India Faces A Power Failure Us Financial Service Company Expansion Plans Case Study Help


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India Faces A Power Failure Us Financial Service Company Expansion Plans Case Study Help

Background and Facts

India Faces A Power Failure Us Financial Service Company Expansion Plans an office products retailer for tiny and moderate sized services has just recently been associated with planning for a merger with its competitor House Deport, which has influenced efficiency levels in departmentswith the senior manager involved in legal issues presented by the government Profession Commission. With the Advertising Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the role in the future. With challenges in the type of a prospective social adjustment and also reduced worker spirits, the organization wants a total reengineering initiative at the advertising and marketing department.

Problem Statement
Porter's 5 Forces Analysis
The possible social change at the advertising department of India Faces A Power Failure Us Financial Service Company Expansion Plans is increasing uncertainty in the working environment causing different difficulties for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting calculated decisions given that Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Trade Commission's treatment in the process. Provided the fact that the shop has a global visibility with branches in UK, USA, Canada as well as Germany, political consider each of these countries might be able to impact performance or tactical goals. Federal Trade Commission's antitrust match versus the merging used up important time of the organization's elderly monitoring suggesting that 'political' factors can have significant implications for a worldwide service.

Economic Factors: Economic factors such as the appearance of local business in the global situation recommend that India Faces A Power Failure Us Financial Service Company Expansion Plans is thriving in a setting where there is potential growth of businesses. In addition to this, fact that shop clients are mainly trying to find office products for office suggests that the marketplace has a climbing trend of business owners and also home services.

Social factors: Social patterns in the economic climate reveal that clients are seeking comfort as well as eye-catching rates. Marketing research demonstrates how the customer for India Faces A Power Failure Us Financial Service Company Expansion Plans lacks awareness concerning discovering remedies which can use a combination of comfort and inexpensive.

Technological factors: Innovation plays an essential role in India Faces A Power Failure Us Financial Service Company Expansion Plans's service strategy especially as the company is piloting Innovation facilities which would certainly use innovation sales as well as assistance in the type of memory upgrades, outer setups. (Summary of PARASITE in appendix 2).

OB Issues and also Effects.

Numerous underlying Organizational Behavior concerns can be seen in India Faces A Power Failure Us Financial Service Company Expansion Plans's case as highlighted in this section.

Apprehensions regarding cultural adjustment: There is concern about a social change that would certainly occur once Todd Krasnow leaves from his placement as the Exec Vice President of Marketing with most of the employee currently showing unhappiness over this potential move. This predicted modification has created stress in the work environment which has been coupled with the previous stress and anxiety of preparing the company for a possible merger with Residence Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is shortage of workers that can match the difficult atmosphere of a busy company. Not just does this cause trouble in locating the right individuals, it puts tension on brand-new hires as can not stand up to the rate and also stress that the company anticipates them to birth.

Twin Reporting Lines: Newcomers locate this business society difficult and also difficult to manage specifically as dotted line relationships are meant to be weak as a whole as well as objective setup as well as performance assessment is still done by the solid line supervisor. This means that newcomers might shed clearness concerning their respective duties and also goals specifically as populated line reporting does not keep them in direct interaction with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles even though it had been guessed that the last would certainly take Krasnow's placement came as a strike to her spirits. Lewis may have been capable and suitable for the work however the reality that Kransnow's departure would certainly make Coles a direct report to Lewis might have been the factor for Coles' resignation from services.

Anxiety & Task Instability: Worry and also insecurity can be identified as 2 major worries that Lewis would be managing particularly as the merger has actually currently be cancelled and 2 senior execs of the marketing division would certainly be leaving. The whole obligation of the department would be dropping on Lewis's shoulders that would certainly not simply be in charge of brining about a social change but would certainly likewise have to verify herself in her brand-new duty.

Incompatible Monitoring Style of Leader: Lewis's management design and also its conflict with the marketing division's role can additionally be viewed as an OB challenge especially as she has been made use of to managing issues in the operations department where personnel are educated to focus on procedures and also obtain them right. The marketing division on the various other hand can be seen as a team of people who are utilized to being supported by Krasnow that focused extra on outcome than processes.

Interdepartmental Disagreements: Interdepartmental disputes between three departments, advertising and marketing, merchandizing and also operations specifically over the appropriation of the advertising mix can be recognized as one more OB concern. Although the advertising division does not share the same vision as the other two departments relating to the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing as well as procedures departments do not concur over the marketing mix appropriation among each other either.

Fragmentation in Advertising And Marketing Division: Fragmentation between the marketing and advertising departments can be identified as another OB concern which might need additional attention. The truth that the marketing and advertising sections in the advertising division are separated is preventing both departments from gaining from each various other's experience as well as expertise. Integration of advertising with retailing as well as operations would come to be harder if the marketing department itself is disintegrated which can be an additional potential OB concern.

India Faces A Power Failure Us Financial Service Company Expansion Plans Analysis

Numerous theories have actually been made use of to discuss the situations to obtain additional clarity about the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of managers think that juniors are easy as well as careless, have little aspiration as well as resist change. The scenario at India Faces A Power Failure Us Financial Service Company Expansion Plans is not completely following Concept X, it can be seen that brand-new hires are discovering this setting instead stressful which might eventually lead to a better disposition of the administration towards Concept X. Even while assessing Lewis's administration design, theory X might have been suitable in the operations department to some extent however the Advertising and marketing department would need dependence on Concept Y in order to get the creativity and also originality from the groups.

