De Beers And The Global Diamond Industry Case Study Solution


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De Beers And The Global Diamond Industry Case Study Solution

Background and Facts

De Beers And The Global Diamond Industry an office products merchant for tiny and average sized companies has lately been associated with planning for a merger with its rival Residence Deport, which has impacted performance levels in departmentswith the elderly manager involved in legal difficulties presented by the government Trade Compensation. With the Advertising and marketing Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the current head of procedures has been asked to take the duty in the near future. With difficulties in the kind of a possible social adjustment and low worker morale, the organization requires a complete reengineering initiative at the marketing division.

Issue Statement
Porter's 5 Forces Analysis
The potential social change at the advertising and marketing department of De Beers And The Global Diamond Industry is increasing uncertainty in the working environment causing various 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 role in impacting tactical decisions since Stapes Inc. had to abandon its plans of merging with Office Deport after the Federal Trade Payment's intervention in the process. Offered the reality that the shop has an international presence with branches in UK, USA, Canada and also Germany, political factors in each of these countries may have the ability to affect efficiency or strategic goals. Federal Profession Compensation's antitrust fit against the merging used up beneficial time of the organization's elderly administration suggesting that 'political' factors can have significant effects for a worldwide business.

Economic Factors: Financial factors such as the introduction of small businesses in the international situation suggest that De Beers And The Global Diamond Industry is prospering in an environment where there is possible development of businesses. Along with this, truth that store consumers are mainly searching for office products for office recommends that the marketplace has a rising trend of entrepreneurs and online organisations.

Social factors: Social trends in the economy reveal that customers are searching for ease along with eye-catching costs. Marketing research demonstrates how the client for De Beers And The Global Diamond Industry does not have awareness about locating services which can use a mix of comfort as well as inexpensive.

Technological factors: Innovation plays an essential function in De Beers And The Global Diamond Industry's service approach particularly as the company is piloting Modern technology facilities which would offer modern technology sales as well as assistance in the type of memory upgrades, outer installations. (Summary of PARASITE in appendix 2).

OB Issues as well as Effects.

Numerous underlying Business Behavior concerns can be seen in De Beers And The Global Diamond Industry's case as highlighted in this section.

Apprehensions regarding social change: There is apprehension regarding a social modification that would take place when Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Marketing with the majority of the employee currently showing unhappiness over this possible move. This anticipated change has actually produced stress in the work environment which has actually been coupled with the previous anxiety of preparing the firm for a possible merger with House Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is shortage of workers that can match the demanding setting of a fast-paced organization. Not only does this lead to difficulty in finding the best people, it puts stress on new hires as can not stand up to the speed and also stress that the organization expects them to birth.

Twin Reporting Lines: Newcomers locate this organizational society difficult and challenging to deal with especially as dotted line connections are meant to be weak as a whole as well as unbiased setup and also efficiency examination is still done by the strong line supervisor. This means that newcomers might lose clarity regarding their particular duties as well as objectives particularly as populated line coverage does not keep them in direct interaction with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles despite the fact that it had been hypothesized that the latter would certainly take Krasnow's placement came as a blow to her morale. Lewis may have been capable and ideal for the work yet the truth that Kransnow's separation would make Coles a direct report to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Work Insecurity: Worry as well as instability can be recognized as two significant problems that Lewis would be handling particularly as the merger has now be terminated as well as 2 elderly executives of the advertising division would be leaving. The entire obligation of the department would be dropping on Lewis's shoulders who would certainly not just supervise of brining concerning a social modification but would certainly additionally need to show herself in her brand-new function.

Incompatible Monitoring Style of Leader: Lewis's management design and its conflict with the advertising and marketing department's duty can likewise be viewed as an OB obstacle specifically as she has been used to dealing with problems in the procedures division where employees are shown to concentrate on procedures and also get them right. The marketing division on the various other hand can be seen as a group of individuals who are made use of to being nurtured by Krasnow that concentrated a lot more on output than processes.

Interdepartmental Disagreements: Interdepartmental disputes in between three divisions, advertising, merchandizing and operations respectively over the allocation of the advertising mix can be identified as another OB issue. The advertising department does not share the exact 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 as well as procedures departments do not agree over the advertising and marketing mix allocation among one an additional either.

Disintegration in Advertising Division: Fragmentation between the advertising and marketing divisions can be identified as another OB issue which can require further interest. The reality that the advertising and marketing areas in the advertising department are detached is avoiding both divisions from gaining from each other's experience and also know-how. Integration of advertising and marketing with merchandising and also operations would end up being more difficult if the advertising and marketing department itself is disintegrated which can be one more possible OB concern.

