Groupe Eurotunnel Sa B Restructuring Under The Procedure De Sauvegarde Case Study Solution


Home >> Harvard >> Groupe Eurotunnel Sa B Restructuring Under The Procedure De Sauvegarde >>

Groupe Eurotunnel Sa B Restructuring Under The Procedure De Sauvegarde Case Study Solution

Background and Facts

Groupe Eurotunnel Sa B Restructuring Under The Procedure De Sauvegarde a workplace products retailer for little and also moderate sized companies has just recently been involved in preparing for a merging with its rival House Deport, which has impacted efficiency levels in departmentswith the elderly manager involved in legal issues put forth by the federal Profession Commission. With the Advertising Head putting forward the information of his separation from the firm in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the role in the future. With challenges in the type of a potential social modification as well as reduced employee spirits, the organization is in need of a total reengineering effort at the marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The potential social change at the advertising and marketing division of Groupe Eurotunnel Sa B Restructuring Under The Procedure De Sauvegarde is boosting uncertainty in the working environment leading to various obstacles for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in influencing tactical decisions considering that Stapes Inc. had to abandon its plans of merging with Office Deport after the Federal Profession Payment's intervention while doing so. Offered the fact that the store has a global visibility with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries might be able to impact efficiency or tactical objectives. Federal Profession Commission's antitrust suit versus the merger took up useful time of the organization's elderly administration suggesting that 'political' factors can have severe implications for an international company.

Economic Factors: Financial factors such as the emergence of small businesses in the international circumstance recommend that Groupe Eurotunnel Sa B Restructuring Under The Procedure De Sauvegarde is prospering in a setting where there is potential growth of businesses. Along with this, reality that store consumers are mainly trying to find office products for home offices suggests that the market has a rising fad of business owners and online services.

Social factors: Social trends in the economy reveal that customers are seeking convenience as well as appealing rates. Market research shows how the customer for Groupe Eurotunnel Sa B Restructuring Under The Procedure De Sauvegarde lacks understanding concerning locating options which can supply a combination of benefit as well as low costs.

Technological factors: Modern technology plays a crucial duty in Groupe Eurotunnel Sa B Restructuring Under The Procedure De Sauvegarde's service strategy specifically as the company is piloting Innovation facilities which would certainly provide innovation sales and also assistance in the type of memory upgrades, outer installations. (Summary of PEST in appendix 2).

OB Issues as well as Effects.

A number of underlying Business Behavior concerns can be seen in Groupe Eurotunnel Sa B Restructuring Under The Procedure De Sauvegarde's case as highlighted in this section.

Apprehensions about social modification: There is uneasiness about a social change that would certainly take place when Todd Krasnow leaves from his placement as the Executive Vice President of Advertising And Marketing with a lot of the staff members currently revealing discontent over this potential action. This predicted adjustment has actually developed tension in the work environment which has been paired with the past tension of preparing the firm for a possible merger with House Deport.
Pest Analysis
Difficult Task Setting for Newcomers: There is lack of workers that can match the demanding environment of a busy organization. Not just does this bring about trouble in locating the appropriate individuals, it places anxiety on brand-new hires as can not hold up against the rate and pressure that the organization expects them to bear.

Twin Reporting Lines: Beginners discover this organizational culture cumbersome as well as difficult to cope with specifically as dotted line partnerships are meant to be weak as a whole as well as objective setup and also performance evaluation is still done by the strong line manager. This suggests that beginners can shed clearness regarding their respective functions as well as goals especially as populated line coverage does not maintain them in straight communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles although it had actually been guessed that the latter would take Krasnow's placement came as a blow to her morale. Lewis might have been capable and suitable for the job yet the truth that Kransnow's separation would certainly make Coles a straight record to Lewis might have been the factor for Coles' resignation from services.

Fear & Work Insecurity: Worry as well as instability can be identified as 2 significant worries that Lewis would certainly be dealing with particularly as the merging has actually currently be terminated as well as two senior executives of the advertising department would be leaving. The entire responsibility of the department would certainly be dropping on Lewis's shoulders that would certainly not simply supervise of brining about a cultural change yet would also need to confirm herself in her brand-new function.

Inappropriate Management Style of Leader: Lewis's administration style as well as its incompatibility with the advertising and marketing division's duty can additionally be viewed as an OB challenge especially as she has actually been used to managing problems in the procedures division where personnel are shown to concentrate on procedures as well as obtain them right. The marketing department on the other hand can be viewed as a team of individuals who are made use of to being supported by Krasnow that concentrated much more on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental disputes in between three departments, advertising and marketing, merchandizing as well as procedures specifically over the appropriation of the advertising and marketing mix can be determined as an additional OB problem. Although the marketing department does not share the exact same vision as the various other two divisions pertaining to the aloocation of the marketing mix twoards promos and advertsing, the merchandizing as well as procedures divisions do not agree over the advertising and marketing mix appropriation amongst one another either.

Fragmentation in Advertising And Marketing Department: Fragmentation in between the marketing and advertising divisions can be recognized as one more OB concern which could require further attention. The fact that the marketing and advertising areas in the advertising and marketing department are detached is stopping both divisions from obtaining from each various other's experience and also competence. Assimilation of marketing with retailing and operations would become more difficult if the marketing department itself is degenerated which can be an additional possible OB concern.

