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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 Analysis

Background and Facts

Cementing The Bottom Of The Pyramid A New Direction At Cemex a workplace supplies merchant for small as well as moderate sized organisations has actually lately been associated with preparing for a merging with its competitor Home Deport, which has actually affected performance degrees in departmentswith the elderly supervisor involved in lawful issues put forth by the federal Trade Payment. With the Advertising Head advancing the news of his separation from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the function in the near future. With obstacles in the kind of a prospective cultural adjustment as well as reduced staff member spirits, the organization requires a total reengineering effort at the advertising department.

Trouble Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising and marketing department of Cementing The Bottom Of The Pyramid A New Direction At Cemex is increasing unpredictability in the workplace bring about different challenges for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting calculated choices given that Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Profession Payment's intervention at the same time. Offered the reality that the store has an international existence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries may be able to influence performance or calculated objectives. Federal Profession Compensation's antitrust suit against the merger took up beneficial time of the company's senior administration recommending that 'political' factors can have significant effects for an international organisation.

Economic Factors: Economic factors such as the appearance of small businesses in the worldwide situation recommend that Cementing The Bottom Of The Pyramid A New Direction At Cemex is thriving in an environment where there is possible growth of organisations. Fact that store clients are mainly looking for office materials for house workplaces recommends that the market has a climbing pattern of business owners as well as home based services.

Social factors: Social trends in the economic climate show that clients are looking for ease along with attractive prices. Marketing research shows how the customer for Cementing The Bottom Of The Pyramid A New Direction At Cemex lacks awareness concerning locating solutions which can use a combination of benefit and inexpensive.

Technological factors: Innovation plays a crucial function in Cementing The Bottom Of The Pyramid A New Direction At Cemex's organisation strategy especially as the company is piloting Modern technology facilities which would provide modern technology sales and also support in the kind of memory upgrades, outer installations. (Recap of BUG in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Business Actions issues can be seen in Cementing The Bottom Of The Pyramid A New Direction At Cemex's case as highlighted in this area.

Uneasiness regarding cultural change: There is uneasiness about a cultural adjustment that would certainly happen when Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising with a lot of the staff members already revealing unhappiness over this prospective action. This expected adjustment has actually developed stress and anxiety in the work environment which has been combined with the past tension of preparing the firm for a possible merger with House Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is shortage of employees that can match the stressful environment of a fast-paced company. Not only does this bring about trouble in finding the appropriate people, it places stress on brand-new hires as can not withstand the speed as well as stress that the organization anticipates them to bear.

Twin Reporting Lines: Newbies locate this organizational society cumbersome and hard to handle specifically as dotted line connections are indicated to be weak as a whole as well as objective setting and also efficiency analysis is still done by the strong line supervisor. This indicates that newbies could lose clarity concerning their corresponding roles and purposes specifically as populated line coverage does not keep them in straight interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles despite the fact that it had been hypothesized that the last would take Krasnow's placement came as a blow to her spirits. Lewis might have been capable as well as proper for the work however 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.

Worry & Job Instability: Worry and instability can be recognized as two significant problems that Lewis would certainly be managing particularly as the merging has now be cancelled and also two senior execs of the marketing division would be leaving. The entire responsibility of the department would certainly be falling on Lewis's shoulders that would not simply be in charge of brining regarding a social modification but would certainly likewise need to confirm herself in her new duty.

Inappropriate Administration Style of Leader: Lewis's administration design and also its conflict with the marketing division's role can additionally be seen as an OB difficulty particularly as she has actually been utilized to taking care of problems in the procedures department where employees are taught to concentrate on procedures and get them. The advertising and marketing division on the other hand can be seen as a group of individuals that are made use of to being nurtured by Krasnow who concentrated more on result than processes.

Interdepartmental Disagreements: Interdepartmental arguments between 3 divisions, marketing, merchandizing and operations specifically over the allotment of the advertising and marketing mix can be recognized as another OB problem. Although the advertising and marketing department does not share the exact same vision as the various other two divisions regarding the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and also operations divisions do not concur over the advertising and marketing mix allotment among one another either.

Disintegration in Marketing Department: Disintegration in between the marketing and advertising departments can be identified as an additional OB issue which might require additional focus. The reality that the advertising and marketing areas in the marketing division are disconnected is protecting against both departments from obtaining from each other's experience as well as experience. Combination of advertising and marketing with retailing and operations would end up being harder if the advertising and marketing department itself is disintegrated which can be an additional potential OB problem.

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

Various concepts have actually been utilized to clarify the conditions to get more clearness concerning the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers believe that staffs are passive and also careless, have little passion as well as stand up to modification. The tough variation of this concept stressed threat, limited controls, hazards and also punishments. Gradually it produces reduced productivity, subtle sabotage and rivalry (Offer, 2003). The circumstance at Cementing The Bottom Of The Pyramid A New Direction At Cemex is not totally complying with Theory X, it can be seen that brand-new hires are discovering this setting instead stressful which may at some point lead to a better inclination of the monitoring in the direction of Theory X. According to McGregor's supported view, which he called Theory Y, the necessary job of the monitoring is to set up business conditions to ensure that people can achieve their very own goals best by routing their efforts towards organizational rewards. If people locate no fulfillment in their job, the administration would certainly have little choice yet to rely on concept X and also external control (Offer, 2003). Also while analyzing Lewis's administration design, theory X may have been suitable in the procedures division to some extent yet the Marketing department would need reliance on Concept Y in order to get the imagination and also creativity from the teams.

