Financing The Mozal Project Case Study Solution


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Financing The Mozal Project Case Study Solution

Background and Facts

Financing The Mozal Project an office supplies seller for little as well as medium sized businesses has just recently been associated with planning for a merger with its competitor Home Deport, which has actually affected effectiveness degrees in departmentswith the elderly manager associated with lawful problems put forth by the government Profession Compensation. With the Marketing Head advancing the news of his departure from the business in one year, Jeannie Lewis, the existing head of procedures has been asked to take the duty in the near future. With obstacles in the form of a possible social modification and also low worker spirits, the company is in need of a full reengineering initiative at the marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The potential cultural modification at the advertising and marketing department of Financing The Mozal Project is raising uncertainty in the working environment leading to different obstacles for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in impacting calculated decisions because Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Trade Compensation's intervention in the process. Given the reality that the shop has a worldwide existence with branches in UK, U.S.A., Canada and Germany, political factors in each of these nations might be able to affect performance or calculated goals. Federal Trade Compensation's antitrust match versus the merging occupied useful time of the organization's elderly administration recommending that 'political' factors can have serious implications for a worldwide company.

Economic Factors: Financial factors such as the introduction of small businesses in the global scenario suggest that Financing The Mozal Project is growing in an environment where there is prospective development of companies. In addition to this, truth that shop consumers are mostly searching for workplace materials for home offices recommends that the market has a rising pattern of entrepreneurs and home services.

Social factors: Social trends in the economic situation show that clients are looking for ease in addition to attractive costs. Market research shows how the customer for Financing The Mozal Project does not have understanding regarding finding options which can offer a combination of benefit and affordable.

Technical factors: Modern technology plays a vital role in Financing The Mozal Project's organisation approach particularly as the organization is piloting Technology facilities which would certainly offer technology sales and also support in the form of memory upgrades, outer installments. (Summary of PEST in appendix 2).

OB Issues as well as Effects.

A number of underlying Organizational Habits concerns can be seen in Financing The Mozal Project's case as highlighted in this area.

Apprehensions regarding social change: There is concern regarding a cultural change that would certainly take place once Todd Krasnow leaves from his position as the Exec Vice President of Advertising with most of the employee already showing discontent over this prospective relocation. This anticipated adjustment has produced stress and anxiety in the office which has actually been paired with the past tension of preparing the firm for a potential merging with Residence Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is scarcity of personnel that can match the stressful atmosphere of a fast-paced organization. Not just does this cause trouble in finding the appropriate people, it puts tension on new hires as can not hold up against the pace as well as stress that the organization expects them to bear.

Twin Coverage Lines: Newbies locate this business society troublesome and also challenging to handle particularly as dotted line relationships are implied to be weaker in general and also unbiased setting as well as efficiency examination is still done by the strong line manager. This indicates that beginners can shed quality concerning their particular functions and also purposes especially as dotted line reporting does not keep them in straight communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles although it had actually been guessed that the latter would certainly take Krasnow's position came as a strike to her morale. Lewis may have been qualified and also appropriate for the work yet the truth that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from services.

Worry & Work Instability: Anxiety and instability can be recognized as 2 significant worries that Lewis would certainly be handling particularly as the merging has now be terminated and also 2 senior executives of the advertising division would certainly be leaving. The whole responsibility of the department would be dropping on Lewis's shoulders who would certainly not just supervise of brining concerning a cultural change but would likewise need to prove herself in her new duty.

Inappropriate Administration Design of Leader: Lewis's administration style and its conflict with the marketing division's role can additionally be seen as an OB difficulty particularly as she has been utilized to handling problems in the operations division where personnel are shown to focus on procedures and also get them right. The advertising division on the other hand can be seen as a group of people that are utilized to being nurtured by Krasnow who focused much more on result than processes.

Interdepartmental Differences: Interdepartmental arguments between 3 divisions, advertising, merchandizing and procedures respectively over the allowance of the advertising and marketing mix can be determined as an additional OB worry. The marketing division does not share the very same vision as the various other 2 departments relating to the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and also procedures departments do not agree over the marketing mix allocation among one an additional either.

Disintegration in Marketing Department: Fragmentation between the advertising and marketing departments can be identified as one more OB concern which could require further focus. The reality that the advertising and marketing sections in the advertising department are separated is protecting against both departments from gaining from each other's experience and knowledge. Assimilation of advertising with merchandising as well as procedures would end up being harder if the advertising and marketing department itself is broken down which can be an additional potential OB issue.

