Exxon Corp Trouble At Valdez Case Study Solution


Home >> Harvard >> Exxon Corp Trouble At Valdez >>

Exxon Corp Trouble At Valdez Case Study Analysis

Background and Facts

Exxon Corp Trouble At Valdez a workplace products store for tiny as well as moderate sized organisations has recently been associated with planning for a merger with its rival House Deport, which has actually influenced efficiency degrees in departmentswith the elderly supervisor involved in legal problems put forth by the federal Trade Compensation. With the Advertising and marketing Head advancing the news of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the future. With difficulties in the kind of a possible cultural modification and low worker spirits, the company is in need of a total reengineering effort at the marketing department.

Issue Declaration

The possible cultural adjustment at the advertising and marketing department of Exxon Corp Trouble At Valdez is raising uncertainty in the working environment bring about numerous challenges for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing critical decisions since Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Profession Commission's treatment in the process. Given the truth that the shop has an international existence with branches in UK, USA, Canada and also Germany, political consider each of these nations might have the ability to impact performance or tactical objectives. Federal Trade Commission's antitrust match against the merger took up beneficial time of the company's senior monitoring recommending that 'political' factors can have major ramifications for a global company.

Economic Factors: Financial factors such as the development of small businesses in the global scenario suggest that Exxon Corp Trouble At Valdez is growing in an atmosphere where there is possible growth of companies. In addition to this, reality that shop clients are primarily searching for office products for home offices recommends that the market has a climbing pattern of business owners as well as home companies.

Social factors: Social trends in the economic climate show that clients are seeking ease along with appealing rates. Market research shows how the client for Exxon Corp Trouble At Valdez does not have understanding regarding discovering solutions which can use a combination of benefit and also affordable.

Technological factors: Innovation plays an essential function in Exxon Corp Trouble At Valdez's company method specifically as the company is piloting Modern technology facilities which would provide modern technology sales as well as support in the form of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues and also Manifestations.

Several underlying Organizational Actions problems can be seen in Exxon Corp Trouble At Valdez's case as highlighted in this area.

Concerns concerning cultural change: There is worry about a cultural modification that would take place when Todd Krasnow leaves from his position as the Executive Vice President of Marketing with the majority of the employee currently showing unhappiness over this possible relocation. This anticipated modification has actually developed tension in the work environment which has actually been combined with the past stress and anxiety of preparing the firm for a potential merging with Residence Deport.

Difficult Work Environment for Newcomers: There is lack of personnel that can match the demanding setting of a hectic company. Not just does this bring about difficulty in finding the ideal individuals, it puts stress on new hires as can not endure the pace and stress that the organization anticipates them to bear.

Double Coverage Lines: Novices locate this business society troublesome as well as challenging to handle particularly as populated line relationships are suggested to be weaker as a whole and unbiased setup as well as performance assessment is still done by the strong line manager. This means that newcomers can shed quality about their particular duties as well as objectives particularly as populated line reporting does not keep them in direct communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles despite the fact that it had actually been speculated that the last would certainly take Krasnow's position came as a strike to her morale. Lewis may have been capable and also proper for the job however the truth that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the reason for Coles' resignation from services.

Worry & Task Instability: Anxiety and also instability can be recognized as two major concerns that Lewis would certainly be handling especially as the merging has actually currently be cancelled and 2 senior execs of the advertising and marketing division would certainly be leaving. The whole obligation of the department would be falling on Lewis's shoulders that would certainly not simply supervise of brining concerning a social modification however would likewise have to verify herself in her new role.

Inappropriate Management Design of Leader: Lewis's management design as well as its conflict with the marketing department's role can likewise be viewed as an OB challenge especially as she has actually been utilized to handling issues in the procedures department where personnel are shown to focus on processes and obtain them right. The advertising and marketing division on the other hand can be seen as a team of people that are made use of to being nurtured by Krasnow who focused more on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental disputes between three departments, advertising and marketing, merchandizing and procedures respectively over the allotment of the advertising and marketing mix can be determined as one more OB problem. Although the advertising department does not share the very same vision as the other 2 divisions regarding the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing as well as procedures divisions do not agree over the advertising mix appropriation among each other either.

Disintegration in Advertising Department: Disintegration between the advertising and marketing departments can be recognized as another OB concern which could need additional focus. The fact that the advertising and marketing areas in the advertising department are detached is stopping both departments from getting from each various other's experience as well as experience. Integration of marketing with retailing and procedures would come to be more difficult if the marketing department itself is degenerated which can be another prospective OB worry.

Exxon Corp Trouble At Valdez Analysis

Different theories have actually been made use of to discuss the scenarios to get additional quality about the scenario handy.

McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most managers believe that staffs are easy and also lazy, have little aspiration as well as resist change. The tough version of this concept stressed coercion, limited controls, threats as well as punishments. Over time it generates reduced performance, subtle sabotage and also competition (Deal, 2003). The scenario at Exxon Corp Trouble At Valdez is not completely following Concept X, it can be seen that new hires are locating this environment rather demanding which might ultimately lead to a higher disposition of the monitoring in the direction of Theory X. As per McGregor's supported view, which he called Concept Y, the essential task of the management is to organize organizational problems to make sure that people can accomplish their own objectives best by guiding their initiatives towards organizational rewards. If people locate no fulfillment in their work, the management would have little selection however to depend on concept X and outside control (Offer, 2003). Also while examining Lewis's management style, theory X may have appropriated in the operations department somewhat but the Advertising and marketing department would need reliance on Theory Y so as to get the creative thinking as well as creativity from the groups.

