Enron Development Corp The Dabhol Power Project In Maharashtra India A Case Study Analysis


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Enron Development Corp The Dabhol Power Project In Maharashtra India A Case Study Solution

Background and Facts

Enron Development Corp The Dabhol Power Project In Maharashtra India A an office supplies seller for small and also medium sized companies has actually just recently been associated with planning for a merger with its rival House Deport, which has actually impacted efficiency levels in departmentswith the senior supervisor associated with lawful issues presented by the federal Trade Compensation. With the Advertising and marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the current head of operations has been asked to take the duty in the near future. With obstacles in the form of a possible social change and also low employee morale, the organization needs a full reengineering initiative at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The potential cultural modification at the advertising and marketing department of Enron Development Corp The Dabhol Power Project In Maharashtra India A is boosting unpredictability in the workplace bring about various challenges 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 role in influencing critical choices because Stapes Inc. needed to desert its strategies of combining with Office Deport after the Federal Profession Compensation's treatment at the same time. Given the fact that the store has a worldwide existence with branches in UK, UNITED STATES, Canada and Germany, political consider each of these nations might have the ability to impact efficiency or calculated objectives. Federal Trade Payment's antitrust suit versus the merging occupied useful time of the organization's elderly monitoring suggesting that 'political' factors can have significant effects for an international service.

Economic Factors: Economic factors such as the appearance of small businesses in the global situation recommend that Enron Development Corp The Dabhol Power Project In Maharashtra India A is flourishing in a setting where there is potential development of organisations. In addition to this, reality that store customers are primarily trying to find workplace materials for home offices recommends that the marketplace has a climbing trend of entrepreneurs and online services.

Social factors: Social patterns in the economic climate reveal that clients are trying to find ease as well as attractive costs. Market research demonstrates how the customer for Enron Development Corp The Dabhol Power Project In Maharashtra India A lacks awareness concerning locating options which can use a mix of convenience as well as low costs.

Technical factors: Innovation plays a crucial duty in Enron Development Corp The Dabhol Power Project In Maharashtra India A's organisation method especially as the organization is piloting Modern technology facilities which would certainly provide modern technology sales and support in the kind of memory upgrades, outer installments. (Recap of PARASITE in appendix 2).

OB Issues as well as Manifestations.

Several underlying Business Behavior issues can be seen in Enron Development Corp The Dabhol Power Project In Maharashtra India A's case as highlighted in this area.

Concerns regarding social modification: There is concern concerning a social adjustment that would certainly occur once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising And Marketing with the majority of the employee already showing discontent over this possible relocation. This expected change has actually produced stress and anxiety in the work environment which has actually been coupled with the previous tension of preparing the firm for a possible merging with Home Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is scarcity of personnel that can match the demanding atmosphere of a busy company. Not only does this result in difficulty in locating the ideal individuals, it places stress and anxiety on brand-new hires as can not stand up to the rate and stress that the company expects them to bear.

Dual Coverage Lines: Newcomers locate this business culture cumbersome and also difficult to manage particularly as populated line connections are indicated to be weak as a whole and objective setup as well as efficiency examination is still done by the strong line supervisor. This means that novices might lose quality regarding their respective functions and also purposes especially as populated line coverage does not maintain them in straight communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles despite the fact that it had actually been speculated that the latter would certainly take Krasnow's placement came as an impact to her spirits. Lewis may have been qualified and suitable for the job but the fact that Kransnow's departure would certainly make Coles a straight record to Lewis may have been the reason for Coles' resignation from services.

Concern & Work Instability: Fear and also instability can be identified as 2 significant concerns that Lewis would be managing particularly as the merging has now be terminated and two elderly executives of the marketing department would certainly be leaving. The whole duty of the division would certainly be falling on Lewis's shoulders that would certainly not simply be in charge of brining regarding a social adjustment yet would likewise need to prove herself in her brand-new role.

Inappropriate Monitoring Style of Leader: Lewis's monitoring style as well as its incompatibility with the marketing department's function can additionally be seen as an OB obstacle specifically as she has been used to dealing with problems in the operations division where employees are educated to concentrate on processes and obtain them right. The marketing department on the various other hand can be viewed as a group of individuals that are used to being nurtured by Krasnow who focused extra on output than procedures.

Interdepartmental Differences: Interdepartmental disputes in between three divisions, advertising and marketing, merchandizing as well as operations specifically over the appropriation of the marketing mix can be identified as one more OB concern. The advertising and marketing department does not share the exact same vision as the various other two departments concerning the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing and operations departments do not concur over the marketing mix allowance among one another either.

Disintegration in Advertising And Marketing Department: Disintegration in between the advertising and marketing divisions can be determined as an additional OB concern which could need additional interest. The reality that the marketing and advertising areas in the advertising division are detached is preventing both divisions from obtaining from each various other's experience and also competence. Integration of advertising with merchandising and procedures would certainly become harder if the marketing division itself is broken down which can be one more potential OB issue.

Enron Development Corp The Dabhol Power Project In Maharashtra India A Analysis

Various concepts have been utilized to explain the circumstances to get more clearness regarding the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many managers believe that staffs are easy and also lazy, have little aspiration and also stand up to adjustment. The difficult version of this concept stressed browbeating, limited controls, risks as well as punishments. With time it generates reduced productivity, subtle sabotage and also rivalry (Bargain, 2003). The scenario at Enron Development Corp The Dabhol Power Project In Maharashtra India A is not totally complying with Concept X, it can be seen that brand-new hires are locating this environment instead demanding which may at some point lead to a higher inclination of the monitoring towards Concept X. According to McGregor's promoted sight, which he called Theory Y, the crucial task of the administration is to prepare organizational problems to ensure that individuals can achieve their own objectives best by directing their efforts towards business benefits. If people discover no contentment in their job, the administration would certainly have little option yet to depend on concept X and exterior control (Offer, 2003). Also while examining Lewis's administration design, theory X might have appropriated in the operations division somewhat but the Advertising and marketing department would certainly call for reliance on Concept Y so as to get the imagination and also originality from the teams.

