International Paper The Aussedat Rey Acquisition Case Study Solution


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International Paper The Aussedat Rey Acquisition Case Study Analysis

Background and Facts

International Paper The Aussedat Rey Acquisition a workplace products store for small and average sized services has lately been associated with preparing for a merging with its competitor House Deport, which has actually impacted performance degrees in departmentswith the senior supervisor involved in legal issues put forth by the federal Trade Compensation. With the Advertising and marketing Head putting forward the information of his departure from the business in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the function in the future. With difficulties in the type of a possible cultural change and also low employee spirits, the company needs a total reengineering initiative at the advertising and marketing department.

Trouble Declaration

The potential social adjustment at the advertising department of International Paper The Aussedat Rey Acquisition is increasing unpredictability in the workplace causing different difficulties for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in affecting tactical decisions considering that Stapes Inc. needed to desert its strategies of merging with Office Deport after the Federal Trade Commission's treatment in the process. Given the fact that the shop has a global existence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these countries may be able to affect efficiency or strategic objectives. Federal Profession Payment's antitrust fit against the merger used up beneficial time of the company's senior administration recommending that 'political' factors can have severe ramifications for a worldwide organisation.

Economic Factors: Economic factors such as the introduction of small businesses in the global circumstance recommend that International Paper The Aussedat Rey Acquisition is flourishing in an atmosphere where there is potential growth of businesses. Along with this, truth that shop consumers are mainly seeking workplace products for home offices suggests that the marketplace has an increasing pattern of entrepreneurs and home based businesses.

Social factors: Social patterns in the economic climate show that clients are seeking benefit in addition to appealing costs. Market research demonstrates how the customer for International Paper The Aussedat Rey Acquisition lacks understanding regarding finding options which can provide a mix of benefit and low costs.

Technological factors: Technology plays an essential function in International Paper The Aussedat Rey Acquisition's organisation technique specifically as the company is piloting Innovation facilities which would certainly use technology sales as well as assistance in the form of memory upgrades, outer setups. (Summary of BUG in appendix 2).

OB Issues and also Manifestations.

A number of underlying Organizational Behavior issues can be seen in International Paper The Aussedat Rey Acquisition's case as highlighted in this area.

Worries regarding social modification: There is uneasiness regarding a cultural change that would occur when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising with a lot of the team member currently revealing discontent over this potential move. This anticipated modification has produced tension in the work environment which has been coupled with the past stress and anxiety of preparing the company for a prospective merger with Home Deport.

Demanding Task Environment for Newcomers: There is shortage of employees that can match the stressful environment of a fast-paced company. Not only does this cause difficulty in locating the best people, it places tension on new hires as can not stand up to the pace and also pressure that the company anticipates them to bear.

Double Reporting Lines: Newcomers locate this business culture troublesome and hard to manage particularly as populated line partnerships are suggested to be weaker generally and objective setup and also performance analysis is still done by the strong line manager. This suggests that beginners might lose clarity regarding their particular roles as well as goals especially as dotted line reporting does not keep them in straight interaction with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles although it had actually been guessed that the last would certainly take Krasnow's position came as an impact to her morale. Lewis may have been qualified and also proper for the task yet the fact that Kransnow's separation would make Coles a straight record to Lewis may have been the factor for Coles' resignation from services.

Fear & Work Insecurity: Anxiety as well as instability can be recognized as two significant issues that Lewis would certainly be dealing with particularly as the merging has actually now be cancelled and also 2 senior execs of the marketing department would certainly be leaving. The entire responsibility of the division would certainly be dropping on Lewis's shoulders who would not just supervise of brining about a cultural adjustment however would additionally need to prove herself in her new function.

Inappropriate Monitoring Design of Leader: Lewis's administration design as well as its conflict with the advertising and marketing division's function can likewise be seen as an OB obstacle particularly as she has been utilized to managing problems in the procedures division where workers are shown to concentrate on processes and get them. The advertising department on the various other hand can be viewed as a team of people that are used to being supported by Krasnow that concentrated a lot more on result than processes.

