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


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Background and Facts

Enron Development Corp The Dabhol Power Project In Maharashtra India C an office products store for tiny and average sized businesses has lately been involved in preparing for a merging with its competitor House Deport, which has affected effectiveness degrees in departmentswith the senior manager involved in legal problems put forth by the federal Profession Payment. With the Advertising and marketing Head putting forward the news of his departure from the firm in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the duty in the near future. With obstacles in the kind of a potential cultural modification and low staff member spirits, the company wants a complete reengineering effort at the advertising and marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising division of Enron Development Corp The Dabhol Power Project In Maharashtra India C is boosting unpredictability in the workplace leading to numerous difficulties for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in influencing tactical decisions considering that Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Profession Commission's intervention at the same time. Given the reality that the shop has a global existence with branches in UK, U.S.A., Canada and Germany, political consider each of these countries might be able to affect efficiency or tactical objectives. Federal Profession Commission's antitrust suit against the merging occupied beneficial time of the organization's senior administration suggesting that 'political' factors can have significant ramifications for a global business.

Economic Factors: Economic factors such as the development of small companies in the worldwide scenario suggest that Enron Development Corp The Dabhol Power Project In Maharashtra India C is thriving in a setting where there is potential development of businesses. Reality that shop clients are mostly looking for office materials for residence offices recommends that the market has a rising trend of entrepreneurs as well as house based companies.

Social factors: Social trends in the economy show that consumers are searching for comfort along with eye-catching prices. Market research demonstrates how the customer for Enron Development Corp The Dabhol Power Project In Maharashtra India C does not have understanding regarding discovering options which can use a mix of benefit and also low costs.

Technological factors: Modern technology plays an essential duty in Enron Development Corp The Dabhol Power Project In Maharashtra India C's organisation method specifically as the organization is piloting Innovation facilities which would certainly provide modern technology sales and assistance in the kind of memory upgrades, peripheral installments. (Summary of INSECT in appendix 2).

OB Issues and also Effects.

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

Concerns regarding social change: There is concern about a social modification that would certainly take place once Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with the majority of the staff members already revealing unhappiness over this possible relocation. This expected modification has created stress and anxiety in the workplace which has actually been paired with the past anxiety of preparing the company for a prospective merger with House Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is shortage of employees that can match the demanding atmosphere of a busy organization. Not only does this cause problem in discovering the best individuals, it places stress on brand-new hires as can not hold up against the speed and stress that the company expects them to birth.

Twin Coverage Lines: Newcomers discover this organizational culture cumbersome and also challenging to cope with especially as dotted line relationships are implied to be weaker generally and unbiased setting and performance analysis is still done by the solid line manager. This suggests that novices might shed quality about their corresponding duties and also goals specifically as populated line reporting does not maintain them in straight communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles even though it had actually been guessed that the last would take Krasnow's position came as a strike to her morale. Lewis might have been capable and proper for the work yet the fact that Kransnow's departure would make Coles a straight record to Lewis may have been the reason for Coles' resignation from services.

Anxiety & Job Insecurity: Fear as well as instability can be determined as 2 significant worries that Lewis would certainly be handling particularly as the merger has actually currently be cancelled and also two senior executives of the marketing division would certainly be leaving. The entire responsibility of the division would certainly be falling on Lewis's shoulders who would not just be in charge of brining about a social change but would certainly additionally need to prove herself in her new role.

Incompatible Administration Style of Leader: Lewis's management style as well as its conflict with the marketing department's duty can also be seen as an OB obstacle particularly as she has been utilized to managing issues in the operations department where workers are taught to concentrate on procedures and also obtain them right. The advertising and marketing department on the other hand can be seen as a team of people that are utilized to being nurtured by Krasnow who focused much more on output than processes.

Interdepartmental Disagreements: Interdepartmental disagreements between three divisions, advertising, merchandizing and operations respectively over the appropriation of the marketing mix can be recognized as an additional OB worry. Although the advertising department does not share the very same vision as the other 2 departments concerning the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and also procedures departments do not concur over the advertising and marketing mix allotment among one another either.

Fragmentation in Advertising And Marketing Division: Disintegration between the advertising and marketing divisions can be recognized as another OB issue which could need further interest. The reality that the advertising and marketing areas in the advertising division are separated is preventing both departments from obtaining from each other's experience as well as knowledge. Assimilation of marketing with retailing and operations would certainly become more difficult if the advertising department itself is degenerated which can be another possible OB problem.

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

Various theories have been made use of to clarify the situations to obtain more clearness regarding the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most managers believe that staffs are easy and also lazy, have little aspiration and also stand up to modification. The circumstance at Enron Development Corp The Dabhol Power Project In Maharashtra India C is not totally following Concept X, it can be seen that brand-new hires are discovering this atmosphere rather demanding which may ultimately lead to a higher disposition of the management in the direction of Theory X. Also while analyzing Lewis's administration design, concept X may have been appropriate in the operations division to some degree yet the Marketing division would require reliance on Theory Y in order to obtain the creativity as well as creativity from the teams.

