High Speed Rail In Portugal Case Study Help


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High Speed Rail In Portugal Case Study Help

Background and Facts

High Speed Rail In Portugal a workplace materials merchant for small and also average sized organisations has recently been associated with planning for a merging with its competitor Residence Deport, which has influenced performance degrees in departmentswith the elderly supervisor associated with lawful issues put forth by the federal Trade Compensation. With the Advertising and marketing Head advancing the news of his separation from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the future. With challenges in the type of a potential cultural adjustment and also low worker morale, the organization requires a total reengineering effort at the marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The possible cultural modification at the advertising and marketing department of High Speed Rail In Portugal is enhancing unpredictability in the workplace resulting in various difficulties for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting calculated choices considering that Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Profession Payment's treatment while doing so. Given the truth that the store has a global presence with branches in UK, U.S.A., Canada and Germany, political consider each of these nations may be able to affect efficiency or strategic goals. Federal Profession Compensation's antitrust fit versus the merging took up useful time of the company's elderly administration recommending that 'political' factors can have serious implications for a global service.

Economic Factors: Economic factors such as the introduction of small businesses in the global situation suggest that High Speed Rail In Portugal is prospering in an atmosphere where there is potential development of organisations. In addition to this, reality that shop customers are mostly searching for workplace supplies for office suggests that the marketplace has a climbing trend of business owners and home based companies.

Social factors: Social trends in the economic situation show that consumers are seeking benefit in addition to appealing rates. Marketing research demonstrates how the consumer for High Speed Rail In Portugal lacks recognition about finding solutions which can use a mix of convenience as well as low costs.

Technical factors: Innovation plays a crucial function in High Speed Rail In Portugal's company approach specifically as the organization is piloting Innovation centers which would certainly supply innovation sales as well as assistance in the form of memory upgrades, outer installations. (Recap of PEST in appendix 2).

OB Issues and also Effects.

Several underlying Business Behavior concerns can be seen in High Speed Rail In Portugal's case as highlighted in this area.

Apprehensions regarding social change: There is concern regarding a social change that would happen once Todd Krasnow leaves from his position as the Executive Vice President of Advertising And Marketing with a lot of the team member already showing discontent over this potential relocation. This expected adjustment has actually developed stress and anxiety in the workplace which has actually been coupled with the past stress of preparing the firm for a prospective merger with Home Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is scarcity of employees that can match the difficult environment of a busy company. Not just does this lead to trouble in discovering the right people, it places anxiety on brand-new hires as can not withstand the rate and pressure that the organization anticipates them to birth.

Dual Coverage Lines: Newbies locate this organizational culture cumbersome and also challenging to deal with especially as populated line relationships are suggested to be weaker as a whole as well as objective setup and efficiency analysis is still done by the strong line manager. This means that newcomers might shed clarity concerning their respective functions and also objectives specifically as populated line coverage does not maintain them in straight interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles despite the fact that it had actually been hypothesized that the latter would take Krasnow's placement came as an impact to her morale. Lewis might have been capable as well as ideal for the task yet the truth that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Worry & Task Insecurity: Concern as well as insecurity can be determined as 2 major concerns that Lewis would be handling especially as the merger has actually currently be terminated and 2 senior executives of the advertising and marketing department would be leaving. The entire responsibility of the department would be falling on Lewis's shoulders who would not simply supervise of brining concerning a social modification yet would certainly likewise have to show herself in her new function.

Incompatible Administration Style of Leader: Lewis's management design as well as its conflict with the advertising department's function can also be viewed as an OB difficulty particularly as she has been used to managing problems in the procedures department where personnel are shown to concentrate on processes as well as get them right. The advertising and marketing department on the various other hand can be viewed as a team of individuals who are used to being supported by Krasnow who concentrated extra on result than procedures.

Interdepartmental Differences: Interdepartmental differences between 3 divisions, marketing, merchandizing and also procedures respectively over the allocation of the advertising and marketing mix can be determined as another OB concern. Although the advertising department does not share the same vision as the various other two departments pertaining to the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and also operations departments do not concur over the marketing mix appropriation among each other either.

Fragmentation in Marketing Department: Fragmentation in between the marketing and advertising divisions can be determined as an additional OB concern which can require further focus. The truth that the advertising and marketing sections in the advertising division are detached is preventing both departments from acquiring from each other's experience and experience. Assimilation of advertising and marketing with merchandising as well as operations would become harder if the advertising division itself is broken down which can be an additional possible OB problem.

