Indias Negotiations Concerning The Dabhol Power Company 2001 2005 Case Study Analysis


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Background and Facts

Indias Negotiations Concerning The Dabhol Power Company 2001 2005 a workplace products seller for little and medium sized companies has actually lately been associated with planning for a merger with its rival Residence Deport, which has actually impacted efficiency levels in departmentswith the elderly manager associated with legal issues put forth by the government Profession Payment. With the Marketing Head advancing the information of his departure from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the near future. With difficulties in the form of a possible cultural modification and low worker spirits, the company requires a complete reengineering initiative at the advertising department.

Trouble Declaration
Porter's 5 Forces Analysis
The possible cultural modification at the advertising and marketing department of Indias Negotiations Concerning The Dabhol Power Company 2001 2005 is enhancing uncertainty in the workplace leading to different obstacles 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 influencing calculated choices given that Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Profession Commission's treatment while doing so. Given the truth that the store has a worldwide presence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries might be able to affect performance or critical objectives. Federal Profession Commission's antitrust fit versus the merging occupied useful time of the organization's elderly administration suggesting that 'political' factors can have major effects for a worldwide company.

Economic Factors: Economic factors such as the introduction of small companies in the global circumstance recommend that Indias Negotiations Concerning The Dabhol Power Company 2001 2005 is prospering in an environment where there is prospective growth of businesses. Along with this, fact that store customers are primarily looking for workplace materials for office recommends that the market has an increasing fad of business owners and home based services.

Social factors: Social trends in the economy reveal that consumers are looking for ease along with appealing prices. Market research shows how the customer for Indias Negotiations Concerning The Dabhol Power Company 2001 2005 does not have recognition regarding finding solutions which can supply a combination of convenience and also affordable.

Technological factors: Technology plays a vital duty in Indias Negotiations Concerning The Dabhol Power Company 2001 2005's business technique specifically as the company is piloting Innovation facilities which would certainly provide innovation sales and support in the kind of memory upgrades, outer installments. (Summary of INSECT in appendix 2).

OB Issues as well as Manifestations.

Numerous underlying Organizational Actions issues can be seen in Indias Negotiations Concerning The Dabhol Power Company 2001 2005's case as highlighted in this area.

Concerns regarding cultural change: There is worry regarding a cultural adjustment that would certainly occur once Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Marketing with the majority of the staff members already revealing discontent over this possible move. This anticipated change has actually created anxiety in the workplace which has been paired with the past tension of preparing the firm for a potential merging with House Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is scarcity of employees that can match the difficult atmosphere of a fast-paced organization. Not only does this bring about difficulty in discovering the ideal people, it puts anxiety on new hires as can not endure the speed and also stress that the organization expects them to bear.

Twin Reporting Lines: Novices locate this business culture troublesome as well as hard to handle particularly as populated line partnerships are indicated to be weaker as a whole and unbiased setup as well as efficiency assessment is still done by the strong line manager. This indicates that newbies could lose quality concerning their respective functions and objectives specifically as populated line coverage does not maintain them in direct communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles despite the fact that it had been guessed that the last would take Krasnow's position came as a strike to her spirits. Lewis may have been capable and proper for the job however the truth that Kransnow's separation would certainly make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Fear & Job Instability: Anxiety and instability can be recognized as 2 major issues that Lewis would be managing especially as the merging has now be terminated as well as 2 elderly executives of the marketing division would be leaving. The whole duty of the department would certainly be dropping on Lewis's shoulders who would not just be in charge of brining about a cultural change yet would also need to show herself in her new duty.

Inappropriate Monitoring Design of Leader: Lewis's management design as well as its conflict with the marketing department's function can likewise be seen as an OB difficulty particularly as she has actually been utilized to handling problems in the operations department where employees are instructed to concentrate on processes and obtain them. The advertising and marketing division on the various other hand can be viewed as a team of individuals that are made use of to being supported by Krasnow who focused much more on result than processes.

Interdepartmental Disagreements: Interdepartmental differences between three divisions, marketing, merchandizing as well as operations specifically over the appropriation of the advertising mix can be identified as another OB worry. Although the advertising and marketing division does not share the exact same vision as the other 2 divisions regarding the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and procedures departments do not concur over the advertising mix allotment amongst each other either.

Disintegration in Advertising And Marketing Department: Disintegration in between the marketing and advertising departments can be identified as one more OB issue which could need further focus. The truth that the advertising and marketing areas in the advertising division are separated is avoiding both divisions from gaining from each various other's experience and proficiency. Assimilation of advertising with retailing as well as operations would certainly end up being harder if the advertising division itself is disintegrated which can be an additional possible OB concern.

Indias Negotiations Concerning The Dabhol Power Company 2001 2005 Analysis

Different theories have actually been used to explain the conditions to get further clarity concerning the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of supervisors think that staffs are easy and lazy, have little aspiration and also stand up to change. The situation at Indias Negotiations Concerning The Dabhol Power Company 2001 2005 is not totally adhering to Theory X, it can be seen that new hires are locating this atmosphere instead demanding which may at some point lead to a greater inclination of the management towards Concept X. Also while examining Lewis's monitoring design, concept X may have been appropriate in the procedures department to some extent yet the Advertising and marketing division would call for reliance on Concept Y in order to obtain the creative thinking as well as creativity from the groups.

