China Plays Heavy Metal Rare Earth Elements And The Us Defence Industry Case Study Solution


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Background and Facts

China Plays Heavy Metal Rare Earth Elements And The Us Defence Industry an office supplies merchant for small as well as medium sized businesses has recently been associated with preparing for a merging with its rival House Deport, which has actually impacted performance degrees in departmentswith the elderly manager involved in legal complications presented by the government Profession Commission. With the Marketing Head putting forward the news of his separation from the company in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the near future. With difficulties in the form of a possible social modification and also low staff member morale, the company wants a complete reengineering initiative at the marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural modification at the advertising and marketing division of China Plays Heavy Metal Rare Earth Elements And The Us Defence Industry is boosting uncertainty in the working environment bring about numerous difficulties for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting calculated decisions because Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Profession Compensation's intervention in the process. Provided the truth that the shop has a worldwide existence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these nations might have the ability to impact efficiency or critical goals. Federal Profession Compensation's antitrust fit versus the merging occupied useful time of the organization's senior management recommending that 'political' factors can have serious ramifications for a global company.

Economic Factors: Economic factors such as the development of small companies in the global scenario suggest that China Plays Heavy Metal Rare Earth Elements And The Us Defence Industry is flourishing in an environment where there is prospective development of services. Truth that store consumers are mainly looking for office materials for residence workplaces recommends that the market has a climbing fad of business owners and residence based organisations.

Social factors: Social fads in the economic situation reveal that clients are searching for convenience in addition to attractive prices. Marketing research shows how the consumer for China Plays Heavy Metal Rare Earth Elements And The Us Defence Industry lacks recognition regarding finding services which can supply a combination of benefit and inexpensive.

Technological factors: Innovation plays an important function in China Plays Heavy Metal Rare Earth Elements And The Us Defence Industry's business strategy especially as the company is piloting Modern technology centers which would certainly supply modern technology sales and assistance in the kind of memory upgrades, outer installments. (Recap of INSECT in appendix 2).

OB Issues and also Manifestations.

A number of underlying Business Actions problems can be seen in China Plays Heavy Metal Rare Earth Elements And The Us Defence Industry's case as highlighted in this section.

Worries concerning social change: There is uneasiness about a cultural adjustment that would occur when Todd Krasnow leaves from his setting as the Exec Vice President of Advertising with a lot of the employee currently showing unhappiness over this prospective relocation. This expected adjustment has created tension in the work environment which has been combined with the previous tension of preparing the firm for a possible merger with Residence Deport.
Pest Analysis
Stressful Task Setting for Newcomers: There is shortage of employees that can match the stressful environment of a hectic organization. Not just does this lead to difficulty in finding the appropriate people, it puts anxiety on new hires as can not withstand the rate as well as pressure that the company expects them to bear.

Twin Coverage Lines: Novices find this business culture troublesome and tough to deal with specifically as dotted line partnerships are meant to be weak in general as well as objective setup as well as efficiency evaluation is still done by the solid line supervisor. This indicates that newbies can lose clearness concerning their particular functions as well as objectives particularly as populated line reporting does not keep them in straight communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles although it had been guessed that the latter would take Krasnow's placement came as a blow to her spirits. Lewis might have been qualified and appropriate for the task but the reality that Kransnow's separation would make Coles a straight record to Lewis may have been the factor for Coles' resignation from services.

Concern & Task Insecurity: Worry and also insecurity can be identified as two significant issues that Lewis would certainly be dealing with especially as the merging has now be terminated and also two elderly executives of the advertising division would be leaving. The whole duty of the division would certainly be falling on Lewis's shoulders who would not just supervise of brining concerning a cultural adjustment however would also have to verify herself in her brand-new function.

Inappropriate Management Design of Leader: Lewis's administration design as well as its incompatibility with the marketing division's role can likewise be seen as an OB challenge particularly as she has actually been made use of to dealing with issues in the operations department where personnel are taught to concentrate on processes as well as get them. The advertising division on the various other hand can be seen as a group of people who are used to being supported by Krasnow that focused more on outcome than procedures.

Interdepartmental Disputes: Interdepartmental disagreements in between three divisions, advertising, merchandizing and also operations respectively over the allocation of the advertising and marketing mix can be recognized as another OB issue. Although the advertising and marketing division does not share the very same vision as the other 2 departments pertaining to the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and also operations divisions do not concur over the advertising and marketing mix allocation among one another either.

Fragmentation in Marketing Department: Fragmentation between the advertising and marketing divisions can be identified as an additional OB issue which can need additional interest. The fact that the advertising and marketing areas in the marketing department are disconnected is preventing both departments from gaining from each other's experience and know-how. Integration of marketing with merchandising as well as procedures would end up being more difficult if the marketing department itself is degenerated which can be an additional potential OB problem.

