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High Speed Rail In Portugal Case Study Analysis

Background and Facts

High Speed Rail In Portugal an office materials seller for little as well as moderate sized businesses has lately been involved in preparing for a merger with its rival Residence Deport, which has influenced effectiveness degrees in departmentswith the elderly supervisor involved in legal difficulties presented by the federal Profession Payment. With the Marketing Head putting forward the information of his departure from the business in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the function in the near future. With obstacles in the kind of a possible social adjustment and also low worker spirits, the organization wants a full reengineering initiative at the advertising division.

Trouble Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the marketing division of High Speed Rail In Portugal is enhancing unpredictability in the workplace resulting in numerous obstacles 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 significant duty in affecting strategic choices given that Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Trade Payment's treatment in the process. Given the fact that the shop has a worldwide visibility with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these nations may be able to influence efficiency or critical goals. Federal Trade Commission's antitrust match versus the merger took up valuable time of the organization's senior administration recommending that 'political' factors can have significant effects for an international organisation.

Economic Factors: Economic factors such as the emergence of local business in the international circumstance recommend that High Speed Rail In Portugal is prospering in an atmosphere where there is possible development of businesses. In addition to this, fact that store customers are mainly trying to find workplace materials for home offices suggests that the market has an increasing pattern of entrepreneurs and home based businesses.

Social factors: Social fads in the economic situation show that clients are looking for comfort as well as attractive rates. Marketing research demonstrates how the client for High Speed Rail In Portugal does not have recognition regarding finding services which can use a combination of comfort and low costs.

Technological factors: Modern technology plays a crucial function in High Speed Rail In Portugal's organisation approach specifically as the organization is piloting Modern technology centers which would supply innovation sales as well as support in the kind of memory upgrades, peripheral installments. (Recap of PARASITE in appendix 2).

OB Issues and Symptoms.

A number of underlying Organizational Behavior concerns can be seen in High Speed Rail In Portugal's case as highlighted in this section.

Uneasiness concerning social adjustment: There is worry about a social change that would happen when Todd Krasnow leaves from his position as the Exec Vice Head Of State of Marketing with the majority of the team member already showing unhappiness over this potential relocation. This anticipated modification has developed tension in the office which has actually been combined with the previous anxiety of preparing the firm for a possible merger with House Deport.
Pest Analysis
Stressful Work Setting for Newcomers: There is shortage of personnel that can match the difficult environment of a hectic organization. Not just does this bring about trouble in finding the ideal people, it places stress and anxiety on new hires as can not hold up against the rate as well as stress that the organization anticipates them to birth.

Double Reporting Lines: Newbies locate this business society difficult and challenging to cope with especially as dotted line connections are meant to be weak in general and also unbiased setting and efficiency assessment is still done by the strong line manager. This implies that newcomers might lose clarity concerning their particular functions and goals particularly as populated line reporting does not maintain them in straight interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been hypothesized that the last would take Krasnow's setting came as a blow to her morale. Lewis may have been capable and appropriate for the job but the reality that Kransnow's departure would make Coles a direct record to Lewis might have been the factor for Coles' resignation from solutions.

Anxiety & Job Insecurity: Anxiety as well as insecurity can be identified as 2 significant issues that Lewis would be dealing with specifically as the merger has currently be cancelled and also 2 senior execs of the advertising department would certainly be leaving. The entire responsibility of the division would be dropping on Lewis's shoulders that would not simply be in charge of brining concerning a cultural adjustment however would certainly likewise need to confirm herself in her new duty.

Inappropriate Monitoring Design of Leader: Lewis's management design as well as its conflict with the advertising and marketing department's duty can likewise be seen as an OB difficulty especially as she has been utilized to handling problems in the operations department where personnel are shown to focus on procedures as well as obtain them. The advertising and marketing division on the other hand can be viewed as a team of individuals that are used to being nurtured by Krasnow who focused extra on result than procedures.

Interdepartmental Differences: Interdepartmental arguments in between three divisions, marketing, merchandizing and operations specifically over the allocation of the advertising and marketing mix can be recognized as another OB worry. Although the marketing department does not share the same vision as the other two divisions concerning the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and operations departments do not concur over the advertising and marketing mix appropriation among one another either.

Disintegration in Advertising And Marketing Department: Fragmentation between the advertising and marketing departments can be identified as another OB concern which could require additional interest. The truth that the marketing and advertising areas in the advertising and marketing division are separated is stopping both divisions from obtaining from each other's experience and also expertise. Combination of advertising with retailing and operations would end up being harder if the marketing department itself is disintegrated which can be an additional possible OB problem.

High Speed Rail In Portugal Analysis

Various concepts have been utilized to discuss the circumstances to obtain more clarity regarding the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many supervisors think that staffs are passive and lazy, have little ambition as well as withstand adjustment. The situation at High Speed Rail In Portugal is not totally adhering to Concept X, it can be seen that brand-new hires are discovering this atmosphere instead stressful which may at some point lead to a greater inclination of the monitoring in the direction of Concept X. Even while evaluating Lewis's monitoring style, concept X might have been suitable in the operations division to some level but the Advertising department would certainly need dependence on Concept Y in order to obtain the creative thinking and creativity from the groups.

