Intel Pentium Chip Controversy A Case Study Analysis


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Intel Pentium Chip Controversy A Case Study Analysis

Background and Facts

Intel Pentium Chip Controversy A an office products merchant for tiny and medium sized services has recently been involved in preparing for a merging with its rival Home Deport, which has actually impacted performance degrees in departmentswith the senior manager associated with legal issues put forth by the government Profession Payment. With the Advertising and marketing Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the near future. With obstacles in the form of a prospective cultural change and low employee spirits, the organization wants a total reengineering initiative at the advertising and marketing department.

Issue Statement
Porter's 5 Forces Analysis
The potential social change at the marketing department of Intel Pentium Chip Controversy A is increasing uncertainty in the working environment causing different obstacles for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting critical decisions because Stapes Inc. needed to abandon its plans of combining with Workplace Deport after the Federal Trade Commission's intervention while doing so. Given the truth that the store has an international visibility with branches in UK, USA, Canada as well as Germany, political consider each of these nations might have the ability to influence efficiency or strategic objectives. Federal Profession Compensation's antitrust fit versus the merging took up important time of the company's senior monitoring suggesting that 'political' factors can have severe implications for a global organisation.

Economic Factors: Economic factors such as the appearance of small businesses in the international circumstance recommend that Intel Pentium Chip Controversy A is prospering in a setting where there is prospective growth of services. Along with this, truth that shop clients are mainly looking for office supplies for home offices recommends that the marketplace has an increasing trend of entrepreneurs and home based companies.

Social factors: Social trends in the economic situation reveal that clients are trying to find benefit along with attractive costs. Market research shows how the client for Intel Pentium Chip Controversy A lacks awareness concerning finding solutions which can offer a mix of comfort and affordable.

Technological factors: Innovation plays an important duty in Intel Pentium Chip Controversy A's organisation technique specifically as the organization is piloting Modern technology facilities which would certainly use technology sales as well as assistance in the kind of memory upgrades, peripheral setups. (Recap of INSECT in appendix 2).

OB Issues and Effects.

Numerous underlying Business Habits problems can be seen in Intel Pentium Chip Controversy A's case as highlighted in this area.

Concerns concerning social adjustment: There is concern about a social adjustment that would happen when Todd Krasnow leaves from his position as the Exec Vice President of Advertising with the majority of the employee already showing unhappiness over this potential action. This expected adjustment has created tension in the office which has been paired with the previous anxiety of preparing the firm for a possible merging with House Deport.
Pest Analysis
Difficult Task Atmosphere for Newcomers: There is lack of employees that can match the difficult environment of a busy company. Not just does this lead to problem in discovering the ideal people, it places anxiety 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: Novices discover this business culture cumbersome and also difficult to deal with specifically as populated line partnerships are suggested to be weaker as a whole and unbiased setup as well as performance evaluation is still done by the strong line manager. This indicates that beginners could shed clarity about their corresponding roles as well as purposes specifically as populated line reporting does not keep them in direct interaction with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles even though it had actually been speculated that the latter would certainly take Krasnow's setting came as a blow 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 straight record to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Work Insecurity: Anxiety and insecurity can be identified as 2 major issues that Lewis would be handling especially as the merger has actually currently be terminated and 2 senior execs of the advertising division would certainly be leaving. The whole responsibility of the division would certainly be dropping on Lewis's shoulders who would certainly not simply be in charge of brining regarding a cultural modification yet would certainly additionally have to show herself in her new duty.

Inappropriate Management Design of Leader: Lewis's management design and its conflict with the advertising and marketing department's function can also be viewed as an OB challenge especially as she has been used to handling issues in the operations department where workers are taught to concentrate on procedures as well as obtain them right. The advertising and marketing department on the various other hand can be viewed as a team of people that are used to being supported by Krasnow that concentrated extra on result than procedures.

Interdepartmental Differences: Interdepartmental arguments between three departments, marketing, merchandizing and procedures respectively over the appropriation of the marketing mix can be recognized as an additional OB concern. The advertising department does not share the very same vision as the other 2 departments regarding the aloocation of the marketing mix twoards promos and advertsing, the merchandizing as well as procedures departments do not concur over the advertising and marketing mix allotment amongst one an additional either.

Fragmentation in Advertising And Marketing Division: Fragmentation between the marketing and advertising divisions can be recognized as another OB issue which might need further focus. The truth that the marketing and advertising areas in the advertising department are detached is avoiding both divisions from acquiring from each various other's experience as well as knowledge. Integration of advertising and marketing with merchandising as well as procedures would certainly come to be more difficult if the advertising department itself is broken down which can be an additional prospective OB issue.

Intel Pentium Chip Controversy A Analysis

Various theories have been made use of to describe the scenarios to get additional clarity regarding the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many managers think that juniors are easy and careless, have little aspiration and resist modification. The situation at Intel Pentium Chip Controversy A is not totally complying with Concept X, it can be seen that new hires are discovering this setting instead stressful which may at some point lead to a greater inclination of the management in the direction of Concept X. Also while evaluating Lewis's administration design, concept X may have been appropriate in the procedures division to some degree yet the Marketing division would certainly need reliance on Concept Y in order to get the imagination and also originality from the teams.

