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International Lobbying And The Dow Chemical Company A Case Study Analysis

Background and Facts

International Lobbying And The Dow Chemical Company A an office products seller for little and medium sized companies has actually recently been associated with preparing for a merging with its rival Residence Deport, which has influenced effectiveness levels in departmentswith the elderly supervisor involved in legal complications presented by the government Trade Commission. With the Marketing Head advancing the information of his separation from the business in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the function in the future. With obstacles in the kind of a potential cultural adjustment as well as reduced employee morale, the organization requires a full reengineering effort at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural change at the advertising division of International Lobbying And The Dow Chemical Company A is raising uncertainty in the workplace resulting in different obstacles for the Jeannie Lewis that would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in impacting calculated choices given that Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Profession Commission's intervention at the same time. Offered the fact that the store has a global existence with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these nations might be able to impact efficiency or calculated objectives. Federal Profession Payment's antitrust suit versus the merging took up important time of the company's senior administration recommending that 'political' factors can have serious implications for a worldwide business.

Economic Factors: Financial factors such as the appearance of local business in the international circumstance recommend that International Lobbying And The Dow Chemical Company A is flourishing in a setting where there is potential development of services. In addition to this, truth that shop consumers are mainly trying to find office products for office suggests that the market has an increasing fad of business owners and also online organisations.

Social factors: Social fads in the economic climate reveal that customers are looking for comfort in addition to appealing prices. Marketing research shows how the customer for International Lobbying And The Dow Chemical Company A lacks awareness regarding locating services which can provide a combination of benefit and low costs.

Technical factors: Technology plays a vital function in International Lobbying And The Dow Chemical Company A's company approach particularly as the company is piloting Innovation facilities which would offer innovation sales as well as support in the kind of memory upgrades, outer setups. (Recap of BUG in appendix 2).

OB Issues and also Effects.

Several underlying Business Habits problems can be seen in International Lobbying And The Dow Chemical Company A's case as highlighted in this area.

Uneasiness about cultural change: There is worry concerning a social modification that would certainly take place when Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Marketing with most of the employee currently showing discontent over this potential relocation. This predicted adjustment has actually developed tension in the office which has actually been paired with the previous tension of preparing the company for a potential merger with Residence Deport.
Pest Analysis
Demanding Work Setting for Newcomers: There is shortage of personnel that can match the demanding setting of a busy organization. Not just does this cause difficulty in locating the right people, it puts anxiety on new hires as can not stand up to the rate and stress that the company anticipates them to birth.

Dual Coverage Lines: Newcomers locate this organizational culture cumbersome as well as tough to handle especially as dotted line relationships are indicated to be weak generally and also objective setup as well as performance assessment is still done by the solid line manager. This means that newcomers can lose quality regarding their corresponding functions and also purposes particularly as populated line coverage does not keep them in straight interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles even though it had been guessed that the last would certainly take Krasnow's placement came as a strike to her morale. Lewis may have been qualified and also ideal for the task but the fact that Kransnow's separation would make Coles a straight record to Lewis might have been the reason for Coles' resignation from services.

Anxiety & Task Instability: Concern and insecurity can be recognized as 2 significant problems that Lewis would certainly be dealing with specifically as the merger has actually now be cancelled and also two senior executives of the advertising division would certainly be leaving. The whole obligation of the department would certainly be falling on Lewis's shoulders who would certainly not simply be in charge of brining concerning a social change however would certainly also need to verify herself in her brand-new role.

Incompatible Management Style of Leader: Lewis's monitoring design and its conflict with the advertising and marketing division's function can likewise be seen as an OB obstacle particularly as she has actually been utilized to dealing with concerns in the procedures division where employees are shown to concentrate on procedures and also obtain them right. The marketing department on the various other hand can be viewed as a team of individuals who are used to being supported by Krasnow that focused much more on output than procedures.

Interdepartmental Arguments: Interdepartmental arguments in between three divisions, advertising, merchandizing and operations specifically over the appropriation of the advertising mix can be identified as one more OB issue. Although the advertising and marketing department does not share the very same vision as the various other two departments relating to the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing as well as operations divisions do not agree over the advertising mix appropriation amongst one another either.

Disintegration in Advertising Division: Disintegration between the advertising and marketing divisions can be identified as an additional OB concern which might require additional interest. The reality that the advertising and marketing sections in the advertising division are detached is avoiding both divisions from obtaining from each other's experience as well as proficiency. Integration of marketing with merchandising and procedures would come to be harder if the marketing division itself is broken down which can be another prospective OB problem.

