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

CASE STUDY

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Background and Facts

Indias Negotiations Concerning The Dabhol Power Company 2001 2005 an office products retailer for small as well as moderate sized businesses has actually lately been associated with preparing for a merging with its competitor Residence Deport, which has actually affected effectiveness degrees in departmentswith the senior supervisor associated with lawful problems presented by the federal Trade Commission. With the Marketing Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the present head of procedures has been asked to take the function in the future. With obstacles in the kind of a possible social adjustment and reduced staff member morale, the organization is in need of a complete reengineering initiative at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The prospective cultural adjustment at the advertising division of Indias Negotiations Concerning The Dabhol Power Company 2001 2005 is boosting unpredictability in the workplace causing numerous difficulties for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing calculated choices given that Stapes Inc. had to abandon its plans of combining with Workplace Deport after the Federal Profession Commission's treatment at the same time. Given the fact that the shop has a global visibility with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these nations might be able to affect efficiency or tactical objectives. Federal Profession Commission's antitrust match versus the merger took up beneficial time of the company's elderly administration suggesting that 'political' factors can have serious effects for an international service.

Economic Factors: Financial factors such as the introduction of small businesses in the worldwide circumstance suggest that Indias Negotiations Concerning The Dabhol Power Company 2001 2005 is thriving in an atmosphere where there is prospective growth of companies. In addition to this, fact that store consumers are primarily looking for workplace materials for home offices recommends that the market has a rising trend of business owners and home based services.

Social factors: Social trends in the economy reveal that consumers are looking for benefit in addition to appealing prices. Market research demonstrates how the customer for Indias Negotiations Concerning The Dabhol Power Company 2001 2005 lacks awareness concerning discovering remedies which can use a combination of benefit and inexpensive.

Technological factors: Modern technology plays an essential duty in Indias Negotiations Concerning The Dabhol Power Company 2001 2005's company strategy especially as the company is piloting Modern technology facilities which would certainly provide technology sales and assistance in the form of memory upgrades, peripheral setups. (Recap of PARASITE in appendix 2).

OB Issues and also Effects.

A number of underlying Business Actions issues can be seen in Indias Negotiations Concerning The Dabhol Power Company 2001 2005's case as highlighted in this section.

Uneasiness concerning social adjustment: There is uneasiness regarding a social adjustment that would certainly take place as soon as Todd Krasnow leaves from his placement as the Executive Vice President of Advertising And Marketing with a lot of the employee currently revealing discontent over this potential move. This anticipated modification has developed stress and anxiety in the workplace which has actually been paired with the past tension of preparing the company for a potential merging with House Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is scarcity of workers that can match the demanding atmosphere of a fast-paced company. Not just does this result in trouble in discovering the best people, it places tension on brand-new hires as can not stand up to the pace and also stress that the company expects them to birth.

Twin Reporting Lines: Newbies discover this business culture troublesome and hard to manage particularly as dotted line connections are indicated to be weaker generally and also objective setting and also performance analysis is still done by the strong line manager. This means that newcomers can lose clearness about their respective duties and also objectives specifically as populated line reporting does not keep them in straight interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles although it had actually been guessed that the last would certainly take Krasnow's position came as a blow to her spirits. Lewis might have been capable as well as appropriate for the job but the truth that Kransnow's departure would certainly make Coles a straight record to Lewis may have been the reason for Coles' resignation from services.

Worry & Work Instability: Concern and insecurity can be determined as 2 major concerns that Lewis would certainly be taking care of specifically as the merging has currently be cancelled and also 2 senior execs of the advertising and marketing department would be leaving. The entire duty of the division would be dropping on Lewis's shoulders that would not just supervise of brining regarding a social change but would likewise need to prove herself in her new role.

Incompatible Management Style of Leader: Lewis's management style and also its conflict with the advertising department's duty can additionally be viewed as an OB obstacle specifically as she has actually been made use of to taking care of concerns in the operations division where workers are instructed to concentrate on procedures as well as get them right. The marketing department on the various other hand can be viewed as a team of people who are used to being supported by Krasnow who concentrated a lot more on outcome than processes.

Interdepartmental Disagreements: Interdepartmental arguments in between three departments, marketing, merchandizing and procedures respectively over the allocation of the advertising mix can be determined as another OB concern. The marketing department does not share the same vision as the other two departments concerning the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and also procedures departments do not agree over the marketing mix appropriation among one another either.

Fragmentation in Marketing Department: Fragmentation in between the marketing and advertising divisions can be recognized as an additional OB issue which could need more interest. The fact that the advertising and marketing areas in the marketing division are detached is avoiding both divisions from acquiring from each other's experience and also know-how. Assimilation of advertising and marketing with merchandising as well as operations would certainly end up being harder if the advertising division itself is degenerated which can be an additional prospective OB problem.

Indias Negotiations Concerning The Dabhol Power Company 2001 2005 Analysis

Numerous theories have been made use of to describe the conditions to get more quality concerning the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most managers believe that subordinates are easy and also lazy, have little ambition and withstand change. The difficult version of this theory stressed browbeating, tight controls, threats as well as punishments. In time it generates reduced productivity, refined sabotage and also competition (Offer, 2003). The situation at Indias Negotiations Concerning The Dabhol Power Company 2001 2005 is not totally complying with Theory X, it can be seen that new hires are discovering this atmosphere rather demanding which may at some point lead to a higher inclination of the monitoring towards Theory X. As per McGregor's promoted sight, which he called Concept Y, the crucial job of the management is to arrange business problems to ensure that individuals can achieve their very own objectives best by directing their efforts towards business rewards. If individuals locate no fulfillment in their job, the administration would certainly have little choice but to depend on theory X as well as external control (Bargain, 2003). Also while assessing Lewis's monitoring style, theory X might have appropriated in the operations department to some extent however the Advertising division would certainly call for reliance on Theory Y to get the creative thinking as well as creativity from the groups.

