Menu

Apollo Tyres Investment Decision Dilemma Case Study Solution

CASE SOLUTION

Home >> Harvard >> Apollo Tyres Investment Decision Dilemma >>

Apollo Tyres Investment Decision Dilemma Case Study Help

Background and Facts

Apollo Tyres Investment Decision Dilemma an office supplies store for small as well as moderate sized businesses has just recently been associated with preparing for a merger with its competitor Residence Deport, which has actually affected efficiency degrees in departmentswith the elderly manager involved in lawful difficulties presented by the federal Profession Commission. With the Marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the current head of operations has been asked to take the function in the near future. With challenges in the form of a prospective social adjustment and also reduced staff member spirits, the company is in need of a total reengineering initiative at the marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The possible social adjustment at the advertising division of Apollo Tyres Investment Decision Dilemma is enhancing unpredictability in the working environment 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 affecting tactical choices because Stapes Inc. had to abandon its plans of combining with Workplace Deport after the Federal Profession Payment's treatment while doing so. Given the fact that the shop has a worldwide presence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations might have the ability to influence performance or tactical goals. Federal Profession Compensation's antitrust suit against the merging used up beneficial time of the organization's senior administration recommending that 'political' factors can have serious effects for a global organisation.

Economic Factors: Financial factors such as the introduction of small companies in the international situation recommend that Apollo Tyres Investment Decision Dilemma is prospering in an atmosphere where there is prospective growth of organisations. In addition to this, reality that store customers are mostly trying to find workplace materials for home offices suggests that the market has a climbing trend of entrepreneurs as well as home businesses.

Social factors: Social fads in the economy reveal that customers are trying to find ease as well as eye-catching prices. Market research shows how the consumer for Apollo Tyres Investment Decision Dilemma does not have recognition concerning discovering services which can provide a combination of benefit as well as affordable.

Technical factors: Modern technology plays a crucial role in Apollo Tyres Investment Decision Dilemma's organisation approach specifically as the company is piloting Technology facilities which would certainly offer technology sales and also assistance in the kind of memory upgrades, outer installments. (Summary of INSECT in appendix 2).

OB Issues and Effects.

A number of underlying Organizational Behavior concerns can be seen in Apollo Tyres Investment Decision Dilemma's case as highlighted in this area.

Worries about cultural adjustment: There is apprehension regarding a social change that would certainly occur when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Marketing with most of the employee currently revealing discontent over this potential step. This predicted adjustment has produced anxiety in the work environment which has been coupled with the past anxiety of preparing the firm for a potential merging with Home Deport.
Pest Analysis
Stressful Job Environment for Newcomers: There is shortage of employees that can match the demanding setting of a busy company. Not only does this cause difficulty in locating the right people, it places anxiety on new hires as can not hold up against the pace and also stress that the organization expects them to bear.

Dual Reporting Lines: Newbies discover this business culture troublesome and also tough to manage especially as dotted line partnerships are indicated to be weak generally and also unbiased setup as well as performance evaluation is still done by the solid line manager. This suggests that newbies could shed quality about their particular duties and also objectives especially as dotted line coverage does not maintain them in straight communication with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles despite the fact that it had been guessed that the last would certainly take Krasnow's setting came as a strike to her spirits. Lewis might have been qualified and suitable for the task however the reality that Kransnow's separation would make Coles a straight record to Lewis may have been the factor for Coles' resignation from services.

Concern & Job Insecurity: Anxiety and insecurity can be determined as two significant issues that Lewis would be handling especially as the merging has actually currently be terminated and also two elderly execs of the marketing department would certainly be leaving. The entire duty of the department would be falling on Lewis's shoulders who would certainly not simply supervise of brining regarding a cultural adjustment yet would certainly additionally have to verify herself in her brand-new duty.

Incompatible Monitoring Design of Leader: Lewis's administration design and also its conflict with the advertising department's function can additionally be seen as an OB difficulty specifically as she has been used to taking care of concerns in the procedures department where personnel are taught to focus on processes and obtain them. The advertising and marketing division on the various other hand can be seen as a team of people that are utilized to being supported by Krasnow who concentrated a lot more on outcome than processes.

Interdepartmental Disputes: Interdepartmental disagreements between three divisions, marketing, merchandizing and procedures specifically over the allocation of the advertising and marketing mix can be identified as an additional OB problem. The marketing division does not share the very same vision as the other 2 divisions regarding the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and procedures divisions do not agree over the marketing mix allotment amongst one an additional either.

Disintegration in Advertising And Marketing Department: Disintegration between the marketing and advertising departments can be determined as another OB concern which could need further attention. The reality that the advertising and marketing areas in the advertising department are separated is protecting against both divisions from acquiring from each other's experience as well as knowledge. Integration of advertising and marketing with retailing and also procedures would come to be more difficult if the marketing division itself is degenerated which can be another possible OB problem.

