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Baker Hughes Foreign Corrupt Practices Act Case Study Help

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Baker Hughes Foreign Corrupt Practices Act Case Study Solution

Background and Facts

Baker Hughes Foreign Corrupt Practices Act a workplace materials seller for small and also moderate sized organisations has actually lately been associated with planning for a merger with its rival Residence Deport, which has actually impacted performance levels in departmentswith the elderly supervisor involved in lawful difficulties presented by the government Profession Payment. With the Advertising and marketing Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the current head of operations has actually been asked to take the function in the near future. With difficulties in the form of a possible cultural modification as well as low worker spirits, the company requires a complete reengineering effort at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The prospective social modification at the advertising and marketing department of Baker Hughes Foreign Corrupt Practices Act is raising uncertainty in the working environment causing various obstacles for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in affecting calculated choices considering that Stapes Inc. needed to desert its plans of combining with Workplace Deport after the Federal Trade Compensation's treatment in the process. Provided the fact that the store has an international visibility with branches in UK, U.S.A., Canada and Germany, political consider each of these nations may be able to affect performance or calculated objectives. Federal Profession Payment's antitrust fit versus the merging used up valuable time of the organization's senior administration recommending that 'political' factors can have severe implications for a worldwide business.

Economic Factors: Economic factors such as the emergence of local business in the worldwide circumstance suggest that Baker Hughes Foreign Corrupt Practices Act is growing in a setting where there is possible growth of companies. Along with this, reality that shop customers are mostly seeking workplace products for home offices suggests that the market has a rising trend of business owners and also home companies.

Social factors: Social patterns in the economic climate reveal that clients are looking for convenience as well as appealing rates. Market research demonstrates how the consumer for Baker Hughes Foreign Corrupt Practices Act does not have awareness about finding solutions which can provide a combination of benefit and low costs.

Technical factors: Innovation plays a vital duty in Baker Hughes Foreign Corrupt Practices Act's organisation strategy particularly as the organization is piloting Technology centers which would use technology sales as well as support in the form of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues as well as Manifestations.

Several underlying Business Actions issues can be seen in Baker Hughes Foreign Corrupt Practices Act's case as highlighted in this section.

Uneasiness concerning cultural modification: There is uneasiness concerning a cultural modification that would occur when Todd Krasnow leaves from his position as the Exec Vice Head Of State of Marketing with a lot of the employee currently revealing discontent over this prospective step. This anticipated adjustment has actually created tension in the office which has actually been paired with the previous stress of preparing the firm for a possible merger with Home Deport.
Pest Analysis
Stressful Work Environment for Newcomers: There is scarcity of personnel that can match the stressful atmosphere of a hectic organization. Not only does this result in problem in discovering the ideal people, it puts stress on brand-new hires as can not endure the pace and stress that the company expects them to birth.

Double Coverage Lines: Novices locate this business society cumbersome and tough to handle especially as dotted line connections are indicated to be weaker generally and also objective setting and performance examination is still done by the solid line supervisor. This suggests that beginners might lose clearness regarding their corresponding functions as well as objectives particularly as populated line coverage does not maintain them in direct communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles despite the fact that it had been hypothesized that the last would certainly take Krasnow's setting came as an impact to her morale. Lewis may have been qualified and proper for the task however the truth that Kransnow's separation would make Coles a straight report to Lewis might have been the reason for Coles' resignation from services.

Anxiety & Work Insecurity: Fear as well as instability can be identified as two major concerns that Lewis would certainly be dealing with specifically as the merger has actually now be cancelled and two senior executives of the advertising and marketing division would be leaving. The whole responsibility of the department would be falling on Lewis's shoulders who would certainly not just be in charge of brining concerning a cultural modification but would certainly likewise have to confirm herself in her brand-new duty.

Incompatible Administration Design of Leader: Lewis's management style and also its incompatibility with the marketing department's role can additionally be seen as an OB difficulty especially as she has been utilized to handling problems in the procedures division where employees are instructed to focus on processes and also get them. The marketing department on the various other hand can be viewed as a group of individuals that are used to being supported by Krasnow that focused a lot more on result than processes.

Interdepartmental Disagreements: Interdepartmental disputes between 3 divisions, advertising and marketing, merchandizing and also procedures specifically over the allowance of the marketing mix can be recognized as another OB problem. The marketing department does not share the exact same vision as the other two departments pertaining to the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and also procedures departments do not concur over the advertising and marketing mix allowance among one an additional either.

Fragmentation in Advertising And Marketing Department: Disintegration between the advertising and marketing departments can be determined as an additional OB issue which could require further focus. The reality that the advertising and marketing sections in the marketing division are detached is avoiding both divisions from obtaining from each other's experience and proficiency. Integration of advertising with retailing and operations would certainly become more difficult if the advertising and marketing department itself is degenerated which can be another potential OB issue.

