Intel Pentium Chip Controversy A Case Study Help


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Intel Pentium Chip Controversy A Case Study Solution

Background and Facts

Intel Pentium Chip Controversy A an office materials store for tiny and also moderate sized companies has actually recently been involved in planning for a merger with its competitor Home Deport, which has actually influenced performance levels in departmentswith the senior supervisor involved in legal problems put forth by the government Profession Payment. With the Advertising and marketing Head advancing the information of his departure from the firm in one year, Jeannie Lewis, the present head of operations has been asked to take the duty in the near future. With difficulties in the kind of a potential cultural adjustment and low staff member morale, the company requires a complete reengineering effort at the advertising and marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The possible cultural change at the advertising and marketing division of Intel Pentium Chip Controversy A is boosting uncertainty in the working environment resulting in numerous obstacles for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting critical choices because Stapes Inc. needed to desert its strategies of merging with Office Deport after the Federal Profession Payment's treatment at the same time. Given the reality that the shop has a global visibility with branches in UK, U.S.A., Canada and also Germany, political consider each of these countries might have the ability to impact efficiency or critical goals. Federal Trade Payment's antitrust fit against the merging took up important time of the company's elderly management recommending that 'political' factors can have major implications for a global business.

Economic Factors: Economic factors such as the introduction of small businesses in the global circumstance recommend that Intel Pentium Chip Controversy A is thriving in an atmosphere where there is prospective growth of services. Truth that shop clients are mainly looking for workplace supplies for home workplaces suggests that the market has an increasing pattern of entrepreneurs as well as home based services.

Social factors: Social patterns in the economic climate show that clients are looking for ease as well as attractive costs. Marketing research demonstrates how the consumer for Intel Pentium Chip Controversy A lacks understanding concerning finding services which can supply a combination of comfort and affordable.

Technological factors: Technology plays a crucial role in Intel Pentium Chip Controversy A's company method especially as the company is piloting Innovation facilities which would provide modern technology sales as well as support in the kind of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues as well as Effects.

A number of underlying Business Actions concerns can be seen in Intel Pentium Chip Controversy A's case as highlighted in this area.

Concerns concerning cultural change: There is worry about a social adjustment that would certainly occur once Todd Krasnow leaves from his position as the Executive Vice President of Advertising with most of the personnel currently revealing unhappiness over this possible action. This anticipated change has actually produced tension in the work environment which has actually been paired with the previous stress and anxiety of preparing the firm for a prospective merger with Home Deport.
Pest Analysis
Stressful Task Setting for Newcomers: There is lack of employees that can match the demanding setting of a hectic organization. Not only does this lead to trouble in discovering the best people, it puts tension on new hires as can not hold up against the rate and also stress that the company expects them to birth.

Twin Coverage Lines: Novices locate this organizational culture cumbersome and also difficult to handle especially as populated line connections are suggested to be weaker as a whole as well as unbiased setup as well as performance assessment is still done by the solid line supervisor. This means that novices could lose clarity about their corresponding functions as well as objectives particularly as dotted line reporting does not maintain them in direct communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been speculated that the last would certainly take Krasnow's placement came as a blow to her spirits. Lewis may have been qualified as well as ideal for the task yet the reality that Kransnow's separation would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from services.

Concern & Job Insecurity: Anxiety as well as instability can be identified as two major problems that Lewis would certainly be taking care of particularly as the merger has actually currently be cancelled and two elderly execs of the marketing department would be leaving. The entire responsibility of the department would certainly be falling on Lewis's shoulders who would not simply be in charge of brining about a social adjustment however would additionally have to verify herself in her new function.

Incompatible Administration Design of Leader: Lewis's monitoring style as well as its conflict with the advertising department's function can additionally be seen as an OB obstacle particularly as she has actually been made use of to taking care of problems in the procedures division where employees 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 individuals who are utilized to being supported by Krasnow that concentrated more on output than processes.

Interdepartmental Arguments: Interdepartmental arguments in between 3 departments, advertising and marketing, merchandizing and also operations respectively over the allowance of the advertising and marketing mix can be recognized as one more OB issue. Although the advertising department does not share the exact same vision as the other 2 departments concerning the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing and operations departments do not agree over the marketing mix allocation among each other either.

Fragmentation in Advertising And Marketing Division: Fragmentation in between the advertising and marketing departments can be determined as an additional OB concern which can require more attention. The truth that the advertising and marketing sections in the advertising division are disconnected is preventing both departments from obtaining from each various other's experience as well as competence. Combination of advertising with merchandising and procedures would become more difficult if the marketing department itself is degenerated which can be one more possible OB issue.

