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Gazprom And Hermitage Capital Shareholder Activism In Russia Case Study Help

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Gazprom And Hermitage Capital Shareholder Activism In Russia Case Study Solution

Background and Facts

Gazprom And Hermitage Capital Shareholder Activism In Russia an office products seller for tiny and also average sized companies has recently been involved in preparing for a merging with its competitor Home Deport, which has actually impacted efficiency levels in departmentswith the elderly manager involved in lawful problems presented by the federal Trade Commission. With the Advertising Head putting forward the news of his separation from the business 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 kind of a potential cultural change and also low worker morale, the organization requires a full reengineering effort at the advertising and marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The prospective social change at the marketing department of Gazprom And Hermitage Capital Shareholder Activism In Russia is raising uncertainty in the working environment bring about different challenges for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in affecting tactical choices since Stapes Inc. had to abandon its plans of combining with Workplace Deport after the Federal Profession Payment's intervention at the same time. Offered the truth that the shop has a global visibility with branches in UK, UNITED STATES, Canada and Germany, political consider each of these nations might be able to influence efficiency or tactical goals. Federal Profession Payment's antitrust match against the merger used up valuable time of the company's elderly administration suggesting that 'political' factors can have significant ramifications for a global company.

Economic Factors: Economic factors such as the introduction of small businesses in the global scenario suggest that Gazprom And Hermitage Capital Shareholder Activism In Russia is prospering in an environment where there is prospective growth of organisations. Along with this, reality that shop customers are mostly trying to find workplace supplies for home offices suggests that the marketplace has a rising trend of business owners and home businesses.

Social factors: Social fads in the economy show that clients are looking for ease as well as appealing costs. Market research shows how the consumer for Gazprom And Hermitage Capital Shareholder Activism In Russia lacks awareness concerning discovering services which can offer a mix of convenience and also affordable.

Technical factors: Innovation plays a vital duty in Gazprom And Hermitage Capital Shareholder Activism In Russia's service strategy specifically as the company is piloting Modern technology facilities which would certainly offer innovation sales and assistance in the type of memory upgrades, outer installments. (Summary of BUG in appendix 2).

OB Issues and also Effects.

A number of underlying Organizational Behavior problems can be seen in Gazprom And Hermitage Capital Shareholder Activism In Russia's case as highlighted in this area.

Concerns about cultural adjustment: There is uneasiness regarding a cultural adjustment that would happen once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Marketing with the majority of the employee already revealing unhappiness over this potential step. This anticipated modification has actually created stress and anxiety in the work environment which has been coupled with the previous tension of preparing the firm for a prospective merging with Home Deport.
Pest Analysis
Stressful Work Setting for Newcomers: There is scarcity of personnel that can match the difficult setting of a fast-paced organization. Not just does this lead to difficulty in finding the ideal people, it puts tension on brand-new hires as can not endure the speed and stress that the company anticipates them to bear.

Dual Coverage Lines: Beginners locate this business culture cumbersome and also difficult to handle especially as populated line relationships are meant to be weaker generally as well as objective setup as well as performance evaluation is still done by the strong line manager. This implies that newcomers could lose quality regarding their particular duties and objectives particularly as populated 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 instead of Bridget Coles despite the fact that it had actually been guessed that the latter would certainly take Krasnow's position came as a blow to her spirits. Lewis might have been qualified and also proper for the task however the truth that Kransnow's departure would certainly make Coles a straight record to Lewis might have been the factor for Coles' resignation from services.

Concern & Work Insecurity: Concern and instability can be recognized as 2 significant concerns that Lewis would certainly be dealing with specifically as the merger has actually now be terminated as well as 2 senior executives of the marketing division would be leaving. The entire responsibility of the department would certainly be falling on Lewis's shoulders who would not just supervise of brining about a social adjustment however would likewise need to confirm herself in her new duty.

Inappropriate Management Design of Leader: Lewis's monitoring style as well as its conflict with the advertising division's role can additionally be seen as an OB challenge particularly as she has actually been made use of to taking care of problems in the operations department where employees are shown to focus on procedures and also get them. The advertising department on the other hand can be seen as a group of individuals that are used to being nurtured by Krasnow who concentrated a lot more on outcome than procedures.

Interdepartmental Differences: Interdepartmental differences in between three departments, marketing, merchandizing as well as procedures specifically over the allocation of the advertising mix can be identified as one more OB worry. Although the advertising division does not share the same vision as the various other two departments concerning the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and procedures departments do not agree over the advertising and marketing mix allotment among each other either.

Fragmentation in Marketing Department: Fragmentation in between the marketing and advertising departments can be recognized as one more OB problem which might need further interest. The truth that the marketing and advertising sections in the marketing division are detached is stopping both departments from obtaining from each various other's experience as well as expertise. Assimilation of advertising and marketing with merchandising and operations would end up being harder if the advertising division itself is broken down which can be another potential OB issue.