International Lobbying And The Dow Chemical Company A Analysis

Numerous concepts have been made use of to clarify the conditions to obtain additional clarity about the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many supervisors believe that juniors are passive and careless, have little passion as well as withstand change. The difficult variation of this theory stressed threat, limited controls, dangers and penalties. In time it generates reduced efficiency, refined sabotage as well as competition (Offer, 2003). Although the circumstance at International Lobbying And The Dow Chemical Company A is not entirely following Theory X, it can be seen that new hires are locating this environment instead stressful which may at some point result in a higher disposition of the monitoring in the direction of Theory X. According to McGregor's advocated view, which he called Concept Y, the necessary job of the monitoring is to organize organizational conditions to make sure that individuals can attain their very own objectives best by directing their initiatives in the direction of organizational benefits. If people find no contentment in their job, the administration would certainly have little choice however to rely on concept X and also outside control (Bargain, 2003). Also while assessing Lewis's administration style, theory X might have appropriated in the operations department to some extent yet the Marketing department would certainly need reliance on Concept Y in order to get the creative thinking and originality from the groups.

Tuckman's Synergy Concept: As far as Lewis's problem about bringing consistency between the marketing and advertising division is worried, this would originally bring about contrast as reviewed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). According to Tuckman's theory received appendix 3, during the preliminary stage of team advancement, individuals might not bond, as they are active discovering their place in the group. By incorporating the advertising and marketing division's job, there might be the same preliminary detach which can bring about the second phase of 'storming' where the groups challenge each other. It is only during the 3rd stage or 'norming' when they would certainly come together to share ideas prior to the team can bring around harmony in the fourth phase 'carrying out'.

When individuals are presented with change, they get in phase one as well as so there may be emotions like unhappiness, uncertainty, aggravation, rage, concern, rejection and also disorientation.The circumstance at the marketing department of International Lobbying And The Dow Chemical Company A is similar so Lewis can obtain comfortable with the suggestion that it is not extraordinary actions. It is during this phase that Lewis will have to provide assistance to the division so that they can discover a sense of direction. It can be seen exactly how Krasnow has actually already made this change easier by making Lewis obtain included in the division a year prior to his actual separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has goes over the relevance of 'safety and security requires as being a lower degree requirement of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel secure and out of threat' is at the second degree of requirements. Before an employee can be made to establish emotionally, he needs to have his 'Physical 'as well as 'Security' requires satisfied.

SWOT Analysis for International Lobbying And The Dow Chemical Company A Case Study



Effects of Analysis.

The OB analysis has actually considered numerous concepts to understand how to cope with the current situation available. The adhering to 3 options have been proposed to aid Lewis deal with the business challenges in the marketing division. Each of these options has been recommended for easing the shift required to bring the marketing division according to the demands of the marketplace as well as for making the cultural adjustment that would certainly comply with as soon as the current leader leaves.

Assimilation of advertising and marketing functions. Dividing Adverting and Manufacturing features. Integration of Advertising And Marketing with Procedures.

Evaluation of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merger days has expertise in business-to-business marketing along with firm as well as retail advertising experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to deal with both advertising as well as advertising functions.

The benefit of this method is that it will incorporate the two features while lowering the requirement for hiring an added resource for advertising. In addition to this, Lewis would certainly be heading the advertising division and also in any case her replacement would certainly be needed for the existing role that she is executing. The negative aspect of this choice is that external hiring might produce resentment from inner personnel that may be considering the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting as well as Manufacturing: Provided the competitive pressures and also high quality work called for from the advertising firm, it is suggested that Lewis must permit the production device to be a different function from the marketing unit. Because a lot of marketing agencies had these two features as separate units, it makes more feeling to comply with the norm.

Integration of Marketing with Operations: Because Lewis is currently taking care of the marketing and also operations divisions simultaneously; it makes feeling to integrate the two functions considering that she has been successfully taking care of both ends. The truth that Lewis has to adapt her monitoring design for the advertising department recommends that these two departments would be culturally diverse.

Suggestion.



An examination of the 3 alternatives suggests that integration of marketing and also operations would certainly not be a practical move due to the large distinctions in between the 2 departments in spite of the truth that presently Lewis is taking care of both. While splitting up of the manufacturing feature may have been a beneficial step for the advertising and marketing department, the reality that it would mean putting a third function under Lewis's wing means this need to be avoided.

Activity Strategy.
Recommendation
Lewis will certainly take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

Manufacturing feature will remain part of advertising and marketing under advertising and marketing feature.

Lewis will certainly divide herself from operations.

An autonomous leadership design with employee empowerment will certainly be utilized in advertising and marketing department.

Open up door policy and emphasis on cross departmental communication will certainly be aimed at eliminating dissonance.

Contingency strategy.

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