Tuckman's Synergy Theory: As for Lewis's concern about bringing harmony between the marketing and advertising division is concerned, this would initially lead to contrast as discussed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, throughout the first stage of group development, people may not bond, as they are hectic discovering their location in the group. By integrating the advertising and marketing division's job, there might coincide preliminary separate which can bring about the second stage of 'storming' where the groups challenge one another. It is only during the third phase or 'norming' when they would come together to share suggestions prior to the group can bring around harmony in the fourth phase 'executing'.

Bridges' Shift Model: As per William Bridge's theory (appendix 4), people are quite unpleasant with adjustment, which is obvious by the circumstance at Intel Pentium Chip Controversy A The circumstance can be seen as a regular course of life if is examined based on Bridge's concept where he describes that individuals experience 3 phases of change when they experience change. 'Closing, shedding and Releasing', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When people are presented with modification, they get in phase one therefore there may be feelings like sadness, uncertainty, aggravation, temper, concern, denial and disorientation.The situation at the advertising and marketing department of Intel Pentium Chip Controversy A is similar so Lewis can obtain comfortable with the suggestion that it is not phenomenal behavior. In the second stage, there may be a need to connect the gap in between the brand-new and old culture so Lewis might need to encounter this ordeal when Krasnow leaves. There might be low spirits and also low efficiency at this stage which should not be taken as a setback. It is during this phase that Lewis will need to provide guidance to the department to ensure that they can find an orientation. It can be seen exactly how Krasnow has actually currently made this transition easier by making Lewis get involved in the department a year prior to his real separation. Based on Bridges' Design, stage three will cause openness to understanding, High power and dedication as individuals will certainly accept the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has goes over the value of 'protection needs as being a lower degree demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel protected and out of danger' is at the 2nd degree of requirements. Before an employee can be made to establish mentally, he requires to have his 'Physiological 'and 'Security' requires fulfilled.

SWOT Analysis for Intel Pentium Chip Controversy A Case Study

Effects of Analysis.

The OB analysis has actually taken a look at different concepts to understand how to handle the present situation at hand. The following 3 options have been recommended to assist Lewis manage the organizational obstacles in the advertising department. Each of these choices has actually been suggested for relieving the transition needed to bring the advertising division according to the requirements of the market and for making the cultural modification that would certainly comply with when the current leader leaves.

Combination of advertising and marketing features. Separating Adverting as well as Manufacturing features. Integration of Advertising with Operations.

Analysis of Alternatives.

Combination of Marketing & Advertising Functions: The in-house advertising agency of Intel Pentium Chip Controversy A is currently toughness for the company in terms of saving up on overheads associated with advertising and marketing and promotion. Considering that no new recruitment has been done after Bridget Cole's departure with the reporting line being directly assigned to Krasnow for the advertising function, this is a beneficial opportunity for incorporating the advertising and marketing functions. Judith Shapiro that has earlier been talked to by Lewis during the earlier merger days has proficiency in business-to-business advertising along with agency and also retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to deal with both advertising and marketing features.

The advantage of this approach is that it will certainly integrate the two functions while reducing the requirement for working with an additional resource for advertising. Along with this, Lewis would be heading the advertising department and in any case her substitute would be needed for the current duty that she is executing. The negative aspect of this option is that outside hiring may produce resentment from internal employees that might be looking at the placement of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Production: Provided the competitive stress as well as high quality work required from the advertising firm, it is recommended that Lewis should allow the production unit to be a separate feature from the advertising unit. Considering that a lot of marketing companies had these 2 functions as different systems, it makes even more feeling to comply with the standard.

Combination of Advertising And Marketing with Procedures: Since Lewis is already taking care of the advertising and also operations departments simultaneously; it makes sense to incorporate the 2 features given that she has actually been effectively taking care of both ends. The truth that Lewis has to adjust her monitoring design for the marketing division suggests that these two departments would be culturally diverse.


An analysis of the 3 alternatives suggests that combination of marketing as well as procedures would not be a viable relocation due to the huge distinctions between the two departments in spite of the fact that currently Lewis is managing both. While separation of the production feature may have been a positive action for the marketing department, the reality that it would suggest positioning a 3rd function under Lewis's wing implies this need to be avoided.

Activity Plan.
Lewis will take control of the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would be merged.

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

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

Lewis will divide herself from operations.

An autonomous management design with employee empowerment will be made use of in advertising department.

Open door plan as well as emphasis on cross department communication will be targeted at getting rid of discord.

Backup strategy.

If the combination does not work out as prepared, a contingency strategy would certainly comply with which would divide the manufacturing feature from the advertising function to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising and marketing division without an SVP. Because case the production feature will most definitely be divided by positioning it under an SVP production.