Gazprom And Hermitage Capital Shareholder Activism In Russia Analysis

Different concepts have been used to describe the situations to get additional clearness about the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of managers think that subordinates are easy and also lazy, have little aspiration and resist adjustment. The circumstance at Gazprom And Hermitage Capital Shareholder Activism In Russia is not completely following Concept X, it can be seen that brand-new hires are finding this setting instead stressful which might at some point lead to a higher inclination of the monitoring towards Concept X. Also while analyzing Lewis's management style, concept X might have been suitable in the operations division to some degree however the Advertising department would require reliance on Theory Y in order to get the creative thinking and creativity from the teams.

Tuckman's Teamwork Theory: As far as Lewis's concern concerning bringing harmony between the marketing and advertising division is worried, this would originally bring about clash as talked about by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). As per Tuckman's theory displayed in appendix 3, throughout the first stage of group development, people might not bond, as they are active locating their place in the group. By incorporating the advertising and marketing department's job, there may be the same first disconnect which could bring about the second stage of 'storming' where the teams test one another. Nevertheless, it is only during the third phase or 'norming' when they would collaborate to share suggestions before the group can produce harmony in the 4th stage 'performing'.

When people are provided with change, they go into phase one and so there may be feelings like despair, unpredictability, disappointment, rage, fear, rejection and also disorientation.The situation at the marketing department of Gazprom And Hermitage Capital Shareholder Activism In Russia is similar so Lewis can obtain comfortable with the concept that it is not phenomenal actions. It is throughout this stage that Lewis will certainly have to provide assistance to the division so that they can discover a feeling of direction. It can be seen just how Krasnow has actually already made this shift less complicated by making Lewis get entailed in the division a year before his real departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has goes over the value of 'security requires as being a reduced degree need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel safe and secure as well as out of threat' is at the second level of requirements. Before an employee can be made to create emotionally, he requires to have his 'Physical 'as well as 'Safety and security' needs met.

SWOT Analysis for Gazprom And Hermitage Capital Shareholder Activism In Russia Case Study



Ramification of Analysis.

The OB analysis has checked out various concepts to recognize how to cope with the existing situation handy. The adhering to three options have been proposed to help Lewis take care of the organizational challenges in the marketing department. Each of these options has actually been suggested for reducing the shift required to bring the advertising department in line with the requirements of the market and also for making the social adjustment that would certainly comply with once the present leader leaves.

Combination of advertising and marketing functions. Separating Adverting as well as Manufacturing features. Combination of Advertising with Operations.

Examination of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merging days has expertise in business-to-business marketing along with firm and retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to take care of both marketing as well as advertising and marketing features.

The benefit of this method is that it will incorporate both functions while decreasing the requirement for hiring an additional resource for advertising and marketing. In addition to this, Lewis would be heading the marketing department and also regardless her substitute would be needed for the existing role that she is performing. The downside of this choice is that outside hiring might bring about animosity from inner personnel that may be considering the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and Manufacturing: Given the competitive pressures as well as high top quality job needed from the advertising firm, it is recommended that Lewis needs to enable the production device to be a separate feature from the marketing system. Because most advertising agencies had these two functions as separate systems, it makes even more sense to adhere to the standard.

Assimilation of Advertising And Marketing with Procedures: Because Lewis is currently looking after the advertising and marketing and also operations departments at the same time; it makes good sense to integrate both functions because she has actually been successfully looking after both ends. The reality that both divisions currently have significant distinctions over allocation of resources suggests that this combination might be able to cause consistency particularly as Lewis would be heading both ends.However there are various drawbacks of this step particularly as it would certainly put excessive worry over Lewis's shoulders. The reality that Lewis needs to adjust her management design for the advertising and marketing division suggests that these two divisions would certainly be culturally diverse. Lewis may not be able to apply one kind of leadership style to both divisions which might result in inefficiency in either one of the two functions.

Suggestion.



An assessment of the three options indicates that integration of advertising and marketing as well as operations would certainly not be a feasible action due to the substantial distinctions in between the two departments regardless of the reality that currently Lewis is taking care of both. While splitting up of the manufacturing function might have been a desirable step for the advertising and marketing department, the reality that it would suggest putting a third feature under Lewis's wing indicates this should be avoided.

Action Strategy.
Recommendation
Lewis will certainly take over the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would be merged.

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

Manufacturing function will stay part of advertising under advertising and marketing function.

Lewis will certainly divide herself from procedures.

A democratic leadership design with employee empowerment will certainly be used in marketing division.

Open door policy and focus on cross department communication will be focused on eliminating discord.

Backup strategy.

If the integration does not exercise as prepared, a contingency plan would certainly follow which would certainly divide the manufacturing feature from the advertising function to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the marketing department without an SVP. In that case the manufacturing function will most definitely be divided by placing it under an SVP manufacturing.