Enron Development Corp The Dabhol Power Project In Maharashtra India B Abridged Case Study Help


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

Background and Facts

Enron Development Corp The Dabhol Power Project In Maharashtra India B Abridged an office materials seller for little and moderate sized companies has just recently been involved in preparing for a merging with its rival Home Deport, which has actually influenced efficiency levels in departmentswith the elderly supervisor involved in lawful complications put forth by the federal Profession Payment. With the Advertising and marketing Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the current head of procedures has been asked to take the function in the near future. With difficulties in the form of a possible social change and low worker spirits, the company is in need of a complete reengineering effort at the marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The possible social change at the advertising division of Enron Development Corp The Dabhol Power Project In Maharashtra India B Abridged is raising uncertainty in the workplace resulting in different challenges for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in impacting critical decisions given that Stapes Inc. had to abandon its strategies of merging with Workplace Deport after the Federal Trade Payment's intervention in the process. Offered the fact that the store has an international presence with branches in UK, USA, Canada and Germany, political factors in each of these countries may have the ability to affect performance or calculated goals. Federal Trade Commission's antitrust fit against the merging used up valuable time of the company's senior administration suggesting that 'political' factors can have serious implications for a global business.

Economic Factors: Financial factors such as the emergence of local business in the worldwide scenario suggest that Enron Development Corp The Dabhol Power Project In Maharashtra India B Abridged is growing in a setting where there is potential growth of organisations. Fact that shop customers are primarily looking for workplace supplies for house workplaces suggests that the market has a rising pattern of entrepreneurs and also residence based organisations.

Social factors: Social trends in the economic situation show that customers are searching for benefit as well as eye-catching rates. Marketing research demonstrates how the consumer for Enron Development Corp The Dabhol Power Project In Maharashtra India B Abridged does not have awareness about locating solutions which can supply a combination of benefit and affordable.

Technical factors: Technology plays a vital role in Enron Development Corp The Dabhol Power Project In Maharashtra India B Abridged's business technique particularly as the company is piloting Technology facilities which would certainly use technology sales and also support in the type of memory upgrades, peripheral setups. (Summary of PEST in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Business Actions problems can be seen in Enron Development Corp The Dabhol Power Project In Maharashtra India B Abridged's case as highlighted in this section.

Uneasiness about social adjustment: There is concern about a social modification that would certainly occur when Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising And Marketing with most of the team member already showing unhappiness over this possible move. This anticipated modification has developed anxiety in the workplace which has actually been combined with the past tension of preparing the company for a prospective merger with Residence Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is shortage of workers that can match the difficult environment of a busy company. Not just does this bring about difficulty in discovering the right individuals, it puts stress on new hires as can not stand up to the speed and stress that the company expects them to birth.

Twin Reporting Lines: Beginners find this organizational culture troublesome and challenging to handle particularly as dotted line relationships are implied to be weaker in general as well as objective setting and also performance evaluation is still done by the solid line supervisor. This implies that beginners could lose clearness concerning their respective functions and also purposes particularly as dotted line reporting does not maintain them in straight communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been guessed that the last would certainly take Krasnow's placement came as an impact to her spirits. Lewis may have been qualified and also appropriate for the work yet the reality that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from services.

Worry & Job Insecurity: Anxiety and also insecurity can be identified as 2 significant problems that Lewis would certainly be managing particularly as the merger has now be terminated and two elderly execs of the marketing division would certainly be leaving. The whole duty of the department would certainly be falling on Lewis's shoulders who would certainly not just be in charge of brining concerning a cultural modification however would certainly also need to verify herself in her brand-new function.

Inappropriate Monitoring Design of Leader: Lewis's monitoring design and its incompatibility with the advertising department's role can also be viewed as an OB difficulty particularly as she has actually been made use of to dealing with problems in the operations division where employees are taught to focus on processes and get them right. The advertising and marketing division on the various other hand can be seen as a group of people who are made use of to being supported by Krasnow that focused more on outcome than processes.

Interdepartmental Arguments: Interdepartmental disagreements in between 3 departments, advertising, merchandizing and operations specifically over the allocation of the advertising mix can be recognized as an additional OB worry. Although the advertising and marketing division does not share the very same vision as the other 2 divisions relating to the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing and also procedures divisions do not concur over the marketing mix allowance among one another either.

Fragmentation in Advertising And Marketing Department: Disintegration in between the advertising and marketing departments can be determined as another OB concern which can require additional attention. The reality that the marketing and advertising sections in the advertising division are separated is stopping both departments from obtaining from each other's experience and experience. Assimilation of advertising with merchandising and procedures would become more difficult if the advertising division itself is broken down which can be another prospective OB problem.

