Cemex B Cementing Relationships 2004 2007 Case Study Help


Home >> Harvard >> Cemex B Cementing Relationships 2004 2007 >>

Cemex B Cementing Relationships 2004 2007 Case Study Analysis

Background and Facts

Cemex B Cementing Relationships 2004 2007 a workplace products seller for tiny and also average sized businesses has actually lately been associated with preparing for a merger with its rival House Deport, which has actually affected performance levels in departmentswith the elderly supervisor associated with legal complications put forth by the government Profession Payment. With the Advertising Head advancing the information of his separation from the business 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 type of a possible cultural adjustment as well as low worker spirits, the company wants a complete reengineering initiative at the advertising department.

Trouble Statement
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising and marketing division of Cemex B Cementing Relationships 2004 2007 is enhancing uncertainty in the workplace resulting in different challenges for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in influencing strategic decisions because Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Trade Compensation's intervention while doing so. Given the truth that the store has a global existence with branches in UK, USA, Canada and Germany, political consider each of these nations may be able to impact performance or critical objectives. Federal Trade Payment's antitrust suit versus the merger used up valuable time of the company's elderly management suggesting that 'political' factors can have serious ramifications for an international organisation.

Economic Factors: Economic factors such as the development of small companies in the worldwide situation recommend that Cemex B Cementing Relationships 2004 2007 is thriving in an atmosphere where there is possible growth of organisations. Truth that store customers are primarily looking for workplace products for house offices suggests that the market has an increasing fad of entrepreneurs as well as home based services.

Social factors: Social trends in the economic climate reveal that clients are seeking benefit along with appealing costs. Marketing research shows how the consumer for Cemex B Cementing Relationships 2004 2007 lacks understanding concerning discovering solutions which can offer a combination of convenience and affordable.

Technical factors: Modern technology plays a vital role in Cemex B Cementing Relationships 2004 2007's service method especially as the company is piloting Innovation centers which would certainly supply innovation sales and assistance in the form of memory upgrades, peripheral setups. (Summary of BUG in appendix 2).

OB Issues and also Effects.

A number of underlying Business Habits concerns can be seen in Cemex B Cementing Relationships 2004 2007's case as highlighted in this section.

Uneasiness about social modification: There is apprehension concerning a social modification that would occur when Todd Krasnow leaves from his placement as the Exec Vice President of Advertising with most of the personnel currently revealing unhappiness over this potential move. This anticipated modification has actually produced stress and anxiety in the office which has been combined with the past stress and anxiety of preparing the company for a prospective merging with Residence Deport.
Pest Analysis
Stressful Task Environment for Newcomers: There is lack of employees that can match the difficult atmosphere of a busy organization. Not just does this cause problem in locating the appropriate individuals, it puts tension on new hires as can not endure the rate as well as pressure that the organization anticipates them to birth.

Dual Reporting Lines: Newcomers find this organizational society cumbersome and difficult to manage specifically as dotted line partnerships are meant to be weak generally as well as objective setup as well as performance examination is still done by the solid line manager. This suggests that newcomers can shed clarity about their respective functions and also purposes specifically as populated line reporting does not keep them in straight interaction with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been hypothesized that the latter would certainly take Krasnow's placement came as a blow to her spirits. Lewis might have been qualified and also suitable for the task but the truth that Kransnow's separation would make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Worry & Work Instability: Concern as well as insecurity can be identified as two significant concerns that Lewis would certainly be managing especially as the merger has actually now be cancelled as well as two elderly execs of the advertising department would be leaving. The entire duty of the division would be falling on Lewis's shoulders that would not just be in charge of brining concerning a social modification however would certainly likewise need to show herself in her new function.

Incompatible Monitoring Design of Leader: Lewis's management style and also its conflict with the advertising and marketing department's duty can also be seen as an OB obstacle especially as she has actually been made use of to taking care of problems in the operations department where employees are taught to concentrate on processes and obtain them right. The marketing department on the other hand can be viewed as a group of individuals who are made use of to being nurtured by Krasnow that concentrated more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental disputes between 3 divisions, advertising, merchandizing as well as procedures specifically over the appropriation of the advertising mix can be determined as an additional OB issue. The advertising department does not share the exact same vision as the other 2 departments pertaining to the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing as well as procedures divisions do not concur over the advertising and marketing mix appropriation among one another either.

Fragmentation in Advertising Department: Disintegration between the marketing and advertising departments can be identified as another OB problem which might require further interest. The fact that the advertising and marketing sections in the advertising and marketing division are separated is avoiding both departments from gaining from each other's experience and also know-how. Combination of marketing with retailing and also operations would become more difficult if the advertising and marketing division itself is degenerated which can be an additional potential OB problem.

Cemex B Cementing Relationships 2004 2007 Analysis

Various concepts have actually been used to clarify the scenarios to get further quality about the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that staffs are passive and also careless, have little aspiration and also stand up to change. The situation at Cemex B Cementing Relationships 2004 2007 is not totally following Theory X, it can be seen that brand-new hires are finding this atmosphere rather stressful which might at some point lead to a higher inclination of the monitoring towards Concept X. Also while evaluating Lewis's administration style, concept X might have been ideal in the operations department to some extent but the Marketing department would require reliance on Concept Y in order to get the imagination as well as creativity from the teams.

