Cementing The Bottom Of The Pyramid A New Direction At Cemex Case Study Solution


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Cementing The Bottom Of The Pyramid A New Direction At Cemex Case Study Solution

Background and Facts

Cementing The Bottom Of The Pyramid A New Direction At Cemex a workplace products seller for tiny and medium sized companies has just recently been involved in planning for a merger with its rival Home Deport, which has affected effectiveness levels in departmentswith the senior manager associated with legal problems put forth by the government Profession Commission. With the Advertising Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the duty in the near future. With difficulties in the form of a prospective social change as well as reduced staff member spirits, the company wants a full reengineering effort at the marketing department.

Problem Statement
Porter's 5 Forces Analysis
The prospective cultural modification at the marketing department of Cementing The Bottom Of The Pyramid A New Direction At Cemex is boosting unpredictability in the workplace leading to different obstacles for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing tactical choices considering that Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Profession Commission's treatment while doing so. Given the truth that the shop has a worldwide presence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries may have the ability to influence performance or tactical goals. Federal Profession Commission's antitrust fit versus the merging used up beneficial time of the organization's senior management suggesting that 'political' factors can have major ramifications for an international business.

Economic Factors: Economic factors such as the development of small businesses in the worldwide circumstance suggest that Cementing The Bottom Of The Pyramid A New Direction At Cemex is flourishing in a setting where there is possible development of services. Fact that shop customers are mainly looking for office supplies for home workplaces suggests that the market has an increasing pattern of entrepreneurs and residence based services.

Social factors: Social trends in the economic climate show that consumers are looking for convenience in addition to eye-catching costs. Market research demonstrates how the consumer for Cementing The Bottom Of The Pyramid A New Direction At Cemex does not have understanding about locating solutions which can supply a mix of comfort as well as inexpensive.

Technological factors: Technology plays an essential role in Cementing The Bottom Of The Pyramid A New Direction At Cemex's company strategy particularly as the company is piloting Modern technology centers which would provide modern technology sales as well as support in the kind of memory upgrades, outer installments. (Recap of PARASITE in appendix 2).

OB Issues and Symptoms.

A number of underlying Organizational Behavior concerns can be seen in Cementing The Bottom Of The Pyramid A New Direction At Cemex's case as highlighted in this section.

Uneasiness concerning cultural change: There is uneasiness about a cultural adjustment that would happen when Todd Krasnow leaves from his setting as the Exec Vice President of Advertising with most of the employee currently revealing unhappiness over this prospective action. This anticipated adjustment has actually created stress in the work environment which has actually been coupled with the past tension of preparing the firm for a possible merging with Residence Deport.
Pest Analysis
Stressful Task Setting for Newcomers: There is shortage of employees that can match the difficult atmosphere of a hectic company. Not just does this lead to difficulty in locating the best individuals, it puts stress on new hires as can not stand up to the pace as well as stress that the company anticipates them to bear.

Dual Coverage Lines: Newbies find this business society troublesome as well as tough to deal with particularly as dotted line partnerships are indicated to be weaker in general and objective setting as well as efficiency examination is still done by the solid line manager. This implies that beginners can shed clearness about their respective functions and objectives especially as populated line reporting does not keep them in straight interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles although it had been speculated that the last would certainly take Krasnow's placement came as a blow to her morale. Lewis might have been qualified and proper for the task yet the fact that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Job Insecurity: Concern as well as instability can be identified as 2 significant problems that Lewis would be dealing with especially as the merging has actually currently be cancelled and two senior executives of the marketing department would certainly be leaving. The whole duty of the division would be dropping on Lewis's shoulders who would certainly not just be in charge of brining regarding a social adjustment however would certainly likewise have to show herself in her new function.

Incompatible Monitoring Design of Leader: Lewis's management design and also its incompatibility with the advertising and marketing department's duty can likewise be viewed as an OB obstacle especially as she has actually been used to handling concerns in the operations division where employees are taught to focus on processes as well as get them right. The marketing department on the various other hand can be viewed as a team of individuals who are used to being nurtured by Krasnow who focused much more on result than procedures.

Interdepartmental Disputes: Interdepartmental differences in between 3 departments, advertising, merchandizing and also operations respectively over the allotment of the advertising mix can be recognized as another OB issue. The marketing division does not share the same vision as the other two divisions regarding the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and also operations departments do not concur over the advertising mix allocation amongst one another either.

Disintegration in Advertising And Marketing Department: Fragmentation between the marketing and advertising departments can be determined as another OB concern which might need further focus. The fact that the marketing and advertising areas in the advertising and marketing division are disconnected is protecting against both divisions from gaining from each various other's experience and also knowledge. Assimilation of advertising and marketing with merchandising as well as operations would certainly come to be harder if the advertising department itself is degenerated which can be another potential OB worry.

