Argentinas Ypf Sociedad Anonima B1 Case Study Solution


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Background and Facts

Argentinas Ypf Sociedad Anonima B1 an office supplies retailer for tiny as well as average sized organisations has actually recently been involved in preparing for a merging with its competitor House Deport, which has affected performance levels in departmentswith the elderly manager associated with lawful issues presented by the government Trade Commission. With the Advertising and marketing Head advancing the information of his departure from the business in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the near future. With obstacles in the type of a possible cultural adjustment and reduced staff member spirits, the organization wants a total reengineering effort at the advertising and marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The possible social modification at the advertising department of Argentinas Ypf Sociedad Anonima B1 is increasing unpredictability in the working environment resulting in different challenges for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting tactical decisions because Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Trade Commission's intervention at the same time. Given the reality that the store has an international presence with branches in UK, U.S.A., Canada and also Germany, political consider each of these nations may have the ability to impact performance or critical goals. Federal Trade Commission's antitrust fit against the merger used up valuable time of the organization's senior management suggesting that 'political' factors can have severe implications for a worldwide organisation.

Economic Factors: Financial factors such as the appearance of local business in the global situation recommend that Argentinas Ypf Sociedad Anonima B1 is growing in an environment where there is potential growth of businesses. Fact that shop consumers are mainly looking for workplace products for house offices suggests that the market has an increasing pattern of business owners and home based organisations.

Social factors: Social patterns in the economic climate reveal that customers are looking for ease along with attractive prices. Market research shows how the client for Argentinas Ypf Sociedad Anonima B1 does not have understanding concerning finding solutions which can offer a mix of ease as well as affordable.

Technological factors: Modern technology plays a vital role in Argentinas Ypf Sociedad Anonima B1's company method particularly as the organization is piloting Innovation facilities which would certainly provide modern technology sales and also assistance in the kind of memory upgrades, peripheral installations. (Summary of PEST in appendix 2).

OB Issues and also Manifestations.

Several underlying Business Behavior issues can be seen in Argentinas Ypf Sociedad Anonima B1's case as highlighted in this section.

Concerns regarding cultural change: There is concern regarding a cultural adjustment that would certainly take place as soon as Todd Krasnow leaves from his placement as the Exec Vice President of Advertising And Marketing with the majority of the employee currently showing discontent over this potential action. This expected change has actually developed stress and anxiety in the work environment which has been coupled with the previous anxiety of preparing the firm for a prospective merger with Home Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is lack of employees that can match the stressful setting of a hectic organization. Not only does this result in trouble in finding the ideal people, it puts stress and anxiety on new hires as can not stand up to the rate as well as pressure that the company anticipates them to bear.

Double Reporting Lines: Newbies find this organizational society troublesome and tough to deal with especially as dotted line connections are indicated to be weak generally as well as unbiased setup as well as performance examination is still done by the solid line manager. This suggests that novices can lose clarity concerning their respective functions as well as goals particularly as dotted line reporting does not maintain them in straight communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles despite the fact that it had actually been speculated that the last would take Krasnow's setting came as a blow to her morale. Lewis might have been qualified and appropriate for the task yet the truth that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Fear & Task Instability: Concern and also insecurity can be recognized as 2 significant problems that Lewis would certainly be handling especially as the merger has currently be cancelled as well as two senior execs of the marketing department would be leaving. The entire obligation of the division would be dropping on Lewis's shoulders that would not just be in charge of brining about a social change but would likewise have to prove herself in her brand-new function.

Inappropriate Administration Style of Leader: Lewis's monitoring style and also its conflict with the marketing department's role can also be seen as an OB obstacle specifically as she has been made use of to handling issues in the operations department where personnel are shown to concentrate on procedures and obtain them right. The advertising and marketing department on the various other hand can be seen as a group of people who are made use of to being nurtured by Krasnow that concentrated a lot more on output than processes.

Interdepartmental Disagreements: Interdepartmental disputes in between 3 departments, advertising and marketing, merchandizing and also operations respectively over the allowance of the advertising mix can be identified as an additional OB concern. The advertising division does not share the exact same vision as the other two departments regarding the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and procedures divisions do not concur over the advertising mix allowance among one an additional either.

Disintegration in Advertising Department: Disintegration between the advertising and marketing departments can be identified as one more OB problem which might need further interest. The fact that the advertising and marketing sections in the marketing department are disconnected is preventing both departments from gaining from each various other's experience and knowledge. Integration of advertising with retailing and also procedures would certainly come to be harder if the marketing department itself is disintegrated which can be another possible OB issue.

