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Burma Pipeline Case Study Solution

CASE ANALYSIS

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Background and Facts

Burma Pipeline an office products retailer for tiny as well as moderate sized services has just recently been involved in planning for a merging with its competitor House Deport, which has actually affected effectiveness levels in departmentswith the senior supervisor associated with lawful difficulties presented by the federal Trade Compensation. With the Marketing Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the existing head of procedures has been asked to take the duty in the near future. With obstacles in the type of a prospective social modification and low employee spirits, the organization needs a total reengineering initiative at the marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The potential cultural modification at the advertising division of Burma Pipeline is enhancing uncertainty in the workplace leading to different difficulties 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 influencing strategic choices considering that Stapes Inc. had to abandon its strategies of combining with Office Deport after the Federal Profession Commission's intervention in the process. Provided the fact that the shop has an international existence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations might be able to influence performance or strategic goals. Federal Profession Commission's antitrust fit versus the merger used up important time of the organization's senior monitoring suggesting that 'political' factors can have severe implications for an international business.

Economic Factors: Economic factors such as the development of small businesses in the global circumstance recommend that Burma Pipeline is thriving in a setting where there is possible development of organisations. Along with this, fact that shop clients are primarily searching for workplace materials for office suggests that the market has an increasing fad of entrepreneurs as well as home based services.

Social factors: Social fads in the economic climate show that consumers are trying to find ease along with appealing prices. Market research demonstrates how the client for Burma Pipeline lacks awareness regarding discovering options which can supply a combination of benefit and low costs.

Technical factors: Modern technology plays a crucial function in Burma Pipeline's company method especially as the company is piloting Innovation facilities which would certainly offer innovation sales and assistance in the form of memory upgrades, outer installations. (Recap of INSECT in appendix 2).

OB Issues as well as Symptoms.

Several underlying Business Habits problems can be seen in Burma Pipeline's case as highlighted in this area.

Concerns concerning social modification: There is concern concerning a social change that would certainly take place as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Marketing with the majority of the personnel currently revealing discontent over this prospective action. This anticipated modification has developed anxiety in the office which has actually been combined with the past stress of preparing the firm for a prospective merger with House Deport.
Pest Analysis
Demanding Job Atmosphere for Newcomers: There is scarcity of workers that can match the stressful environment of a busy company. Not only does this result in problem in finding the ideal individuals, it places anxiety on brand-new hires as can not hold up against the speed and pressure that the company anticipates them to bear.

Double Reporting Lines: Newbies discover this business culture difficult and difficult to cope with especially as dotted line relationships are meant to be weaker generally and also objective setting as well as performance evaluation is still done by the strong line supervisor. This means that beginners can lose clarity regarding their corresponding roles and also purposes especially as dotted line reporting does not maintain them in straight interaction with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had been hypothesized that the last would certainly take Krasnow's position came as a blow to her morale. Lewis may have been capable and also appropriate for the task but the reality that Kransnow's departure would make Coles a straight report to Lewis may have been the reason for Coles' resignation from services.

Fear & Work Instability: Concern and insecurity can be identified as 2 major problems that Lewis would be taking care of especially as the merger has now be terminated and two elderly executives of the advertising division would certainly be leaving. The entire responsibility of the department would be falling on Lewis's shoulders who would certainly not simply be in charge of brining about a social adjustment yet would certainly also need to verify herself in her brand-new role.

Inappropriate Management Style of Leader: Lewis's administration design and also its incompatibility with the advertising and marketing department's role can likewise be seen as an OB obstacle specifically as she has been used to dealing with issues in the procedures department where employees are shown to concentrate on procedures and also get them right. The marketing division on the other hand can be viewed as a group of individuals who are utilized to being nurtured by Krasnow who concentrated more on result than procedures.

Interdepartmental Differences: Interdepartmental arguments between three divisions, marketing, merchandizing as well as procedures respectively over the allotment of the advertising and marketing mix can be identified as another OB concern. The advertising division does not share the very same vision as the various other two divisions pertaining to the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing and operations divisions do not agree over the marketing mix allocation among one an additional either.

Disintegration in Marketing Department: Disintegration in between the marketing and advertising divisions can be identified as one more OB concern which can require more interest. The truth that the marketing and advertising areas in the marketing department are detached is preventing both divisions from obtaining from each various other's experience as well as expertise. Integration of advertising and marketing with merchandising as well as operations would end up being harder if the marketing department itself is degenerated which can be one more possible OB issue.

Burma Pipeline Analysis

Various theories have been used to describe the situations to obtain further clearness regarding the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many supervisors think that staffs are passive and also careless, have little passion and stand up to change. The tough version of this concept stressed coercion, limited controls, dangers as well as punishments. In time it produces low efficiency, refined sabotage as well as rivalry (Offer, 2003). Although the scenario at Burma Pipeline is not entirely adhering to Concept X, it can be seen that brand-new hires are discovering this environment rather demanding which may at some point bring about a better disposition of the administration in the direction of Concept X. As per McGregor's supported sight, which he called Concept Y, the crucial job of the management is to organize organizational conditions so that individuals can achieve their very own goals best by guiding their efforts in the direction of business benefits. If individuals discover no fulfillment in their job, the monitoring would certainly have little option yet to count on concept X and outside control (Bargain, 2003). Even while evaluating Lewis's management style, theory X may have appropriated in the procedures division to some extent but the Marketing department would call for reliance on Theory Y in order to get the imagination as well as originality from the teams.

