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Cemex B Cementing Relationships 2004 2007 Case Study Solution

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Cemex B Cementing Relationships 2004 2007 Case Study Solution

Background and Facts

Cemex B Cementing Relationships 2004 2007 an office products merchant for small as well as moderate sized services has recently been involved in preparing for a merging with its rival Home Deport, which has influenced performance levels in departmentswith the senior supervisor involved in lawful issues put forth by the government Trade Commission. With the Marketing Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the function in the future. With obstacles in the form of a possible social adjustment and low worker morale, the company wants a total reengineering initiative at the marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The possible cultural modification at the marketing department of Cemex B Cementing Relationships 2004 2007 is boosting uncertainty in the workplace bring about different obstacles 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 major function in affecting calculated decisions because Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Trade Payment's intervention in the process. Provided the fact that the shop has a global presence with branches in UK, USA, Canada as well as Germany, political consider each of these countries may be able to influence efficiency or critical objectives. Federal Trade Payment's antitrust fit versus the merger used up useful time of the company's elderly management recommending that 'political' factors can have significant effects for a worldwide organisation.

Economic Factors: Economic factors such as the emergence of local business in the international situation suggest that Cemex B Cementing Relationships 2004 2007 is flourishing in an environment where there is prospective growth of businesses. Truth that store customers are primarily looking for office supplies for residence offices recommends that the market has an increasing fad of entrepreneurs as well as residence based services.

Social factors: Social patterns in the economy reveal that customers are looking for convenience along with appealing rates. Market research demonstrates how the consumer for Cemex B Cementing Relationships 2004 2007 lacks understanding about locating options which can use a combination of convenience as well as inexpensive.

Technical factors: Modern technology plays an essential function in Cemex B Cementing Relationships 2004 2007's service approach especially as the company is piloting Innovation facilities which would certainly provide innovation sales as well as assistance in the type of memory upgrades, peripheral installations. (Recap of INSECT in appendix 2).

OB Issues and also Symptoms.

Several underlying Business Habits issues can be seen in Cemex B Cementing Relationships 2004 2007's case as highlighted in this section.

Uneasiness regarding cultural adjustment: There is uneasiness concerning a cultural adjustment that would take place as soon as Todd Krasnow leaves from his position as the Exec Vice President of Advertising with the majority of the employee currently showing discontent over this potential action. This expected change has actually created stress in the work environment which has been coupled with the past 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 setting of a busy organization. Not just does this lead to problem in discovering the best individuals, it puts anxiety on new hires as can not withstand the speed as well as pressure that the organization expects them to bear.

Twin Reporting Lines: Beginners find this organizational culture cumbersome and also tough to deal with specifically as dotted line connections are suggested to be weak as a whole as well as unbiased setting as well as performance analysis is still done by the solid line supervisor. This indicates that newcomers could shed clarity regarding their corresponding duties and purposes particularly as dotted line coverage does not maintain them in straight communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles although it had actually been hypothesized that the last would take Krasnow's setting came as a blow to her morale. Lewis may have been qualified as well as appropriate for the task yet the fact that Kransnow's separation would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from services.

Concern & Task Insecurity: Concern and insecurity can be recognized as two major worries that Lewis would certainly be managing especially as the merging has actually currently be cancelled and 2 senior executives of the marketing department would be leaving. The whole responsibility of the department would be dropping on Lewis's shoulders that would not just be in charge of brining concerning a social modification but would certainly likewise need to show herself in her new role.

Inappropriate Monitoring Design of Leader: Lewis's management design as well as its conflict with the advertising and marketing division's role can additionally be viewed as an OB obstacle especially as she has actually been used to taking care of issues in the procedures division where employees are educated to focus on procedures and obtain them right. The marketing division on the various other hand can be viewed as a team of people that are made use of to being nurtured by Krasnow that concentrated extra on output than procedures.

Interdepartmental Differences: Interdepartmental arguments between 3 divisions, advertising and marketing, merchandizing as well as procedures specifically over the appropriation of the marketing mix can be recognized as another OB issue. Although the advertising and marketing department does not share the very same vision as the other two divisions relating to the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and also procedures divisions do not concur over the advertising mix allocation amongst each other either.

Disintegration in Advertising Division: Disintegration in between the marketing and advertising divisions can be identified as another OB problem which could require more focus. The truth that the advertising and marketing sections in the marketing division are disconnected is stopping both divisions from obtaining from each various other's experience as well as knowledge. Integration of advertising with retailing and operations would come to be more difficult if the advertising department itself is disintegrated which can be an additional prospective OB problem.

Cemex B Cementing Relationships 2004 2007 Analysis

Numerous concepts have been utilized to discuss the conditions to get more clarity concerning the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers think that staffs are easy and lazy, have little aspiration and also withstand modification. The tough variation of this theory emphasized coercion, limited controls, threats and punishments. In time it produces reduced performance, refined sabotage and rivalry (Offer, 2003). Although the situation at Cemex B Cementing Relationships 2004 2007 is not totally complying with Concept X, it can be seen that brand-new hires are finding this atmosphere instead stressful which might at some point cause a higher inclination of the management in the direction of Theory X. According to McGregor's supported sight, which he called Theory Y, the essential task of the administration is to prepare organizational conditions to make sure that people can attain their very own goals best by routing their efforts in the direction of organizational benefits. If individuals discover no complete satisfaction in their work, the administration would certainly have little option yet to rely on theory X and exterior control (Deal, 2003). Also while analyzing Lewis's administration design, theory X may have been suitable in the operations division to some extent yet the Marketing department would need reliance on Theory Y in order to get the creative thinking and originality from the groups.

