Menu

Argentinas Ypf Sociedad Anonima C Case Study Solution

CASE HELP

Home >> Harvard >> Argentinas Ypf Sociedad Anonima C >>

Argentinas Ypf Sociedad Anonima C Case Study Help

Background and Facts

Argentinas Ypf Sociedad Anonima C an office products retailer for tiny as well as moderate sized companies has lately been associated with preparing for a merging with its competitor Residence Deport, which has affected efficiency levels in departmentswith the senior supervisor associated with lawful difficulties presented by the federal Profession Payment. With the Marketing Head advancing the news of his separation from the business in one year, Jeannie Lewis, the current head of procedures has been asked to take the function in the future. With challenges in the form of a possible social adjustment as well as reduced worker spirits, the organization requires a total reengineering initiative at the advertising and marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The potential social change at the marketing division of Argentinas Ypf Sociedad Anonima C is enhancing uncertainty in the working environment leading to various challenges for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting tactical choices given that Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Profession Commission's intervention at the same time. Given the truth that the shop has a global existence with branches in UK, USA, Canada and also Germany, political factors in each of these nations might have the ability to affect efficiency or strategic goals. Federal Trade Compensation's antitrust match versus the merger took up valuable time of the company's elderly administration recommending that 'political' factors can have major implications for an international business.

Economic Factors: Economic factors such as the emergence of local business in the worldwide scenario suggest that Argentinas Ypf Sociedad Anonima C is prospering in a setting where there is prospective development of businesses. Along with this, reality that store clients are primarily looking for office supplies for office recommends that the marketplace has a rising fad of business owners and online companies.

Social factors: Social patterns in the economy show that clients are seeking convenience in addition to attractive rates. Market research shows how the customer for Argentinas Ypf Sociedad Anonima C lacks awareness about discovering services which can offer a combination of convenience and also affordable.

Technical factors: Technology plays an essential duty in Argentinas Ypf Sociedad Anonima C's service technique specifically as the company is piloting Modern technology facilities which would provide innovation sales and also assistance in the form of memory upgrades, peripheral installations. (Recap of BUG in appendix 2).

OB Issues as well as Manifestations.

Several underlying Organizational Habits problems can be seen in Argentinas Ypf Sociedad Anonima C's case as highlighted in this area.

Worries concerning cultural change: There is uneasiness regarding a social change that would happen when Todd Krasnow leaves from his position as the Executive Vice President of Marketing with the majority of the personnel already revealing unhappiness over this potential action. This predicted modification has developed tension in the office which has been combined with the past stress and anxiety of preparing the company for a potential merger with Residence Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is shortage of workers that can match the demanding environment of a busy organization. Not only does this cause difficulty in locating the right people, it places stress on brand-new hires as can not hold up against the rate and stress that the organization anticipates them to birth.

Twin Reporting Lines: Beginners find this organizational society cumbersome as well as hard to manage specifically as dotted line relationships are meant to be weaker generally and also unbiased setup as well as performance examination is still done by the solid line manager. This indicates that newcomers could lose clarity about their corresponding functions and also goals particularly as populated line reporting does not keep them in direct communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles even though it had actually been speculated that the last would take Krasnow's position came as an impact to her morale. Lewis might have been capable and also ideal for the job but the reality that Kransnow's departure would make Coles a direct report to Lewis may have been the reason for Coles' resignation from services.

Worry & Job Insecurity: Anxiety and also instability can be identified as 2 significant worries that Lewis would certainly be dealing with especially as the merger has actually now be cancelled and also two elderly execs of the advertising and marketing division would certainly be leaving. The whole obligation of the department would be falling on Lewis's shoulders that would not simply supervise of brining regarding a cultural modification however would also need to verify herself in her brand-new duty.

Inappropriate Management Style of Leader: Lewis's administration style as well as its incompatibility with the advertising and marketing division's role can likewise be viewed as an OB obstacle especially as she has been utilized to dealing with concerns in the procedures division where employees are educated to concentrate on processes and also obtain them right. The marketing division on the various other hand can be viewed as a team of individuals that are utilized to being nurtured by Krasnow who concentrated much more on result than procedures.

Interdepartmental Disputes: Interdepartmental arguments between 3 departments, marketing, merchandizing and also procedures respectively over the appropriation of the advertising and marketing mix can be determined as another OB problem. The advertising department does not share the exact same vision as the other two departments pertaining to the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing and operations divisions do not agree over the advertising mix allocation among one another either.

Disintegration in Advertising And Marketing Division: Disintegration in between the marketing and advertising divisions can be recognized as an additional OB issue which could need additional attention. The reality that the advertising and marketing sections in the marketing division are disconnected is avoiding both divisions from obtaining from each other's experience and also know-how. Integration of advertising with merchandising and also procedures would certainly end up being more difficult if the advertising and marketing division itself is broken down which can be one more potential OB concern.

Argentinas Ypf Sociedad Anonima C Analysis

Various theories have been made use of to discuss the conditions to get further quality about the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers believe that subordinates are easy and also lazy, have little passion and resist modification. The difficult version of this concept emphasized browbeating, limited controls, dangers and punishments. Gradually it creates low productivity, subtle sabotage as well as competition (Offer, 2003). The situation at Argentinas Ypf Sociedad Anonima C is not completely adhering to Concept X, it can be seen that new hires are finding this atmosphere instead difficult which might ultimately lead to a greater disposition of the management in the direction of Theory X. Based on McGregor's advocated view, which he called Concept Y, the essential job of the administration is to set up business conditions so that people can accomplish their own goals best by guiding their initiatives towards organizational benefits. If individuals locate no satisfaction in their job, the management would certainly have little option but to count on concept X and exterior control (Deal, 2003). Even while examining Lewis's management style, concept X might have been suitable in the operations department somewhat yet the Marketing department would call for dependence on Theory Y in order to get the creativity and creativity from the teams.

