Argentinas Ypf Sociedad Anonima B Case Study Analysis


Home >> Harvard >> Argentinas Ypf Sociedad Anonima B >>

Argentinas Ypf Sociedad Anonima B Case Study Analysis

Background and Facts

Argentinas Ypf Sociedad Anonima B an office materials merchant for little and also medium sized businesses has actually just recently been associated with planning for a merging with its competitor Home Deport, which has actually affected performance degrees in departmentswith the elderly supervisor associated with legal problems presented by the government Trade Commission. With the Advertising and marketing Head advancing the information of his separation from the business in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the role in the future. With challenges in the form of a possible social adjustment and also low employee spirits, the company is in need of a complete reengineering initiative at the advertising and marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising and marketing department of Argentinas Ypf Sociedad Anonima B is increasing uncertainty in the workplace leading to various obstacles 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 major role in influencing calculated choices because Stapes Inc. needed to abandon its strategies of combining with Workplace Deport after the Federal Profession Compensation's intervention at the same time. Provided the fact that the store has a worldwide existence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these nations might be able to influence efficiency or calculated objectives. Federal Profession Payment's antitrust match against the merger took up valuable time of the organization's elderly administration suggesting that 'political' factors can have serious implications for an international organisation.

Economic Factors: Financial factors such as the development of local business in the international scenario suggest that Argentinas Ypf Sociedad Anonima B is flourishing in an environment where there is possible development of services. Reality that shop clients are mostly looking for office products for house workplaces recommends that the market has a rising trend of entrepreneurs as well as house based services.

Social factors: Social trends in the economic climate reveal that customers are looking for comfort in addition to eye-catching rates. Market research demonstrates how the client for Argentinas Ypf Sociedad Anonima B lacks awareness regarding discovering options which can use a combination of ease as well as inexpensive.

Technological factors: Innovation plays a crucial duty in Argentinas Ypf Sociedad Anonima B's company approach particularly as the company is piloting Technology facilities which would use innovation sales and support in the type of memory upgrades, outer installations. (Summary of BUG in appendix 2).

OB Issues as well as Effects.

Several underlying Organizational Habits issues can be seen in Argentinas Ypf Sociedad Anonima B's case as highlighted in this section.

Concerns regarding social modification: There is apprehension concerning a cultural modification that would happen as soon as Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with a lot of the employee already revealing discontent over this prospective step. This anticipated modification has actually developed stress in the office which has been combined with the previous stress of preparing the firm for a prospective merging with House Deport.
Pest Analysis
Demanding Work Atmosphere for Newcomers: There is shortage of employees that can match the difficult environment of a hectic company. Not only does this bring about difficulty in discovering the best people, it puts stress and anxiety on brand-new hires as can not endure the pace as well as pressure that the company expects them to birth.

Double Coverage Lines: Newcomers find this organizational society difficult and also difficult to handle especially as populated line connections are meant to be weak as a whole and unbiased setting as well as efficiency assessment is still done by the solid line manager. This implies that newcomers might shed clarity regarding their particular roles and purposes especially as populated line reporting does not keep them in straight interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles even though it had been speculated that the last would certainly take Krasnow's setting came as a blow to her spirits. Lewis may have been qualified and also suitable for the task but the reality that Kransnow's separation would make Coles a straight report to Lewis may have been the reason for Coles' resignation from solutions.

Worry & Work Instability: Anxiety and insecurity can be determined as 2 major issues that Lewis would certainly be taking care of particularly as the merger has actually currently be terminated as well as 2 elderly execs of the advertising department would certainly be leaving. The whole responsibility of the division would be falling on Lewis's shoulders that would certainly not just be in charge of brining about a social adjustment however would also need to verify herself in her new role.

Incompatible Management Style of Leader: Lewis's monitoring design and its conflict with the advertising division's duty can likewise be viewed as an OB difficulty particularly as she has been made use of to dealing with concerns in the operations department where personnel are taught to concentrate on procedures and get them right. The advertising division on the other hand can be viewed as a group of people that are utilized to being nurtured by Krasnow who focused extra on output than procedures.

Interdepartmental Differences: Interdepartmental arguments between 3 divisions, advertising, merchandizing and also operations specifically over the allowance of the marketing mix can be determined as another OB problem. Although the marketing department does not share the very same vision as the other two departments pertaining to the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing as well as operations departments do not concur over the marketing mix allotment among each other either.

Disintegration in Marketing Department: Fragmentation in between the marketing and advertising divisions can be determined as another OB problem which could require more interest. The fact that the advertising and marketing areas in the marketing division are detached is protecting against both divisions from gaining from each various other's experience and knowledge. Integration of advertising with retailing and operations would certainly end up being more difficult if the advertising and marketing department itself is degenerated which can be one more possible OB problem.