Intel Pentium Chip Controversy A Analysis

Numerous theories have actually been utilized to explain the circumstances to obtain further clearness about the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most supervisors think that juniors are easy and also careless, have little aspiration as well as stand up to adjustment. The tough variation of this concept emphasized coercion, limited controls, hazards and also punishments. Gradually it generates low performance, subtle sabotage as well as competition (Deal, 2003). The situation at Intel Pentium Chip Controversy A is not totally adhering to Concept X, it can be seen that brand-new hires are discovering this atmosphere instead stressful which may at some point lead to a greater inclination of the administration in the direction of Theory X. Based on McGregor's promoted sight, which he called Concept Y, the necessary task of the management is to organize organizational conditions to make sure that individuals can attain their own objectives best by routing their efforts in the direction of organizational benefits. If people find no fulfillment in their work, the management would certainly have little option however to rely upon concept X and also outside control (Bargain, 2003). Even while analyzing Lewis's administration design, concept X may have appropriated in the procedures department somewhat yet the Advertising and marketing department would certainly require reliance on Concept Y to get the imagination as well as creativity from the groups.

Tuckman's Synergy Theory: Regarding Lewis's worry concerning bringing harmony in between the advertising and marketing division is concerned, this would at first bring about clash as talked about by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). As per Tuckman's theory shown in appendix 3, throughout the preliminary stage of group advancement, individuals might not bond, as they are busy locating their area in the group. By combining the marketing and advertising division's work, there may coincide first separate which can result in the second phase of 'storming' where the teams challenge one another. It is only throughout the third phase or 'norming' when they would certainly come together to share concepts before the team can bring around harmony in the fourth phase 'carrying out'.

When people are provided with modification, they enter stage one as well as so there may be emotions like unhappiness, uncertainty, irritation, temper, fear, rejection and disorientation.The circumstance at the advertising and marketing division of Intel Pentium Chip Controversy A is comparable so Lewis can get comfy with the concept that it is not remarkable actions. It is throughout this phase that Lewis will certainly have to provide support to the department so that they can locate a sense of instructions. It can be seen just how Krasnow has currently made this shift easier by making Lewis obtain entailed in the department a year before his real separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has discusses the relevance of 'safety requires as being a reduced level demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel protected and also out of risk' is at the 2nd level of requirements. Before a worker can be made to develop psychologically, he requires to have his 'Physical 'and also 'Safety' needs fulfilled.

SWOT Analysis for Intel Pentium Chip Controversy A Case Study

Effects of Analysis.

The OB analysis has considered various concepts to recognize just how to cope with the present situation handy. The adhering to 3 choices have actually been suggested to assist Lewis deal with the organizational difficulties in the marketing department. Each of these options has actually been recommended for alleviating the change required to bring the advertising and marketing department according to the needs of the marketplace and for making the social adjustment that would follow once the existing leader leaves.

Assimilation of advertising and marketing features. Dividing Adverting and also Production functions. Assimilation of Marketing with Operations.

Analysis of Alternatives.

Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merging days has know-how in business-to-business advertising and marketing along with company and also retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to take care of both advertising and marketing as well as marketing features.

The benefit of this strategy is that it will integrate the two functions while lowering the need for hiring an added resource for marketing. Along with this, Lewis would certainly be heading the advertising and marketing department as well as all the same her substitute would be required for the present function that she is executing. The negative aspect of this choice is that outside hiring might cause resentment from internal employees that may be considering the setting of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting as well as Production: Given the affordable stress and high quality work called for from the marketing firm, it is recommended that Lewis ought to enable the manufacturing unit to be a separate function from the marketing device. Because most advertising and marketing agencies had these two functions as different units, it makes more sense to adhere to the norm.

Integration of Advertising with Operations: Given that Lewis is currently taking care of the advertising as well as operations divisions all at once; it makes sense to incorporate both functions given that she has actually been effectively taking care of both ends. The truth that the two divisions already have major distinctions over allocation of resources suggests that this combination might have the ability to bring about harmony specifically as Lewis would be heading both ends.However there are various downsides of this step especially as it would certainly put excessive worry over Lewis's shoulders. The truth that Lewis needs to adjust her management style for the marketing department recommends that these two divisions would certainly be culturally varied. Along with this, Lewis might not have the ability to apply one kind of leadership style to both divisions which can lead to inadequacy in either one of the two functions.


An analysis of the three alternatives suggests that integration of marketing and also procedures would certainly not be a practical move because of the substantial distinctions between the two divisions despite the fact that currently Lewis is handling both. While splitting up of the manufacturing feature might have been a favorable step for the advertising department, the reality that it would imply placing a 3rd feature under Lewis's wing implies this should be prevented also. The assimilation of the advertising department is the most effective option in terms of getting the optimal arise from the division. An action plan for this option is reviewed listed below.

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

Marketing and advertising features would certainly be merged.

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

Production feature will continue to be part of marketing under advertising and marketing feature.

Lewis will certainly divide herself from operations.

A democratic management design with staff member empowerment will be utilized in advertising department.

Open up door plan as well as focus on cross departmental communication will be focused on getting rid of dissonance.

Contingency plan.

If the integration does not work out as planned, a backup strategy would certainly follow which would certainly divide the production function from the marketing feature to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will be heading the marketing division without an SVP. Because case the manufacturing feature will certainly be divided by putting it under an SVP production.