An Investment Analysis Of Honduran Teak Plantations Case Study Solution


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An Investment Analysis Of Honduran Teak Plantations Case Study Solution

Background and Facts

An Investment Analysis Of Honduran Teak Plantations an office products retailer for little and medium sized organisations has lately been involved in planning for a merger with its competitor Home Deport, which has actually impacted efficiency degrees in departmentswith the elderly manager involved in lawful complications presented by the government Trade Payment. With the Marketing Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the existing head of operations has been asked to take the function in the future. With challenges in the type of a possible cultural modification and also low worker morale, the company is in need of a complete reengineering effort at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The potential social change at the marketing division of An Investment Analysis Of Honduran Teak Plantations is enhancing unpredictability in the workplace causing various challenges for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting calculated decisions since Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Trade Payment's intervention in the process. Offered the fact that the shop has a worldwide visibility with branches in UK, U.S.A., Canada as well as Germany, political consider each of these nations may be able to affect efficiency or calculated goals. Federal Profession Commission's antitrust fit versus the merging occupied valuable time of the organization's elderly monitoring recommending that 'political' factors can have significant implications for a global business.

Economic Factors: Financial factors such as the introduction of small businesses in the international scenario suggest that An Investment Analysis Of Honduran Teak Plantations is growing in an atmosphere where there is possible development of companies. Truth that shop consumers are mainly looking for office materials for home offices suggests that the market has a rising fad of business owners and residence based services.

Social factors: Social patterns in the economic climate show that customers are searching for comfort in addition to eye-catching prices. Marketing research demonstrates how the client for An Investment Analysis Of Honduran Teak Plantations does not have recognition about finding options which can provide a combination of convenience as well as low costs.

Technological factors: Innovation plays an essential duty in An Investment Analysis Of Honduran Teak Plantations's organisation strategy particularly as the organization is piloting Technology facilities which would use innovation sales as well as support in the kind of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Organizational Habits concerns can be seen in An Investment Analysis Of Honduran Teak Plantations's case as highlighted in this area.

Worries about cultural change: There is uneasiness concerning a cultural modification that would occur as soon as Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising with the majority of the employee currently showing unhappiness over this prospective move. This predicted change has developed tension in the workplace which has been coupled with the previous stress of preparing the company for a possible merger with House Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is lack of workers that can match the stressful setting of a fast-paced organization. Not just does this lead to trouble in discovering the appropriate people, it places stress on new hires as can not stand up to the pace and also stress that the company expects them to bear.

Twin Coverage Lines: Newbies discover this organizational culture difficult and tough to deal with specifically as dotted line relationships are suggested to be weaker in general and unbiased setup and performance examination is still done by the strong line supervisor. This suggests that newcomers might shed quality regarding their corresponding roles and also objectives particularly as dotted line reporting does not keep them in direct interaction with the strong line managers.

Bitterness 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 latter would certainly take Krasnow's setting came as an impact to her morale. Lewis might have been qualified and suitable for the task yet the reality that Kransnow's separation would make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Concern & Job Insecurity: Worry and also instability can be identified as 2 significant issues that Lewis would be dealing with specifically as the merging has currently be terminated and also 2 elderly executives of the advertising department would be leaving. The whole obligation of the department would be falling on Lewis's shoulders who would not just supervise of brining concerning a cultural adjustment yet would certainly additionally have to show herself in her brand-new role.

Inappropriate Administration Style of Leader: Lewis's management style and its conflict with the marketing division's role can additionally be viewed as an OB obstacle particularly as she has actually been used to managing issues in the operations department where workers are instructed to focus on processes and also obtain them right. The advertising division on the various other hand can be viewed as a team of individuals that are used to being nurtured by Krasnow who concentrated extra on outcome than processes.

Interdepartmental Disputes: Interdepartmental disagreements between 3 departments, advertising and marketing, merchandizing and also procedures specifically over the allocation of the advertising mix can be identified as one more OB concern. The marketing department does not share the exact same vision as the other 2 departments relating to the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing as well as operations divisions do not concur over the advertising and marketing mix allocation amongst one an additional either.

Disintegration in Marketing Department: Disintegration in between the marketing and advertising departments can be identified as an additional OB concern which can require further focus. The reality that the marketing and advertising areas in the marketing department are disconnected is preventing both departments from getting from each various other's experience and competence. Assimilation of advertising and marketing with retailing and also operations would certainly become harder if the marketing department itself is broken down which can be one more prospective OB issue.

An Investment Analysis Of Honduran Teak Plantations Analysis

Various concepts have actually been used to discuss the situations to obtain additional clearness about the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most managers believe that subordinates are easy and also careless, have little aspiration and also withstand modification. The tough variation of this concept stressed coercion, tight controls, dangers and punishments. In time it produces reduced performance, subtle sabotage and also rivalry (Deal, 2003). Although the circumstance at An Investment Analysis Of Honduran Teak Plantations is not totally following Theory X, it can be seen that brand-new hires are discovering this environment rather stressful which might at some point result in a greater disposition of the management towards Theory X. According to McGregor's supported view, which he called Theory Y, the important task of the monitoring is to set up organizational conditions to make sure that people can attain their own objectives best by routing their initiatives in the direction of organizational benefits. If individuals find no satisfaction in their work, the management would certainly have little selection yet to rely upon theory X and outside control (Deal, 2003). Even while analyzing Lewis's monitoring style, theory X might have appropriated in the procedures division to some extent yet the Marketing division would certainly call for dependence on Concept Y to get the creative thinking and also originality from the groups.

