Baker Hughes Foreign Corrupt Practices Act Case Study Help


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Baker Hughes Foreign Corrupt Practices Act Case Study Help

Background and Facts

Baker Hughes Foreign Corrupt Practices Act an office materials retailer for small and also moderate sized organisations has recently been involved in preparing for a merger with its rival Home Deport, which has influenced performance degrees in departmentswith the elderly supervisor involved in lawful difficulties put forth by the federal Profession Compensation. With the Marketing Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the function in the near future. With challenges in the kind of a prospective social change and also reduced employee spirits, the company wants a full reengineering effort at the advertising department.

Trouble Statement
Porter's 5 Forces Analysis
The potential cultural modification at the marketing department of Baker Hughes Foreign Corrupt Practices Act is increasing uncertainty in the workplace bring about numerous obstacles for the Jeannie Lewis who 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 tactical decisions given that Stapes Inc. needed to abandon its strategies of merging with Office Deport after the Federal Trade Commission's intervention at the same time. Offered the truth that the shop has an international existence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these nations may have the ability to affect performance or strategic goals. Federal Profession Compensation's antitrust suit versus the merger used up beneficial time of the organization's senior management suggesting that 'political' factors can have major effects for an international business.

Economic Factors: Economic factors such as the development of small companies in the international circumstance recommend that Baker Hughes Foreign Corrupt Practices Act is growing in an atmosphere where there is prospective development of organisations. Fact that shop customers are mainly looking for office materials for residence workplaces suggests that the market has an increasing pattern of entrepreneurs and also home based organisations.

Social factors: Social patterns in the economic climate reveal that clients are searching for comfort in addition to eye-catching costs. Marketing research demonstrates how the client for Baker Hughes Foreign Corrupt Practices Act does not have understanding regarding locating options which can provide a mix of convenience as well as inexpensive.

Technological factors: Technology plays a crucial role in Baker Hughes Foreign Corrupt Practices Act's business technique particularly as the company is piloting Technology centers which would certainly use innovation sales and also assistance in the type of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues and Symptoms.

Numerous underlying Organizational Behavior problems can be seen in Baker Hughes Foreign Corrupt Practices Act's case as highlighted in this section.

Concerns regarding social change: There is worry about a cultural modification that would occur when Todd Krasnow leaves from his position as the Exec Vice President of Advertising with a lot of the employee already showing discontent over this possible relocation. This expected change has created stress in the office which has actually been combined with the previous stress and anxiety of preparing the company for a prospective merging with House Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is lack of employees that can match the stressful atmosphere of a fast-paced organization. Not just does this result in difficulty in locating the best people, it places stress and anxiety on new hires as can not hold up against the rate and also pressure that the company expects them to bear.

Dual Coverage Lines: Newbies discover this organizational society difficult and hard to deal with especially as populated line connections are suggested to be weak in general and unbiased setting and also efficiency evaluation is still done by the strong line manager. This suggests that newbies might shed clarity concerning their particular duties as well as objectives particularly as dotted line reporting does not keep them in direct communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles even though it had been speculated that the last would certainly take Krasnow's placement came as a strike to her spirits. Lewis may have been qualified and ideal for the work but the truth that Kransnow's separation would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Task Insecurity: Anxiety as well as insecurity can be identified as two major concerns that Lewis would certainly be managing specifically as the merging has now be terminated and also two senior execs of the advertising department would be leaving. The entire obligation of the division would certainly be falling on Lewis's shoulders who would certainly not just supervise of brining regarding a cultural adjustment but would additionally have to confirm herself in her new function.

Incompatible Management Style of Leader: Lewis's monitoring design as well as its conflict with the advertising division's role can likewise be viewed as an OB challenge specifically as she has actually been made use of to dealing with concerns in the procedures division where personnel are educated to concentrate on procedures and also get them right. The advertising and marketing department on the other hand can be viewed as a group of people who are used to being supported by Krasnow that concentrated extra on result than processes.

Interdepartmental Differences: Interdepartmental differences in between three divisions, marketing, merchandizing and procedures respectively over the allowance of the marketing mix can be recognized as an additional OB problem. The marketing department does not share the very same vision as the other 2 divisions regarding the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing as well as procedures divisions do not concur over the advertising and marketing mix allocation amongst one an additional either.

Fragmentation in Advertising Division: Fragmentation in between the marketing and advertising departments can be identified as an additional OB problem which can need further focus. The fact that the advertising and marketing sections in the marketing department are separated is stopping both divisions from obtaining from each various other's experience and also experience. Integration of advertising and marketing with merchandising as well as operations would certainly become harder if the advertising and marketing department itself is disintegrated which can be another possible OB problem.

Baker Hughes Foreign Corrupt Practices Act Analysis

Various theories have actually been used to discuss the scenarios to get further quality concerning the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers think that subordinates are passive as well as careless, have little aspiration and also stand up to change. The difficult version of this theory emphasized browbeating, limited controls, risks as well as penalties. With time it creates reduced performance, refined sabotage as well as competition (Offer, 2003). Although the scenario at Baker Hughes Foreign Corrupt Practices Act is not entirely complying with Theory X, it can be seen that new hires are locating this environment instead stressful which may eventually result in a better disposition of the monitoring in the direction of Concept X. As per McGregor's advocated sight, which he called Theory Y, the vital job of the management is to organize organizational problems so that individuals can achieve their own goals best by routing their efforts in the direction of business benefits. If people discover no complete satisfaction in their work, the monitoring would certainly have little option but to depend on concept X and also outside control (Offer, 2003). Also while assessing Lewis's monitoring style, concept X might have appropriated in the procedures department somewhat but the Marketing department would certainly require dependence on Theory Y in order to get the creativity and also originality from the groups.

