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Gazprom B Energy And Strategy In A New Era Case Study Solution

CASE ANALYSIS

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Gazprom B Energy And Strategy In A New Era Case Study Solution

Background and Facts

Gazprom B Energy And Strategy In A New Era a workplace products retailer for tiny and also medium sized companies has lately been associated with preparing for a merger with its competitor House Deport, which has impacted efficiency degrees in departmentswith the senior supervisor involved in legal complications presented by the federal Profession Commission. With the Marketing Head putting forward the information of his departure from the business in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the future. With challenges in the type of a potential cultural change and low employee morale, the company needs a full reengineering effort at the advertising division.

Issue Statement
Porter's 5 Forces Analysis
The possible social modification at the marketing department of Gazprom B Energy And Strategy In A New Era is enhancing unpredictability in the workplace bring about numerous obstacles for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting tactical decisions because Stapes Inc. had to desert its plans of merging with Office Deport after the Federal Profession Compensation's intervention in the process. Given the fact that the shop has a global existence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these nations might be able to affect performance or critical goals. Federal Profession Compensation's antitrust suit against the merging used up beneficial time of the company's senior management recommending that 'political' factors can have significant ramifications for an international service.

Economic Factors: Financial factors such as the introduction of small companies in the global situation recommend that Gazprom B Energy And Strategy In A New Era is growing in an atmosphere where there is prospective growth of organisations. Reality that shop consumers are mainly looking for office products for house offices suggests that the market has an increasing pattern of entrepreneurs and also residence based services.

Social factors: Social trends in the economic climate reveal that consumers are searching for ease along with eye-catching costs. Marketing research demonstrates how the consumer for Gazprom B Energy And Strategy In A New Era does not have awareness about finding solutions which can provide a combination of convenience and also low costs.

Technological factors: Modern technology plays an essential role in Gazprom B Energy And Strategy In A New Era's company method specifically as the company is piloting Innovation centers which would certainly provide innovation sales and assistance in the form of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues as well as Symptoms.

Several underlying Organizational Habits concerns can be seen in Gazprom B Energy And Strategy In A New Era's case as highlighted in this area.

Apprehensions concerning cultural change: There is concern concerning a social modification that would certainly happen when Todd Krasnow leaves from his placement as the Executive Vice President of Marketing with the majority of the staff members already showing unhappiness over this potential step. This predicted modification has created tension in the work environment which has actually been coupled with the previous stress of preparing the company for a prospective merger with House Deport.
Pest Analysis
Stressful Task Environment for Newcomers: There is lack of employees that can match the demanding atmosphere of a busy company. Not just does this bring about trouble in discovering the best people, it places stress and anxiety on new hires as can not hold up against the rate and also pressure that the organization expects them to bear.

Twin Coverage Lines: Newbies find this business culture difficult and tough to manage specifically as dotted line connections are implied to be weaker generally as well as unbiased setting and efficiency assessment is still done by the solid line manager. This means that novices can lose quality about their respective duties and objectives especially as populated line reporting does not maintain them in direct interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles even though it had actually been guessed that the last would certainly take Krasnow's placement came as a blow to her morale. Lewis may have been capable and proper for the work but the fact that Kransnow's separation would make Coles a direct record to Lewis may have been the factor for Coles' resignation from solutions.

Worry & Work Insecurity: Worry and instability can be recognized as two significant issues that Lewis would certainly be managing especially as the merging has now be cancelled and two elderly executives of the marketing division would certainly be leaving. The whole responsibility of the department would certainly be dropping on Lewis's shoulders who would not just supervise of brining about a cultural modification but would also need to verify herself in her brand-new duty.

Incompatible Management Style of Leader: Lewis's monitoring style as well as its incompatibility with the advertising department's role can also be seen as an OB obstacle particularly as she has actually been utilized to handling problems in the procedures division where workers are instructed to focus on processes and get them. The marketing department on the various other hand can be viewed as a team of individuals who are used to being supported by Krasnow that concentrated extra on output than procedures.

Interdepartmental Differences: Interdepartmental arguments in between three departments, advertising, merchandizing and procedures respectively over the allotment of the advertising mix can be recognized as another OB concern. Although the marketing department does not share the exact same vision as the other two departments pertaining to the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing and procedures divisions do not agree over the advertising mix appropriation among each other either.

Fragmentation in Marketing Department: Fragmentation in between the marketing and advertising divisions can be determined as another OB problem which could need further attention. The fact that the advertising and marketing areas in the marketing division are separated is protecting against both divisions from gaining from each other's experience as well as expertise. Assimilation of advertising with merchandising as well as operations would certainly become more difficult if the advertising and marketing division itself is disintegrated which can be another potential OB issue.

Gazprom B Energy And Strategy In A New Era Analysis

Numerous theories have been used to clarify the conditions to get further clearness concerning the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers think that staffs are passive as well as lazy, have little ambition as well as stand up to change. The circumstance at Gazprom B Energy And Strategy In A New Era is not completely following Concept X, it can be seen that new hires are finding this setting rather stressful which may at some point lead to a higher inclination of the administration in the direction of Theory X. Also while evaluating Lewis's administration style, concept X may have been ideal in the operations division to some extent yet the Marketing department would certainly require reliance on Theory Y in order to obtain the creative thinking as well as creativity from the teams.