Cementing The Bottom Of The Pyramid A New Direction At Cemex Analysis

Various theories have been used to explain the scenarios to obtain further quality about the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers believe that staffs are easy as well as careless, have little ambition and also resist adjustment. The hard version of this concept emphasized coercion, limited controls, threats and also punishments. With time it generates reduced efficiency, refined sabotage and rivalry (Deal, 2003). The situation at Cementing The Bottom Of The Pyramid A New Direction At Cemex is not totally adhering to Theory X, it can be seen that new hires are finding this environment rather difficult which may at some point lead to a greater disposition of the management in the direction of Theory X. According to McGregor's supported view, which he called Concept Y, the essential task of the administration is to organize organizational problems to ensure that people can attain their very own goals best by guiding their efforts towards organizational benefits. If individuals discover no contentment in their work, the administration would certainly have little selection but to rely upon theory X and also outside control (Bargain, 2003). Also while analyzing Lewis's administration design, concept X may have been suitable in the operations division somewhat but the Marketing division would certainly need dependence on Concept Y to get the creativity and creativity from the groups.

Tuckman's Team effort Concept: As far as Lewis's problem about bringing harmony between the marketing and also advertising and marketing division is concerned, this would at first lead to clash as discussed by Bruce Tuckman in his 'Teamwork Theory'. By integrating the advertising and marketing as well as advertising division's job, there might be the same preliminary detach which could lead to the second phase of 'storming' where the teams test one an additional.

Bridges' Transition Model: As per William Bridge's theory (appendix 4), individuals are rather unpleasant with adjustment, which is apparent by the situation at Cementing The Bottom Of The Pyramid A New Direction At Cemex The circumstance can be viewed as a typical program of life if is examined according to Bridge's concept where he explains that individuals undergo three phases of shift when they experience modification. 'Ending, losing and also Letting go', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When people are presented with adjustment, they enter stage one therefore there may be feelings like sadness, uncertainty, stress, rage, anxiety, rejection and also disorientation.The circumstance at the advertising division of Cementing The Bottom Of The Pyramid A New Direction At Cemex is similar so Lewis can obtain comfy with the suggestion that it is not extraordinary habits. In the second stage, there might be a demand to link the space in between the brand-new and also old culture so Lewis may need to face this challenge as soon as Krasnow leaves. There may be low spirits as well as low productivity at this phase which should not be taken as a trouble. It is throughout this phase that Lewis will have to provide support to the department to make sure that they can discover an orientation. It can be seen just how Krasnow has already made this shift easier by making Lewis get involved in the department a year prior to his actual departure. As per Bridges' Design, stage 3 will certainly produce openness to discovering, High energy and also commitment as individuals will welcome the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has discusses the significance of 'security requires as being a reduced level need of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel safe as well as out of danger' is at the 2nd level of requirements. Prior to a worker can be made to establish mentally, he requires to have his 'Physiological 'and 'Security' needs fulfilled.

SWOT Analysis for Cementing The Bottom Of The Pyramid A New Direction At Cemex Case Study

Ramification of Analysis.

The OB analysis has looked at different theories to recognize how to cope with the existing situation available. The complying with three alternatives have been proposed to aid Lewis take care of the business challenges in the advertising department. Each of these choices has been suggested for reducing the shift required to bring the advertising department in accordance with the requirements of the marketplace as well as for making the social change that would certainly comply with once the current leader leaves.

Integration of advertising and marketing features. Separating Adverting and Manufacturing functions. Integration of Advertising with Procedures.

Evaluation of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merger days has knowledge in business-to-business advertising and marketing along with firm and also retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to handle both marketing as well as advertising features.

The benefit of this method is that it will integrate the two features while minimizing the demand for hiring an additional resource for advertising. In addition to this, Lewis would certainly be heading the advertising department and regardless her replacement would certainly be required for the current duty that she is doing. The drawback of this option is that external hiring may cause resentment from internal workers who might be eying the position of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and Production: Provided the affordable stress and also premium quality work needed from the ad agency, it is recommended that Lewis ought to permit the production device to be a separate feature from the advertising and marketing system. Considering that many ad agency had these two features as separate systems, it makes even more feeling to comply with the norm. Both functions may be able to focus on their core activates a lot more efficiently. The disadvantage of this approach would be that additional prices would certainly have to be birthed for establishing up different manufacturing functions. In addition to this, a production head might have to be worked with which might boost expenses for the organization.

Assimilation of Advertising And Marketing with Procedures: Considering that Lewis is currently taking treatment of the marketing as well as operations departments concurrently; it makes feeling to incorporate the 2 features considering that she has been successfully taking treatment of both ends. The fact that Lewis has to adapt her monitoring style for the advertising and marketing division recommends that these 2 divisions would be culturally varied.


An examination of the three alternatives shows that assimilation of advertising and marketing as well as procedures would not be a viable step due to the huge distinctions between the two departments despite the truth that currently Lewis is dealing with both. While splitting up of the production function might have been a desirable move for the marketing division, the reality that it would certainly suggest placing a 3rd function under Lewis's wing implies this must be prevented.

Action Strategy.
Lewis will certainly take over the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

Manufacturing function will certainly stay part of marketing under marketing feature.

Lewis will certainly separate herself from procedures.

An autonomous leadership style with employee empowerment will certainly be used in advertising and marketing division.

Open up door plan and also emphasis on cross department communication will certainly be aimed at eliminating discord.

Backup strategy.

If the integration does not exercise as intended, a backup plan would certainly follow which would separate the production feature from the advertising and marketing feature to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising department without an SVP. Because case the production function will most definitely be divided by placing it under an SVP manufacturing.