China Plays Heavy Metal Rare Earth Elements And The Us Defence Industry Analysis

Numerous theories have actually been used to clarify the scenarios to obtain additional quality concerning the situation available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of supervisors believe that juniors are passive and lazy, have little passion as well as resist change. The difficult variation of this theory stressed browbeating, limited controls, hazards as well as penalties. In time it produces reduced performance, refined sabotage and competition (Offer, 2003). The circumstance at China Plays Heavy Metal Rare Earth Elements And The Us Defence Industry is not entirely adhering to Theory X, it can be seen that new hires are discovering this environment rather difficult which might at some point lead to a better inclination of the monitoring in the direction of Theory X. Based on McGregor's promoted sight, which he called Theory Y, the crucial task of the monitoring is to set up business problems to make sure that people can accomplish their own goals best by guiding their efforts towards business benefits. If people discover no satisfaction in their work, the monitoring would have little option yet to count on concept X and also exterior control (Offer, 2003). Even while examining Lewis's administration design, theory X might have appropriated in the procedures department somewhat however the Marketing department would certainly call for dependence on Concept Y in order to get the imagination as well as originality from the groups.

Tuckman's Team effort Theory: As far as Lewis's concern concerning bringing harmony between the marketing and advertising division is concerned, this would originally bring about contrast as reviewed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's theory shown in appendix 3, throughout the preliminary stage of team advancement, people may not bond, as they are hectic locating their area in the group. By combining the advertising and marketing division's work, there might be the same first detach which could bring about the second stage of 'storming' where the teams challenge each other. It is just during the third phase or 'norming' when they would certainly come with each other to share ideas prior to the group can bring about synergy in the 4th stage 'executing'.

Bridges' Shift Model: Based On William Bridge's theory (appendix 4), individuals are fairly uneasy with modification, which is apparent by the circumstance at China Plays Heavy Metal Rare Earth Elements And The Us Defence Industry The scenario can be viewed as a normal program of life if is researched as per Bridge's concept where he clarifies that individuals undergo 3 stages of change when they experience modification. 'End, losing and Letting go', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When individuals are presented with adjustment, they go into stage one therefore there might be emotions like despair, unpredictability, aggravation, rage, worry, denial as well as disorientation.The circumstance at the advertising division of China Plays Heavy Metal Rare Earth Elements And The Us Defence Industry is similar so Lewis can get comfy with the idea that it is not amazing behavior. In the second phase, there may be a need to link the void between the brand-new as well as old culture so Lewis may have to face this challenge when Krasnow leaves. There may be reduced morale and also reduced efficiency at this phase which must not be taken as an obstacle. It is during this phase that Lewis will need to provide advice to the department to ensure that they can locate a sense of direction. It can be seen exactly how Krasnow has currently made this change much easier by making Lewis get involved in the department a year prior to his actual separation. According to Bridges' Version, stage 3 will certainly produce visibility to knowing, High power and also commitment as individuals will certainly accept the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has talks about the relevance of 'safety and security requires as being a reduced degree requirement of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel protected as well as out of threat' is at the second degree of needs. Before an employee can be made to develop emotionally, he requires to have his 'Physiological 'and 'Safety and security' needs met.

SWOT Analysis for China Plays Heavy Metal Rare Earth Elements And The Us Defence Industry Case Study

Ramification of Analysis.

The OB analysis has looked at numerous concepts to recognize exactly how to handle the current situation at hand. The following 3 alternatives have been suggested to assist Lewis manage the organizational obstacles in the marketing department. Each of these alternatives has been recommended for reducing the transition required to bring the advertising division according to the needs of the marketplace as well as for making the cultural adjustment that would adhere to once the current leader leaves.

Assimilation of advertising and marketing features. Dividing Adverting and also Manufacturing functions. Combination of Advertising with Workflow.

Examination of Alternatives.

Judith Shapiro that has earlier been talked to by Lewis throughout the earlier merger days has experience in business-to-business advertising and marketing along with company and retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to deal with both advertising and marketing features.

The benefit of this method is that it will certainly integrate both functions while reducing the need for employing an extra source for advertising. In addition to this, Lewis would certainly be heading the advertising department as well as all the same her replacement would be required for the existing duty that she is carrying out. The negative aspect of this option is that exterior hiring might produce resentment from internal personnel that may be eying the placement of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting as well as Production: Offered the competitive stress and high top quality work called for from the advertising and marketing firm, it is advised that Lewis must allow the manufacturing unit to be a separate feature from the advertising and marketing device. Because most advertising and marketing firms had these 2 functions as separate devices, it makes even more sense to follow the standard.

Combination of Advertising with Procedures: Because Lewis is already taking care of the marketing and also procedures divisions all at once; it makes sense to incorporate the 2 functions because she has been efficiently taking care of both ends. The reality that Lewis has to adjust her administration style for the advertising and marketing department recommends that these two departments would certainly be culturally varied.


An assessment of the 3 alternatives shows that combination of marketing and also operations would certainly not be a practical move due to the vast distinctions in between the two divisions despite the reality that presently Lewis is dealing with both. While splitting up of the production function may have been a desirable action for the advertising division, the fact that it would indicate positioning a 3rd function under Lewis's wing suggests this need to be stayed clear of.

Activity Strategy.
Lewis will certainly take control of the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Manufacturing function will remain part of advertising under marketing function.

Lewis will separate herself from procedures.

A democratic leadership design with employee empowerment will be utilized in marketing department.

Open up door plan and also emphasis on cross departmental communication will certainly be focused on getting rid of dissonance.

Contingency plan.

If the integration does not work out as intended, a contingency plan would certainly adhere to which would separate the production function from the marketing function to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the marketing department without an SVP. Because case the production function will absolutely be divided by placing it under an SVP manufacturing.