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Diamond Energy Resources Case Study Analysis

Background and Facts

Diamond Energy Resources a workplace materials seller for little as well as medium sized companies has recently been involved in preparing for a merging with its rival Residence Deport, which has influenced performance degrees in departmentswith the senior supervisor involved in lawful difficulties presented by the government Profession Payment. With the Advertising and marketing Head advancing the news of his separation from the business in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the role in the future. With difficulties in the kind of a prospective social adjustment and also reduced staff member spirits, the organization needs a full reengineering initiative at the marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The possible cultural change at the advertising department of Diamond Energy Resources is enhancing uncertainty in the working environment resulting in different difficulties 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 influencing tactical choices since Stapes Inc. had to abandon its plans of combining with Workplace Deport after the Federal Trade Compensation's intervention while doing so. Offered the truth that the store has a worldwide presence with branches in UK, USA, Canada and also Germany, political factors in each of these countries might have the ability to affect performance or calculated objectives. Federal Trade Compensation's antitrust suit versus the merging occupied important time of the company's senior administration suggesting that 'political' factors can have serious effects for a worldwide organisation.

Economic Factors: Financial factors such as the appearance of small companies in the global situation suggest that Diamond Energy Resources is flourishing in a setting where there is prospective growth of businesses. Truth that store customers are primarily looking for office products for home workplaces recommends that the market has a rising pattern of business owners as well as house based businesses.

Social factors: Social patterns in the economic climate show that consumers are seeking comfort as well as attractive costs. Market research demonstrates how the client for Diamond Energy Resources lacks awareness about locating remedies which can supply a combination of convenience as well as low costs.

Technical factors: Modern technology plays an important function in Diamond Energy Resources's business strategy particularly as the organization is piloting Innovation facilities which would offer technology sales as well as support in the type of memory upgrades, peripheral installments. (Recap of PARASITE in appendix 2).

OB Issues and also Manifestations.

A number of underlying Organizational Habits issues can be seen in Diamond Energy Resources's case as highlighted in this section.

Apprehensions concerning social modification: There is worry about a cultural modification that would occur when Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising with the majority of the personnel currently showing discontent over this potential relocation. This anticipated modification has produced stress and anxiety in the work environment which has been paired with the past stress of preparing the firm for a potential merging with Home Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is lack of workers that can match the difficult setting of a busy organization. Not only does this result in difficulty in finding the best individuals, it places stress on new hires as can not hold up against the rate as well as stress that the organization expects them to bear.

Dual Coverage Lines: Newbies find this business society cumbersome and also challenging to handle especially as populated line partnerships are suggested to be weak as a whole as well as objective setup and also performance examination is still done by the solid line supervisor. This indicates that newcomers could lose quality regarding their particular roles and objectives 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 follower instead of Bridget Coles although it had been speculated that the last would certainly take Krasnow's position came as an impact to her spirits. Lewis may have been qualified and appropriate for the job but the fact that Kransnow's separation would make Coles a straight record to Lewis might have been the factor for Coles' resignation from services.

Anxiety & Work Instability: Fear and insecurity can be determined as two major issues that Lewis would be taking care of especially as the merging has actually now be terminated and two elderly executives of the advertising and marketing division would certainly be leaving. The whole obligation of the department would certainly be dropping on Lewis's shoulders who would certainly not just be in charge of brining about a cultural modification yet would certainly likewise need to verify herself in her new role.

Incompatible Administration Style of Leader: Lewis's management design as well as its conflict with the advertising and marketing department's role can likewise be seen as an OB challenge especially as she has been utilized to handling concerns in the operations department where personnel are instructed to concentrate on procedures as well as obtain them right. The marketing department on the other hand can be viewed as a group of people that are made use of to being supported by Krasnow who concentrated much more on result than processes.

Interdepartmental Differences: Interdepartmental arguments between three departments, marketing, merchandizing and procedures respectively over the allocation of the marketing mix can be recognized as another OB problem. Although the marketing division does not share the exact same vision as the other 2 departments regarding the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing and also procedures departments do not agree over the advertising and marketing mix allotment amongst one another either.

Fragmentation in Advertising Department: Fragmentation between the marketing and advertising divisions can be determined as one more OB problem which might need more attention. The reality that the advertising and marketing areas in the marketing division are disconnected is avoiding both departments from acquiring from each various other's experience as well as knowledge. Assimilation of advertising and marketing with merchandising as well as procedures would certainly come to be harder if the marketing department itself is degenerated which can be an additional prospective OB issue.

Diamond Energy Resources Analysis

Different concepts have been utilized to clarify the situations to obtain further quality about the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of supervisors think that subordinates are passive and also careless, have little passion as well as withstand adjustment. The difficult version of this theory stressed coercion, tight controls, risks and also penalties. In time it generates low efficiency, subtle sabotage and also competition (Deal, 2003). Although the situation at Diamond Energy Resources is not totally complying with Concept X, it can be seen that new hires are discovering this environment rather demanding which might at some point bring about a higher inclination of the monitoring towards Theory X. As per McGregor's supported sight, which he called Concept Y, the necessary task of the management is to organize business conditions to make sure that individuals can attain their very own objectives best by directing their initiatives towards business incentives. If individuals locate no contentment in their job, the administration would certainly have little choice however to depend on theory X as well as outside control (Offer, 2003). Even while assessing Lewis's management design, concept X might have been suitable in the procedures department to some extent yet the Advertising and marketing department would require dependence on Theory Y in order to get the imagination and originality from the groups.

