Enman Oil Inc B Case Study Solution


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Enman Oil Inc B Case Study Help

Background and Facts

Enman Oil Inc B a workplace supplies seller for little and also average sized services has recently been involved in preparing for a merger with its competitor Residence Deport, which has affected efficiency degrees in departmentswith the elderly manager involved in legal problems put forth by the federal Profession Payment. With the Marketing Head putting forward the news of his departure from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the function in the near future. With challenges in the form of a prospective social change and also reduced employee morale, the organization wants a complete reengineering initiative at the marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The possible cultural change at the advertising and marketing department of Enman Oil Inc B is raising unpredictability in the workplace bring about various obstacles for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing tactical choices given that Stapes Inc. had to desert its plans of merging with Office Deport after the Federal Profession Compensation's intervention in the process. Provided the reality that the shop has a worldwide existence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries may be able to affect performance or strategic objectives. Federal Trade Commission's antitrust suit against the merging took up beneficial time of the organization's senior monitoring suggesting that 'political' factors can have significant effects for an international business.

Economic Factors: Economic factors such as the emergence of small companies in the international scenario recommend that Enman Oil Inc B is flourishing in a setting where there is possible development of services. Along with this, fact that shop customers are mostly searching for workplace products for home offices suggests that the market has a climbing pattern of entrepreneurs and home businesses.

Social factors: Social trends in the economic climate reveal that consumers are looking for convenience as well as appealing prices. Market research shows how the customer for Enman Oil Inc B lacks recognition concerning discovering services which can use a combination of convenience and also affordable.

Technical factors: Modern technology plays a vital role in Enman Oil Inc B's organisation strategy especially as the organization is piloting Modern technology centers which would use technology sales and support in the type of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).

OB Issues and Effects.

A number of underlying Organizational Actions concerns can be seen in Enman Oil Inc B's case as highlighted in this section.

Concerns concerning cultural change: There is apprehension regarding a cultural modification that would take place when Todd Krasnow leaves from his placement as the Executive Vice President of Marketing with the majority of the staff members already revealing discontent over this prospective action. This anticipated modification has actually developed stress in the work environment which has actually been combined with the previous tension of preparing the company for a possible merging with Home Deport.
Pest Analysis
Stressful Work Setting for Newcomers: There is shortage of employees that can match the difficult environment of a fast-paced company. Not only does this result in trouble in discovering the ideal individuals, it places anxiety on brand-new hires as can not stand up to the pace and stress that the company expects them to bear.

Dual Coverage Lines: Novices locate this business culture cumbersome and also hard to manage particularly as populated line relationships are indicated to be weak in general and unbiased setting and efficiency examination is still done by the strong line manager. This indicates that beginners might shed quality about their particular functions and also purposes specifically as dotted line reporting does not keep them in straight interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had been hypothesized that the latter would certainly take Krasnow's position came as an impact to her morale. Lewis may have been capable and also proper for the task yet the fact that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from services.

Fear & Work Insecurity: Anxiety and insecurity can be recognized as 2 major problems that Lewis would be handling specifically as the merging has actually currently be terminated as well as 2 senior execs of the marketing department would certainly be leaving. The whole obligation of the division would certainly be falling on Lewis's shoulders that would not just supervise of brining regarding a social adjustment but would additionally need to prove herself in her brand-new role.

Incompatible Monitoring Style of Leader: Lewis's administration design and its incompatibility with the advertising division's function can additionally be seen as an OB challenge especially as she has been used to taking care of concerns in the procedures division where employees are shown to concentrate on procedures as well as get them right. The advertising and marketing division on the various other hand can be viewed as a team of people who are used to being nurtured by Krasnow who focused much more on outcome than processes.

Interdepartmental Disputes: Interdepartmental differences in between three departments, marketing, merchandizing and procedures specifically over the allocation of the marketing mix can be identified as another OB worry. Although the advertising and marketing 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 and also advertsing, the merchandizing as well as procedures departments do not concur over the advertising mix allowance among each other either.

Fragmentation in Marketing Division: Fragmentation between the marketing and advertising departments can be determined as another OB issue which could need additional focus. The truth that the marketing and advertising sections in the marketing department are disconnected is preventing both departments from getting from each various other's experience and expertise. Integration of marketing with merchandising and also procedures would certainly come to be more difficult if the marketing department itself is degenerated which can be one more possible OB worry.

Enman Oil Inc B Analysis

Different concepts have actually been used to describe the conditions to get additional quality regarding the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of managers believe that juniors are easy as well as lazy, have little aspiration as well as resist change. The difficult variation of this theory stressed coercion, tight controls, dangers as well as punishments. Gradually it produces reduced performance, refined sabotage and also rivalry (Deal, 2003). The situation at Enman Oil Inc B is not totally following Theory X, it can be seen that brand-new hires are finding this atmosphere instead demanding which may eventually lead to a higher inclination of the monitoring in the direction of Theory X. Based on McGregor's supported view, which he called Concept Y, the essential task of the monitoring is to prepare organizational conditions to make sure that people can attain their very own objectives best by routing their efforts towards organizational incentives. If individuals locate no satisfaction in their work, the monitoring would have little option but to rely upon theory X and also exterior control (Deal, 2003). Even while assessing Lewis's management style, theory X may have been suitable in the procedures department somewhat however the Advertising and marketing department would certainly need dependence on Concept Y in order to get the creative thinking and also originality from the teams.