Tuckman's Synergy Theory: Regarding Lewis's problem regarding bringing consistency between the advertising and marketing division is concerned, this would at first cause clash as talked about by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). As per Tuckman's theory displayed in appendix 3, throughout the preliminary stage of team advancement, individuals might not bond, as they are hectic locating their place in the group. By combining the marketing and advertising division's job, there may coincide initial detach which might lead to the second phase of 'storming' where the groups challenge each other. Nonetheless, it is just throughout the 3rd phase or 'norming' when they would come together to share suggestions before the group can bring about synergy in the fourth phase 'executing'.

When individuals are offered with change, they enter phase one and also so there might be feelings like unhappiness, unpredictability, frustration, temper, fear, rejection and disorientation.The scenario at the marketing department of Cemex B Cementing Relationships 2004 2007 is comparable so Lewis can obtain comfy with the idea that it is not extraordinary habits. It is throughout this phase that Lewis will certainly have to provide assistance to the division so that they can locate a sense of direction. It can be seen how Krasnow has currently made this transition much easier by making Lewis obtain included in the department a year prior to his real departure.
Vrio Analysis
Maslow's Need pecking order: The OB concern related to instability at the office has been activated first of all by the adjustment in monitoring and also second of all by the fact that the merging will no longer be launched. Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has talks about the significance of 'security needs as being a reduced level requirement of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to feel protected and safe' is at the second level of requirements. Before an employee can be made to develop psychologically, he requires to have his 'Physiological 'and also 'Security' requires met. This indicates that unless the personnel are made to really feel safe regarding their current employment standing in Cemex B Cementing Relationships 2004 2007 they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Cemex B Cementing Relationships 2004 2007 Case Study



Effects of Analysis.

The OB analysis has actually taken a look at numerous theories to recognize just how to manage the present circumstance at hand. The adhering to three options have been proposed to assist Lewis take care of the organizational difficulties in the marketing department. Each of these choices has been recommended for easing the shift needed to bring the marketing department in accordance with the demands of the market as well as for making the cultural adjustment that would certainly adhere to once the existing leader leaves.

Integration of marketing and advertising functions. Dividing Adverting as well as Manufacturing features. Assimilation of Advertising with Procedures.

Analysis of Alternatives.

Combination of Advertising And Marketing & Advertising And Marketing Functions: The internal marketing firm of Cemex B Cementing Relationships 2004 2007 is already toughness for the organization in terms of conserving up on expenses associated with advertising and also promotion. Given that no new recruitment has actually been done after Bridget Cole's departure with the reporting line being directly assigned to Krasnow for the advertising and marketing feature, this is a favorable possibility for incorporating the marketing and advertising functions. Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merging days has knowledge in business-to-business advertising in addition to agency and also retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to manage both marketing and advertising features.

The advantage of this method is that it will certainly incorporate both functions while minimizing the requirement for working with an extra resource for marketing. Lewis would certainly be heading the advertising and marketing division and in any type of case her substitute would certainly be needed for the current function that she is performing. The downside of this choice is that exterior hiring may cause animosity from inner workers who may be considering the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Manufacturing: Offered the competitive stress and also high top quality job needed from the advertising agency, it is advised that Lewis must enable the production system to be a separate feature from the advertising unit. Since most advertising and marketing firms had these two features as different units, it makes even more sense to comply with the standard.

Combination of Advertising with Procedures: Given that Lewis is already dealing with the advertising and marketing and procedures departments all at once; it makes sense to incorporate both features because she has been efficiently dealing with both ends. The reality that both divisions already have significant distinctions over allowance of resources recommends that this integration may have the ability to bring about harmony specifically as Lewis would be heading both ends.However there are different disadvantages of this action especially as it would place excessive problem over Lewis's shoulders. The reality that Lewis has to adapt her monitoring style for the marketing department suggests that these 2 divisions would be culturally diverse. Along with this, Lewis might not have the ability to use one sort of leadership design to both divisions which might lead to inadequacy in either among the two functions.

Recommendation.



An examination of the three alternatives shows that combination of advertising and also operations would certainly not be a feasible action because of the substantial differences in between both departments although that presently Lewis is handling both. While separation of the manufacturing feature might have been a beneficial action for the advertising and marketing department, the truth that it would certainly suggest putting a 3rd function under Lewis's wing means this must be avoided. The assimilation of the advertising and marketing department is the most effective alternative in terms of getting the optimum arise from the department. An activity plan for this alternative is talked about listed below.

Activity Plan.
Recommendation
Lewis will take over the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would be combined.

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

Manufacturing function will certainly remain component of marketing under marketing function.

Lewis will certainly separate herself from operations.

A democratic management style with worker empowerment will certainly be used in advertising department.

Open up door plan as well as focus on cross department interaction will certainly be focused on eliminating discord.

Backup plan.

If the combination does not exercise as prepared, a backup strategy would certainly comply with which would separate the manufacturing function from the advertising feature to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the marketing department without an SVP. Because case the manufacturing feature will certainly be separated by putting it under an SVP manufacturing.