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Brazils Enigma Sustaining Long Term Growth Case Study Analysis

CASE ANALYSIS

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Background and Facts

Brazils Enigma Sustaining Long Term Growth an office products merchant for little as well as moderate sized services has recently been involved in planning for a merging with its competitor Residence Deport, which has affected effectiveness levels in departmentswith the elderly supervisor associated with lawful complications presented by the government Profession Commission. With the Advertising and marketing Head advancing the information of his departure from the company in one year, Jeannie Lewis, the current head of operations has been asked to take the function in the near future. With obstacles in the kind of a potential cultural adjustment and low worker morale, the organization wants a total reengineering effort at the advertising department.

Trouble Declaration
Porter's 5 Forces Analysis
The possible social change at the advertising division of Brazils Enigma Sustaining Long Term Growth is increasing uncertainty in the working environment resulting in numerous challenges for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting strategic choices considering that Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Profession Commission's treatment while doing so. Provided the fact that the shop has a global existence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these countries might have the ability to impact efficiency or calculated goals. Federal Trade Payment's antitrust suit against the merging occupied useful time of the organization's senior management recommending that 'political' factors can have significant ramifications for a global company.

Economic Factors: Economic factors such as the emergence of local business in the global situation suggest that Brazils Enigma Sustaining Long Term Growth is prospering in an environment where there is prospective growth of companies. In addition to this, reality that store customers are mostly seeking workplace materials for office suggests that the marketplace has an increasing pattern of business owners and home based businesses.

Social factors: Social trends in the economic situation reveal that clients are searching for benefit in addition to attractive rates. Market research shows how the client for Brazils Enigma Sustaining Long Term Growth does not have recognition concerning finding solutions which can offer a combination of benefit as well as low costs.

Technological factors: Innovation plays a crucial role in Brazils Enigma Sustaining Long Term Growth's company method particularly as the organization is piloting Technology centers which would certainly use innovation sales and support in the type of memory upgrades, outer installations. (Recap of PEST in appendix 2).

OB Issues and Symptoms.

A number of underlying Organizational Behavior problems can be seen in Brazils Enigma Sustaining Long Term Growth's case as highlighted in this section.

Concerns concerning social adjustment: There is uneasiness concerning a social modification that would happen once Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising And Marketing with the majority of the employee currently revealing discontent over this prospective step. This predicted change has actually created anxiety in the workplace which has been coupled with the previous stress of preparing the firm for a prospective merging with Residence Deport.
Pest Analysis
Difficult Task Atmosphere for Newcomers: There is shortage of workers that can match the demanding atmosphere of a hectic company. Not only does this cause problem in finding the right individuals, it puts stress and anxiety on brand-new hires as can not withstand the rate and pressure that the company anticipates them to birth.

Dual Coverage Lines: Novices locate this organizational culture troublesome and difficult to cope with especially as dotted line relationships are suggested to be weak in general as well as objective setup as well as efficiency examination is still done by the strong line manager. This implies that beginners can shed clarity concerning their corresponding functions and goals particularly as dotted line coverage does not keep them in straight communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had been speculated that the last would take Krasnow's placement came as a blow to her spirits. Lewis may have been capable and suitable for the work yet the reality that Kransnow's separation would make Coles a straight record to Lewis may have been the reason for Coles' resignation from services.

Anxiety & Work Instability: Anxiety as well as insecurity can be recognized as two significant concerns that Lewis would certainly be handling particularly as the merger has currently be terminated as well as two elderly execs of the advertising division would be leaving. The whole duty of the division would be dropping on Lewis's shoulders who would certainly not simply be in charge of brining concerning a cultural modification yet would also have to prove herself in her new duty.

Inappropriate Management Design of Leader: Lewis's administration style and its conflict with the advertising and marketing division's duty can also be seen as an OB challenge specifically as she has been made use of to taking care of issues in the procedures department where workers are taught to concentrate on processes and also get them. The marketing division on the other hand can be viewed as a group of individuals who are used to being nurtured by Krasnow that focused more on result than processes.

Interdepartmental Arguments: Interdepartmental disagreements between three divisions, advertising, merchandizing as well as procedures respectively over the allowance of the advertising and marketing mix can be recognized as one more OB concern. The advertising and marketing department does not share the same vision as the other two departments regarding the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and also operations divisions do not agree over the advertising mix allotment among one another either.

Fragmentation in Advertising And Marketing Department: Fragmentation in between the advertising and marketing departments can be recognized as another OB problem which can require additional focus. The reality that the advertising and marketing sections in the marketing department are disconnected is preventing both divisions from obtaining from each various other's experience and also knowledge. Assimilation of advertising with merchandising as well as procedures would certainly come to be harder if the advertising and marketing department itself is disintegrated which can be another prospective OB problem.

Brazils Enigma Sustaining Long Term Growth Analysis

Numerous theories have actually been made use of to discuss the conditions to obtain more quality concerning the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most supervisors believe that staffs are easy and lazy, have little passion as well as withstand adjustment. The situation at Brazils Enigma Sustaining Long Term Growth is not totally complying with Theory X, it can be seen that new hires are discovering this setting instead demanding which might at some point lead to a better inclination of the monitoring in the direction of Concept X. Also while assessing Lewis's monitoring design, theory X may have been suitable in the procedures department to some extent however the Marketing department would need dependence on Concept Y in order to get the imagination and originality from the teams.

