Gulf Oil Corp Takeover Case Study Solution


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Gulf Oil Corp Takeover Case Study Analysis

Background and Facts

Gulf Oil Corp Takeover an office products store for little and medium sized services has actually just recently been associated with preparing for a merging with its competitor Home Deport, which has actually impacted effectiveness degrees in departmentswith the elderly supervisor associated with lawful difficulties put forth by the federal Profession Commission. With the Advertising Head putting forward the information of his separation from the business in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the function in the future. With difficulties in the form of a prospective cultural adjustment as well as reduced employee spirits, the company requires a complete reengineering initiative at the advertising department.

Issue Declaration
Porter's 5 Forces Analysis
The potential cultural change at the advertising and marketing department of Gulf Oil Corp Takeover is increasing unpredictability in the working environment leading to various challenges for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting calculated decisions given that Stapes Inc. had to desert its strategies of combining with Workplace Deport after the Federal Profession Payment's intervention in the process. Provided the truth that the store has an international visibility with branches in UK, USA, Canada and also Germany, political consider each of these nations may be able to influence efficiency or tactical objectives. Federal Profession Payment's antitrust suit versus the merging used up useful time of the organization's elderly management recommending that 'political' factors can have serious implications for an international organisation.

Economic Factors: Financial factors such as the appearance of small companies in the worldwide situation recommend that Gulf Oil Corp Takeover is growing in a setting where there is potential development of businesses. In addition to this, fact that store clients are primarily looking for office supplies for office recommends that the market has a rising pattern of entrepreneurs and also online organisations.

Social factors: Social patterns in the economic climate show that consumers are looking for convenience in addition to attractive prices. Market research demonstrates how the consumer for Gulf Oil Corp Takeover lacks awareness regarding finding remedies which can use a combination of ease and affordable.

Technical factors: Modern technology plays an important role in Gulf Oil Corp Takeover's organisation technique particularly as the company is piloting Innovation centers which would use technology sales and assistance in the form of memory upgrades, peripheral installments. (Recap of INSECT in appendix 2).

OB Issues and Symptoms.

A number of underlying Business Actions problems can be seen in Gulf Oil Corp Takeover's case as highlighted in this section.

Worries about cultural adjustment: There is concern about a social adjustment that would occur as soon as Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Marketing with most of the employee currently showing unhappiness over this possible move. This expected modification has actually produced stress in the workplace which has actually been paired with the previous tension of preparing the firm for a potential merger with House Deport.
Pest Analysis
Demanding Task Setting for Newcomers: There is lack of employees that can match the demanding environment of a fast-paced company. Not just does this bring about trouble in finding the right individuals, it places stress and anxiety on new hires as can not stand up to the rate and also pressure that the organization expects them to birth.

Twin Reporting Lines: Newcomers locate this organizational society cumbersome and difficult to manage especially as populated line partnerships are meant to be weak in general and also unbiased setup as well as performance assessment is still done by the strong line manager. This means that newcomers might shed clarity concerning their corresponding duties and also objectives especially as populated line coverage does not maintain them in direct interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had been guessed that the latter would take Krasnow's position came as an impact to her morale. Lewis might have been capable and also proper for the job yet the reality that Kransnow's separation would certainly make Coles a direct report to Lewis may have been the reason for Coles' resignation from solutions.

Fear & Work Insecurity: Concern and also instability can be recognized as 2 major problems that Lewis would be handling specifically as the merger has now be terminated and 2 elderly executives of the marketing division would certainly be leaving. The entire obligation of the department would certainly be falling on Lewis's shoulders who would certainly not simply supervise of brining about a cultural modification but would likewise have to confirm herself in her brand-new role.

Inappropriate Monitoring Design of Leader: Lewis's management design and also its incompatibility with the advertising and marketing department's role can likewise be viewed as an OB difficulty specifically as she has actually been made use of to managing concerns in the operations department where personnel are shown to concentrate on procedures and also obtain them right. The advertising department on the various other hand can be seen as a group of individuals who are made use of to being supported by Krasnow who concentrated much more on result than processes.

Interdepartmental Disputes: Interdepartmental arguments between 3 divisions, advertising and marketing, merchandizing as well as procedures respectively over the allocation of the marketing mix can be identified as an additional OB problem. Although the advertising and marketing department does not share the same vision as the other 2 divisions regarding the aloocation of the advertising mix twoards promos and advertsing, the merchandizing as well as operations departments do not agree over the advertising and marketing mix appropriation amongst each other either.

Disintegration in Advertising Department: Disintegration in between the marketing and advertising divisions can be identified as an additional OB concern which could require further interest. The truth that the advertising and marketing sections in the advertising division are disconnected is preventing both departments from acquiring from each various other's experience as well as expertise. Combination of marketing with merchandising and operations would certainly come to be more difficult if the advertising and marketing division itself is degenerated which can be one more possible OB concern.

