Gazprom C The Ukrainian Crisis And Its Aftermath Case Study Analysis


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Gazprom C The Ukrainian Crisis And Its Aftermath Case Study Analysis

Background and Facts

Gazprom C The Ukrainian Crisis And Its Aftermath an office materials store for tiny and also medium sized organisations has actually just recently been associated with planning for a merging with its competitor Home Deport, which has impacted performance levels in departmentswith the senior manager involved in lawful difficulties presented by the government Trade Commission. With the Advertising Head advancing the information of his departure from the firm in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the duty in the near future. With challenges in the form of a prospective social modification and also reduced employee spirits, the company wants a full reengineering initiative at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The potential cultural adjustment at the marketing division of Gazprom C The Ukrainian Crisis And Its Aftermath is enhancing unpredictability in the working environment resulting in numerous challenges for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting strategic choices since Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Trade Compensation's treatment at the same time. Offered the reality that the shop has a global presence with branches in UK, USA, Canada as well as Germany, political factors in each of these nations might be able to influence performance or strategic objectives. Federal Profession Commission's antitrust suit versus the merger took up beneficial time of the company's senior management suggesting that 'political' factors can have serious ramifications for a global organisation.

Economic Factors: Financial factors such as the development of small businesses in the global situation recommend that Gazprom C The Ukrainian Crisis And Its Aftermath is prospering in an environment where there is possible development of services. Fact that shop customers are mainly looking for office supplies for house offices recommends that the market has a climbing pattern of business owners and home based organisations.

Social factors: Social patterns in the economy show that clients are seeking benefit along with appealing rates. Marketing research shows how the client for Gazprom C The Ukrainian Crisis And Its Aftermath lacks understanding concerning discovering services which can offer a combination of convenience and low costs.

Technological factors: Innovation plays an essential duty in Gazprom C The Ukrainian Crisis And Its Aftermath's service method especially as the company is piloting Modern technology facilities which would certainly offer innovation sales as well as assistance in the kind of memory upgrades, outer installations. (Recap of PARASITE in appendix 2).

OB Issues and Effects.

Numerous underlying Organizational Behavior issues can be seen in Gazprom C The Ukrainian Crisis And Its Aftermath's case as highlighted in this area.

Uneasiness regarding social change: There is apprehension regarding a cultural modification that would certainly occur as soon as Todd Krasnow leaves from his setting as the Exec Vice President of Advertising And Marketing with a lot of the personnel currently showing discontent over this potential relocation. This anticipated change has produced tension in the office which has actually been combined with the previous tension of preparing the firm for a prospective merging with House Deport.
Pest Analysis
Stressful Work Environment for Newcomers: There is shortage of personnel that can match the demanding environment of a busy company. Not just does this result in trouble in finding the right people, it puts tension on new hires as can not endure the pace and stress that the company anticipates them to bear.

Twin Reporting Lines: Novices discover this business culture troublesome as well as difficult to handle specifically as dotted line relationships are indicated to be weaker in general and objective setup and also performance analysis is still done by the solid line manager. This suggests that newcomers could lose clearness about their corresponding roles as well as goals specifically as populated line reporting does not keep them in direct interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles despite the fact that it had actually been hypothesized that the last would take Krasnow's placement came as a blow to her morale. Lewis may have been capable as well as ideal for the work yet the truth that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from solutions.

Anxiety & Job Instability: Fear and instability can be recognized as 2 major worries that Lewis would be handling especially as the merging has now be terminated as well as two senior executives of the marketing department would certainly be leaving. The whole obligation of the department would be falling on Lewis's shoulders that would certainly not just supervise of brining concerning a cultural modification yet would certainly also have to show herself in her brand-new function.

Incompatible Management Style of Leader: Lewis's administration style as well as its incompatibility with the advertising and marketing division's function can likewise be seen as an OB obstacle particularly as she has actually been utilized to managing issues in the procedures division where workers are instructed to focus on processes and also obtain them. The advertising and marketing division on the various other hand can be viewed as a team of people who are used to being supported by Krasnow who focused more on result than procedures.

Interdepartmental Arguments: Interdepartmental disputes in between 3 divisions, marketing, merchandizing and also operations respectively over the appropriation of the advertising mix can be identified as another OB problem. The advertising department does not share the very same vision as the other two departments concerning the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and procedures divisions do not agree over the advertising and marketing mix appropriation amongst one another either.

Disintegration in Advertising Department: Fragmentation between the advertising and marketing departments can be recognized as an additional OB concern which could require more attention. The fact that the advertising and marketing sections in the advertising and marketing department are separated is protecting against both departments from acquiring from each various other's experience and experience. Integration of marketing with retailing and procedures would come to be more difficult if the advertising and marketing division itself is broken down which can be an additional potential OB worry.

Gazprom C The Ukrainian Crisis And Its Aftermath Analysis

Numerous theories have actually been used to explain the conditions to get additional quality regarding the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors think that juniors are passive as well as lazy, have little aspiration as well as resist adjustment. The scenario at Gazprom C The Ukrainian Crisis And Its Aftermath is not completely following Concept X, it can be seen that new hires are locating this setting rather difficult which may eventually lead to a better disposition of the administration towards Concept X. Also while examining Lewis's administration design, concept X may have been appropriate in the procedures division to some degree but the Advertising department would need reliance on Concept Y in order to obtain the creative thinking and also originality from the groups.