Tuckman's Team effort Theory: As much as Lewis's issue concerning bringing consistency between the advertising and also advertising and marketing department is concerned, this would at first lead to contrast as discussed by Bruce Tuckman in his 'Team effort Theory'. By incorporating the advertising as well as advertising department's work, there might be the exact same first separate which might lead to the 2nd phase of 'storming' where the groups test one an additional.

Bridges' Transition Model: According To William Bridge's theory (appendix 4), individuals are fairly awkward with change, which is apparent by the situation at Indias Negotiations Concerning The Dabhol Power Company 2001 2005 The situation can be viewed as a normal training course of life if is studied according to Bridge's theory where he describes that people experience three phases of shift when they experience adjustment. 'Ending, losing as well as Letting go', The Neutral Area and 'The New Beginning' (Bridges, 2004). When people exist with modification, they go into stage one and so there may be feelings like despair, uncertainty, aggravation, rage, worry, denial and also disorientation.The situation at the advertising department of Indias Negotiations Concerning The Dabhol Power Company 2001 2005 is similar so Lewis can obtain comfortable with the idea that it is not amazing actions. In the second stage, there might be a need to link the void between the new as well as old society so Lewis may have to face this challenge once Krasnow leaves. There might be low morale as well as reduced efficiency at this phase which must not be taken as a trouble. It is during this phase that Lewis will certainly need to provide advice to the division so that they can find a sense of direction. It can be seen how Krasnow has actually already made this transition easier by making Lewis obtain associated with the division a year prior to his real separation. As per Bridges' Version, phase 3 will certainly cause openness to learning, High energy and dedication as individuals will certainly embrace the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has talks about the relevance of 'protection needs as being a reduced level demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel safe and secure and also out of danger' is at the second degree of requirements. Before a worker can be made to establish emotionally, he requires to have his 'Physiological 'as well as 'Safety' requires satisfied.

SWOT Analysis for Indias Negotiations Concerning The Dabhol Power Company 2001 2005 Case Study

Ramification of Analysis.

The OB analysis has actually considered numerous theories to understand just how to cope with the present scenario handy. The following 3 options have been recommended to help Lewis handle the organizational challenges in the advertising and marketing department. Each of these options has been recommended for reducing the transition required to bring the marketing department according to the demands of the marketplace as well as for making the social change that would certainly follow once the present leader leaves.

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

Analysis of Alternatives.

Assimilation of Marketing & Marketing Functions: The in-house advertising and marketing agency of Indias Negotiations Concerning The Dabhol Power Company 2001 2005 is already stamina for the organization in terms of conserving up on expenses associated with advertising and promotion. Because no new recruitment has actually been done after Bridget Cole's separation with the reporting line being directly assigned to Krasnow for the marketing feature, this is a beneficial possibility for incorporating the marketing and advertising features. Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merger days has know-how in business-to-business advertising and marketing in addition to agency and retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to handle both advertising and marketing functions.

The benefit of this approach is that it will integrate both features while minimizing the demand for hiring an extra source for advertising. Lewis would be heading the advertising department and also in any type of case her substitute would certainly be required for the existing function that she is doing. The drawback of this option is that outside hiring might cause bitterness from inner employees who may be considering the position of EVP after Lewis takes over Krasnow's setting.

Separating Adverting as well as Production: Given the affordable stress and also excellent quality work required from the advertising agency, it is suggested that Lewis needs to allow the production device to be a different function from the marketing system. Since many ad agency had these two features as separate units, it makes more sense to follow the norm. In addition to this, both features may be able to focus on their core triggers extra effectively. The drawback of this approach would be that extra costs would certainly have to be birthed for establishing up different manufacturing functions. In addition to this, a manufacturing head may have to be employed which can raise expenses for the company.

Combination of Marketing with Workflows: Since Lewis is already taking treatment of the marketing and operations departments concurrently; it makes sense to integrate the two features since she has been efficiently taking treatment of both ends. The fact that Lewis has to adjust her monitoring design for the marketing department suggests that these two departments would certainly be culturally diverse.


An examination of the three alternatives shows that integration of advertising as well as procedures would certainly not be a practical move due to the vast distinctions in between the two departments regardless of the reality that currently Lewis is managing both. While separation of the production function may have been a positive step for the advertising and marketing department, the fact that it would certainly mean putting a 3rd feature under Lewis's wing means this should be prevented.

Action Plan.
Lewis will certainly take over the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would be combined.

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

Production feature will certainly remain part of advertising and marketing under marketing feature.

Lewis will certainly divide herself from procedures.

A democratic leadership style with staff member empowerment will be used in marketing department.

Open up door policy and focus on cross departmental communication will be aimed at getting rid of dissonance.

Contingency plan.

If the combination does not work out as planned, a backup plan would comply with which would certainly divide the manufacturing function from the marketing feature to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising department without an SVP. Because case the manufacturing feature will certainly be separated by putting it under an SVP manufacturing.