Tuckman's Team effort Theory: As much as Lewis's problem regarding bringing harmony in between the advertising and marketing and advertising and marketing division is worried, this would originally lead to contrast as talked about by Bruce Tuckman in his 'Team effort Concept'. By incorporating the advertising and marketing and also advertising and marketing division's work, there might be the very same first detach which might lead to the 2nd phase of 'storming' where the teams test one an additional.

Bridges' Transition Version: According To William Bridge's concept (appendix 4), people are quite uncomfortable with modification, which is apparent by the scenario at Cementing The Bottom Of The Pyramid A New Direction At Cemex The scenario can be viewed as a regular course of life if is studied as per Bridge's theory where he clarifies that individuals go through 3 phases of shift when they experience change. 'Closing, losing and Releasing', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When individuals are presented with modification, they enter stage one and so there may be emotions like unhappiness, unpredictability, aggravation, anger, worry, denial and disorientation.The scenario at the advertising and marketing department of Cementing The Bottom Of The Pyramid A New Direction At Cemex is comparable so Lewis can get comfortable with the concept that it is not remarkable habits. In the second phase, there might be a requirement to bridge the void between the new and old society so Lewis may need to encounter this ordeal once Krasnow leaves. There may be reduced spirits as well as reduced efficiency at this stage which need to not be taken as a setback. It is throughout this phase that Lewis will certainly have to provide assistance to the department to make sure that they can find a sense of direction. It can be seen exactly how Krasnow has actually currently made this shift less complicated by making Lewis get associated with the division a year prior to his actual departure. Based on Bridges' Model, phase 3 will bring about visibility to knowing, High power and commitment as individuals will certainly welcome the modification (Bridges, 2004).
Vrio Analysis
Maslow's Demand pecking order: The OB issue related to instability at the workplace has been activated firstly by the modification in administration and also secondly by the fact that the merger will no longer be started. Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has reviews the importance of 'safety and security requires as being a reduced degree need of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel protected and also safe' goes to the 2nd degree of needs. Before a worker can be made to develop mentally, he requires to have his 'Physical 'as well as 'Safety and security' needs met. This suggests that unless the workers are made to feel safe and secure concerning their existing employment condition in Cementing The Bottom Of The Pyramid A New Direction At Cemex they may not reach 'Self-Fulfillment'. (King, 2009).

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



Ramification of Analysis.

The OB analysis has actually looked at different theories to understand just how to deal with the current situation at hand. The adhering to 3 options have been recommended to assist Lewis take care of the organizational challenges in the advertising division. Each of these options has been proposed for relieving the shift required to bring the marketing division according to the requirements of the marketplace and for making the social modification that would adhere to when the present leader leaves.

Integration of marketing and advertising features. Dividing Adverting and also Manufacturing functions. Assimilation of Advertising And Marketing with Procedures.

Evaluation of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merger days has know-how in business-to-business marketing along with company and retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to take care of both advertising and marketing as well as marketing functions.

The benefit of this strategy is that it will certainly integrate the two functions while decreasing the requirement for employing an extra resource for advertising and marketing. Along with this, Lewis would certainly be heading the marketing department as well as regardless her substitute would be needed for the existing duty that she is executing. The disadvantage of this option is that external hiring may bring about animosity from interior employees who may be considering the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Production: Provided the competitive stress and also excellent quality job required from the ad agency, it is advised that Lewis needs to permit the production unit to be a different function from the advertising and marketing device. Since the majority of advertising agencies had these 2 functions as different units, it makes even more feeling to adhere to the norm. Both features might be able to focus on their core turns on more effectively. The drawback of this strategy would certainly be that added costs would certainly have to be birthed for setting up different production functions. A production head may have to be hired which could enhance expenses for the organization.

Assimilation of Advertising And Marketing with Operations: Considering that Lewis is already taking care of the advertising and marketing as well as operations departments all at once; it makes good sense to incorporate the two features considering that she has been efficiently taking care of both ends. The reality that the two divisions already have significant differences over appropriation of sources recommends that this integration may be able to bring about harmony especially as Lewis would certainly be heading both ends.However there are different disadvantages of this step especially as it would place way too much concern over Lewis's shoulders. The reality that Lewis has to adapt her monitoring design for the advertising and marketing department suggests that these two departments would be culturally diverse. Lewis might not be able to use one type of leadership style to both divisions which can result in ineffectiveness in either one of the 2 functions.

Recommendation.



An assessment of the three options shows that combination of advertising as well as procedures would not be a feasible action as a result of the huge differences in between both departments despite the fact that presently Lewis is managing both. While splitting up of the production feature might have been a positive action for the advertising division, the reality that it would indicate placing a 3rd function under Lewis's wing implies this need to be avoided. The assimilation of the advertising division is the most effective alternative in terms of getting the ideal results from the division. An activity prepare for this alternative is talked about below.

Activity Plan.
Recommendation
Lewis will certainly take over the duty of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

Manufacturing feature will certainly continue to be part of advertising under advertising function.

Lewis will certainly divide herself from procedures.

An autonomous management design with worker empowerment will be made use of in advertising and marketing division.

Open up door policy and also emphasis on cross department communication will be focused on getting rid of dissonance.

Backup plan.

If the combination does not exercise as intended, a contingency strategy would certainly follow which would certainly divide the manufacturing feature from the marketing feature to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing department without an SVP. Because case the production function will certainly be separated by placing it under an SVP production.