Enron Development Corp The Dabhol Power Project In Maharashtra India B Abridged Analysis

Different theories have been utilized to clarify the conditions to obtain additional clarity concerning the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of supervisors believe that staffs are passive as well as careless, have little ambition as well as stand up to adjustment. The scenario at Enron Development Corp The Dabhol Power Project In Maharashtra India B Abridged is not entirely adhering to Concept X, it can be seen that brand-new hires are finding this atmosphere rather difficult which might ultimately lead to a greater disposition of the management towards Concept X. Even while evaluating Lewis's administration design, concept X may have been ideal in the procedures department to some extent but the Advertising and marketing department would need reliance on Theory Y in order to obtain the creativity as well as originality from the groups.

Tuckman's Teamwork Concept: As for Lewis's problem about bringing harmony in between the advertising and marketing division is concerned, this would initially cause clash as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). As per Tuckman's theory received appendix 3, throughout the initial stage of group advancement, individuals may not bond, as they are hectic locating their place in the team. By integrating the marketing and advertising division's work, there may be the same preliminary detach which can result in the second stage of 'storming' where the teams challenge each other. It is just during the third stage or 'norming' when they would certainly come with each other to share ideas prior to the group can bring around synergy in the 4th phase 'performing'.

When individuals are presented with change, they go into stage one and so there may be feelings like unhappiness, unpredictability, aggravation, anger, worry, denial and also disorientation.The situation at the marketing department of Enron Development Corp The Dabhol Power Project In Maharashtra India B Abridged is comparable so Lewis can obtain comfortable with the idea that it is not remarkable actions. It is during this stage that Lewis will certainly have to offer advice to the division so that they can discover a sense of instructions. It can be seen how Krasnow has currently made this shift less complicated by making Lewis get entailed in the division a year prior to his real separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has reviews the significance of 'safety needs as being a reduced degree demand of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel protected as well as out of danger' is at the 2nd level of requirements. Prior to a worker can be made to establish mentally, he needs to have his 'Physiological 'and also 'Safety and security' needs met.

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

Implication of Analysis.

The OB analysis has actually looked at various theories to comprehend exactly how to deal with the current circumstance available. The following three choices have been recommended to aid Lewis handle the business challenges in the advertising and marketing division. Each of these choices has been proposed for easing the transition required to bring the advertising and marketing division in line with the needs of the market and also for making the social modification that would certainly adhere to once the current leader leaves.

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

Evaluation of Alternatives.

Integration of Advertising & Advertising And Marketing Functions: The in-house marketing company of Enron Development Corp The Dabhol Power Project In Maharashtra India B Abridged is currently strength for the organization in regards to saving up on expenses related to advertising and marketing and also promotion. Considering that no new employment has actually been done after Bridget Cole's separation with the reporting line being straight designated to Krasnow for the marketing feature, this is a favorable possibility for incorporating the marketing and advertising features. Judith Shapiro that has earlier been talked to by Lewis during the earlier merger days has experience in business-to-business advertising and marketing along with agency and also retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to deal with both advertising and marketing features.

The advantage of this technique is that it will certainly integrate both functions while decreasing the requirement for working with an added resource for advertising and marketing. Along with this, Lewis would certainly be heading the marketing division and also in any case her substitute would be required for the existing function that she is performing. The drawback of this choice is that outside hiring may cause resentment from interior workers that may be eying the position of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and Manufacturing: Offered the competitive stress and also high quality job called for from the advertising and marketing firm, it is suggested that Lewis should permit the manufacturing device to be a separate feature from the advertising and marketing system. Considering that most marketing agencies had these 2 features as different systems, it makes more feeling to adhere to the norm.

Assimilation of Marketing with Operations: Because Lewis is currently taking care of the advertising as well as procedures departments concurrently; it makes sense to incorporate the 2 functions since she has been effectively taking treatment of both ends. The truth that Lewis has to adapt her administration design for the advertising and marketing department suggests that these 2 divisions would be culturally diverse.


An examination of the three options indicates that integration of marketing and also operations would not be a practical move because of the substantial differences between the two divisions although that presently Lewis is taking care of both. While separation of the production function may have been a desirable move for the advertising department, the fact that it would certainly imply putting a 3rd function under Lewis's wing implies this should be stayed clear of. The combination of the advertising department is the most effective option in regards to getting the ideal results from the department. An activity prepare for this alternative is reviewed below.

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

Marketing and advertising features would certainly be merged.

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

Production feature will certainly stay component of advertising and marketing under advertising and marketing feature.

Lewis will separate herself from operations.

An autonomous leadership design with worker empowerment will certainly be used in marketing department.

Open up door policy as well as emphasis on cross departmental interaction will be targeted at removing disharmony.

Contingency plan.

If the assimilation does not exercise as planned, a contingency plan would follow which would certainly separate the production feature from the marketing function to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the marketing department without an SVP. In that case the manufacturing feature will certainly be separated by positioning it under an SVP manufacturing.