Argentinas Ypf Sociedad Anonima B Analysis

Numerous concepts have actually been used to clarify the situations to get more clearness regarding the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most supervisors think that juniors are easy and also lazy, have little passion and stand up to change. The circumstance at Argentinas Ypf Sociedad Anonima B is not entirely following Concept X, it can be seen that brand-new hires are locating this setting instead demanding which might eventually lead to a better disposition of the monitoring towards Theory X. Even while evaluating Lewis's administration style, theory X might have been appropriate in the operations division to some extent but the Advertising and marketing department would certainly need reliance on Concept Y in order to obtain the creative thinking as well as creativity from the groups.

Tuckman's Synergy Concept: As far as Lewis's concern concerning bringing harmony between the advertising and marketing department is concerned, this would initially lead to contrast as reviewed by Bruce Tuckman in his 'Synergy Theory'. By incorporating the marketing as well as advertising and marketing department's work, there may be the exact same preliminary detach which might lead to the 2nd phase of 'storming' where the groups challenge one another.

When people are provided with change, they enter stage one and so there might be emotions like despair, uncertainty, disappointment, temper, anxiety, denial and also disorientation.The situation at the advertising and marketing division of Argentinas Ypf Sociedad Anonima B is similar so Lewis can obtain comfy with the suggestion that it is not amazing actions. It is during this phase that Lewis will have to provide assistance to the department so that they can locate a feeling of instructions. It can be seen just how Krasnow has actually already made this change simpler by making Lewis get entailed in the division a year before his real separation.
Vrio Analysis
Maslow's Requirement power structure: The OB concern pertaining to instability at the office has actually been caused firstly by the modification in management as well as secondly by the truth that the merger will certainly no longer be initiated. Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has discusses the importance of 'security needs as being a reduced level need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel protected as well as out of danger' is at the 2nd degree of demands. Before an employee can be made to create mentally, he requires to have his 'Physiological 'and 'Safety and security' requires met. This suggests that unless the workers are made to really feel protected about their present employment standing in Argentinas Ypf Sociedad Anonima B they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Argentinas Ypf Sociedad Anonima B Case Study

Ramification of Analysis.

The OB analysis has actually looked at numerous theories to recognize just how to manage the present circumstance handy. The adhering to three options have been suggested to assist Lewis manage the organizational difficulties in the marketing division. Each of these options has actually been recommended for relieving the transition required to bring the advertising and marketing department in line with the requirements of the market as well as for making the social modification that would certainly follow as soon as the existing leader leaves.

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

Assessment of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis during the earlier merger days has expertise in business-to-business marketing along with company as well as retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to manage both marketing and also marketing functions.

The advantage of this technique is that it will certainly integrate the two functions while reducing the requirement for hiring an additional resource for advertising. Along with this, Lewis would be heading the advertising department as well as in any case her substitute would be required for the present function that she is executing. The downside of this choice is that external hiring might cause animosity from interior employees that may be looking at the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and also Production: Offered the affordable stress as well as excellent quality job required from the advertising agency, it is suggested that Lewis ought to permit the manufacturing unit to be a separate function from the advertising system. Considering that a lot of advertising agencies had these two features as separate systems, it makes even more feeling to comply with the norm. Both functions might be able to focus on their core activates more effectively. The negative aspect of this technique would certainly be that extra prices would certainly have to be birthed for establishing up separate manufacturing functions. In addition to this, a production head might have to be employed which can enhance expenses for the organization.

Combination of Advertising And Marketing with Procedures: Because Lewis is already looking after the advertising and operations divisions simultaneously; it makes good sense to integrate both functions since she has actually been efficiently taking care of both ends. The truth that the two departments currently have significant distinctions over allotment of sources suggests that this integration may have the ability to produce consistency especially as Lewis would be heading both ends.However there are various drawbacks of this step especially as it would certainly place excessive concern over Lewis's shoulders. The truth that Lewis has to adapt her monitoring design for the advertising department recommends that these 2 divisions would be culturally varied. Lewis might not be able to apply one kind of management style to both departments which might result in ineffectiveness in either one of the two features.


An examination of the 3 choices shows that assimilation of advertising and marketing as well as procedures would not be a possible relocation because of the huge differences in between both departments despite the fact that presently Lewis is handling both. While separation of the manufacturing function may have been a desirable action for the marketing division, the fact that it would suggest positioning a third function under Lewis's wing implies this must be stayed clear of also. The integration of the advertising and marketing department is the very best option in terms of obtaining the optimal results from the department. An action prepare for this choice is talked about listed below.

Action Plan.
Lewis will take control of the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

Manufacturing function will certainly remain part of advertising and marketing under advertising feature.

Lewis will certainly divide herself from operations.

A democratic management design with employee empowerment will certainly be utilized in marketing department.

Open door policy as well as emphasis on cross departmental communication will be aimed at removing disharmony.

Backup strategy.

If the assimilation does not exercise as intended, a contingency plan would certainly adhere to which would certainly divide the manufacturing feature from the marketing feature to decrease the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising department without an SVP. Because case the manufacturing function will certainly be separated by positioning it under an SVP production.