Apollo Tyres Investment Decision Dilemma Analysis

Numerous theories have actually been made use of to clarify the situations to obtain further quality concerning the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers believe that subordinates are passive and also lazy, have little aspiration and resist change. The scenario at Apollo Tyres Investment Decision Dilemma is not totally complying with Theory X, it can be seen that new hires are finding this atmosphere rather demanding which might at some point lead to a greater disposition of the management towards Theory X. Even while examining Lewis's administration style, theory X may have been suitable in the procedures division to some extent however the Marketing department would certainly require reliance on Concept Y in order to obtain the imagination as well as originality from the teams.

Tuckman's Teamwork Concept: As much as Lewis's issue regarding bringing harmony in between the marketing and also marketing division is concerned, this would at first lead to contrast as talked about by Bruce Tuckman in his 'Synergy Concept'. By integrating the advertising and marketing and also advertising and marketing division's work, there might be the exact same preliminary detach which might lead to the 2nd phase of 'storming' where the teams test one an additional.

When people are presented with modification, they enter stage one and so there may be emotions like despair, unpredictability, disappointment, temper, concern, denial and also disorientation.The scenario at the marketing department of Apollo Tyres Investment Decision Dilemma is comparable so Lewis can get comfy with the suggestion that it is not extraordinary habits. It is throughout this phase that Lewis will certainly have to provide advice to the division so that they can locate a feeling of instructions. It can be seen exactly how Krasnow has actually currently made this transition simpler by making Lewis get included in the division a year before his real separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has talks about the relevance of 'safety and security requires as being a reduced degree requirement of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel safe and secure and also out of danger' is at the 2nd level of demands. Prior to a staff member can be made to develop emotionally, he needs to have his 'Physical 'and 'Safety and security' needs fulfilled.

SWOT Analysis for Apollo Tyres Investment Decision Dilemma Case Study



Implication of Analysis.

The OB analysis has looked at different theories to understand just how to manage the existing situation available. The adhering to three choices have been suggested to assist Lewis deal with the organizational difficulties in the marketing division. Each of these alternatives has actually been suggested for relieving the change required to bring the marketing division in accordance with the demands of the marketplace and for making the cultural adjustment that would adhere to when the existing leader leaves.

Integration of marketing and advertising functions. Dividing Adverting and Production functions. Combination of Advertising with Workflow.

Assessment of Alternatives.

Integration of Advertising And Marketing & Advertising Functions: The internal advertising and marketing agency of Apollo Tyres Investment Decision Dilemma is currently strength for the company in terms of saving up on overheads connected to marketing as well as promotion. Considering that no brand-new recruitment has been done after Bridget Cole's departure with the coverage line being straight appointed to Krasnow for the advertising and marketing function, this is a beneficial opportunity for incorporating the advertising and marketing features. Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merger days has competence in business-to-business advertising and marketing in addition to agency as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to take care of both advertising and marketing features.

The benefit of this method is that it will incorporate the two functions while minimizing the demand for employing an added source for advertising and marketing. Lewis would certainly be heading the advertising division and in any case her replacement would be required for the present role that she is executing. The drawback of this option is that outside hiring might bring about resentment from internal employees who might be considering the position of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and Production: Provided the affordable stress and also high quality work called for from the advertising and marketing firm, it is advised that Lewis should enable the production device to be a different function from the advertising device. Since most advertising firms had these two features as separate devices, it makes more sense to follow the norm.

Integration of Marketing with Procedures: Given that Lewis is currently caring for the advertising and operations divisions simultaneously; it makes sense to incorporate both functions given that she has actually been effectively caring for both ends. The reality that both departments already have significant distinctions over allowance of sources recommends that this assimilation may have the ability to cause harmony particularly as Lewis would be heading both ends.However there are various drawbacks of this step particularly as it would certainly put way too much concern over Lewis's shoulders. The fact that Lewis needs to adjust her administration style for the advertising and marketing department recommends that these two divisions would certainly be culturally varied. Lewis might not be able to use one type of management style to both divisions which could result in ineffectiveness in either one of the two functions.

Recommendation.



An examination of the 3 choices suggests that combination of advertising and marketing as well as operations would not be a possible step due to the huge distinctions between the 2 divisions despite the reality that currently Lewis is handling both. While separation of the production function may have been a favorable relocation for the advertising division, the fact that it would certainly imply positioning a 3rd function under Lewis's wing implies this should be prevented.

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

Advertising and Marketing functions would certainly be merged.

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

Production function will remain part of marketing under marketing feature.

Lewis will certainly divide herself from operations.

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

Open door policy and emphasis on cross department communication will be focused on eliminating discord.

Contingency plan.

If the assimilation does not work out as prepared, a backup strategy would adhere to which would separate the manufacturing function from the advertising feature to decrease 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 feature will definitely be separated by putting it under an SVP production.