Tuckman's Team effort Concept: As for Lewis's worry about bringing consistency in between the marketing and advertising department is concerned, this would originally lead to clash as discussed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). According to Tuckman's concept displayed in appendix 3, throughout the first phase of group development, individuals may not bond, as they are busy discovering their area in the group. By incorporating the advertising and marketing division's work, there may coincide initial separate which could bring about the second phase of 'storming' where the groups test each other. It is only throughout the third stage or 'norming' when they would certainly come together to share concepts before the group can bring around harmony in the fourth stage 'executing'.

Bridges' Transition Model: According To William Bridge's theory (appendix 4), people are fairly unpleasant with modification, which is obvious by the scenario at Exxon Corp Trouble At Valdez The scenario can be viewed as a typical program of life if is examined as per Bridge's theory where he explains that people experience three stages of transition when they experience adjustment. 'Ending, shedding as well as Letting go', The Neutral Area and 'The New Starting' (Bridges, 2004). When people exist with adjustment, they get in stage one and so there might be emotions like unhappiness, unpredictability, stress, anger, fear, rejection and disorientation.The scenario at the advertising division of Exxon Corp Trouble At Valdez is comparable so Lewis can obtain comfortable with the concept that it is not amazing actions. In the 2nd stage, there might be a need to bridge the space between the brand-new and old culture so Lewis may need to encounter this challenge once Krasnow leaves. There may be reduced morale and also low efficiency at this stage which should not be taken as a setback. It is during this phase that Lewis will certainly have to give support to the department to ensure that they can find a sense of direction. It can be seen how Krasnow has already made this change less complicated by making Lewis obtain associated with the division a year prior to his actual separation. Based on Bridges' Design, stage three will certainly cause visibility to knowing, High energy and also dedication as individuals will certainly embrace the change (Bridges, 2004).

Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has talks about the significance of 'security requires 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 how 'the need to feel protected as well as out of risk' is at the 2nd degree of demands. Before a worker can be made to create mentally, he needs to have his 'Physical 'and also 'Safety' needs fulfilled.

SWOT Analysis for Exxon Corp Trouble At Valdez Case Study

Ramification of Analysis.

The OB analysis has checked out numerous theories to comprehend just how to cope with the present situation handy. The complying with 3 choices have actually been proposed to assist Lewis take care of the organizational obstacles in the advertising and marketing division. Each of these alternatives has actually been recommended for easing the change required to bring the marketing division in accordance with the needs of the market as well as for making the cultural change that would certainly comply with once the existing leader leaves.

Combination of advertising and marketing features. Dividing Adverting and also Manufacturing features. Integration of Advertising And Marketing with Operations.

Evaluation of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merger days has knowledge in business-to-business marketing along with company as well as retail advertising and marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to take care of both marketing as well as advertising and marketing features.

The advantage of this technique is that it will incorporate both functions while lowering the demand for working with an additional source for marketing. Lewis would certainly be heading the advertising and marketing department as well as in any kind of case her substitute would be required for the existing role that she is doing. The disadvantage of this option is that external hiring might produce animosity from interior personnel who may be looking at the placement of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting as well as Manufacturing: Given the affordable pressures and premium quality job required from the ad agency, it is suggested that Lewis ought to enable the manufacturing system to be a different feature from the advertising and marketing system. Because a lot of ad agency had these two functions as separate devices, it makes more sense to comply with the standard. In addition to this, both functions might be able to focus on their core triggers a lot more successfully. The downside of this method would certainly be that extra costs would have to be borne for establishing up separate manufacturing features. Along with this, a production head may have to be hired which can raise overheads for the organization.

Integration of Advertising And Marketing with Workflows: Because Lewis is already taking treatment of the advertising and marketing as well as procedures divisions all at once; it makes feeling to incorporate the two features given that she has actually been efficiently taking care of both ends. The truth that Lewis has to adjust her management design for the marketing department suggests that these 2 departments would be culturally diverse.


An examination of the 3 alternatives indicates that integration of marketing and operations would certainly not be a feasible action due to the huge distinctions in between the two divisions despite the reality that currently Lewis is handling both. While separation of the production feature might have been a favorable relocation for the advertising department, the reality that it would mean placing a 3rd feature under Lewis's wing implies this must be stayed clear of.

Activity Plan.

Lewis will certainly take over the role of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

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

Lewis will separate herself from operations.

An autonomous leadership design with worker empowerment will certainly be made use of in advertising division.

Open up door policy and also focus on cross department communication will be aimed at removing dissonance.

Contingency strategy.

If the integration does not exercise as prepared, a backup plan would certainly follow which would divide the production function from the marketing function to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising and marketing department without an SVP. In that case the manufacturing function will certainly be divided by placing it under an SVP manufacturing.