Argentinas Ypf Sociedad Anonima B1 Analysis

Different concepts have actually been made use of to explain the situations to obtain further clearness regarding the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers think that staffs are easy as well as careless, have little ambition and also withstand adjustment. The hard version of this concept highlighted coercion, tight controls, risks and punishments. In time it produces low efficiency, subtle sabotage and also rivalry (Deal, 2003). The situation at Argentinas Ypf Sociedad Anonima B1 is not completely complying with Theory X, it can be seen that new hires are discovering this environment instead demanding which might eventually lead to a better disposition of the administration towards Theory X. Based on McGregor's advocated sight, which he called Concept Y, the necessary task of the administration is to set up organizational conditions to ensure that people can accomplish their very own goals best by directing their efforts towards business rewards. If individuals locate no satisfaction in their work, the administration would certainly have little selection but to count on concept X and also outside control (Deal, 2003). Also while analyzing Lewis's administration design, concept X might have appropriated in the procedures division somewhat yet the Advertising and marketing division would need dependence on Theory Y so as to get the creativity and creativity from the teams.

Tuckman's Synergy Theory: As far as Lewis's issue regarding bringing consistency between the advertising and marketing and also advertising division is concerned, this would initially lead to contrast as discussed by Bruce Tuckman in his 'Team effort Concept'. By combining the marketing and also advertising and marketing division's work, there may be the exact same first separate which might lead to the 2nd stage of 'storming' where the groups challenge one an additional.

When individuals are presented with change, they enter stage one and so there might be emotions like sadness, uncertainty, disappointment, rage, fear, denial and disorientation.The scenario at the marketing division of Argentinas Ypf Sociedad Anonima B1 is comparable so Lewis can get comfortable with the concept that it is not amazing actions. It is during this stage that Lewis will certainly have to offer assistance to the division so that they can locate a sense of direction. It can be seen just how Krasnow has currently made this change simpler by making Lewis obtain involved in the division a year prior to his real separation.
Vrio Analysis
Maslow's Requirement pecking order: The OB issue pertaining to instability at the office has been triggered to start with by the change in management as well as secondly by the reality that the merging will no longer be initiated. Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has goes over the importance of 'safety needs as being a reduced degree requirement of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the requirement to really feel secure and also untouched' is at the second level of needs. Before an employee can be made to develop emotionally, he needs to have his 'Physiological 'as well as 'Security' needs satisfied. This suggests that unless the employees are made to feel safe and secure concerning their existing work standing in Argentinas Ypf Sociedad Anonima B1 they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Argentinas Ypf Sociedad Anonima B1 Case Study

Effects of Analysis.

The OB analysis has actually looked at different theories to recognize exactly how to handle the existing circumstance at hand. The following three alternatives have been recommended to aid Lewis manage the business obstacles in the advertising and marketing division. Each of these options has been suggested for relieving the shift required to bring the advertising and marketing department in line with the requirements of the market and also for making the social change that would certainly adhere to when the current leader leaves.

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

Analysis of Alternatives.

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

The benefit of this method is that it will incorporate both features while decreasing the requirement for hiring an added resource for advertising. Along with this, Lewis would certainly be heading the advertising and marketing division and also all the same her substitute would be needed for the present role that she is carrying out. The negative aspect of this alternative is that external hiring might cause bitterness from interior workers who may be considering the placement of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Manufacturing: Offered the competitive pressures and also high top quality work called for from the marketing firm, it is suggested that Lewis ought to enable the manufacturing system to be a different feature from the advertising and marketing device. Because a lot of marketing agencies had these two features as different devices, it makes more sense to follow the norm.

Combination of Advertising And Marketing with Procedures: Given that Lewis is already taking care of the marketing and also procedures divisions simultaneously; it makes feeling to integrate the 2 functions given that she has been successfully taking treatment of both ends. The reality that Lewis has to adapt her management style for the marketing division recommends that these 2 departments would be culturally diverse.


An assessment of the 3 options shows that integration of advertising and also procedures would certainly not be a possible move because of the large differences between both departments despite the fact that currently Lewis is managing both. While splitting up of the production function may have been a desirable move for the advertising division, the fact that it would certainly imply placing a 3rd function under Lewis's wing indicates this should be stayed clear of also. The integration of the advertising department is the best alternative in regards to getting the ideal results from the division. An activity prepare for this option is reviewed below.

Action Plan.
Lewis will take over the function of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

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

Lewis will certainly divide herself from operations.

An autonomous management design with employee empowerment will certainly be used in advertising division.

Open up door policy and focus on cross departmental communication will be targeted at eliminating discord.

Backup strategy.

If the assimilation does not exercise as planned, a contingency plan would certainly adhere to which would separate the manufacturing feature from the advertising feature to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the advertising department without an SVP. Because case the manufacturing feature will definitely be divided by positioning it under an SVP manufacturing.