Freeport Mine Irian Jaya Indonesia Tailings And Failings Stakeholder Analysis Case Study Solution


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Freeport Mine Irian Jaya Indonesia Tailings And Failings Stakeholder Analysis Case Study Analysis

Background and Facts

Freeport Mine Irian Jaya Indonesia Tailings And Failings Stakeholder Analysis a workplace materials retailer for small and medium sized businesses has actually just recently been associated with preparing for a merger with its rival Home Deport, which has actually impacted performance degrees in departmentswith the elderly supervisor involved in lawful issues put forth by the government Trade Compensation. With the Advertising and marketing Head putting forward the information of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the role in the future. With difficulties in the type of a possible social change as well as low worker spirits, the organization requires a total reengineering initiative at the marketing division.

Issue Statement
Porter's 5 Forces Analysis
The possible cultural change at the marketing division of Freeport Mine Irian Jaya Indonesia Tailings And Failings Stakeholder Analysis is raising unpredictability in the working environment leading to different challenges for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting strategic choices given that Stapes Inc. had to abandon its strategies of combining with Workplace Deport after the Federal Profession Compensation's treatment at the same time. Given the truth that the store has an international existence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these countries may be able to impact performance or critical goals. Federal Trade Payment's antitrust suit against the merging occupied valuable time of the organization's elderly monitoring recommending that 'political' factors can have severe ramifications for a worldwide company.

Economic Factors: Economic factors such as the introduction of small companies in the international circumstance suggest that Freeport Mine Irian Jaya Indonesia Tailings And Failings Stakeholder Analysis is flourishing in an atmosphere where there is potential development of organisations. Reality that store clients are mostly looking for office products for residence workplaces recommends that the market has a rising pattern of entrepreneurs and also home based companies.

Social factors: Social trends in the economy show that customers are looking for convenience along with eye-catching rates. Market research shows how the client for Freeport Mine Irian Jaya Indonesia Tailings And Failings Stakeholder Analysis does not have recognition about discovering solutions which can offer a mix of benefit and also affordable.

Technological factors: Modern technology plays a vital duty in Freeport Mine Irian Jaya Indonesia Tailings And Failings Stakeholder Analysis's company approach specifically as the company is piloting Technology centers which would supply modern technology sales and also assistance in the kind of memory upgrades, outer installments. (Recap of PEST in appendix 2).

OB Issues as well as Symptoms.

Numerous underlying Business Habits issues can be seen in Freeport Mine Irian Jaya Indonesia Tailings And Failings Stakeholder Analysis's case as highlighted in this section.

Apprehensions about social change: There is uneasiness regarding a social adjustment that would certainly happen as soon as Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising And Marketing with a lot of the staff members currently revealing discontent over this possible relocation. This expected change has actually produced stress in the workplace which has actually been coupled with the previous stress and anxiety of preparing the company for a potential merging with House Deport.
Pest Analysis
Stressful Work Environment for Newcomers: There is lack of employees that can match the difficult environment of a fast-paced company. Not just does this bring about difficulty in locating the ideal individuals, it puts stress on new hires as can not withstand the rate and stress that the company anticipates them to bear.

Twin Reporting Lines: Novices find this business culture difficult and challenging to manage especially as dotted line partnerships are suggested to be weaker generally and also objective setup and also efficiency analysis is still done by the strong line supervisor. This means that newbies could shed clarity concerning their corresponding functions and also purposes particularly as populated line reporting does not maintain them in straight communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles although it had been guessed that the last would certainly take Krasnow's setting came as an impact to her morale. Lewis may have been capable and also proper for the job however the fact that Kransnow's departure would certainly make Coles a straight record to Lewis might have been the reason for Coles' resignation from services.

Concern & Task Instability: Anxiety and also instability can be recognized as two significant worries that Lewis would be handling especially as the merger has currently be cancelled and 2 senior execs of the advertising department would certainly be leaving. The entire obligation of the department would certainly be dropping on Lewis's shoulders that would not just be in charge of brining about a cultural change but would also have to verify herself in her new role.

Incompatible Monitoring Style of Leader: Lewis's administration style as well as its incompatibility with the marketing division's duty can additionally be viewed as an OB challenge specifically as she has actually been made use of to taking care of concerns in the operations division where employees are shown to concentrate on processes as well as get them right. The advertising department on the various other hand can be seen as a group of people that are utilized to being supported by Krasnow who concentrated a lot more on outcome than procedures.

Interdepartmental Disputes: Interdepartmental disagreements between three divisions, advertising and marketing, merchandizing and also operations respectively over the allocation of the advertising and marketing mix can be identified as one more OB worry. The advertising department does not share the exact same vision as the various other 2 departments regarding the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and operations departments do not concur over the advertising mix allotment among one an additional either.

Disintegration in Advertising Division: Disintegration between the advertising and marketing departments can be recognized as another OB problem which can need more focus. The fact that the advertising and marketing areas in the advertising department are detached is protecting against both divisions from obtaining from each other's experience as well as expertise. Combination of advertising with retailing as well as operations would end up being more difficult if the advertising and marketing division itself is broken down which can be another prospective OB concern.