Groupe Eurotunnel Sa B Restructuring Under The Procedure De Sauvegarde Analysis

Different concepts have actually been used to explain the circumstances to obtain additional clarity about the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many supervisors think that staffs are easy and careless, have little aspiration and resist adjustment. The circumstance at Groupe Eurotunnel Sa B Restructuring Under The Procedure De Sauvegarde is not completely adhering to Theory X, it can be seen that brand-new hires are locating this setting rather demanding which might eventually lead to a higher inclination of the management in the direction of Theory X. Even while assessing Lewis's administration style, theory X might have been suitable in the operations department to some level but the Advertising division would require reliance on Theory Y in order to get the creative thinking and creativity from the teams.

Tuckman's Teamwork Concept: As far as Lewis's problem regarding bringing consistency between the marketing and advertising department is worried, this would initially bring about contrast as gone over by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). As per Tuckman's concept received appendix 3, during the first phase of team development, people may not bond, as they are hectic finding their location in the team. By combining the advertising and marketing division's work, there may be the same first separate which can bring about the 2nd stage of 'storming' where the groups test one another. It is just throughout the third stage or 'norming' when they would certainly come together to share concepts before the team can bring around synergy in the fourth phase 'doing'.

Bridges' Shift Design: As per William Bridge's theory (appendix 4), individuals are quite uncomfortable with modification, which is evident by the circumstance at Groupe Eurotunnel Sa B Restructuring Under The Procedure De Sauvegarde The situation can be viewed as a regular training course of life if is studied based on Bridge's concept where he explains that individuals undergo 3 phases of shift when they experience modification. 'Ending, shedding as well as Letting go', The Neutral Area and 'The New Beginning' (Bridges, 2004). When people are presented with adjustment, they get in phase one and so there may be feelings like despair, uncertainty, irritation, anger, fear, rejection and also disorientation.The circumstance at the advertising and marketing division of Groupe Eurotunnel Sa B Restructuring Under The Procedure De Sauvegarde is comparable so Lewis can get comfy with the concept that it is not phenomenal behavior. In the 2nd stage, there may be a demand to link the space in between the brand-new as well as old culture so Lewis might need to face this ordeal once Krasnow leaves. There might be reduced spirits as well as low productivity at this phase which must not be taken as a problem. It is during this stage that Lewis will certainly need to offer assistance to the division to ensure that they can find a sense of direction. It can be seen just how Krasnow has already made this change easier by making Lewis get associated with the department a year before his actual separation. According to Bridges' Version, stage three will produce openness to learning, High energy and commitment as people will welcome the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Need power structure: The OB concern related to instability at the workplace has actually been activated first of all by the adjustment in management and secondly by the fact that the merger will no more be started. Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has goes over the relevance of 'protection requires as being a reduced degree need of a human for causing inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the need to feel secure as well as unharmed' goes to the second degree of requirements. Before a worker can be made to establish psychologically, he requires to have his 'Physical 'and also 'Security' requires satisfied. This suggests that unless the workers are made to really feel safe and secure regarding their present work status in Groupe Eurotunnel Sa B Restructuring Under The Procedure De Sauvegarde they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Groupe Eurotunnel Sa B Restructuring Under The Procedure De Sauvegarde Case Study

Implication of Analysis.

The OB analysis has considered numerous concepts to understand exactly how to handle the present circumstance handy. The adhering to three alternatives have actually been suggested to assist Lewis take care of the business difficulties in the marketing division. Each of these options has actually been proposed for reducing the transition needed to bring the advertising and marketing department in line with the needs of the marketplace and for making the social adjustment that would adhere to as soon as the present leader leaves.

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

Evaluation of Alternatives.

Judith Shapiro that has earlier been spoken with by Lewis during the earlier merging days has expertise in business-to-business advertising along with firm and retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to deal with both marketing and also advertising and marketing functions.

The advantage of this technique is that it will integrate the two features while lowering the need for employing an additional resource for advertising. Along with this, Lewis would certainly be heading the advertising and marketing division as well as in any case her substitute would certainly be needed for the current duty that she is doing. The disadvantage of this choice is that exterior hiring may cause animosity from inner workers that may be considering the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting and also Production: Given the affordable stress and also top quality job required from the advertising agency, it is recommended that Lewis must allow the manufacturing device to be a different function from the advertising and marketing unit. Since a lot of advertising agencies had these two features as different devices, it makes even more feeling to adhere to the standard. Both functions may be able to focus on their core activates much more effectively. The downside of this approach would be that added costs would have to be borne for establishing up different production features. A manufacturing head might have to be employed which can boost overheads for the company.

Combination of Marketing with Operations: Given that Lewis is currently taking care of the advertising and marketing and also operations divisions all at once; it makes sense to incorporate the 2 features since she has been successfully taking care of both ends. The fact that Lewis has to adapt her monitoring style for the marketing division recommends that these 2 departments would certainly be culturally diverse.


An assessment of the 3 choices suggests that combination of marketing and also operations would not be a viable step due to the large distinctions between the 2 departments in spite of the fact that currently Lewis is dealing with both. While separation of the manufacturing function may have been a favorable step for the marketing department, the reality that it would certainly suggest putting a third feature under Lewis's wing means this must be prevented.

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

Advertising and Marketing features would be merged.

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

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

Lewis will separate herself from procedures.

An autonomous leadership design with staff member empowerment will certainly be made use of in advertising and marketing division.

Open door policy and focus on cross departmental interaction will be targeted at eliminating disharmony.

Backup strategy.

If the assimilation does not exercise as planned, a backup strategy would certainly follow which would certainly separate the production function from the advertising and marketing feature to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising and marketing department without an SVP. In that case the manufacturing feature will definitely be separated by positioning it under an SVP production.