Gulf Oil Corp Takeover Analysis

Various concepts have actually been utilized to clarify the situations to obtain further clarity regarding the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of supervisors think that staffs are easy and lazy, have little ambition and withstand modification. The situation at Gulf Oil Corp Takeover is not completely following Concept X, it can be seen that brand-new hires are finding this atmosphere rather stressful which may eventually lead to a higher disposition of the monitoring in the direction of Concept X. Also while examining Lewis's monitoring style, concept X may have been ideal in the operations department to some level yet the Marketing division would certainly require dependence on Concept Y in order to obtain the creativity as well as originality from the teams.

Tuckman's Teamwork Theory: As much as Lewis's issue about bringing consistency between the advertising and marketing and advertising division is concerned, this would originally lead to contrast as gone over by Bruce Tuckman in his 'Synergy Theory'. By integrating the advertising as well as advertising and marketing department's work, there may be the exact same initial separate which might lead to the 2nd phase of 'storming' where the teams challenge one an additional.

Bridges' Shift Model: Based On William Bridge's concept (appendix 4), people are rather unpleasant with adjustment, which is obvious by the circumstance at Gulf Oil Corp Takeover The scenario can be viewed as a typical training course of life if is studied as per Bridge's concept where he describes that people go through 3 stages of transition when they experience change. 'Closing, shedding as well as Letting go', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When individuals exist with change, they get in phase one and so there might be feelings like despair, uncertainty, aggravation, anger, concern, denial and also disorientation.The scenario at the advertising and marketing division of Gulf Oil Corp Takeover is comparable so Lewis can obtain comfy with the suggestion that it is not amazing actions. In the 2nd stage, there may be a demand to connect the void between the new as well as old culture so Lewis might need to encounter this experience when Krasnow leaves. There might be reduced spirits and also low performance at this phase which ought to not be taken as an obstacle. It is during this phase that Lewis will certainly have to give advice to the division so that they can discover a sense of direction. It can be seen just how Krasnow has currently made this change simpler by making Lewis get involved in the department a year prior to his real separation. According to Bridges' Version, stage three will produce visibility to learning, High power and dedication as people will certainly embrace the modification (Bridges, 2004).
Vrio Analysis
Maslow's Demand pecking order: The OB issue related to instability at the office has been triggered first of all by the modification in monitoring and secondly by the reality that the merging will certainly no more be started. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has talks about the value of 'safety needs as being a lower degree need of a human for activating motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the requirement to feel secure and safe' is at the second degree of requirements. Before a worker can be made to create mentally, he requires to have his 'Physical 'and also 'Safety' requires satisfied. This suggests that unless the personnel are made to really feel protected about their present employment status in Gulf Oil Corp Takeover they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Gulf Oil Corp Takeover Case Study

Implication of Analysis.

The OB analysis has taken a look at different concepts to understand exactly how to manage the existing scenario handy. The complying with three alternatives have been recommended to help Lewis take care of the organizational challenges in the advertising and marketing division. Each of these options has actually been recommended for alleviating the transition needed to bring the advertising department in accordance with the demands of the marketplace and for making the social modification that would certainly adhere to as soon as the existing leader leaves.

Combination of advertising and marketing features. Separating Adverting as well as Manufacturing features. Integration of Marketing with Workflow.

Analysis of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merging days has proficiency in business-to-business marketing along with agency and retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to deal with both marketing as well as advertising and marketing functions.

The advantage of this approach is that it will incorporate both features while reducing the need for working with an added resource for marketing. Lewis would be heading the marketing department as well as in any case her substitute would certainly be needed for the existing duty that she is doing. The disadvantage of this alternative is that outside hiring might produce animosity from interior personnel who may be considering the setting of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Manufacturing: Offered the affordable pressures and also excellent quality work required from the advertising agency, it is suggested that Lewis needs to enable the manufacturing device to be a separate function from the advertising device. Since the majority of ad agency had these 2 functions as separate units, it makes even more sense to adhere to the norm. Both functions may be able to focus on their core activates a lot more effectively. The downside of this method would be that extra prices would have to be borne for establishing up different manufacturing features. Along with this, a production head may have to be employed which could enhance overheads for the company.

Integration of Marketing with Operations: Because Lewis is currently taking treatment of the advertising and also operations divisions all at once; it makes feeling to integrate the two functions considering that she has been efficiently taking care of both ends. The fact that Lewis has to adjust her administration style for the advertising division recommends that these 2 divisions would certainly be culturally varied.


An examination of the 3 options shows that integration of advertising and also procedures would not be a practical step due to the vast distinctions between the 2 divisions in spite of the truth that presently Lewis is managing both. While separation of the manufacturing feature might have been a positive step for the advertising division, the truth that it would certainly imply putting a 3rd function under Lewis's wing suggests this ought to be prevented.

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

Marketing and advertising features would certainly be combined.

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

Production feature will certainly continue to be component of marketing under advertising and marketing function.

Lewis will divide herself from procedures.

An autonomous leadership style with worker empowerment will be made use of in marketing division.

Open door policy as well as emphasis on cross departmental interaction will be aimed at eliminating disharmony.

Contingency strategy.

If the assimilation does not exercise as intended, a contingency strategy would certainly adhere to which would certainly separate the manufacturing feature from the marketing feature to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the marketing department without an SVP. Because case the manufacturing feature will certainly be divided by putting it under an SVP manufacturing.