Freeport Mine Irian Jaya Indonesia Tailings And Failings Stakeholder Analysis Analysis

Numerous theories have actually been made use of to clarify the scenarios to get further quality about the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most managers think that juniors are passive and also lazy, have little ambition and stand up to modification. The tough variation of this concept highlighted browbeating, tight controls, risks as well as penalties. With time it generates reduced efficiency, subtle sabotage as well as competition (Deal, 2003). The scenario at Freeport Mine Irian Jaya Indonesia Tailings And Failings Stakeholder Analysis is not totally following Theory X, it can be seen that new hires are locating this atmosphere instead demanding which may ultimately lead to a better inclination of the monitoring towards Concept X. As per McGregor's advocated view, which he called Theory Y, the necessary task of the management is to arrange business conditions to make sure that individuals can accomplish their own objectives best by routing their efforts towards business incentives. If individuals locate no contentment in their job, the administration would have little selection however to rely on theory X and exterior control (Offer, 2003). Also while assessing Lewis's management design, theory X may have appropriated in the operations division somewhat yet the Advertising and marketing department would certainly require reliance on Concept Y so as to get the creative thinking and originality from the teams.

Tuckman's Synergy Theory: As far as Lewis's problem regarding bringing harmony in between the advertising and also advertising and marketing division is worried, this would at first lead to conflict as talked about by Bruce Tuckman in his 'Team effort Concept'. By incorporating the advertising and advertising and marketing division's job, there may be the same preliminary detach which could lead to the 2nd stage of 'storming' where the groups challenge one another.

When individuals are provided with adjustment, they enter phase one as well as so there may be feelings like unhappiness, uncertainty, stress, temper, worry, denial and also disorientation.The circumstance at the advertising division of Freeport Mine Irian Jaya Indonesia Tailings And Failings Stakeholder Analysis is similar so Lewis can get comfy with the suggestion that it is not phenomenal behavior. It is throughout this stage that Lewis will certainly have to offer advice to the department so that they can locate a feeling of direction. It can be seen how Krasnow has already made this change much easier by making Lewis get entailed in the department a year prior to his real separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has talks about the value of 'safety and security needs 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 how 'the need to feel safe and also out of danger' is at the 2nd level of needs. Prior to a staff member can be made to establish psychologically, he needs to have his 'Physiological 'and also 'Safety and security' needs satisfied.

SWOT Analysis for Freeport Mine Irian Jaya Indonesia Tailings And Failings Stakeholder Analysis Case Study

Effects of Analysis.

The OB analysis has actually looked at numerous concepts to comprehend just how to cope with the existing circumstance at hand. The adhering to three choices have actually been recommended to assist Lewis take care of the business challenges in the marketing department. Each of these alternatives has been proposed for easing the change required to bring the marketing division in accordance with the demands of the market and also for making the cultural adjustment that would certainly comply with as soon as the existing leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting and also Production functions. Integration of Marketing with Procedures.

Assessment of Alternatives.

Combination of Advertising And Marketing & Advertising And Marketing Functions: The in-house advertising and marketing agency of Freeport Mine Irian Jaya Indonesia Tailings And Failings Stakeholder Analysis is currently strength for the company in regards to saving up on overheads associated with advertising as well as promo. Given that no brand-new employment has been done after Bridget Cole's departure with the coverage line being straight designated to Krasnow for the advertising and marketing function, this is a desirable chance for incorporating the marketing and advertising functions. Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merger days has knowledge in business-to-business marketing together with firm and retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to handle both marketing and advertising functions.

The advantage of this strategy is that it will certainly incorporate both functions while reducing the demand for employing an extra resource for advertising. Along with this, Lewis would be heading the advertising department as well as in any case her substitute would certainly be needed for the current duty that she is performing. The drawback of this option is that exterior hiring may cause resentment from interior employees that may be considering the position of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and also Production: Given the affordable stress and also premium quality work called for from the advertising agency, it is recommended that Lewis ought to allow the manufacturing system to be a different function from the advertising device. Given that most ad agency had these 2 features as different systems, it makes even more sense to follow the standard. Both features may be able to concentrate on their core triggers extra successfully. The drawback of this strategy would be that added prices would certainly have to be borne for establishing up different production functions. In addition to this, a manufacturing head may need to be hired which can enhance expenses for the organization.

Assimilation of Advertising with Procedures: Because Lewis is already taking care of the marketing as well as procedures divisions concurrently; it makes sense to incorporate both features since she has actually been effectively taking care of both ends. The fact that the two divisions already have significant differences over allotment of sources suggests that this integration might have the ability to bring about consistency specifically as Lewis would be heading both ends.However there are various drawbacks of this move specifically as it would certainly place too much problem over Lewis's shoulders. The fact that Lewis needs to adjust her monitoring design for the marketing department suggests that these two departments would certainly be culturally varied. Lewis may not be able to apply one type of leadership design to both divisions which might result in inefficiency in either one of the 2 features.


An evaluation of the three options indicates that combination of advertising and also procedures would not be a viable relocation because of the large distinctions between the two departments although that currently Lewis is dealing with both. While separation of the production feature may have been a desirable move for the advertising department, the reality that it would certainly imply putting a 3rd feature under Lewis's wing implies this ought to be prevented too. The integration of the advertising division is the very best option in regards to getting the optimal arise from the division. An action prepare for this option is gone over below.

Action Strategy.
Lewis will certainly take control of the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

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

Lewis will certainly divide herself from procedures.

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

Open up door policy as well as focus on cross department communication will certainly be targeted at eliminating dissonance.

Backup strategy.

If the integration does not work out as prepared, a contingency strategy would comply with which would separate the manufacturing feature from the advertising function to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising and marketing department without an SVP. In that case the production feature will absolutely be divided by putting it under an SVP manufacturing.