Empresas Ica And The Mexican Road Privatization Program Case Study Help


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Empresas Ica And The Mexican Road Privatization Program Case Study Solution

Background and Facts

Empresas Ica And The Mexican Road Privatization Program a workplace materials store for tiny and medium sized organisations has actually recently been involved in preparing for a merger with its rival Home Deport, which has actually impacted performance levels in departmentswith the elderly manager involved in legal difficulties presented by the government Trade Compensation. With the Advertising and marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the function in the future. With difficulties in the type of a prospective cultural adjustment and also low staff member morale, the company requires a full reengineering effort at the advertising and marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The possible social change at the advertising department of Empresas Ica And The Mexican Road Privatization Program is enhancing unpredictability in the workplace bring about various obstacles for the Jeannie Lewis that would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in affecting critical decisions because Stapes Inc. had to abandon its strategies of merging with Workplace Deport after the Federal Trade Commission's intervention while doing so. Offered the fact that the store has an international visibility with branches in UK, UNITED STATES, Canada and Germany, political consider each of these countries may be able to impact efficiency or critical goals. Federal Trade Compensation's antitrust match versus the merger used up important time of the organization's senior monitoring recommending that 'political' factors can have serious effects for a global company.

Economic Factors: Financial factors such as the appearance of small companies in the global circumstance recommend that Empresas Ica And The Mexican Road Privatization Program is thriving in a setting where there is potential growth of companies. In addition to this, fact that shop customers are primarily seeking office materials for home offices recommends that the market has a climbing trend of business owners as well as home based organisations.

Social factors: Social patterns in the economic situation show that consumers are seeking ease along with attractive prices. Marketing research demonstrates how the customer for Empresas Ica And The Mexican Road Privatization Program lacks awareness about locating options which can provide a combination of ease as well as affordable.

Technological factors: Modern technology plays an essential duty in Empresas Ica And The Mexican Road Privatization Program's organisation approach specifically as the organization is piloting Technology centers which would supply modern technology sales as well as assistance in the type of memory upgrades, peripheral installments. (Recap of BUG in appendix 2).

OB Issues as well as Symptoms.

Several underlying Business Behavior problems can be seen in Empresas Ica And The Mexican Road Privatization Program's case as highlighted in this section.

Concerns regarding cultural modification: There is apprehension concerning a cultural adjustment that would certainly happen when Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising And Marketing with the majority of the team member currently revealing unhappiness over this possible action. This expected modification has actually developed stress and anxiety in the office which has actually been combined with the past anxiety of preparing the company for a possible merging with Home Deport.
Pest Analysis
Difficult Task Environment for Newcomers: There is lack of employees that can match the difficult setting of a hectic company. Not only does this cause difficulty in finding the best individuals, it places stress and anxiety on brand-new hires as can not endure the speed as well as pressure that the company anticipates them to birth.

Dual Reporting Lines: Newcomers find this organizational society troublesome as well as hard to manage especially as populated line partnerships are meant to be weaker in general and objective setup and also performance analysis is still done by the solid line supervisor. This suggests that novices could shed clearness about their respective roles as well as purposes specifically as dotted line reporting does not keep them in direct communication with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles although it had been hypothesized that the latter would certainly take Krasnow's placement came as a blow to her spirits. Lewis might have been capable and suitable for the work but the reality that Kransnow's separation would make Coles a direct report to Lewis may have been the factor for Coles' resignation from services.

Worry & Task Instability: Worry as well as instability can be determined as 2 significant worries that Lewis would be managing especially as the merging has now be terminated and also 2 elderly execs of the advertising and marketing division would be leaving. The entire obligation of the department would be falling on Lewis's shoulders who would certainly not just supervise of brining regarding a cultural change yet would certainly additionally have to confirm herself in her new function.

Inappropriate Administration Style of Leader: Lewis's management style as well as its conflict with the advertising and marketing division's role can likewise be viewed as an OB difficulty particularly as she has been utilized to dealing with issues in the procedures division where workers are educated to focus on procedures and also obtain them right. The marketing department on the various other hand can be viewed as a group of people who are made use of to being supported by Krasnow that concentrated extra on result than processes.

Interdepartmental Differences: Interdepartmental disputes in between three departments, advertising, merchandizing and operations specifically over the appropriation of the advertising mix can be determined as one more OB problem. The advertising department does not share the very same vision as the other 2 departments relating to the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing and operations departments do not agree over the advertising and marketing mix allowance amongst one an additional either.

Fragmentation in Advertising Department: Fragmentation in between the marketing and advertising divisions can be recognized as one more OB issue which could need additional attention. The fact that the marketing and advertising areas in the advertising and marketing division are detached is protecting against both divisions from getting from each other's experience and also competence. Assimilation of advertising and marketing with merchandising as well as operations would certainly end up being harder if the advertising division itself is broken down which can be one more prospective OB concern.

