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Ho Chi Minh City Case Study Analysis

Background and Facts

Ho Chi Minh City an office products store for small and medium sized companies has lately been involved in preparing for a merging with its rival Residence Deport, which has influenced effectiveness levels in departmentswith the elderly manager involved in lawful issues put forth by the government Profession Commission. With the Marketing Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the present head of operations has been asked to take the role in the near future. With challenges in the type of a potential social change and also low worker morale, the company is in need of a complete reengineering initiative at the marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising and marketing department of Ho Chi Minh City is raising unpredictability in the working environment leading to different 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 major duty in impacting critical choices since Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Profession Compensation's intervention in the process. Offered the truth that the shop has a worldwide visibility with branches in UK, USA, Canada and also Germany, political factors in each of these nations may be able to influence efficiency or tactical objectives. Federal Trade Payment's antitrust fit against the merging used up important time of the company's senior monitoring suggesting that 'political' factors can have significant implications for an international service.

Economic Factors: Economic factors such as the emergence of small businesses in the global scenario recommend that Ho Chi Minh City is flourishing in an atmosphere where there is possible development of businesses. Reality that store clients are primarily looking for workplace products for house workplaces suggests that the market has a climbing pattern of business owners and also home based businesses.

Social factors: Social trends in the economic climate reveal that customers are seeking convenience as well as eye-catching costs. Market research demonstrates how the customer for Ho Chi Minh City does not have recognition concerning discovering remedies which can use a combination of comfort and also low costs.

Technical factors: Technology plays a vital duty in Ho Chi Minh City's business technique especially as the organization is piloting Innovation facilities which would certainly provide modern technology sales and assistance in the type of memory upgrades, peripheral installations. (Recap of BUG in appendix 2).

OB Issues as well as Symptoms.

Several underlying Organizational Behavior issues can be seen in Ho Chi Minh City's case as highlighted in this area.

Worries regarding social change: There is concern concerning a cultural modification that would happen when Todd Krasnow leaves from his placement as the Exec Vice President of Marketing with a lot of the personnel already showing discontent over this potential move. This expected change has developed stress in the workplace which has been coupled with the past stress and anxiety of preparing the firm for a potential merger with Residence Deport.
Pest Analysis
Difficult Task Environment for Newcomers: There is lack of employees that can match the difficult setting of a hectic company. Not only does this result in trouble in locating the best individuals, it puts stress on new hires as can not stand up to the rate and stress that the company anticipates them to bear.

Dual Reporting Lines: Newbies find this organizational society cumbersome and difficult to manage especially as populated line relationships are indicated to be weak as a whole as well as objective setup and also efficiency analysis is still done by the strong line manager. This suggests that beginners can lose quality about their particular roles and also objectives specifically as dotted line reporting does not keep them in direct interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles even though it had been guessed that the last would certainly take Krasnow's setting came as a strike to her spirits. Lewis may have been qualified and appropriate for the job but the reality that Kransnow's departure would certainly make Coles a direct report to Lewis may have been the reason for Coles' resignation from services.

Anxiety & Job Insecurity: Worry and also instability can be determined as 2 significant problems that Lewis would be dealing with specifically as the merging has now be cancelled as well as 2 senior executives of the advertising and marketing department would be leaving. The whole responsibility of the division would certainly be dropping on Lewis's shoulders who would not just supervise of brining about a cultural change but would additionally have to verify herself in her new duty.

Incompatible Management Style of Leader: Lewis's monitoring design as well as its conflict with the advertising and marketing division's function can likewise be seen as an OB challenge especially as she has actually been used to managing problems in the operations department where personnel are educated to focus on processes and also get them. The marketing department on the various other hand can be viewed as a team of people who are utilized to being nurtured by Krasnow who focused much more on result than procedures.

Interdepartmental Disagreements: Interdepartmental arguments between 3 divisions, marketing, merchandizing and operations respectively over the appropriation of the advertising mix can be recognized as an additional OB concern. The advertising division does not share the exact same vision as the other 2 divisions pertaining to the aloocation of the marketing mix twoards promos and advertsing, the merchandizing and procedures divisions do not agree over the marketing mix appropriation among one another either.

Disintegration in Advertising And Marketing Department: Disintegration in between the advertising and marketing departments can be determined as an additional OB problem which can need more interest. The truth that the marketing and advertising sections in the advertising and marketing division are separated is preventing both divisions from obtaining from each other's experience and competence. Assimilation of advertising with retailing and also operations would end up being harder if the advertising department itself is degenerated which can be an additional possible OB concern.

Ho Chi Minh City Analysis

Numerous theories have been utilized to explain the scenarios to get additional clearness regarding the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers think that staffs are easy as well as careless, have little aspiration as well as resist modification. The tough version of this theory stressed coercion, limited controls, risks as well as penalties. With time it generates reduced productivity, refined sabotage and competition (Bargain, 2003). Although the situation at Ho Chi Minh City is not totally adhering to Concept X, it can be seen that brand-new hires are locating this atmosphere instead difficult which might ultimately result in a better disposition of the management in the direction of Concept X. According to McGregor's advocated view, which he called Theory Y, the important task of the monitoring is to organize business problems to make sure that individuals can accomplish their own goals best by routing their efforts in the direction of organizational incentives. If people find no fulfillment in their work, the management would certainly have little option but to rely on concept X and also exterior control (Deal, 2003). Also while assessing Lewis's administration style, concept X might have appropriated in the operations department somewhat but the Advertising department would certainly call for reliance on Theory Y to get the creative thinking and also originality from the groups.