De Beers And The Global Diamond Industry Analysis

Various theories have actually been made use of to explain the circumstances to obtain more clarity regarding the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors think that staffs are passive as well as careless, have little ambition and also resist modification. The scenario at De Beers And The Global Diamond Industry is not completely adhering to Theory X, it can be seen that new hires are finding this setting rather stressful which may ultimately lead to a greater inclination of the administration towards Concept X. Even while evaluating Lewis's monitoring style, concept X might have been ideal in the procedures division to some extent yet the Marketing division would certainly need dependence on Concept Y in order to obtain the imagination and creativity from the groups.

Tuckman's Team effort Theory: As far as Lewis's issue concerning bringing consistency between the advertising and marketing and also marketing division is worried, this would initially lead to clash as discussed by Bruce Tuckman in his 'Synergy Concept'. By combining the advertising as well as advertising department's job, there may be the same first disconnect which might lead to the second stage of 'storming' where the teams challenge one an additional.

When people are offered with change, they go into phase one and also so there might be feelings like despair, uncertainty, frustration, temper, worry, denial as well as disorientation.The scenario at the marketing division of De Beers And The Global Diamond Industry is comparable so Lewis can obtain comfortable with the concept that it is not extraordinary behavior. It is during this stage that Lewis will certainly have to offer support to the department so that they can locate a feeling of direction. It can be seen just how Krasnow has currently made this change much easier by making Lewis get included in the division a year before his real departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has reviews the relevance of 'safety needs as being a lower degree requirement of a human for triggering inspiration. 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 danger' is at the second degree of needs. Before an employee can be made to create emotionally, he requires to have his 'Physical 'and also 'Safety and security' requires met.

SWOT Analysis for De Beers And The Global Diamond Industry Case Study

Implication of Analysis.

The OB analysis has actually checked out different theories to comprehend exactly how to deal with the current scenario at hand. The adhering to three options have actually been recommended to help Lewis handle the business challenges in the advertising division. Each of these choices has been suggested for alleviating the transition required to bring the marketing division according to the requirements of the marketplace and also for making the cultural adjustment that would adhere to once the existing leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting and Production features. Assimilation of Advertising with Operations.

Examination of Alternatives.

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

The advantage of this approach is that it will incorporate the two features while reducing the need for employing an additional resource for advertising and marketing. In addition to this, Lewis would be heading the marketing division and in any case her replacement would be required for the present role that she is executing. The downside of this choice is that exterior hiring may produce animosity from internal workers that might be considering the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Production: Provided the affordable pressures and high quality job called for from the advertising and marketing company, it is suggested that Lewis needs to permit the manufacturing system to be a different feature from the advertising unit. Given that most advertising companies had these 2 features as separate units, it makes even more feeling to follow the standard.

Assimilation of Advertising with Workflows: Considering that Lewis is already taking care of the marketing as well as procedures divisions concurrently; it makes good sense to incorporate the two functions because she has been effectively looking after both ends. The truth that the two divisions already have significant distinctions over appropriation of resources suggests that this assimilation might be able to bring about harmony especially as Lewis would be heading both ends.However there are numerous disadvantages of this step especially as it would certainly put excessive burden over Lewis's shoulders. The reality that Lewis needs to adapt her monitoring style for the advertising and marketing department recommends that these two divisions would be culturally varied. Along with this, Lewis may not be able to apply one sort of management design to both divisions which can cause ineffectiveness in either among both features.


An assessment of the three options indicates that assimilation of advertising as well as procedures would certainly not be a viable step due to the huge differences between the two departments although that presently Lewis is managing both. While separation of the production feature may have been a desirable move for the marketing department, the reality that it would suggest positioning a third function under Lewis's wing indicates this must be avoided. The assimilation of the advertising division is the best option in terms of obtaining the ideal results from the department. An activity prepare for this alternative is talked about listed below.

Action Strategy.
Lewis will certainly take over the role of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

Production feature will remain component of advertising under advertising feature.

Lewis will separate herself from procedures.

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

Open door policy as well as focus on cross departmental interaction will be focused on eliminating dissonance.

Contingency strategy.

If the integration does not exercise as prepared, a backup plan would certainly comply with which would certainly separate the production function from the advertising feature to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising division without an SVP. Because case the production feature will certainly be divided by putting it under an SVP manufacturing.