Tuckman's Teamwork Concept: As for Lewis's issue about bringing harmony in between the marketing and advertising department is concerned, this would at first result in clash as talked about by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). According to Tuckman's concept received appendix 3, during the initial stage of team advancement, individuals might not bond, as they are busy finding their place in the group. By combining the advertising and marketing division's work, there might be the same initial disconnect which might bring about the second phase of 'storming' where the groups challenge one another. However, it is only throughout the 3rd stage or 'norming' when they would collaborate to share ideas prior to the team can produce synergy in the fourth stage 'performing'.

Bridges' Shift Version: According To William Bridge's theory (appendix 4), people are fairly unpleasant with change, which is evident by the scenario at Enron Development Corp The Dabhol Power Project In Maharashtra India A The circumstance can be seen as a normal training course of life if is researched based on Bridge's concept where he explains that people undergo three phases of change when they experience modification. 'Ending, losing as well as Releasing', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When people are presented with adjustment, they enter phase one and so there may be feelings like despair, unpredictability, stress, temper, concern, rejection and also disorientation.The scenario at the marketing department of Enron Development Corp The Dabhol Power Project In Maharashtra India A is comparable so Lewis can obtain comfortable with the idea that it is not amazing behavior. In the 2nd phase, there may be a need to bridge the space in between the brand-new as well as old society so Lewis may have to encounter this challenge when Krasnow leaves. There might be low spirits as well as reduced efficiency at this phase which should not be taken as an obstacle. It is during this phase that Lewis will need to give advice to the department to ensure that they can discover an orientation. It can be seen exactly how Krasnow has currently made this shift less complicated by making Lewis obtain involved in the division a year before his actual departure. Based on Bridges' Design, phase three will bring about openness to learning, High energy and dedication as individuals will certainly embrace the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has talks about the importance of 'protection requires as being a reduced degree need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel secure as well as out of threat' is at the second level of requirements. Prior to an employee can be made to create emotionally, he needs to have his 'Physiological 'and also 'Safety' requires fulfilled.

SWOT Analysis for Enron Development Corp The Dabhol Power Project In Maharashtra India A Case Study

Implication of Analysis.

The OB analysis has considered different concepts to recognize how to cope with the present circumstance handy. The adhering to 3 options have actually been proposed to help Lewis take care of the organizational obstacles in the advertising and marketing division. Each of these options has actually been suggested for relieving the shift required to bring the advertising and marketing division according to the requirements of the marketplace as well as for making the social adjustment that would comply with once the present leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting and also Production features. Integration of Marketing with Operations.

Analysis of Alternatives.

Integration of Advertising & Advertising And Marketing Functions: The internal advertising firm of Enron Development Corp The Dabhol Power Project In Maharashtra India A is currently stamina for the company in regards to saving up on expenses related to advertising and marketing and promotion. Considering that no new employment has actually been done after Bridget Cole's separation with the coverage line being directly assigned to Krasnow for the advertising and marketing feature, this is a positive chance for incorporating the advertising and marketing features. Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merging days has know-how in business-to-business marketing in addition to firm and retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to take care of both marketing and advertising features.

The benefit of this technique is that it will certainly integrate both functions while reducing the requirement for working with an added resource for advertising. Along with this, Lewis would certainly be heading the marketing department and also regardless her replacement would be required for the present function that she is performing. The downside of this option is that external hiring might cause bitterness from internal workers who may be eying the position of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and Manufacturing: Given the competitive pressures as well as high quality job needed from the marketing company, it is advised that Lewis must allow the production unit to be a separate function from the advertising system. Because the majority of advertising agencies had these 2 functions as different devices, it makes more sense to comply with the norm.

Assimilation of Marketing with Procedures: Because Lewis is currently taking care of the marketing as well as operations departments concurrently; it makes good sense to incorporate both functions because she has been efficiently looking after both ends. The fact that both divisions currently have significant distinctions over allocation of resources recommends that this integration may be able to produce consistency particularly as Lewis would be heading both ends.However there are different drawbacks of this step particularly as it would place too much problem over Lewis's shoulders. The reality that Lewis needs to adapt her administration design for the marketing division recommends that these two divisions would be culturally diverse. Lewis might not be able to use one type of leadership style to both departments which could result in inefficiency in either one of the 2 functions.


An analysis of the 3 choices suggests that integration of advertising and marketing and procedures would certainly not be a practical relocation due to the vast differences between both divisions although that presently Lewis is managing both. While separation of the production function might have been a beneficial action for the advertising department, the truth that it would imply placing a third function under Lewis's wing indicates this need to be prevented. The integration of the marketing division is the best choice in terms of obtaining the optimal results from the division. An action prepare for this option is gone over below.

Action Strategy.
Lewis will take over the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would be merged.

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

Production feature will remain component of marketing under advertising and marketing function.

Lewis will divide herself from procedures.

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

Open up door policy and emphasis on cross department communication will be aimed at eliminating dissonance.

Contingency strategy.

If the integration does not work out as prepared, a backup plan would follow which would separate the manufacturing feature from the advertising and marketing function to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising department without an SVP. In that case the production feature will most definitely be divided by positioning it under an SVP manufacturing.