Tuckman's Teamwork Concept: As much as Lewis's problem regarding bringing harmony between the advertising and marketing and also advertising and marketing department is worried, this would at first lead to clash as gone over by Bruce Tuckman in his 'Teamwork Theory'. By combining the marketing and also advertising department's work, there may be the same first separate which can lead to the 2nd stage of 'storming' where the teams challenge one an additional.

Bridges' Change Version: Based On William Bridge's theory (appendix 4), people are fairly uncomfortable with adjustment, which is obvious by the scenario at Argentinas Ypf Sociedad Anonima C The scenario can be viewed as a normal course of life if is studied as per Bridge's theory where he explains that individuals go through three phases of change when they experience modification. 'Closing, losing as well as Releasing', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When people are presented with adjustment, they go into phase one therefore there might be feelings like unhappiness, uncertainty, aggravation, anger, anxiety, denial as well as disorientation.The scenario at the marketing division of Argentinas Ypf Sociedad Anonima C is comparable so Lewis can obtain comfortable with the suggestion that it is not phenomenal actions. In the 2nd phase, there might be a demand to bridge the void in between the new and also old culture so Lewis may need to encounter this experience once Krasnow leaves. There might be low morale as well as low performance at this phase which should not be taken as an obstacle. It is during this stage that Lewis will have to give support to the department to make sure that they can find an orientation. It can be seen exactly how Krasnow has actually already made this shift much easier by making Lewis get involved in the division a year before his real departure. According to Bridges' Version, phase three will produce openness to discovering, High power and also commitment as people will accept the change (Bridges, 2004).
Vrio Analysis
Maslow's Demand pecking order: The OB problem pertaining to insecurity at the workplace has been caused first of all by the modification in management and also second of all by the truth that the merger will certainly no longer be launched. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has talks about the relevance of 'safety and security requires as being a lower degree need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel secure and safe' goes to the second degree of demands. Prior to a staff member can be made to establish mentally, he requires to have his 'Physiological 'and 'Safety and security' needs met. This indicates that unless the workers are made to really feel safe and secure about their current work standing in Argentinas Ypf Sociedad Anonima C they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Argentinas Ypf Sociedad Anonima C Case Study



Implication of Analysis.

The OB analysis has actually checked out various theories to recognize how to cope with the present situation available. The adhering to three options have actually been recommended to help Lewis take care of the business obstacles in the advertising department. Each of these options has actually been suggested for alleviating the shift needed to bring the advertising and marketing department according to the needs of the market and for making the social adjustment that would certainly follow when the present leader leaves.

Integration of marketing and advertising features. Dividing Adverting as well as Manufacturing features. Assimilation of Advertising And Marketing with Operations.

Evaluation of Alternatives.

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

The benefit of this approach is that it will certainly incorporate both features while decreasing the need for employing an additional resource for advertising and marketing. Lewis would be heading the advertising and marketing department as well as in any type of case her substitute would certainly be required for the present role that she is executing. The negative aspect of this choice is that outside hiring may cause resentment from inner employees who may be looking at the setting of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting as well as Production: Offered the competitive pressures as well as high quality job required from the ad agency, it is suggested that Lewis needs to enable the manufacturing unit to be a different function from the advertising unit. Since the majority of ad agency had these two features as separate devices, it makes even more sense to comply with the standard. In addition to this, both features might be able to concentrate on their core activates a lot more effectively. Nevertheless, the disadvantage of this method would be that added costs would certainly need to be borne for establishing separate production functions. A manufacturing head may have to be hired which might boost overheads for the company.

Integration of Advertising And Marketing with Workflows: Since Lewis is currently looking after the advertising as well as procedures divisions concurrently; it makes good sense to integrate both features considering that she has actually been successfully caring for both ends. The reality that the two departments already have significant differences over appropriation of resources recommends that this integration might be able to cause harmony especially as Lewis would certainly be heading both ends.However there are different downsides of this relocation especially as it would put excessive concern over Lewis's shoulders. The reality that Lewis needs to adjust her administration style for the marketing department suggests that these two divisions would be culturally diverse. Lewis may not be able to use one type of management design to both divisions which can result in inadequacy in either one of the 2 features.

Recommendation.



An assessment of the 3 choices shows that integration of marketing and procedures would not be a practical move because of the huge distinctions between both departments despite the fact that presently Lewis is handling both. While splitting up of the manufacturing function might have been a beneficial action for the marketing department, the reality that it would mean positioning a third function under Lewis's wing suggests this ought to be stayed clear of. The integration of the marketing division is the most effective choice in regards to getting the optimum results from the department. An activity plan for this option is reviewed below.

Activity Strategy.
Recommendation
Lewis will certainly take control of the function of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

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

Lewis will certainly separate herself from procedures.

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

Open door plan and emphasis on cross departmental interaction will be aimed at removing dissonance.

Contingency strategy.

If the assimilation does not exercise as planned, a backup strategy would follow which would separate the production feature from the advertising feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the marketing division without an SVP. Because case the production feature will absolutely be divided by placing it under an SVP manufacturing.