Hydrochem Inc Case Study Analysis


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Background and Facts

Hydrochem Inc a workplace supplies merchant for little and moderate sized businesses has recently been associated with preparing for a merger with its rival Home Deport, which has actually affected performance levels in departmentswith the senior supervisor associated with lawful issues put forth by the federal Trade Commission. With the Advertising Head advancing the news of his departure from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the function in the near future. With difficulties in the form of a possible social modification and reduced employee morale, the organization is in need of a complete reengineering effort at the marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The potential social adjustment at the marketing division of Hydrochem Inc is raising unpredictability in the working environment leading to numerous difficulties for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting critical choices given that Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Profession Commission's intervention in the process. Provided the truth that the store has a global presence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these nations may have the ability to affect performance or tactical goals. Federal Profession Payment's antitrust suit against the merging took up beneficial time of the organization's elderly monitoring recommending that 'political' factors can have severe implications for an international organisation.

Economic Factors: Economic factors such as the introduction of small businesses in the international situation recommend that Hydrochem Inc is thriving in an atmosphere where there is potential development of organisations. Truth that shop clients are mostly looking for workplace materials for house offices suggests that the market has a climbing pattern of entrepreneurs and house based services.

Social factors: Social fads in the economic climate reveal that consumers are seeking benefit along with appealing costs. Market research demonstrates how the client for Hydrochem Inc does not have understanding concerning finding options which can supply a combination of benefit and also inexpensive.

Technical factors: Technology plays a vital function in Hydrochem Inc's organisation approach specifically as the organization is piloting Innovation centers which would use innovation sales and support in the type of memory upgrades, outer setups. (Summary of BUG in appendix 2).

OB Issues and Effects.

Several underlying Organizational Habits issues can be seen in Hydrochem Inc's case as highlighted in this area.

Worries regarding social change: There is apprehension about a cultural adjustment that would take place once Todd Krasnow leaves from his position as the Executive Vice President of Marketing with a lot of the staff members currently revealing unhappiness over this potential action. This predicted adjustment has created stress in the office which has been paired with the past anxiety of preparing the firm for a prospective merging with Home Deport.
Pest Analysis
Stressful Job Setting for Newcomers: There is lack of employees that can match the demanding setting of a busy company. Not just does this cause trouble in finding the best people, it places stress and anxiety on new hires as can not withstand the speed and also pressure that the organization anticipates them to birth.

Double Coverage Lines: Novices find this business culture cumbersome as well as hard to deal with especially as populated line relationships are implied to be weak as a whole as well as unbiased setting and also efficiency analysis is still done by the solid line supervisor. This suggests that beginners might lose quality concerning their respective duties and also objectives specifically as dotted line reporting does not maintain them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles even though it had actually been guessed that the last would certainly take Krasnow's setting came as a strike to her spirits. Lewis may have been qualified as well as proper for the job but the truth that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from services.

Concern & Job Insecurity: Concern and insecurity can be determined as 2 major problems that Lewis would be handling especially as the merger has actually now be cancelled as well as 2 elderly executives of the marketing department would certainly be leaving. The entire duty of the division would be dropping on Lewis's shoulders who would certainly not simply supervise of brining regarding a cultural modification however would likewise need to confirm herself in her brand-new function.

Incompatible Monitoring Style of Leader: Lewis's monitoring design as well as its conflict with the advertising division's function can additionally be seen as an OB difficulty specifically as she has been utilized to managing problems in the operations department where workers are instructed to focus on procedures as well as get them. The marketing department on the other hand can be viewed as a team of people who are utilized to being nurtured by Krasnow that concentrated extra on outcome than procedures.

Interdepartmental Disputes: Interdepartmental differences in between three divisions, advertising and marketing, merchandizing and procedures respectively over the allotment of the advertising mix can be identified as another OB concern. Although the advertising and marketing department does not share the exact same vision as the other 2 departments regarding the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing as well as operations departments do not agree over the advertising mix appropriation among each other either.

Disintegration in Advertising And Marketing Department: Fragmentation in between the advertising and marketing departments can be identified as one more OB concern which might require more interest. The fact that the marketing and advertising areas in the advertising division are disconnected is protecting against both divisions from gaining from each other's experience and also experience. Integration of advertising and marketing with retailing and also operations would become harder if the advertising division itself is broken down which can be another potential OB issue.

Hydrochem Inc Analysis

Numerous theories have actually been used to clarify the conditions to obtain more clearness about the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of supervisors believe that subordinates are easy and careless, have little passion and also resist adjustment. The difficult version of this theory emphasized coercion, limited controls, threats as well as penalties. Over time it produces low productivity, refined sabotage and competition (Bargain, 2003). Although the situation at Hydrochem Inc is not entirely adhering to Concept X, it can be seen that new hires are discovering this environment instead stressful which may at some point lead to a better inclination of the management towards Concept X. According to McGregor's promoted sight, which he called Theory Y, the necessary task of the administration is to organize business conditions so that individuals can attain their very own goals best by guiding their efforts towards business incentives. If individuals locate no complete satisfaction in their work, the administration would have little option however to count on theory X and also exterior control (Offer, 2003). Also while assessing Lewis's monitoring design, theory X may have been suitable in the procedures department somewhat but the Advertising and marketing division would need reliance on Concept Y to get the creativity as well as creativity from the teams.