Tuckman's Synergy Theory: Regarding Lewis's problem concerning bringing consistency between the marketing and advertising department is worried, this would initially bring about conflict as talked about by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). According to Tuckman's concept shown in appendix 3, throughout the preliminary stage of group development, individuals might not bond, as they are busy finding their place in the group. By integrating the marketing and advertising division's work, there might coincide first separate which can bring about the second stage of 'storming' where the groups test one another. Nonetheless, it is only throughout the 3rd stage or 'norming' when they would certainly come together to share ideas before the group can cause synergy in the fourth stage 'doing'.

Bridges' Transition Model: Based On William Bridge's concept (appendix 4), people are rather awkward with change, which is obvious by the scenario at Indias Negotiations Concerning The Dabhol Power Company 2001 2005 The situation can be seen as a normal training course of life if is examined as per Bridge's concept where he discusses that individuals experience three stages of shift when they experience change. 'End, shedding as well as Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When people are presented with modification, they enter stage one therefore there might be emotions like unhappiness, unpredictability, stress, anger, anxiety, rejection as well as disorientation.The situation at the marketing 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 remarkable habits. In the 2nd stage, there might be a demand to link the gap between the brand-new as well as old culture so Lewis may have to face this experience when Krasnow leaves. There may be low morale as well as low efficiency at this phase which should not be taken as a setback. It is throughout this stage that Lewis will have to provide support to the department so that they can find an orientation. It can be seen exactly how Krasnow has actually already made this change less complicated by making Lewis obtain associated with the department a year prior to his real separation. According to Bridges' Design, stage three will certainly bring about visibility to learning, High energy and commitment as people will welcome the modification (Bridges, 2004).
Vrio Analysis
Maslow's Need power structure: The OB concern pertaining to insecurity at the work environment has actually been triggered firstly by the change in monitoring and secondly by the fact that the merging will no more be launched. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has reviews the significance of 'protection requires as being a lower level requirement of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel safe and secure and also untouched' goes to the 2nd level of needs. Prior to a worker can be made to develop mentally, he needs to have his 'Physical 'and 'Security' requires satisfied. This suggests that unless the workers are made to feel secure regarding their present employment standing in Indias Negotiations Concerning The Dabhol Power Company 2001 2005 they might not get to 'Self-Fulfillment'. (King, 2009).

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



Effects of Analysis.

The OB analysis has actually taken a look at different theories to recognize how to handle the existing scenario handy. The following 3 options have been proposed to help Lewis manage the business challenges in the advertising and marketing division. Each of these choices has been proposed for alleviating the change required to bring the advertising and marketing department in accordance with the demands of the marketplace as well as for making the cultural change that would comply with when the existing leader leaves.

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

Analysis of Alternatives.

Assimilation of Marketing & Advertising And Marketing Functions: The in-house advertising firm of Indias Negotiations Concerning The Dabhol Power Company 2001 2005 is currently toughness for the organization in terms of saving up on overheads connected to marketing and also promo. Considering that no brand-new employment has been done after Bridget Cole's departure with the coverage line being straight assigned to Krasnow for the advertising and marketing function, this is a favorable possibility for integrating the marketing and advertising functions. Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merger days has experience in business-to-business advertising in addition to firm and also retail advertising and marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to handle both advertising and marketing features.

The benefit of this approach is that it will certainly incorporate both functions while lowering the need for working with an added resource for advertising and marketing. Lewis would be heading the marketing department as well as in any case her replacement would be needed for the existing function that she is carrying out. The drawback of this alternative is that external hiring may produce animosity from interior workers who may be looking at the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Production: Given the competitive stress and high top quality job required from the marketing agency, it is advised that Lewis should allow the production system to be a separate function from the marketing device. Since the majority of advertising firms had these two functions as different systems, it makes more feeling to adhere to the norm.

Combination of Advertising And Marketing with Workflows: Considering that Lewis is currently dealing with the advertising and marketing and operations divisions at the same time; it makes sense to incorporate both functions since she has actually been efficiently dealing with both ends. The reality that the two departments already have significant differences over allowance of resources suggests that this integration might be able to bring about consistency specifically as Lewis would be heading both ends.However there are numerous downsides of this relocation particularly as it would put way too much burden over Lewis's shoulders. The reality that Lewis needs to adapt her management style for the advertising department recommends that these two departments would be culturally varied. Lewis might not be able to apply one type of management design to both departments which can result in inefficiency in either one of the 2 functions.

Suggestion.



An analysis of the three choices shows that combination of advertising and marketing and also operations would not be a feasible action due to the huge differences between the two divisions in spite of the fact that currently Lewis is handling both. While separation of the manufacturing function may have been a desirable step for the advertising division, the truth that it would certainly suggest positioning a 3rd function under Lewis's wing suggests this must be avoided.

Activity Plan.
Recommendation
Lewis will take over the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

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

Lewis will certainly separate herself from operations.

A democratic leadership style with staff member empowerment will be used in advertising and marketing division.

Open door plan and focus on cross departmental communication will be aimed at getting rid of disharmony.

Backup strategy.

If the integration does not work out as planned, a contingency strategy would certainly follow which would certainly divide the production feature from the advertising and marketing feature to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the marketing division without an SVP. In that case the manufacturing feature will most definitely be separated by positioning it under an SVP manufacturing.