Tuckman's Teamwork Theory: As much as Lewis's issue about bringing consistency between the advertising and marketing as well as advertising division is worried, this would originally lead to conflict as talked about by Bruce Tuckman in his 'Teamwork Concept'. By incorporating the marketing as well as advertising division's work, there may be the same preliminary detach which can lead to the 2nd phase of 'storming' where the groups test one an additional.

Bridges' Change Design: Based On William Bridge's concept (appendix 4), individuals are fairly awkward with adjustment, which is apparent by the circumstance at Gazprom B Energy And Strategy In A New Era The scenario can be seen as a normal program of life if is researched based on Bridge's theory where he explains that individuals go through three stages of shift when they experience change. 'Closing, losing and also Letting go', The Neutral Zone and 'The New Starting' (Bridges, 2004). When individuals are presented with modification, they enter phase one therefore there may be emotions like unhappiness, unpredictability, irritation, temper, fear, denial and also disorientation.The circumstance at the marketing division of Gazprom B Energy And Strategy In A New Era is comparable so Lewis can get comfortable with the suggestion that it is not phenomenal actions. In the 2nd stage, there might be a demand to link the void between the new and also old society so Lewis may have to encounter this experience when Krasnow leaves. There might be low spirits and low efficiency at this phase which must not be taken as a problem. It is during this stage that Lewis will certainly have to offer advice to the division to ensure that they can discover an orientation. It can be seen just how Krasnow has actually currently made this change much easier by making Lewis get associated with the department a year prior to his actual departure. As per Bridges' Version, phase 3 will produce openness to learning, High power and dedication as individuals will embrace the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Requirement hierarchy: The OB concern related to instability at the work environment has been set off to start with by the change in management and secondly by the reality that the merger will certainly no longer be started. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has reviews the importance of 'protection requires as being a lower degree requirement of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel secure as well as unharmed' is at the second degree of demands. Prior to an employee can be made to develop mentally, he requires to have his 'Physiological 'and also 'Safety and security' requires met. This suggests that unless the workers are made to really feel safe and secure concerning their existing work standing in Gazprom B Energy And Strategy In A New Era they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Gazprom B Energy And Strategy In A New Era Case Study



Effects of Analysis.

The OB analysis has actually checked out different theories to understand exactly how to handle the current circumstance available. The complying with 3 alternatives have been recommended to help Lewis manage the organizational obstacles in the marketing division. Each of these alternatives has been suggested for reducing the transition required to bring the marketing department in accordance with the requirements of the marketplace and for making the cultural change that would certainly comply with when the current leader leaves.

Assimilation of advertising and marketing features. Separating Adverting as well as Production functions. Assimilation of Advertising And Marketing with Procedures.

Assessment of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis during the earlier merger days has know-how in business-to-business advertising along with firm as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to deal with both advertising and marketing as well as marketing features.

The benefit of this technique is that it will incorporate the two functions while minimizing the requirement for hiring an additional resource for advertising. Along with this, Lewis would certainly be heading the advertising department and all the same her replacement would be needed for the present role that she is doing. The drawback of this option is that exterior hiring might cause resentment from internal employees who may be considering the placement of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Manufacturing: Provided the competitive pressures and also high quality work needed from the advertising firm, it is advised that Lewis must allow the production system to be a different feature from the advertising and marketing unit. Considering that a lot of advertising and marketing companies had these two features as separate units, it makes even more sense to comply with the norm.

Combination of Advertising with Workflows: Given that Lewis is currently looking after the advertising and marketing and also procedures divisions simultaneously; it makes sense to incorporate the two functions since she has actually been efficiently dealing with both ends. The fact that both departments currently have significant differences over allowance of sources suggests that this assimilation may be able to bring about harmony especially as Lewis would be heading both ends.However there are different disadvantages of this relocation particularly as it would certainly put too much problem over Lewis's shoulders. The truth that Lewis has to adjust her management design for the advertising division suggests that these two divisions would certainly be culturally varied. Along with this, Lewis might not be able to use one type of management design to both divisions which could lead to inefficiency in either one of the two features.

Referral.



An evaluation of the 3 options shows that integration of advertising and marketing as well as operations would certainly not be a practical relocation because of the vast distinctions in between the two departments although that currently Lewis is managing both. While separation of the manufacturing function may have been a positive relocation for the advertising division, the fact that it would suggest positioning a 3rd function under Lewis's wing implies this must be prevented. The integration of the advertising and marketing division is the most effective alternative in regards to obtaining the optimal arise from the department. An action plan for this alternative is gone over below.

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

Marketing and advertising features would certainly be combined.

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

Manufacturing feature will certainly remain component of advertising under marketing function.

Lewis will certainly separate herself from procedures.

An autonomous management design with staff member empowerment will certainly be used in advertising division.

Open up door plan as well as focus on cross departmental interaction will certainly be aimed at removing dissonance.

Contingency strategy.

If the combination does not exercise as planned, a backup strategy would certainly adhere to which would separate the production function from the advertising function to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will be heading the advertising department without an SVP. Because case the production function will most definitely be divided by putting it under an SVP manufacturing.