High Speed Rail In Portugal Analysis

Various theories have been made use of to explain the scenarios to obtain more quality concerning the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors think that staffs are easy and also lazy, have little passion and resist change. The situation at High Speed Rail In Portugal is not entirely adhering to Concept X, it can be seen that brand-new hires are discovering this environment instead stressful which may eventually lead to a higher disposition of the management in the direction of Theory X. Also while examining Lewis's administration design, concept X might have been ideal in the operations department to some extent yet the Advertising division would require dependence on Theory Y in order to get the creative thinking and originality from the groups.

Tuckman's Team effort Concept: As far as Lewis's problem regarding bringing harmony in between the advertising and marketing as well as advertising and marketing division is worried, this would at first lead to contrast as reviewed by Bruce Tuckman in his 'Teamwork Concept'. By integrating the advertising and marketing as well as advertising department's work, there might be the exact same first separate which can lead to the 2nd stage of 'storming' where the groups test one an additional.

When individuals are offered with adjustment, they go into stage one and also so there may be feelings like sadness, uncertainty, disappointment, rage, worry, rejection and also disorientation.The scenario at the advertising and marketing department of High Speed Rail In Portugal is similar so Lewis can obtain comfy with the suggestion that it is not remarkable actions. It is throughout this stage that Lewis will certainly have to give guidance to the division so that they can find a sense of direction. It can be seen exactly how Krasnow has actually already made this transition less complicated by making Lewis get involved in the department a year before his actual separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has discusses the significance of 'protection needs as being a reduced level demand of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel safe and out of threat' is at the 2nd level of requirements. Prior to an employee can be made to create psychologically, he requires to have his 'Physiological 'as well as 'Security' requires fulfilled.

SWOT Analysis for High Speed Rail In Portugal Case Study

Ramification of Analysis.

The OB analysis has actually taken a look at various theories to comprehend just how to deal with the current situation handy. The adhering to 3 choices have actually been suggested to aid Lewis take care of the business obstacles in the advertising and marketing department. Each of these alternatives has been proposed for alleviating the change required to bring the advertising division in accordance with the needs of the market as well as for making the cultural modification that would adhere to as soon as the present leader leaves.

Combination of advertising and marketing functions. Dividing Adverting and also Production functions. Combination of Marketing with Workflow.

Evaluation of Alternatives.

Integration of Marketing & Advertising And Marketing Functions: The internal advertising and marketing company of High Speed Rail In Portugal is currently toughness for the company in terms of saving up on overheads related to advertising and promotion. Since no brand-new recruitment has actually been done after Bridget Cole's departure with the coverage line being straight assigned to Krasnow for the marketing function, this is a desirable opportunity for incorporating the marketing and advertising functions. Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merging days has know-how in business-to-business marketing in addition to firm as well as retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to handle both advertising and marketing functions.

The advantage of this method is that it will certainly integrate the two features while lowering the demand for employing an added source for marketing. Lewis would be heading the marketing department and also in any case her replacement would be needed for the current duty that she is doing. The drawback of this choice is that exterior hiring might cause animosity from internal workers that might be looking at the placement of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting as well as Manufacturing: Offered the affordable stress as well as high quality job required from the advertising and marketing agency, it is advised that Lewis must permit the manufacturing unit to be a different feature from the advertising system. Since a lot of marketing firms had these two features as different devices, it makes even more sense to follow the standard.

Integration of Marketing with Operations: Since Lewis is currently taking treatment of the advertising and marketing and also operations departments concurrently; it makes sense to incorporate the two features because she has been efficiently taking care of both ends. The truth that Lewis has to adapt her administration style for the advertising division suggests that these 2 divisions would certainly be culturally varied.


An evaluation of the three options shows that integration of advertising and marketing and also procedures would not be a practical move due to the substantial distinctions in between the two divisions despite the fact that currently Lewis is dealing with both. While splitting up of the production feature may have been a favorable move for the marketing division, the reality that it would certainly imply positioning a 3rd function under Lewis's wing indicates this should be stayed clear of.

Activity Plan.
Lewis will take over the role of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

Production feature will continue to be part of marketing under marketing function.

Lewis will separate herself from procedures.

A democratic leadership style with employee empowerment will certainly be utilized in marketing division.

Open door plan and focus on cross departmental communication will certainly be targeted at eliminating disharmony.

Backup strategy.

If the combination does not exercise as intended, a contingency plan would follow which would divide the production function from the marketing function to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising division without an SVP. Because case the production function will certainly be separated by putting it under an SVP manufacturing.