Financing The Mozal Project Analysis

Numerous theories have actually been used to explain the scenarios to get more quality concerning the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors think that staffs are passive and also careless, have little ambition and withstand adjustment. The tough variation of this theory stressed browbeating, limited controls, threats and penalties. In time it produces low performance, subtle sabotage and also rivalry (Offer, 2003). The circumstance at Financing The Mozal Project is not totally complying with Concept X, it can be seen that brand-new hires are locating this environment instead stressful which might at some point lead to a better inclination of the monitoring in the direction of Concept X. Based on McGregor's promoted view, which he called Theory Y, the crucial task of the monitoring is to set up organizational conditions so that individuals can attain their own objectives best by directing their initiatives in the direction of organizational incentives. If people find no complete satisfaction in their job, the management would have little choice however to rely on theory X and external control (Bargain, 2003). Also while assessing Lewis's monitoring design, theory X may have appropriated in the operations department to some extent however the Marketing division would call for reliance on Concept Y in order to get the creative thinking as well as creativity from the teams.

Tuckman's Team effort Theory: As far as Lewis's concern regarding bringing harmony between the advertising and marketing department is worried, this would at first bring about clash as gone over by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). As per Tuckman's concept displayed in appendix 3, during the first phase of group development, individuals might not bond, as they are busy discovering their location in the team. By combining the advertising and marketing division's job, there might coincide preliminary detach which can bring about the 2nd stage of 'storming' where the groups test one another. Nonetheless, it is only throughout the third stage or 'norming' when they would certainly collaborate to share suggestions prior to the team can bring about harmony in the fourth stage 'executing'.

When people are offered with adjustment, they go into phase one and also so there may be feelings like sadness, unpredictability, frustration, temper, concern, denial as well as disorientation.The scenario at the marketing department of Financing The Mozal Project is similar so Lewis can obtain comfortable with the suggestion that it is not amazing habits. It is throughout this phase that Lewis will certainly have to give assistance to the department so that they can find a sense of instructions. It can be seen just how Krasnow has already made this transition less complicated by making Lewis get included in the department a year before his actual departure.
Vrio Analysis
Maslow's Demand pecking order: The OB concern pertaining to insecurity at the office has been caused to start with by the modification in management as well as secondly by the truth that the merging will certainly no longer be launched. Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has reviews the relevance of 'safety and security requires as being a reduced level demand of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel safe and secure as well as untouched' is at the second degree of needs. Prior to an employee can be made to establish emotionally, he needs to have his 'Physical 'as well as 'Security' requires fulfilled. This suggests that unless the personnel are made to feel secure regarding their present work standing in Financing The Mozal Project they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Financing The Mozal Project Case Study

Effects of Analysis.

The OB analysis has actually looked at numerous theories to recognize just how to manage the current scenario available. The adhering to 3 alternatives have been proposed to aid Lewis deal with the organizational obstacles in the advertising and marketing department. Each of these choices has been recommended for easing the change needed to bring the advertising division according to the needs of the marketplace as well as for making the social adjustment that would certainly comply with when the existing leader leaves.

Combination of advertising and marketing functions. Separating Adverting and also Manufacturing functions. Combination of Advertising And Marketing with Workflow.

Analysis of Alternatives.

Judith Shapiro that has earlier been talked to by Lewis throughout the earlier merging days has know-how in business-to-business advertising along with company as well as retail advertising and marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to manage both advertising and marketing and marketing functions.

The advantage of this technique is that it will integrate the two functions while lowering the need for hiring an added resource for advertising and marketing. Lewis would certainly be heading the marketing department as well as in any kind of case her replacement would be required for the current function that she is doing. The drawback of this option is that external hiring may produce resentment from internal employees that might be looking at the placement of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and also Production: Provided the competitive pressures as well as high top quality work required from the advertising and marketing company, it is suggested that Lewis should permit the manufacturing unit to be a separate function from the advertising and marketing system. Considering that most marketing agencies had these two functions as separate units, it makes more feeling to follow the standard.

Integration of Marketing with Operations: Since Lewis is already taking treatment of the advertising and marketing as well as operations divisions simultaneously; it makes feeling to incorporate the two features considering that she has actually been successfully taking treatment of both ends. The reality that Lewis has to adjust her monitoring design for the advertising and marketing department recommends that these two divisions would be culturally diverse.


An assessment of the 3 alternatives indicates that integration of advertising as well as operations would not be a possible action as a result of the substantial distinctions between the two divisions although that currently Lewis is managing both. While splitting up of the manufacturing feature might have been a desirable action for the advertising and marketing department, the fact that it would mean positioning a third feature under Lewis's wing indicates this need to be prevented too. The assimilation of the advertising department is the best alternative in regards to obtaining the optimum results from the division. An action prepare for this option is gone over listed below.

Activity Strategy.
Lewis will take over the function of EVP Advertising after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

Manufacturing feature will remain part of advertising under marketing function.

Lewis will separate herself from operations.

A democratic management style with staff member empowerment will be utilized in advertising and marketing division.

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

Contingency plan.

If the integration does not exercise as prepared, a contingency plan would certainly follow which would divide the manufacturing function from the marketing feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising department without an SVP. Because case the manufacturing function will definitely be separated by putting it under an SVP production.