Tuckman's Synergy Theory: As much as Lewis's concern regarding bringing consistency between the advertising and marketing and advertising department is concerned, this would at first lead to conflict as discussed by Bruce Tuckman in his 'Synergy Theory'. By combining the advertising and marketing and advertising division's work, there may be the very same preliminary separate which might lead to the second stage of 'storming' where the teams challenge one another.

When people are offered with adjustment, they go into phase one and so there may be feelings like despair, unpredictability, aggravation, temper, fear, rejection and disorientation.The circumstance at the advertising department of Ho Chi Minh City is comparable so Lewis can get comfortable with the suggestion that it is not remarkable actions. It is during this stage that Lewis will have to give advice to the department so that they can find a sense of direction. It can be seen how Krasnow has actually currently made this shift easier by making Lewis get involved in the division a year before his actual separation.
Vrio Analysis
Maslow's Need hierarchy: The OB problem pertaining to insecurity at the work environment has actually been caused firstly by the change in administration and second of all by the truth that the merging will no more be started. Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has goes over the relevance of 'security needs as being a lower level demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel safe and secure as well as out of danger' goes to the 2nd degree of demands. Before an employee can be made to create mentally, he requires to have his 'Physiological 'and 'Security' requires fulfilled. This indicates that unless the personnel are made to really feel secure regarding their present work standing in Ho Chi Minh City they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Ho Chi Minh City Case Study



Effects of Analysis.

The OB analysis has actually looked at numerous concepts to understand exactly how to deal with the current circumstance available. The adhering to three options have been suggested to aid Lewis take care of the organizational obstacles in the advertising division. Each of these options has been suggested for easing the transition required to bring the advertising and marketing department according to the requirements of the marketplace as well as for making the social adjustment that would certainly comply with when the existing leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting and also Production features. Assimilation of Advertising And Marketing with Procedures.

Evaluation of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merging days has expertise in business-to-business marketing along with firm and also retail marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to deal with both advertising and marketing and also advertising features.

The advantage of this technique is that it will certainly incorporate both features while decreasing the demand for hiring an additional source for advertising. Lewis would certainly be heading the marketing department as well as in any case her replacement would certainly be required for the current duty that she is performing. The downside of this choice is that exterior hiring may cause resentment from interior employees that may be looking at the placement of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and also Manufacturing: Offered the competitive pressures and also premium quality work required from the advertising agency, it is suggested that Lewis ought to allow the production system to be a separate function from the marketing unit. Since many ad agency had these two functions as different systems, it makes even more feeling to adhere to the norm. In addition to this, both functions might have the ability to concentrate on their core turns on a lot more successfully. Nonetheless, the downside of this strategy would certainly be that extra prices would have to be borne for establishing different manufacturing functions. In addition to this, a manufacturing head might have to be hired which could enhance overheads for the organization.

Assimilation of Advertising with Operations: Given that Lewis is already dealing with the marketing and procedures departments simultaneously; it makes sense to incorporate the two functions because she has actually been successfully looking after both ends. The reality that the two departments currently have major differences over allotment of sources suggests that this combination may have the ability to bring about harmony especially as Lewis would certainly be heading both ends.However there are various disadvantages of this action particularly as it would certainly place excessive concern over Lewis's shoulders. The truth that Lewis needs to adjust her administration design for the advertising and marketing division suggests that these two divisions would certainly be culturally diverse. In addition to this, Lewis may not have the ability to use one sort of management design to both departments which might lead to ineffectiveness in either among the two functions.

Recommendation.



An assessment of the three options suggests that combination of advertising and marketing as well as procedures would not be a practical step because of the substantial distinctions between both divisions although that currently Lewis is managing both. While separation of the manufacturing feature might have been a favorable action for the advertising and marketing department, the reality that it would certainly imply putting a 3rd feature under Lewis's wing implies this need to be avoided. The integration of the advertising and marketing department is the very best alternative in regards to obtaining the optimal results from the department. An action plan for this option is reviewed listed below.

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

Marketing and advertising features would be combined.

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

Production feature will remain component of marketing under marketing feature.

Lewis will divide herself from procedures.

A democratic leadership design with employee empowerment will certainly be made use of in marketing department.

Open door policy and also emphasis on cross department interaction will certainly be aimed at removing dissonance.

Contingency strategy.

If the assimilation does not exercise as planned, a contingency plan would certainly comply with which would certainly divide the manufacturing function from the marketing feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will be heading the marketing division without an SVP. In that case the manufacturing function will certainly be separated by putting it under an SVP manufacturing.