Tuckman's Team effort Theory: As far as Lewis's concern about bringing consistency in between the advertising and marketing and advertising department is worried, this would at first lead to contrast as discussed by Bruce Tuckman in his 'Team effort Concept'. By combining the marketing and also advertising division's work, there might be the exact same first disconnect which can lead to the 2nd stage of 'storming' where the teams challenge one another.

Bridges' Change Design: Based On William Bridge's theory (appendix 4), people are rather awkward with modification, which is apparent by the scenario at High Speed Rail In Portugal The situation can be seen as a regular course of life if is studied as per Bridge's theory where he clarifies that individuals experience 3 phases of change when they experience change. 'Closing, losing as well as Releasing', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When people exist with adjustment, they enter stage one therefore there might be emotions like sadness, unpredictability, irritation, temper, anxiety, rejection as well as disorientation.The scenario at the advertising and marketing division of High Speed Rail In Portugal is comparable so Lewis can obtain comfy with the suggestion that it is not phenomenal behavior. In the 2nd phase, there may be a demand to connect the gap between the brand-new and also old society so Lewis might need to face this ordeal once Krasnow leaves. There may be low spirits and also low performance at this stage which must not be taken as a trouble. It is throughout this phase that Lewis will certainly need to give assistance to the department so that they can find an orientation. It can be seen how Krasnow has actually currently made this transition easier by making Lewis get associated with the department a year before his actual departure. As per Bridges' Version, stage three will cause openness to understanding, High power and also commitment as people will embrace the change (Bridges, 2004).
Vrio Analysis
Maslow's Demand power structure: The OB problem pertaining to instability at the workplace has been set off to start with by the modification in management as well as second of all by the fact that the merging will no more be initiated. Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has goes over the value of 'safety and security requires as being a reduced level requirement of a human for causing motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the demand to really feel secure and also untouched' goes to the second degree of demands. Before a worker can be made to establish mentally, he needs to have his 'Physiological 'and 'Safety and security' requires fulfilled. This suggests that unless the workers are made to feel safe and secure regarding their present work condition in High Speed Rail In Portugal they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for High Speed Rail In Portugal Case Study



Effects of Analysis.

The OB analysis has actually looked at various concepts to recognize how to deal with the present circumstance available. The adhering to three options have actually been recommended to help Lewis manage the business challenges in the marketing division. Each of these options has actually been suggested for easing the transition required to bring the advertising department in line with the demands of the marketplace and for making the cultural adjustment that would certainly adhere to when the existing leader leaves.

Combination of marketing and advertising functions. Separating Adverting and Manufacturing features. Combination of Marketing with Workflow.

Analysis of Alternatives.

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

The advantage of this approach is that it will integrate the two features while minimizing the demand for employing an extra source for advertising and marketing. Along with this, Lewis would be heading the marketing department and regardless her substitute would be needed for the current function that she is executing. The negative aspect of this alternative is that external hiring might bring about resentment from internal employees that might be considering the position of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting as well as Production: Given the affordable stress as well as high top quality work required from the advertising firm, it is suggested that Lewis must enable the production unit to be a different feature from the advertising and marketing system. Given that most marketing firms had these two functions as separate units, it makes more feeling to comply with the norm.

Integration of Advertising with Workflows: Because Lewis is currently looking after the advertising and marketing and operations departments at the same time; it makes sense to integrate the two functions because she has actually been successfully caring for both ends. The fact that both departments already have significant differences over appropriation of sources recommends that this integration may have the ability to bring about consistency particularly as Lewis would certainly be heading both ends.However there are numerous drawbacks of this action specifically as it would certainly put way too much problem over Lewis's shoulders. The fact that Lewis has to adjust her management style for the advertising and marketing department suggests that these 2 departments would certainly be culturally varied. Along with this, Lewis may not be able to apply one kind of leadership style to both departments which can cause inefficiency in either among the two functions.

Suggestion.



An examination of the 3 options indicates that integration of marketing as well as procedures would not be a possible move as a result of the large distinctions between both departments despite the fact that currently Lewis is managing both. While splitting up of the manufacturing feature may have been a positive move for the advertising division, the reality that it would indicate placing a 3rd feature under Lewis's wing suggests this should be prevented as well. The integration of the marketing division is the very best alternative in regards to getting the optimal results from the department. An activity plan for this choice is reviewed listed below.

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

Advertising and Marketing functions would certainly be merged.

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

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

Lewis will certainly divide herself from operations.

An autonomous management style with worker empowerment will be made use of in advertising department.

Open up door plan as well as emphasis on cross department communication will be aimed at removing discord.

Contingency plan.

If the integration does not work out as prepared, a backup strategy would certainly comply with which would divide the production feature from the advertising and marketing feature to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising and marketing division without an SVP. In that case the manufacturing function will most definitely be separated by positioning it under an SVP production.