Tuckman's Synergy Concept: As much as Lewis's concern concerning bringing harmony in between the advertising and marketing and marketing department is concerned, this would initially lead to clash as reviewed by Bruce Tuckman in his 'Synergy Concept'. By integrating the marketing and also advertising division's job, there may be the exact same initial detach which could lead to the second phase of 'storming' where the teams test one an additional.

Bridges' Shift Model: Based On William Bridge's concept (appendix 4), individuals are fairly awkward with change, which is obvious by the situation at Gazprom C The Ukrainian Crisis And Its Aftermath The situation can be seen as a typical program of life if is researched according to Bridge's concept where he explains that individuals experience three stages of change when they experience adjustment. 'Closing, shedding and Letting go', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When people exist with modification, they get in stage one and so there might be feelings like unhappiness, unpredictability, disappointment, temper, anxiety, denial and disorientation.The situation at the marketing department of Gazprom C The Ukrainian Crisis And Its Aftermath is comparable so Lewis can get comfortable with the concept that it is not extraordinary habits. In the second phase, there might be a need to bridge the gap between the new and old culture so Lewis may need to face this ordeal once Krasnow leaves. There might be reduced morale and low efficiency at this phase which must not be taken as a trouble. It is throughout this stage that Lewis will have to offer guidance to the department to ensure that they can find a sense of direction. It can be seen how Krasnow has actually currently made this shift less complicated by making Lewis obtain associated with the department a year prior to his real departure. Based on Bridges' Model, stage 3 will certainly produce visibility to discovering, High energy and dedication as people will accept the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has discusses the value of 'security needs as being a reduced degree need of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel safe and secure as well as out of risk' is at the second degree of requirements. Prior to a worker can be made to create mentally, he requires to have his 'Physiological 'as well as 'Safety and security' needs met.

SWOT Analysis for Gazprom C The Ukrainian Crisis And Its Aftermath Case Study

Ramification of Analysis.

The OB analysis has actually taken a look at numerous theories to comprehend how to cope with the present circumstance at hand. The following three choices have actually been suggested to help Lewis deal with the organizational obstacles in the advertising and marketing division. Each of these choices has been proposed for easing the change needed to bring the advertising and marketing division according to the needs of the market and for making the cultural modification that would comply with as soon as the present leader leaves.

Assimilation of marketing and advertising features. Separating Adverting and Production features. Integration of Advertising And Marketing with Workflow.

Evaluation of Alternatives.

Assimilation of Advertising & Marketing Functions: The in-house advertising firm of Gazprom C The Ukrainian Crisis And Its Aftermath is currently strength for the organization in terms of saving up on expenses related to advertising and marketing as well as promo. Because no brand-new recruitment has been done after Bridget Cole's departure with the reporting line being directly designated to Krasnow for the advertising and marketing function, this is a favorable chance for incorporating the advertising and marketing functions. Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merger days has know-how in business-to-business advertising together with agency and also retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to take care of both marketing and advertising functions.

The benefit of this approach is that it will incorporate both features while decreasing the requirement for working with an extra resource for advertising and marketing. Lewis would certainly be heading the marketing division and also in any kind of case her substitute would be required for the current role that she is carrying out. The drawback of this choice is that outside hiring may produce animosity from interior personnel that may be looking at the placement of EVP after Lewis takes over Krasnow's placement.

Separating Adverting as well as Production: Provided the affordable pressures and high quality work required from the advertising agency, it is suggested that Lewis ought to allow the production system to be a different feature from the advertising and marketing unit. Considering that most ad agency had these two features as separate units, it makes even more sense to adhere to the standard. Along with this, both features might be able to focus on their core triggers more effectively. The downside of this method would be that added prices would have to be birthed for setting up separate manufacturing features. In addition to this, a production head might need to be hired which can enhance expenses for the organization.

Integration of Advertising And Marketing with Workflows: Given that Lewis is currently taking care of the marketing and procedures divisions concurrently; it makes sense to incorporate the two features because she has been efficiently taking treatment of both ends. The truth that Lewis has to adjust her management style for the advertising and marketing department suggests that these 2 departments would be culturally varied.


An analysis of the 3 options shows that assimilation of advertising as well as procedures would certainly not be a practical move due to the vast differences between the two divisions in spite of the truth that presently Lewis is taking care of both. While splitting up of the production feature might have been a beneficial step for the marketing division, the reality that it would certainly imply putting a third feature under Lewis's wing indicates this need to be avoided.

Activity Strategy.
Lewis will take control of the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would be merged.

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

Production feature will certainly stay part of advertising under advertising feature.

Lewis will certainly divide herself from operations.

A democratic management style with staff member empowerment will be used in advertising division.

Open door plan as well as emphasis on cross department communication will be targeted at eliminating disharmony.

Backup strategy.

If the assimilation does not exercise as prepared, a contingency plan would certainly comply with which would certainly separate the manufacturing feature from the advertising and marketing feature to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing department without an SVP. Because case the manufacturing feature will most definitely be divided by placing it under an SVP production.