Ashland Oil Inc Trouble At Floreffe D Case Study Analysis


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Ashland Oil Inc Trouble At Floreffe D Case Study Analysis

Background and Facts

Ashland Oil Inc Trouble At Floreffe D a workplace supplies retailer for little as well as moderate sized services has just recently been involved in planning for a merger with its rival Residence Deport, which has actually influenced efficiency degrees in departmentswith the senior manager involved in lawful complications put forth by the federal Trade Payment. With the Advertising Head advancing the news of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the role in the future. With obstacles in the form of a prospective cultural change and reduced employee morale, the organization is in need of a total reengineering initiative at the advertising department.

Problem Declaration

The possible social change at the advertising and marketing department of Ashland Oil Inc Trouble At Floreffe D is boosting uncertainty in the working environment leading to numerous obstacles for the Jeannie Lewis that would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing strategic decisions because Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Profession Payment's intervention in the process. Offered the reality that the store has a global existence with branches in UK, UNITED STATES, Canada and Germany, political consider each of these nations may be able to affect performance or calculated objectives. Federal Profession Compensation's antitrust suit against the merger took up important time of the company's elderly monitoring suggesting that 'political' factors can have serious implications for an international business.

Economic Factors: Economic factors such as the introduction of local business in the global scenario recommend that Ashland Oil Inc Trouble At Floreffe D is growing in an environment where there is prospective development of businesses. Truth that store customers are mainly looking for workplace supplies for residence offices recommends that the market has a rising fad of business owners as well as house based companies.

Social factors: Social trends in the economic climate show that consumers are seeking ease in addition to eye-catching costs. Market research shows how the consumer for Ashland Oil Inc Trouble At Floreffe D lacks awareness concerning finding options which can offer a combination of benefit and also affordable.

Technological factors: Technology plays an essential duty in Ashland Oil Inc Trouble At Floreffe D's business strategy especially as the organization is piloting Technology centers which would provide technology sales and assistance in the type of memory upgrades, peripheral installations. (Recap of INSECT in appendix 2).

OB Issues and also Symptoms.

A number of underlying Organizational Behavior issues can be seen in Ashland Oil Inc Trouble At Floreffe D's case as highlighted in this section.

Uneasiness about social change: There is concern regarding a cultural modification that would certainly occur when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with the majority of the staff members already revealing discontent over this prospective step. This predicted adjustment has produced stress in the work environment which has been coupled with the past tension of preparing the firm for a potential merger with Residence Deport.

Stressful Job Atmosphere for Newcomers: There is shortage of employees that can match the demanding setting of a fast-paced organization. Not only does this cause difficulty in discovering the appropriate individuals, it places anxiety on new hires as can not withstand the speed as well as pressure that the company expects them to bear.

Double Reporting Lines: Novices discover this business society troublesome as well as challenging to deal with particularly as populated line partnerships are indicated to be weaker in general and unbiased setup and efficiency assessment is still done by the strong line supervisor. This suggests that newcomers could lose clearness regarding their respective duties and also goals especially as dotted line coverage does not keep them in straight communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had been hypothesized that the last would certainly take Krasnow's placement came as an impact to her spirits. Lewis might have been capable and appropriate for the task yet the fact that Kransnow's separation would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from services.

Fear & Task Instability: Concern and insecurity can be recognized as two significant concerns that Lewis would certainly be taking care of particularly as the merger has actually now be cancelled and 2 senior executives of the marketing department would certainly be leaving. The whole duty of the division would be dropping on Lewis's shoulders that would not simply supervise of brining regarding a cultural adjustment yet would certainly additionally have to verify herself in her new role.

Inappropriate Monitoring Design of Leader: Lewis's administration style and also its conflict with the advertising division's duty can also be seen as an OB obstacle especially as she has actually been used to taking care of problems in the operations division where personnel are educated to concentrate on processes as well as get them right. The advertising department on the other hand can be seen as a group of people that are utilized to being supported by Krasnow who concentrated extra on result than processes.

Interdepartmental Differences: Interdepartmental arguments between 3 departments, advertising, merchandizing and also operations specifically over the allotment of the advertising mix can be recognized as one more OB concern. Although the marketing department does not share the very same vision as the various other two departments regarding the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing as well as procedures divisions do not concur over the marketing mix allotment amongst one another either.

Fragmentation in Advertising Division: Fragmentation in between the advertising and marketing departments can be identified as another OB issue which might require more interest. The truth that the marketing and advertising areas in the marketing division are separated is protecting against both departments from gaining from each other's experience as well as proficiency. Assimilation of marketing with retailing as well as procedures would come to be more difficult if the marketing division itself is degenerated which can be one more prospective OB issue.

Ashland Oil Inc Trouble At Floreffe D Analysis

Different concepts have actually been utilized to clarify the situations to get additional quality about the circumstance at hand.

McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers believe that juniors are passive and careless, have little aspiration and stand up to modification. The hard variation of this concept highlighted threat, limited controls, hazards as well as penalties. Over time it creates low efficiency, subtle sabotage and rivalry (Offer, 2003). Although the situation at Ashland Oil Inc Trouble At Floreffe D is not entirely adhering to Concept X, it can be seen that new hires are finding this atmosphere instead stressful which might eventually lead to a higher disposition of the management towards Theory X. According to McGregor's advocated view, which he called Concept Y, the important job of the monitoring is to organize business problems to ensure that individuals can accomplish their very own goals best by directing their initiatives in the direction of business rewards. If individuals locate no contentment in their job, the monitoring would certainly have little choice however to rely on concept X and outside control (Offer, 2003). Also while examining Lewis's monitoring design, theory X might have appropriated in the operations department to some extent but the Marketing department would certainly require reliance on Concept Y to get the creativity as well as creativity from the teams.

Tuckman's Synergy Theory: As for Lewis's concern about bringing harmony in between the advertising and marketing division is worried, this would at first result in clash as gone over by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). According to Tuckman's concept received appendix 3, during the initial phase of group advancement, people may not bond, as they are active finding their location in the group. By incorporating the marketing and advertising department's work, there might be the same first detach which could cause the second stage of 'storming' where the groups test each other. It is only during the 3rd phase or 'norming' when they would come together to share ideas prior to the group can bring around synergy in the fourth phase 'performing'.

When individuals are provided with change, they get in phase one and also so there might be emotions like despair, unpredictability, aggravation, temper, fear, denial and disorientation.The scenario at the marketing division of Ashland Oil Inc Trouble At Floreffe D is similar so Lewis can obtain comfortable with the concept that it is not amazing habits. It is during this phase that Lewis will have to give guidance to the division so that they can find a sense of direction. It can be seen exactly how Krasnow has actually already made this shift less complicated by making Lewis get included in the division a year prior to his real separation.

Maslow's Demand hierarchy: The OB concern related to insecurity at the office has been caused first of all by the change in administration and second of all by the truth that the merger will certainly no longer be started. Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has reviews the significance of 'protection 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 need to feel safe and secure and untouched' is at the second degree of demands. Before a staff member can be made to develop emotionally, he needs to have his 'Physiological 'as well as 'Safety' requires fulfilled. This suggests that unless the personnel are made to really feel protected about their current work status in Ashland Oil Inc Trouble At Floreffe D they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Ashland Oil Inc Trouble At Floreffe D Case Study

Ramification of Analysis.

The OB analysis has actually checked out different concepts to understand just how to handle the current situation handy. The complying with 3 choices have actually been proposed to assist Lewis deal with the organizational obstacles in the advertising and marketing division. Each of these choices has actually been suggested for easing the change needed to bring the advertising and marketing department in accordance with the demands of the marketplace and also for making the social adjustment that would certainly comply with when the current leader leaves.

Combination of advertising and marketing functions. Dividing Adverting as well as Manufacturing features. Assimilation of Advertising And Marketing with Procedures.

Analysis of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis during the earlier merger days has proficiency in business-to-business advertising and marketing along with company and retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to manage both advertising as well as advertising features.

The benefit of this strategy is that it will incorporate both features while minimizing the demand for employing an additional source for advertising. Along with this, Lewis would be heading the advertising division and also all the same her substitute would be needed for the existing duty that she is doing. The negative aspect of this option is that exterior hiring may cause resentment from inner personnel who may be looking at the placement of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and Production: Offered the competitive stress and high top quality job required from the advertising and marketing company, it is recommended that Lewis needs to allow the production system to be a different feature from the marketing unit. Considering that many advertising firms had these 2 functions as separate devices, it makes even more sense to comply with the standard.

Integration of Advertising with Workflows: Since Lewis is currently taking care of the marketing and also operations departments simultaneously; it makes good sense to integrate both features given that she has actually been effectively taking care of both ends. The truth that both departments already have major differences over allowance of resources suggests that this combination might have the ability to bring about harmony specifically as Lewis would be heading both ends.However there are various disadvantages of this step especially as it would put excessive worry over Lewis's shoulders. The truth that Lewis has to adapt her monitoring design for the advertising and marketing department suggests that these two divisions would certainly be culturally diverse. In addition to this, Lewis might not have the ability to use one kind of management style to both divisions which could result in inefficiency in either among the two functions.


An examination of the three choices suggests that assimilation of advertising and marketing and also procedures would certainly not be a practical move due to the large differences in between the 2 departments despite the truth that currently Lewis is handling both. While separation of the production function may have been a beneficial relocation for the advertising and marketing department, the fact that it would certainly imply putting a third feature under Lewis's wing means this must be avoided.

Activity Plan.

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

Advertising and Marketing functions would be merged.

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

Production function will continue to be component of marketing under advertising and marketing function.

Lewis will certainly divide herself from procedures.

A democratic management design with employee empowerment will certainly be utilized in advertising and marketing division.

Open up door policy as well as emphasis on cross departmental communication will certainly be focused on removing discord.

Contingency strategy.

If the integration does not exercise as prepared, a backup strategy would follow which would certainly separate the manufacturing feature from the advertising and marketing function to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the marketing division without an SVP. Because case the manufacturing feature will absolutely be separated by placing it under an SVP production.