Baker Hughes Foreign Corrupt Practices Act Analysis

Different theories have actually been made use of to discuss the situations to get additional clearness concerning the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of supervisors believe that juniors are easy and careless, have little passion and also withstand adjustment. The tough variation of this concept emphasized browbeating, limited controls, dangers and punishments. Gradually it produces low performance, subtle sabotage and rivalry (Offer, 2003). Although the circumstance at Baker Hughes Foreign Corrupt Practices Act is not completely adhering to Theory X, it can be seen that new hires are finding this setting rather difficult which might at some point bring about a better disposition of the monitoring towards Theory X. Based on McGregor's promoted sight, which he called Theory Y, the important job of the monitoring is to set up organizational problems to ensure that people can achieve their own objectives best by routing their initiatives in the direction of business rewards. If individuals discover no complete satisfaction in their work, the management would certainly have little choice yet to count on concept X and external control (Deal, 2003). Also while analyzing Lewis's monitoring style, theory X may have appropriated in the procedures department to some extent but the Marketing division would certainly need dependence on Concept Y so as to get the imagination and also creativity from the teams.

Tuckman's Teamwork Theory: As far as Lewis's issue regarding bringing consistency in between the marketing and advertising division is worried, this would initially lead to clash as discussed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). As per Tuckman's theory received appendix 3, during the preliminary phase of team development, individuals might not bond, as they are busy locating their place in the team. By integrating the marketing and advertising department's job, there might be the same first separate which can cause the second phase of 'storming' where the groups challenge each other. It is just throughout the 3rd stage or 'norming' when they would come together to share suggestions before the team can bring about harmony in the fourth phase 'carrying out'.

Bridges' Shift Version: As per William Bridge's concept (appendix 4), individuals are quite uncomfortable with change, which is evident by the circumstance at Baker Hughes Foreign Corrupt Practices Act The situation can be viewed as a typical program of life if is researched according to Bridge's theory where he explains that people undergo three stages of shift when they experience change. 'Closing, shedding and Letting go', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When individuals exist with modification, they go into phase one and so there might be emotions like despair, unpredictability, stress, rage, anxiety, denial and also disorientation.The situation at the advertising and marketing department of Baker Hughes Foreign Corrupt Practices Act is comparable so Lewis can get comfy with the idea that it is not amazing behavior. In the second stage, there may be a requirement to bridge the space in between the new and also old society so Lewis might need to encounter this experience when Krasnow leaves. There may be reduced morale as well as low productivity at this phase which must not be taken as an obstacle. It is throughout this stage that Lewis will certainly need to offer support to the division to make sure that they can locate an orientation. It can be seen how Krasnow has already made this change simpler by making Lewis get associated with the division a year prior to his actual separation. Based on Bridges' Model, phase 3 will certainly cause openness to discovering, High energy and also dedication as individuals will embrace the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has talks about the importance of 'security needs as being a reduced degree need of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to feel secure and out of risk' is at the 2nd degree of demands. Before a staff member can be made to create psychologically, he needs to have his 'Physical 'and 'Security' requires satisfied.

SWOT Analysis for Baker Hughes Foreign Corrupt Practices Act Case Study



Ramification of Analysis.

The OB analysis has actually considered different concepts to recognize exactly how to handle the current situation at hand. The complying with 3 alternatives have been recommended to assist Lewis handle the organizational difficulties in the advertising and marketing division. Each of these alternatives has actually been recommended for reducing the shift needed to bring the advertising department according to the needs of the market and also for making the cultural modification that would comply with when the existing leader leaves.

Assimilation of advertising and marketing features. Dividing Adverting and also Manufacturing functions. Integration of Advertising with Operations.

Analysis of Alternatives.

Combination of Advertising And Marketing & Advertising Functions: The internal marketing company of Baker Hughes Foreign Corrupt Practices Act is already strength for the organization in regards to conserving up on overheads associated with marketing as well as promotion. Given that no new recruitment has actually been done after Bridget Cole's separation with the coverage line being directly appointed to Krasnow for the marketing function, this is a favorable chance for incorporating the marketing and advertising features. Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merging days has know-how in business-to-business marketing in addition to company as well as retail marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to manage both advertising and marketing functions.

The advantage of this strategy is that it will certainly integrate the two functions while reducing the need for working with an additional resource for marketing. Along with this, Lewis would be heading the marketing division as well as regardless her substitute would be needed for the present role that she is doing. The drawback of this option is that external hiring might produce resentment from inner workers that might be eying the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and also Production: Offered the competitive stress and high quality job needed from the advertising company, it is advised that Lewis should permit the manufacturing system to be a different function from the marketing unit. Considering that a lot of advertising firms had these 2 functions as different units, it makes more sense to comply with the standard.

Assimilation of Advertising with Workflows: Because Lewis is already taking treatment of the advertising as well as operations departments concurrently; it makes sense to integrate the 2 functions given that she has been efficiently taking care of both ends. The reality that Lewis has to adjust her administration design for the advertising and marketing division recommends that these 2 departments would be culturally diverse.

Recommendation.



An examination of the 3 alternatives suggests that assimilation of advertising and operations would not be a viable action due to the vast distinctions in between the two departments regardless of the fact that currently Lewis is dealing with both. While separation of the manufacturing feature might have been a positive step for the advertising department, the reality that it would certainly suggest positioning a third function under Lewis's wing means this need to be prevented.

Action Strategy.
Recommendation
Lewis will certainly take control of the role of EVP Advertising after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

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

Lewis will separate herself from procedures.

A democratic management design with staff member empowerment will certainly be used in advertising and marketing department.

Open door policy and focus on cross department communication will certainly be targeted at getting rid of disharmony.

Contingency strategy.

If the combination does not work out as intended, a contingency plan would certainly comply with which would certainly separate the manufacturing feature from the marketing feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the production feature will most definitely be separated by placing it under an SVP production.