Empresas Ica And The Mexican Road Privatization Program Analysis

Different theories have been utilized to describe the scenarios to obtain further quality about the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most supervisors believe that juniors are passive and also careless, have little ambition and also stand up to change. The difficult variation of this concept stressed threat, tight controls, hazards and also punishments. In time it generates reduced performance, refined sabotage and rivalry (Offer, 2003). Although the circumstance at Empresas Ica And The Mexican Road Privatization Program is not completely complying with Concept X, it can be seen that brand-new hires are discovering this setting instead demanding which might at some point bring about a higher inclination of the administration towards Concept X. According to McGregor's advocated sight, which he called Concept Y, the essential task of the administration is to arrange business problems to make sure that people can achieve their very own objectives best by directing their initiatives in the direction of organizational benefits. If individuals find no contentment in their job, the administration would certainly have little choice yet to depend on concept X and external control (Offer, 2003). Even while examining Lewis's management design, concept X might have been suitable in the procedures division somewhat yet the Marketing division would require dependence on Concept Y so as to get the creative thinking as well as originality from the teams.

Tuckman's Team effort Concept: As far as Lewis's worry regarding bringing harmony in between the advertising and marketing and also marketing department is concerned, this would originally lead to conflict as gone over by Bruce Tuckman in his 'Team effort Theory'. By incorporating the marketing as well as advertising division's job, there might be the exact same preliminary separate which can lead to the 2nd phase of 'storming' where the groups challenge one another.

Bridges' Transition Version: As per William Bridge's concept (appendix 4), individuals are rather uneasy with modification, which is evident by the situation at Empresas Ica And The Mexican Road Privatization Program The circumstance can be viewed as a regular course of life if is researched according to Bridge's concept where he clarifies that individuals go through 3 phases of shift when they experience modification. 'End, losing and also Releasing', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When individuals exist with adjustment, they go into phase one and so there might be emotions like despair, unpredictability, irritation, temper, worry, denial and disorientation.The scenario at the advertising and marketing division of Empresas Ica And The Mexican Road Privatization Program is comparable so Lewis can get comfortable with the suggestion that it is not remarkable habits. In the 2nd stage, there may be a demand to link the gap in between the brand-new and also old society so Lewis may need to face this challenge when Krasnow leaves. There may be low spirits and low performance at this stage which should not be taken as a trouble. It is throughout this stage that Lewis will certainly need to give guidance to the division so that they can find a sense of direction. It can be seen just how Krasnow has actually already made this transition easier by making Lewis get involved in the division a year prior to his actual separation. Based on Bridges' Version, stage 3 will bring about visibility to knowing, High energy and commitment as individuals will accept the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has reviews the value of 'protection requires as being a lower level demand of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel protected and out of danger' is at the second degree of requirements. Before a staff member can be made to develop psychologically, he requires to have his 'Physical 'and 'Safety' needs satisfied.

SWOT Analysis for Empresas Ica And The Mexican Road Privatization Program Case Study

Effects of Analysis.

The OB analysis has actually looked at various concepts to comprehend just how to handle the existing scenario available. The following 3 choices have been recommended to aid Lewis manage the business challenges in the advertising and marketing division. Each of these options has been proposed for relieving the shift needed to bring the advertising division in accordance with the requirements of the market and also for making the social modification that would certainly follow once the present leader leaves.

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

Assessment of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis during the earlier merging days has competence in business-to-business advertising along with agency as well as retail advertising and marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to manage both advertising and marketing and advertising and marketing features.

The benefit of this method is that it will integrate both functions while reducing the requirement for working with an additional resource for marketing. In addition to this, Lewis would certainly be heading the advertising division and also regardless her substitute would be needed for the present duty that she is carrying out. The drawback of this option is that exterior hiring might cause bitterness from inner personnel that might be eying the position of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and Production: Offered the affordable pressures as well as high quality work required from the advertising company, it is advised that Lewis must permit the production system to be a separate function from the advertising and marketing unit. Given that a lot of advertising agencies had these two functions as separate systems, it makes more sense to comply with the standard.

Assimilation of Advertising And Marketing with Workflows: Given that Lewis is already taking treatment of the advertising and marketing and operations departments all at once; it makes sense to integrate the 2 functions considering that she has been successfully taking treatment of both ends. The reality that Lewis has to adapt her management design for the advertising division recommends that these 2 divisions would be culturally varied.


An assessment of the 3 alternatives shows that combination of advertising and marketing as well as procedures would not be a practical step due to the large differences in between the two divisions although that presently Lewis is dealing with both. While separation of the production function may have been a favorable move for the advertising division, the truth that it would indicate putting a 3rd feature under Lewis's wing implies this must be avoided. The integration of the advertising and marketing division is the very best choice in regards to obtaining the optimal arise from the division. An activity prepare for this alternative is gone over listed below.

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

Marketing and advertising features would certainly be merged.

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

Manufacturing feature will stay component of advertising and marketing under advertising and marketing function.

Lewis will separate herself from procedures.

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

Open up door policy and also focus on cross department interaction will certainly be focused on removing disharmony.

Contingency strategy.

If the assimilation does not exercise as prepared, a contingency strategy would certainly follow which would divide the manufacturing function from the advertising and marketing feature to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising and marketing department without an SVP. In that case the manufacturing function will definitely be divided by putting it under an SVP manufacturing.