Tuckman's Synergy Theory: As far as Lewis's issue about bringing consistency in between the advertising and marketing as well as advertising division is concerned, this would at first lead to clash as reviewed by Bruce Tuckman in his 'Teamwork Concept'. By combining the marketing and also marketing department's job, there might be the exact same initial separate which can lead to the 2nd phase of 'storming' where the teams challenge one another.

When individuals are offered with modification, they go into stage one as well as so there might be emotions like sadness, unpredictability, disappointment, rage, fear, denial as well as disorientation.The circumstance at the advertising department of Enron Development Corp The Dabhol Power Project In Maharashtra India C is comparable so Lewis can obtain comfortable with the suggestion that it is not phenomenal behavior. It is throughout this phase that Lewis will have to provide assistance to the department so that they can find a feeling of instructions. It can be seen just how Krasnow has currently made this change simpler by making Lewis get entailed in the department a year before his actual separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has goes over the relevance of 'security needs as being a reduced level requirement of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel protected and out of danger' is at the second degree of requirements. Prior to a worker can be made to create emotionally, he requires to have his 'Physical 'and 'Safety and security' needs satisfied.

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

Ramification of Analysis.

The OB analysis has actually looked at different concepts to understand how to cope with the present situation at hand. The adhering to 3 alternatives have actually been recommended to aid Lewis handle the business challenges in the marketing division. Each of these alternatives has actually been suggested for reducing the shift needed to bring the advertising division in line with the demands of the marketplace and for making the social change that would adhere to once the current leader leaves.

Integration of advertising and marketing features. Dividing Adverting and Manufacturing functions. Integration of Advertising And Marketing with Workflow.

Analysis of Alternatives.

Integration of Advertising & Advertising Functions: The in-house advertising and marketing firm of Enron Development Corp The Dabhol Power Project In Maharashtra India C is already stamina for the company in terms of saving up on overheads related to marketing as well as promotion. Given that no brand-new recruitment has actually been done after Bridget Cole's separation with the coverage line being straight designated to Krasnow for the advertising function, this is a desirable possibility for incorporating the marketing and advertising functions. Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merger days has know-how in business-to-business advertising in addition to company and retail advertising and marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to handle both marketing and advertising functions.

The benefit of this strategy is that it will certainly integrate the two functions while minimizing the need for employing an added resource for advertising and marketing. Lewis would be heading the advertising department and also in any kind of case her substitute would certainly be required for the existing duty that she is doing. The drawback of this choice is that exterior hiring may produce animosity from internal employees that may be considering the position of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and also Production: Provided the affordable pressures and also excellent quality job required from the ad agency, it is advised that Lewis should enable the manufacturing system to be a separate function from the advertising system. Considering that many advertising agencies had these two functions as different devices, it makes even more feeling to follow the norm. Both features might be able to concentrate on their core turns on much more efficiently. Nonetheless, the downside of this method would be that additional expenses would need to be birthed for establishing separate manufacturing features. A manufacturing head might have to be hired which can enhance expenses for the organization.

Integration of Advertising with Procedures: Given that Lewis is currently taking care of the advertising and marketing and also procedures divisions simultaneously; it makes good sense to incorporate both features since she has actually been effectively caring for both ends. The reality that both divisions currently have major distinctions over allowance of sources recommends that this combination may be able to cause harmony particularly as Lewis would certainly be heading both ends.However there are different disadvantages of this relocation particularly as it would put too much burden over Lewis's shoulders. The fact that Lewis needs to adapt her administration design for the advertising and marketing division suggests that these 2 departments would certainly be culturally diverse. Lewis might not be able to apply one type of leadership style to both divisions which could result in ineffectiveness in either one of the two features.


An analysis of the 3 choices suggests that combination of marketing as well as operations would not be a feasible relocation because of the vast distinctions in between both divisions although that currently Lewis is taking care of both. While splitting up of the manufacturing function might have been a positive action for the advertising division, the truth that it would certainly imply placing a 3rd function under Lewis's wing means this need to be stayed clear of too. The integration of the advertising and marketing department is the most effective choice in terms of getting the optimal results from the division. An action prepare for this alternative is discussed listed below.

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

Advertising and Marketing features would certainly be merged.

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

Manufacturing function will certainly stay component of marketing under advertising function.

Lewis will divide herself from procedures.

An autonomous management design with staff member empowerment will be utilized in advertising and marketing division.

Open door policy as well as emphasis on cross departmental communication will be aimed at getting rid of dissonance.

Contingency plan.

If the combination does not work out as intended, a contingency strategy would comply with which would divide the production function from the marketing function to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising department without an SVP. In that case the production function will absolutely be separated by positioning it under an SVP manufacturing.