Tuckman's Teamwork Concept: As far as Lewis's worry about bringing harmony between the advertising and marketing and also marketing division is concerned, this would at first lead to conflict as discussed by Bruce Tuckman in his 'Synergy Concept'. By incorporating the marketing as well as advertising and marketing department's job, there might be the very same preliminary separate which could lead to the second phase of 'storming' where the teams challenge one an additional.

Bridges' Transition Model: As per William Bridge's theory (appendix 4), individuals are quite awkward with adjustment, which is noticeable by the situation at Brazils Enigma Sustaining Long Term Growth The circumstance can be viewed as a regular training course of life if is researched as per Bridge's concept where he clarifies that individuals go through three phases of transition when they experience change. 'End, losing and also Letting go', The Neutral Area and also 'The New Starting' (Bridges, 2004). When people are presented with adjustment, they go into phase one therefore there may be feelings like unhappiness, uncertainty, irritation, anger, fear, rejection as well as disorientation.The circumstance at the marketing department of Brazils Enigma Sustaining Long Term Growth is similar so Lewis can obtain comfortable with the concept that it is not extraordinary behavior. In the 2nd phase, there might be a demand to link the void in between the brand-new and old culture so Lewis may have to encounter this ordeal once Krasnow leaves. There may be reduced morale and reduced performance at this phase which must not be taken as a problem. It is throughout this phase that Lewis will need to give assistance to the division to make sure that they can locate an orientation. It can be seen how Krasnow has actually already made this change less complicated by making Lewis get involved in the department a year before his real separation. According to Bridges' Model, stage 3 will cause visibility to knowing, High energy as well as commitment as people will accept the modification (Bridges, 2004).
Vrio Analysis
Maslow's Demand pecking order: The OB problem related to instability at the workplace has actually been activated first of all by the adjustment in management and also secondly by the truth that the merging will certainly no more be started. Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has goes over the value of 'security needs as being a lower degree need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel safe and secure and also out of danger' is at the second level of demands. Prior to a worker can be made to establish emotionally, he requires to have his 'Physiological 'and 'Safety and security' requires fulfilled. This indicates that unless the employees are made to really feel secure regarding their present employment status in Brazils Enigma Sustaining Long Term Growth they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Brazils Enigma Sustaining Long Term Growth Case Study



Implication of Analysis.

The OB analysis has actually looked at various concepts to comprehend exactly how to manage the existing scenario available. The following three options have actually been recommended to assist Lewis deal with the organizational challenges in the advertising and marketing division. Each of these options has been recommended for reducing the change needed to bring the marketing division according to the requirements of the market and for making the cultural adjustment that would certainly adhere to once the existing leader leaves.

Integration of marketing and advertising features. Separating Adverting as well as Manufacturing features. Integration of Advertising And Marketing with Procedures.

Analysis of Alternatives.

Combination of Advertising & Advertising Functions: The in-house advertising and marketing agency of Brazils Enigma Sustaining Long Term Growth is already toughness for the company in terms of conserving up on expenses related to advertising as well as promotion. Considering that no brand-new employment has actually been done after Bridget Cole's departure with the reporting line being straight designated to Krasnow for the advertising feature, this is a favorable chance for incorporating the advertising and marketing features. Judith Shapiro that has earlier been talked to by Lewis throughout the earlier merger days has know-how in business-to-business advertising along with company and also retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to handle both advertising and marketing features.

The benefit of this technique is that it will certainly incorporate the two features while minimizing the need for working with an additional resource for marketing. Along with this, Lewis would be heading the advertising department and regardless her substitute would certainly be required for the existing duty that she is carrying out. The disadvantage of this alternative is that outside hiring may cause resentment from internal personnel who may be looking at the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and also Production: Offered the competitive stress and high quality job called for from the advertising agency, it is advised that Lewis needs to permit the production system to be a different feature from the marketing device. Since many ad agency had these two functions as separate units, it makes more feeling to follow the norm. Along with this, both features may have the ability to concentrate on their core activates much more efficiently. The drawback of this strategy would certainly be that additional prices would certainly have to be borne for establishing up different production features. A manufacturing head might have to be hired which might boost overheads for the organization.

Combination of Marketing with Operations: Since Lewis is already taking care of the advertising and marketing and procedures departments at the same time; it makes sense to incorporate the two functions given that she has actually been efficiently taking care of both ends. The truth that the two divisions already have significant differences over allocation of sources recommends that this integration might have the ability to bring about consistency specifically as Lewis would be heading both ends.However there are various downsides of this action particularly as it would put excessive worry over Lewis's shoulders. The fact that Lewis needs to adjust her administration style for the advertising and marketing division suggests that these two divisions would be culturally varied. In addition to this, Lewis might not be able to apply one kind of management style to both divisions which might result in inefficiency in either one of the two features.

Suggestion.



An evaluation of the three alternatives shows that integration of marketing as well as operations would not be a practical move due to the substantial differences between the 2 departments in spite of the fact that presently Lewis is dealing with both. While splitting up of the production feature might have been a favorable step for the advertising and marketing division, the fact that it would imply positioning a 3rd feature under Lewis's wing suggests this should be avoided.

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

Marketing and advertising features would certainly be merged.

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

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

Lewis will separate herself from operations.

An autonomous leadership style with worker empowerment will be made use of in advertising division.

Open door plan and emphasis on cross departmental communication will certainly be aimed at removing disharmony.

Backup strategy.

If the integration does not exercise as prepared, a backup strategy would follow which would certainly divide the production function from the advertising feature to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the advertising department without an SVP. In that case the manufacturing feature will most definitely be divided by placing it under an SVP manufacturing.