Tuckman's Teamwork Concept: As far as Lewis's concern regarding bringing consistency between the advertising and marketing and also advertising department is concerned, this would initially lead to conflict as discussed by Bruce Tuckman in his 'Teamwork Theory'. By combining the advertising and marketing and marketing division's work, there might be the same first detach which could lead to the 2nd stage of 'storming' where the teams challenge one an additional.

Bridges' Transition Model: As per William Bridge's theory (appendix 4), individuals are rather awkward with modification, which is apparent by the situation at An Investment Analysis Of Honduran Teak Plantations The circumstance can be seen as a regular training course of life if is examined as per Bridge's theory where he discusses that people experience three phases of change when they experience modification. 'Closing, losing as well as Letting go', The Neutral Area and 'The New Starting' (Bridges, 2004). When people exist with change, they get in stage one and so there might be feelings like despair, uncertainty, aggravation, temper, anxiety, rejection and disorientation.The circumstance at the marketing department of An Investment Analysis Of Honduran Teak Plantations is similar so Lewis can obtain comfortable with the concept that it is not extraordinary habits. In the second stage, there might be a demand to connect the space between the new and also old culture so Lewis may have to face this experience once Krasnow leaves. There may be reduced spirits and reduced productivity at this phase which ought to not be taken as a problem. It is throughout this phase that Lewis will have to provide advice to the division to ensure that they can find a sense of direction. It can be seen how Krasnow has actually already made this change less complicated by making Lewis get involved in the division a year prior to his real departure. Based on Bridges' Version, phase 3 will certainly bring about openness to knowing, High energy as well as commitment as individuals will embrace the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Need power structure: The OB problem pertaining to instability at the work environment has been activated firstly by the adjustment in monitoring and also second of all by the reality that the merging will certainly no longer be started. Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has goes over the relevance of 'protection needs as being a reduced level requirement of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the need to really feel safe as well as unharmed' goes to the 2nd degree of needs. Before an employee can be made to create mentally, he requires to have his 'Physical 'as well as 'Security' needs fulfilled. This shows that unless the employees are made to really feel safe concerning their present work standing in An Investment Analysis Of Honduran Teak Plantations they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for An Investment Analysis Of Honduran Teak Plantations Case Study

Implication of Analysis.

The OB analysis has actually considered various theories to comprehend exactly how to deal with the current circumstance at hand. The following three choices have been proposed to help Lewis handle the organizational challenges in the advertising and marketing department. Each of these choices has been suggested for easing the transition required to bring the advertising and marketing department according to the requirements of the marketplace and for making the social change that would adhere to when the current leader leaves.

Combination of marketing and advertising functions. Dividing Adverting as well as Manufacturing features. Integration of Advertising with Workflow.

Analysis of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merger days has expertise in business-to-business advertising and marketing along with company as well as retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to handle both advertising and marketing as well as advertising and marketing features.

The benefit of this approach is that it will incorporate both functions while minimizing the need for employing an extra source for advertising and marketing. Lewis would certainly be heading the advertising and marketing department as well as in any kind of case her replacement would be needed for the current duty that she is doing. The downside of this choice is that outside hiring might produce bitterness from interior personnel who may be looking at the position of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and also Manufacturing: Given the competitive pressures as well as high top quality work needed from the marketing agency, it is advised that Lewis needs to permit the production system to be a separate function from the marketing device. Considering that many advertising and marketing firms had these 2 functions as different systems, it makes even more feeling to adhere to the standard.

Integration of Marketing with Procedures: Considering that Lewis is already taking treatment of the advertising and marketing and also procedures divisions all at once; it makes feeling to integrate the 2 features since she has been efficiently taking care of both ends. The reality that Lewis has to adjust her monitoring design for the marketing division recommends that these two divisions would be culturally diverse.


An evaluation of the three choices suggests that combination of advertising and marketing as well as operations would certainly not be a practical move because of the huge differences between both departments although that presently Lewis is managing both. While separation of the manufacturing feature may have been a beneficial action for the advertising department, the reality that it would suggest positioning a third feature under Lewis's wing indicates this ought to be avoided. The combination of the advertising division is the very best option in terms of getting the optimal arise from the division. An action prepare for this option is gone over listed below.

Activity Plan.
Lewis will certainly take over the function of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would be merged.

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

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

Lewis will divide herself from operations.

A democratic management style with worker empowerment will be made use of in advertising and marketing department.

Open up door policy and also focus on cross department interaction will be targeted at getting rid of disharmony.

Backup plan.

If the assimilation does not work out as planned, a contingency strategy would follow which would certainly separate the manufacturing feature from the advertising and marketing feature to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will be heading the advertising department without an SVP. In that case the manufacturing function will absolutely be separated by placing it under an SVP production.