Tuckman's Teamwork Theory: Regarding Lewis's problem about bringing harmony between the marketing and advertising department is concerned, this would at first bring about contrast as gone over by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). According to Tuckman's concept displayed in appendix 3, during the preliminary stage of team growth, individuals might not bond, as they are hectic finding their area in the group. By integrating the advertising and marketing department's job, there might be the same preliminary detach which can cause the 2nd phase of 'storming' where the groups test each other. It is only throughout the 3rd phase or 'norming' when they would come with each other to share suggestions before the group can bring about harmony in the 4th phase 'performing'.

When individuals are provided with change, they go into stage one and so there may be feelings like despair, uncertainty, disappointment, rage, fear, rejection as well as disorientation.The scenario at the advertising and marketing department of Enman Oil Inc B is similar so Lewis can obtain comfy with the idea that it is not extraordinary actions. It is during this phase that Lewis will have to offer assistance to the division so that they can discover a sense of direction. It can be seen exactly how Krasnow has actually already made this shift less complicated by making Lewis obtain involved in the department a year before his real departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has talks about the importance of 'safety needs as being a reduced level demand of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel safe and also out of threat' is at the 2nd level of requirements. Prior to a staff member can be made to develop psychologically, he requires to have his 'Physical 'and 'Safety' requires met.

SWOT Analysis for Enman Oil Inc B Case Study

Implication of Analysis.

The OB analysis has checked out various theories to understand how to handle the current situation handy. The following 3 alternatives have been suggested to help Lewis deal with the business obstacles in the advertising department. Each of these options has actually been suggested for alleviating the shift required to bring the marketing division according to the requirements of the market and for making the social adjustment that would certainly adhere to as soon as the existing leader leaves.

Integration of advertising and marketing features. Dividing Adverting and also Manufacturing functions. Assimilation of Advertising with Procedures.

Examination of Alternatives.

Integration of Advertising & Advertising Functions: The in-house marketing firm of Enman Oil Inc B is currently toughness for the company in terms of conserving up on expenses connected to advertising and marketing and also promo. Because no brand-new employment has been done after Bridget Cole's departure with the coverage line being straight appointed to Krasnow for the marketing function, this is a positive chance for incorporating the advertising and marketing functions. Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merging days has expertise in business-to-business advertising along with agency and retail advertising experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to manage both advertising and marketing functions.

The benefit of this strategy is that it will integrate both features while reducing the need for hiring an additional source for advertising and marketing. In addition to this, Lewis would be heading the advertising and marketing department and also in any case her substitute would certainly be needed for the current duty that she is carrying out. The downside of this choice is that outside hiring may produce bitterness from inner employees who may be looking at the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting and also Manufacturing: Given the affordable pressures and also excellent quality work called for from the ad agency, it is advised that Lewis should allow the manufacturing device to be a different function from the advertising and marketing device. Since a lot of advertising agencies had these two functions as separate units, it makes more feeling to adhere to the norm. Both features may be able to concentrate on their core triggers a lot more successfully. The disadvantage of this method would certainly be that additional costs would certainly have to be birthed for setting up separate manufacturing functions. A production head may have to be worked with which can boost overheads for the organization.

Assimilation of Advertising with Workflows: Since Lewis is already caring for the marketing and also procedures divisions simultaneously; it makes sense to incorporate the two functions since she has actually been successfully caring for both ends. The reality that the two departments already have major differences over appropriation of resources recommends that this integration might be able to cause consistency specifically as Lewis would be heading both ends.However there are different downsides of this move particularly as it would place way too much concern over Lewis's shoulders. The reality that Lewis needs to adapt her administration style for the marketing division suggests that these 2 departments would certainly be culturally diverse. In addition to this, Lewis may not have the ability to use one kind of leadership design to both divisions which can lead to inadequacy in either among the two features.


An analysis of the 3 alternatives indicates that combination of advertising as well as procedures would certainly not be a practical relocation due to the vast distinctions in between the 2 divisions regardless of the fact that presently Lewis is managing both. While splitting up of the production feature may have been a desirable action for the marketing department, the fact that it would certainly indicate positioning a 3rd function under Lewis's wing suggests this must be prevented.

Action Strategy.
Lewis will take control of the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be combined.

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

Production feature will stay part of advertising under advertising and marketing function.

Lewis will certainly separate herself from operations.

An autonomous management style with employee empowerment will certainly be used in advertising and marketing department.

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

Contingency strategy.

If the integration does not work out as prepared, a backup strategy would certainly comply with which would divide the manufacturing function from the advertising feature to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising division without an SVP. In that case the manufacturing feature will absolutely be separated by putting it under an SVP manufacturing.