proposed to help Lewis deal with the organizational obstacles in the marketing department. Each of these options has actually been suggested for relieving the shift required to bring the marketing division in accordance with the demands of the market and also for making the social adjustment that would follow as soon as the existing leader leaves.

Integration of marketing and advertising features. Separating Adverting and also Production functions. Integration of Marketing with Procedures.

Evaluation of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merging days has know-how in business-to-business marketing along with company and retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to handle both advertising and marketing and also advertising and marketing functions.

The advantage of this technique is that it will certainly incorporate the two features while lowering the demand for working with an added resource for advertising and marketing. Lewis would be heading the marketing division and also in any type of case her substitute would certainly be required for the current duty that she is carrying out. The drawback of this choice is that outside hiring might cause resentment from interior employees that might be looking at the position of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and Manufacturing: Given the affordable pressures and high top quality work needed from the advertising agency, it is suggested that Lewis must permit the production unit to be a separate feature from the marketing unit. Because a lot of advertising and marketing agencies had these 2 functions as different units, it makes even more sense to follow the standard.

Assimilation of Advertising with Operations: Because Lewis is already caring for the advertising and marketing and operations divisions at the same time; it makes sense to integrate both functions since she has been effectively dealing with both ends. The reality that the two departments already have major distinctions over appropriation of sources suggests that this assimilation may be able to produce consistency particularly as Lewis would be heading both ends.However there are various downsides of this step particularly as it would certainly put excessive concern over Lewis's shoulders. The fact that Lewis needs to adjust her management design for the marketing division suggests that these 2 divisions would certainly be culturally varied. Lewis may not be able to use one kind of leadership design to both divisions which might result in ineffectiveness in either one of the two functions.

Suggestion.



An evaluation of the three choices suggests that integration of advertising and marketing and also operations would certainly not be a practical action due to the large differences in between the 2 divisions despite the truth that presently Lewis is managing both. While separation of the manufacturing function might have been a desirable relocation for the marketing department, the truth that it would indicate positioning a 3rd function under Lewis's wing indicates this ought to be prevented.

Activity Strategy.
Recommendation
Lewis will certainly take over the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

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

Lewis will certainly divide herself from procedures.

A democratic management design with staff member empowerment will certainly be used in advertising department.

Open door plan as well as emphasis on cross department communication will certainly be targeted at eliminating discord.

Backup strategy.

If the assimilation does not exercise as intended, a backup strategy would certainly follow which would certainly separate the manufacturing function from the marketing feature to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the marketing department without an SVP. In that case the production function will definitely be separated by positioning it under an SVP production.