Tuckman's Team effort Theory: As for Lewis's issue concerning bringing consistency in between the advertising and marketing department is concerned, this would initially cause conflict as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). As per Tuckman's theory displayed in appendix 3, during the initial phase of team development, people may not bond, as they are hectic discovering their place in the group. By integrating the marketing and advertising division's work, there might coincide preliminary separate which can lead to the 2nd stage of 'storming' where the groups test one another. Nonetheless, it is only during the 3rd phase or 'norming' when they would certainly integrate to share concepts before the group can bring about synergy in the 4th stage 'performing'.

Bridges' Shift Model: As per William Bridge's theory (appendix 4), people are quite awkward with adjustment, which is apparent by the scenario at Cemex B Cementing Relationships 2004 2007 The scenario can be seen as a typical program of life if is studied as per Bridge's theory where he clarifies that individuals experience three phases of change when they experience adjustment. 'Closing, shedding and also Releasing', The Neutral Area and also 'The New Beginning' (Bridges, 2004). When individuals exist with adjustment, they go into stage one therefore there might be emotions like despair, unpredictability, stress, rage, worry, denial and also disorientation.The situation at the advertising and marketing division of Cemex B Cementing Relationships 2004 2007 is comparable so Lewis can get comfortable with the concept that it is not extraordinary habits. In the second stage, there might be a need to connect the void between the brand-new and also old culture so Lewis may need to face this ordeal as soon as Krasnow leaves. There may be low spirits and reduced productivity at this stage which must not be taken as a problem. It is during this stage that Lewis will need to offer assistance to the division to make sure that they can find an orientation. It can be seen exactly how Krasnow has actually already made this transition easier by making Lewis obtain associated with the division a year prior to his real departure. According to Bridges' Model, phase 3 will bring about openness to learning, High energy and dedication as individuals will certainly accept the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Requirement hierarchy: The OB problem related to instability at the work environment has been set off to start with by the change in administration and secondly by the fact that the merger will no more be launched. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has reviews the significance of 'safety needs as being a lower level need of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the demand to feel safe and out of danger' goes to the second level of needs. Before an employee can be made to establish emotionally, he needs to have his 'Physiological 'as well as 'Safety' needs met. This suggests that unless the workers are made to really feel safe and secure concerning their current employment condition 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

Implication of Analysis.

The OB analysis has looked at various theories to comprehend how to cope with the current scenario at hand. The adhering to three choices have actually been proposed to assist Lewis deal with the business difficulties in the advertising and marketing department. Each of these choices has actually been proposed for easing 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 adhere to when the present leader leaves.

Assimilation of advertising and marketing features. Dividing Adverting and Production features. Integration of Advertising And Marketing with Workflow.

Examination of Alternatives.

Integration of Marketing & Advertising Functions: The in-house marketing company of Cemex B Cementing Relationships 2004 2007 is currently toughness for the organization in regards to conserving up on overheads related to advertising and marketing and also promo. Because no new employment has been done after Bridget Cole's separation with the reporting line being straight appointed to Krasnow for the marketing function, this is a favorable opportunity for incorporating the marketing and advertising functions. Judith Shapiro who has earlier been talked to by Lewis during the earlier merger days has experience in business-to-business marketing in addition to agency as well as retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to take care of both marketing and advertising functions.

The advantage of this approach is that it will certainly incorporate the two features while decreasing the demand for hiring an added source for advertising and marketing. Lewis would be heading the marketing department as well as in any case her substitute would be required for the present function that she is carrying out. The disadvantage of this alternative is that exterior hiring might bring about bitterness from interior employees that may be considering the position of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting as well as Manufacturing: Given the affordable stress and also top quality work required from the advertising agency, it is suggested that Lewis needs to enable the manufacturing device to be a different feature from the advertising device. Given that most ad agency had these two features as separate systems, it makes more feeling to comply with the norm. Both functions might be able to concentrate on their core triggers more effectively. Nonetheless, the downside of this strategy would be that extra expenses would certainly have to be borne for setting up different production functions. A manufacturing head might have to be hired which could increase overheads for the company.

Assimilation of Advertising And Marketing with Procedures: Since Lewis is already taking treatment of the advertising and marketing and also procedures departments concurrently; it makes feeling to integrate the two features because she has actually been effectively taking treatment of both ends. The fact that Lewis has to adapt her monitoring style for the advertising and marketing division recommends that these two divisions would certainly be culturally varied.


An assessment of the 3 alternatives indicates that integration of marketing and procedures would certainly not be a practical action because of the vast differences in between the two departments despite the fact that currently Lewis is managing both. While separation of the production feature might have been a beneficial move for the advertising division, the reality that it would suggest positioning a 3rd feature under Lewis's wing implies this must be avoided. The integration of the advertising and marketing department is the very best choice in regards to getting the ideal arise from the division. An activity plan for this choice is talked about below.

Activity Strategy.
Lewis will certainly take control of the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

Manufacturing function will stay part of advertising under advertising and marketing function.

Lewis will separate herself from operations.

An autonomous leadership design with staff member empowerment will be used in advertising division.

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

Backup strategy.

If the assimilation does not exercise as intended, a backup strategy would adhere to which would certainly separate the production feature from the advertising feature to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising and marketing division without an SVP. In that case the manufacturing feature will most definitely be separated by positioning it under an SVP production.