Tuckman's Synergy Theory: Regarding Lewis's issue concerning bringing harmony in between the marketing and advertising department is concerned, this would initially bring about contrast as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). As per Tuckman's theory shown in appendix 3, during the preliminary phase of team development, individuals may not bond, as they are busy locating their place in the group. By incorporating the marketing and advertising division's work, there might coincide first disconnect which might result in the 2nd phase of 'storming' where the teams challenge each other. It is only throughout the 3rd stage or 'norming' when they would come with each other to share concepts prior to the team can bring around synergy in the fourth stage 'carrying out'.

Bridges' Change Design: According To William Bridge's concept (appendix 4), individuals are quite uneasy with modification, which is apparent by the situation at Hydrochem Inc The situation can be seen as a regular course of life if is studied as per Bridge's theory where he describes that people undergo three phases of change when they experience adjustment. 'End, losing and Letting go', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When people exist with change, they go into phase one therefore there might be emotions like unhappiness, uncertainty, irritation, rage, worry, denial and disorientation.The circumstance at the advertising department of Hydrochem Inc is similar so Lewis can get comfortable with the idea that it is not remarkable behavior. In the 2nd phase, there may be a need to connect the gap in between the brand-new and old culture so Lewis may have to face this challenge once Krasnow leaves. There might be low spirits and also reduced efficiency at this phase which should not be taken as an obstacle. It is during this stage that Lewis will need to offer guidance to the division to make sure that they can discover an orientation. It can be seen just how Krasnow has already made this shift simpler by making Lewis get involved in the department a year prior to his actual departure. Based on Bridges' Version, phase 3 will bring about visibility to discovering, High energy as well as dedication as individuals will certainly embrace the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has reviews the importance of 'safety and security requires as being a lower degree need of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel safe as well as out of threat' is at the second degree of demands. Before a staff member can be made to develop emotionally, he requires to have his 'Physical 'as well as 'Safety and security' requires fulfilled.

SWOT Analysis for Hydrochem Inc Case Study

Implication of Analysis.

The OB analysis has actually looked at different theories to recognize just how to handle the current circumstance handy. The adhering to three choices have actually been proposed to aid Lewis deal with the business difficulties in the advertising division. Each of these options has actually been proposed for alleviating the transition needed to bring the marketing division according to the requirements of the market and also for making the social change that would certainly follow once the current leader leaves.

Integration of advertising and marketing functions. Dividing Adverting and also Manufacturing functions. Integration of Advertising And Marketing with Procedures.

Assessment of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merging days has competence in business-to-business advertising along with agency as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to manage both advertising and marketing as well as advertising and marketing functions.

The advantage of this strategy is that it will incorporate the two functions while lowering the requirement for working with an extra source for advertising. In addition to this, Lewis would be heading the advertising and marketing division and all the same her substitute would certainly be required for the present function that she is doing. The downside of this choice is that external hiring might produce bitterness from inner workers who might be eying the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting and Manufacturing: Given the affordable pressures and also high quality job needed from the marketing company, it is recommended that Lewis ought to allow the manufacturing system to be a different feature from the advertising system. Since most advertising agencies had these two features as separate units, it makes more feeling to comply with the norm.

Assimilation of Advertising And Marketing with Procedures: Because Lewis is already looking after the advertising and marketing as well as operations divisions simultaneously; it makes sense to incorporate both features considering that she has been effectively looking after both ends. The fact that both departments currently have significant differences over appropriation of sources suggests that this assimilation may be able to cause consistency especially as Lewis would be heading both ends.However there are various negative aspects of this step especially as it would place too much problem over Lewis's shoulders. The reality that Lewis has to adapt her monitoring style for the advertising division suggests that these 2 divisions would be culturally diverse. Lewis might not be able to use one kind of leadership style to both departments which could result in inefficiency in either one of the two features.


An assessment of the 3 alternatives suggests that combination of marketing and also procedures would not be a feasible action due to the huge differences in between the 2 departments regardless of the reality that presently Lewis is managing both. While separation of the production feature may have been a favorable step for the marketing department, the reality that it would mean putting a third function under Lewis's wing implies this ought to be prevented.

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

Advertising and Marketing features would be combined.

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

Manufacturing function will stay component of marketing under advertising and marketing feature.

Lewis will certainly divide herself from procedures.

A democratic leadership design with employee empowerment will certainly be made use of in advertising division.

Open door plan as well as focus on cross departmental interaction will certainly be focused on eliminating dissonance.

Backup plan.

If the assimilation does not work out as intended, a backup strategy would certainly follow which would divide the production feature from the advertising and marketing function to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising division without an SVP. Because case the manufacturing feature will most definitely be separated by putting it under an SVP manufacturing.