Tuckman's Team effort Theory: Regarding Lewis's worry concerning bringing harmony between the advertising and marketing department is worried, this would initially lead to contrast as reviewed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). As per Tuckman's theory received appendix 3, throughout the preliminary stage of group development, individuals may not bond, as they are busy finding their location in the group. By combining the advertising and marketing department's work, there may be the same initial separate which can result in the second stage of 'storming' where the groups test one another. It is only throughout the 3rd stage or 'norming' when they would come together to share concepts before the group can bring around harmony in the 4th stage 'executing'.

When individuals are offered with adjustment, they go into stage one and so there might be emotions like sadness, uncertainty, aggravation, rage, fear, rejection and disorientation.The circumstance at the marketing department of Diamond Energy Resources is similar so Lewis can get comfortable with the idea that it is not remarkable actions. It is throughout this stage that Lewis will have to offer guidance to the department so that they can locate a feeling of instructions. It can be seen exactly how Krasnow has actually currently made this shift much easier by making Lewis obtain included in the division a year before his real departure.
Vrio Analysis
Maslow's Demand pecking order: The OB concern pertaining to instability at the work environment has actually been triggered firstly by the adjustment in monitoring and secondly by the fact that the merger will certainly no longer be initiated. Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has reviews the relevance of 'safety and security requires as being a reduced level demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel safe and unharmed' goes to the 2nd degree of needs. Prior to a staff member can be made to develop emotionally, he needs to have his 'Physiological 'as well as 'Safety and security' requires satisfied. This shows that unless the workers are made to feel safe about their present employment standing in Diamond Energy Resources they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Diamond Energy Resources Case Study



Implication of Analysis.

The OB analysis has taken a look at numerous concepts to understand just how to cope with the existing scenario handy. The complying with three choices have actually been suggested to help Lewis handle the business challenges in the advertising division. Each of these choices has been recommended for relieving the change required to bring the marketing department in line with the needs of the marketplace and also for making the social modification that would certainly comply with as soon as the present leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting and Manufacturing functions. Assimilation of Advertising with Procedures.

Examination of Alternatives.

Combination of Marketing & Advertising Functions: The in-house advertising agency of Diamond Energy Resources is already stamina for the organization in regards to saving up on overheads related to advertising and marketing as well as promo. Given that no new recruitment has actually been done after Bridget Cole's separation with the reporting line being straight designated to Krasnow for the marketing function, this is a desirable possibility for incorporating the advertising and marketing features. Judith Shapiro who has earlier been spoken with by Lewis during the earlier merger days has expertise in business-to-business advertising along with firm and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to handle both marketing and advertising functions.

The advantage of this approach is that it will certainly incorporate the two functions while reducing the requirement for employing an added source for marketing. Along with this, Lewis would certainly be heading the marketing division and also all the same her replacement would be required for the current function that she is doing. The downside of this alternative is that outside hiring might produce animosity from interior personnel who may be eying the placement of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting as well as Manufacturing: Provided the affordable pressures and also high quality job called for from the advertising company, it is advised that Lewis must enable the manufacturing unit to be a separate function from the advertising unit. Given that a lot of marketing companies had these 2 functions as different devices, it makes even more feeling to follow the standard.

Assimilation of Marketing with Workflows: Considering that Lewis is already taking care of the advertising and operations departments simultaneously; it makes sense to incorporate both features given that she has been efficiently taking care of both ends. The fact that the two divisions already have significant distinctions over allotment of resources recommends that this combination may have the ability to produce consistency especially as Lewis would certainly be heading both ends.However there are numerous negative aspects of this move particularly as it would certainly put too much burden over Lewis's shoulders. The fact that Lewis needs to adapt her monitoring design for the advertising and marketing department recommends that these two departments would certainly be culturally varied. In addition to this, Lewis may not be able to use one kind of management style to both divisions which could cause inadequacy in either one of both features.

Referral.



An assessment of the 3 alternatives suggests that assimilation of advertising and marketing and operations would not be a feasible step because of the huge differences between the two departments although that currently Lewis is handling both. While splitting up of the manufacturing function might have been a desirable move for the marketing department, the fact that it would suggest positioning a third feature under Lewis's wing means this must be avoided. The integration of the advertising and marketing division is the very best choice in terms of getting the optimum results from the division. An activity plan for this alternative is discussed below.

Activity Plan.
Recommendation
Lewis will take control of the role of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would certainly be merged.

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

Manufacturing feature will certainly remain part of advertising and marketing under marketing feature.

Lewis will separate herself from operations.

An autonomous leadership style with employee empowerment will certainly be made use of in advertising and marketing department.

Open up door plan as well as focus on cross departmental interaction will certainly be aimed at getting rid of dissonance.

Backup strategy.

If the integration does not work out as prepared, a contingency strategy would certainly comply with which would certainly divide the manufacturing feature from the marketing function to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the production function will most definitely be divided by positioning it under an SVP production.