Tuckman's Team effort Theory: As much as Lewis's concern regarding bringing consistency in between the marketing as well as marketing department is worried, this would initially lead to conflict as reviewed by Bruce Tuckman in his 'Teamwork Concept'. By integrating the marketing and also advertising and marketing division's work, there may be the exact same first detach which can lead to the 2nd phase of 'storming' where the teams challenge one an additional.

When people are provided with change, they go into phase one and also so there might be emotions like unhappiness, uncertainty, disappointment, temper, anxiety, denial and also disorientation.The scenario at the advertising and marketing division of Burma Pipeline is comparable so Lewis can obtain comfortable with the concept that it is not remarkable actions. It is throughout this stage that Lewis will certainly have to offer guidance to the department so that they can locate a sense of direction. It can be seen just how Krasnow has currently made this shift much easier by making Lewis obtain entailed in the division a year before his actual separation.
Vrio Analysis
Maslow's Demand power structure: The OB issue related to instability at the work environment has been set off to start with by the change in monitoring and secondly by the reality that the merging will no more be launched. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has goes over the relevance of 'security needs as being a lower level demand of a human for causing inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the requirement to feel safe and secure and safe' goes to the second degree of needs. Before an employee can be made to establish emotionally, he requires to have his 'Physiological 'and 'Safety and security' needs satisfied. This shows that unless the workers are made to feel secure regarding their present employment condition in Burma Pipeline they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Burma Pipeline Case Study



Implication of Analysis.

The OB analysis has actually looked at various concepts to recognize exactly how to manage the current scenario available. The following three alternatives have actually been suggested to aid Lewis handle the organizational obstacles in the advertising department. Each of these alternatives has actually been recommended for reducing the transition required to bring the advertising and marketing department according to the needs of the market and also for making the cultural adjustment that would certainly comply with once the present leader leaves.

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

Examination of Alternatives.

Combination of Marketing & Advertising Functions: The in-house marketing agency of Burma Pipeline is currently toughness for the company in terms of conserving up on expenses connected to marketing and promo. Because no brand-new recruitment has actually been done after Bridget Cole's separation with the coverage line being directly designated to Krasnow for the marketing function, this is a desirable possibility for incorporating the marketing and advertising features. Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merger days has know-how in business-to-business advertising and marketing in addition to company and also retail advertising 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 functions.

The advantage of this approach is that it will certainly integrate the two functions while lowering the requirement for working with an additional source for advertising. Along with this, Lewis would certainly be heading the advertising and marketing division and also in any case her substitute would be needed for the existing role that she is executing. The drawback of this choice is that exterior hiring might bring about bitterness from internal workers that might be considering the placement of EVP after Lewis takes over Krasnow's placement.

Separating Adverting as well as Manufacturing: Offered the competitive stress and high quality work needed from the advertising firm, it is recommended that Lewis must enable the manufacturing device to be a different function from the advertising and marketing system. Given that many advertising and marketing firms had these two features as different devices, it makes even more sense to follow the standard.

Combination of Marketing with Workflows: Given that Lewis is currently looking after the advertising and marketing and operations departments all at once; it makes sense to incorporate the two functions since she has actually been effectively looking after both ends. The truth that both departments already have major differences over allowance of sources suggests that this combination may have the ability to cause harmony particularly as Lewis would certainly be heading both ends.However there are various negative aspects of this action particularly as it would certainly place excessive concern over Lewis's shoulders. The reality that Lewis needs to adjust her monitoring style for the advertising department suggests that these two divisions would certainly be culturally varied. Lewis might not be able to use one kind of leadership style to both departments which might result in inadequacy in either one of the two functions.

Recommendation.



An evaluation of the 3 alternatives suggests that assimilation of advertising and marketing and also procedures would not be a possible move due to the huge differences in between the 2 divisions regardless of the reality that currently Lewis is taking care of both. While splitting up of the production feature might have been a beneficial action for the marketing department, the reality that it would mean positioning a 3rd feature under Lewis's wing indicates this ought to be stayed clear of.

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

Advertising and Marketing features would certainly be merged.

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

Production function will certainly remain part of advertising and marketing under advertising and marketing function.

Lewis will separate herself from procedures.

An autonomous management design with employee empowerment will be used in marketing department.

Open up door policy and also emphasis on cross departmental interaction will certainly be targeted at getting rid of discord.

Contingency plan.

If the integration does not work out as prepared, a contingency plan would certainly adhere to which would separate the production feature from the marketing feature to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising and marketing department without an SVP. In that case the production feature will absolutely be separated by positioning it under an SVP production.