Tuckman's Synergy Concept: Regarding Lewis's issue concerning bringing harmony in between the marketing and advertising department is worried, this would at first bring about conflict as gone over by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). As per Tuckman's concept displayed in appendix 3, throughout the initial stage of group advancement, individuals may not bond, as they are hectic locating their area in the team. By combining the marketing and advertising division's job, there may coincide initial separate which can bring about the second phase of 'storming' where the groups test each other. It is only throughout the third phase or 'norming' when they would certainly come with each other to share concepts prior to the group can bring about synergy in the 4th phase 'carrying out'.

When individuals are provided with modification, they get in stage one and also so there might be feelings like despair, uncertainty, irritation, rage, concern, rejection as well as disorientation.The scenario at the advertising and marketing division of India Faces A Power Failure Us Financial Service Company Expansion Plans is similar so Lewis can obtain comfy with the concept that it is not extraordinary behavior. It is throughout this phase that Lewis will have to offer advice to the department so that they can locate a feeling of instructions. It can be seen just how Krasnow has actually already made this shift less complicated by making Lewis get entailed in the department a year before his actual separation.
Vrio Analysis
Maslow's Requirement hierarchy: The OB problem related to instability at the work environment has actually been activated to start with by the adjustment in administration as well as secondly by the fact that the merging will no more be started. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has goes over the value of 'security needs as being a lower degree need of a human for triggering inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the demand to feel secure and untouched' is at the second degree of demands. Before a worker can be made to develop psychologically, he requires to have his 'Physiological 'as well as 'Safety' requires met. This suggests that unless the employees are made to feel safe and secure about their present employment standing in India Faces A Power Failure Us Financial Service Company Expansion Plans they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for India Faces A Power Failure Us Financial Service Company Expansion Plans Case Study

Effects of Analysis.

The OB analysis has considered various theories to understand just how to deal with the existing circumstance handy. The following 3 options have actually been recommended to help Lewis manage the business challenges in the advertising and marketing department. Each of these alternatives has been proposed for reducing the transition needed to bring the advertising division according to the requirements of the marketplace and for making the cultural change that would certainly follow when the present leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting and Production functions. Assimilation of Advertising And Marketing with Operations.

Assessment of Alternatives.

Assimilation of Marketing & Advertising And Marketing Functions: The internal advertising and marketing firm of India Faces A Power Failure Us Financial Service Company Expansion Plans is already stamina for the organization in regards to saving up on overheads connected to advertising and also promo. Given that no brand-new recruitment has actually been done after Bridget Cole's separation with the coverage line being directly assigned to Krasnow for the advertising and marketing feature, this is a desirable opportunity for integrating the marketing and advertising features. Judith Shapiro that has earlier been spoken with by Lewis during the earlier merging days has know-how in business-to-business advertising and marketing along with firm and also retail advertising and marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to take care of both marketing and advertising features.

The benefit of this approach is that it will integrate the two functions while minimizing the demand for hiring an added source for advertising. Lewis would be heading the advertising division and in any kind of case her substitute would be needed for the present duty that she is doing. The drawback of this choice is that outside hiring might cause animosity from interior personnel who may be considering the placement of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and also Manufacturing: Offered the competitive stress as well as high top quality job required from the advertising firm, it is advised that Lewis should enable the production unit to be a different function from the advertising and marketing device. Because most marketing companies had these 2 features as separate units, it makes more feeling to comply with the standard.

Integration of Advertising And Marketing with Procedures: Considering that Lewis is already looking after the marketing as well as procedures departments all at once; it makes sense to integrate the two functions considering that she has actually been successfully looking after both ends. The fact that both divisions already have significant distinctions over allowance of sources recommends that this assimilation may have the ability to cause consistency specifically as Lewis would be heading both ends.However there are different negative aspects of this step particularly as it would place too much problem over Lewis's shoulders. The truth that Lewis has to adapt her monitoring design for the advertising department suggests that these two departments would be culturally diverse. Lewis may not be able to apply one kind of management design to both divisions which can result in inadequacy in either one of the two features.


An analysis of the 3 alternatives indicates that combination of marketing and also procedures would certainly not be a viable move due to the large differences between the two divisions in spite of the reality that currently Lewis is managing both. While splitting up of the production function might have been a favorable action for the advertising division, the truth that it would suggest positioning a third feature under Lewis's wing suggests this ought to be avoided.

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

Marketing and advertising functions would be combined.

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

Manufacturing feature will certainly continue to be part of advertising under advertising feature.

Lewis will separate herself from operations.

An autonomous leadership design with worker empowerment will be made use of in advertising and marketing department.

Open door policy as well as focus on cross departmental interaction will certainly be targeted at getting rid of discord.

Contingency strategy.

If the combination does not work out as prepared, a contingency strategy would follow which would separate the production feature from the advertising feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the marketing division without an SVP. Because case the manufacturing feature will absolutely be divided by positioning it under an SVP manufacturing.