Tuckman's Synergy Theory: Regarding Lewis's worry regarding bringing consistency in between the marketing and advertising department is worried, this would originally cause contrast as discussed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). As per Tuckman's concept shown in appendix 3, throughout the preliminary stage of group development, individuals might not bond, as they are busy locating their location in the group. By combining the advertising and marketing department's job, there may be the same preliminary detach which could cause the 2nd phase of 'storming' where the groups test one another. It is just during the 3rd phase or 'norming' when they would certainly come together to share concepts prior to the team can bring about synergy in the 4th phase 'performing'.

When individuals are presented with change, they enter phase one and also so there may be feelings like despair, unpredictability, disappointment, rage, concern, denial and disorientation.The scenario at the advertising and marketing division of Baker Hughes Foreign Corrupt Practices Act is comparable so Lewis can obtain comfortable with the suggestion that it is not amazing habits. It is throughout this stage that Lewis will certainly have to provide assistance to the department so that they can discover a feeling of direction. It can be seen how Krasnow has currently made this change easier by making Lewis get involved in the division a year prior to his actual separation.
Vrio Analysis
Maslow's Need pecking order: The OB problem pertaining to insecurity at the work environment has been triggered first of all by the adjustment in management as well as secondly by the reality that the merging will certainly no longer be started. Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has goes over the importance of 'protection needs as being a reduced degree requirement of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel safe and secure as well as out of danger' is at the second degree of requirements. Prior to a worker can be made to develop mentally, he needs to have his 'Physical 'and 'Security' needs met. This indicates that unless the personnel are made to really feel protected regarding their current work status in Baker Hughes Foreign Corrupt Practices Act they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Baker Hughes Foreign Corrupt Practices Act Case Study

Effects of Analysis.

The OB analysis has actually looked at different concepts to comprehend exactly how to handle the present circumstance handy. The adhering to three alternatives have been suggested to help Lewis deal with the business challenges in the marketing department. Each of these alternatives has been suggested for alleviating the shift needed to bring the marketing department in line with the needs of the marketplace as well as for making the cultural change that would comply with once the current leader leaves.

Combination of marketing and advertising functions. Dividing Adverting and Production functions. Combination of Advertising with Procedures.

Analysis of Alternatives.

Integration of Advertising And Marketing & Advertising Functions: The in-house advertising and marketing agency of Baker Hughes Foreign Corrupt Practices Act is already strength for the company in terms of saving up on expenses related to advertising and marketing as well as promo. Given that no brand-new recruitment has been done after Bridget Cole's separation with the reporting line being straight appointed to Krasnow for the advertising function, this is a desirable opportunity for integrating the advertising and marketing functions. Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merger days has competence in business-to-business advertising and marketing along with company and retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to take care of both advertising and marketing features.

The benefit of this method is that it will certainly incorporate both features while lowering the demand for hiring an additional resource for marketing. Lewis would certainly be heading the advertising division and also in any case her replacement would be required for the existing function that she is carrying out. The drawback of this choice is that external hiring may cause bitterness from inner personnel that may be looking at the position of EVP after Lewis takes control of Krasnow's position.

Separating Adverting as well as Production: Given the competitive stress as well as premium quality work required from the advertising agency, it is advised that Lewis must permit the production device to be a different function from the marketing system. Given that most ad agency had these 2 functions as separate devices, it makes more sense to adhere to the norm. In addition to this, both functions may be able to concentrate on their core activates much more efficiently. Nonetheless, the downside of this approach would be that additional prices would certainly need to be birthed for setting up separate production functions. In addition to this, a production head might have to be hired which can boost overheads for the company.

Integration of Advertising with Procedures: Since Lewis is currently taking treatment of the marketing and procedures divisions concurrently; it makes feeling to integrate the two functions given that she has actually been successfully taking treatment of both ends. The reality that Lewis has to adjust her monitoring design for the advertising and marketing division suggests that these two divisions would be culturally varied.


An evaluation of the three options suggests that combination of advertising as well as operations would certainly not be a viable step as a result of the large distinctions in between the two departments despite the fact that currently Lewis is dealing with both. While separation of the manufacturing feature may have been a favorable step for the advertising and marketing division, the truth that it would suggest placing a 3rd feature under Lewis's wing indicates this should be prevented. The combination of the marketing department is the most effective alternative in regards to getting the optimum results from the department. An action plan for this alternative is talked about listed below.

Action Strategy.
Lewis will take control of the function of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

Manufacturing feature will certainly stay part of advertising and marketing under advertising and marketing feature.

Lewis will certainly separate herself from operations.

A democratic leadership style with worker empowerment will be used in marketing division.

Open up door policy as well as focus on cross department interaction will be targeted at eliminating dissonance.

Backup strategy.

If the assimilation does not exercise as prepared, a backup strategy would comply with which would certainly separate the production feature from the advertising function to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising division without an SVP. In that case the production function will certainly be separated by positioning it under an SVP production.