Interdepartmental Disputes: Interdepartmental arguments in between three divisions, advertising and marketing, merchandizing and procedures respectively over the allotment of the advertising mix can be recognized as an additional OB problem. Although the advertising department does not share the same vision as the various other 2 departments relating to the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing as well as procedures divisions do not concur over the advertising mix allocation among each other either.

Disintegration in Marketing Division: Disintegration between the advertising and marketing departments can be recognized as another OB concern which might need more focus. The fact that the advertising and marketing sections in the advertising department are disconnected is preventing both divisions from getting from each other's experience and experience. Combination of advertising and marketing with retailing and also procedures would certainly come to be harder if the advertising and marketing department itself is broken down which can be an additional possible OB worry.

International Paper The Aussedat Rey Acquisition Analysis

Numerous concepts have been made use of to describe the conditions to get additional quality concerning the scenario handy.

McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors believe that staffs are passive and careless, have little aspiration as well as stand up to change. The tough version of this theory stressed threat, limited controls, risks and also penalties. In time it creates reduced productivity, subtle sabotage and also competition (Bargain, 2003). Although the situation at International Paper The Aussedat Rey Acquisition is not entirely following Concept X, it can be seen that new hires are locating this setting instead difficult which might eventually cause a higher inclination of the management towards Concept X. According to McGregor's advocated sight, which he called Theory Y, the crucial job of the management is to arrange business conditions to make sure that individuals can accomplish their very own objectives best by routing their initiatives towards business incentives. If individuals discover no contentment in their work, the management would certainly have little selection but to count on theory X and exterior control (Deal, 2003). Also while assessing Lewis's administration design, concept X might have been suitable in the procedures department to some extent but the Advertising division would require dependence on Theory Y in order to get the creative thinking and also originality from the groups.

Tuckman's Synergy Concept: As much as Lewis's worry about bringing consistency between the advertising and also marketing department is concerned, this would initially lead to conflict as reviewed by Bruce Tuckman in his 'Teamwork Theory'. By combining the advertising and marketing and marketing department's job, there might be the very same preliminary detach which can lead to the 2nd stage of 'storming' where the teams challenge one another.

When individuals are offered with modification, they enter phase one as well as so there may be emotions like unhappiness, unpredictability, disappointment, anger, worry, rejection and disorientation.The situation at the marketing department of International Paper The Aussedat Rey Acquisition is similar so Lewis can obtain comfortable with the suggestion that it is not extraordinary habits. It is throughout this stage that Lewis will have to give assistance to the division so that they can discover a feeling of direction. It can be seen just how Krasnow has currently made this change easier by making Lewis get involved in the department a year before his real separation.

Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has reviews the value of 'safety and security requires as being a lower level need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel safe and out of threat' is at the second level of demands. Before an employee can be made to create emotionally, he requires to have his 'Physiological 'as well as 'Safety and security' requires fulfilled.

SWOT Analysis for International Paper The Aussedat Rey Acquisition Case Study

Effects of Analysis.

The OB analysis has actually checked out various concepts to recognize how to cope with the existing situation at hand. The adhering to 3 alternatives have actually been suggested to assist Lewis deal with the organizational obstacles in the advertising and marketing department. Each of these choices has been proposed for alleviating the change needed to bring the marketing division in accordance with the demands of the marketplace and for making the social modification that would certainly comply with once the existing leader leaves.

Assimilation of advertising and marketing features. Dividing Adverting as well as Manufacturing features. Integration of Marketing with Operations.

Analysis of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merger days has proficiency in business-to-business advertising and marketing along with firm as well as retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to take care of both advertising and marketing as well as marketing features.

The benefit of this technique is that it will certainly incorporate both functions while minimizing the demand for employing an additional source for advertising. In addition to this, Lewis would certainly be heading the advertising department and also regardless her replacement would certainly be needed for the existing duty that she is executing. The drawback of this option is that external hiring may bring about animosity from internal personnel who might be looking at the position of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and Manufacturing: Offered the affordable pressures as well as high quality job called for from the advertising firm, it is suggested that Lewis ought to enable the manufacturing unit to be a separate function from the marketing system. Considering that many advertising and marketing firms had these 2 features as different units, it makes more feeling to adhere to the standard.

Integration of Advertising And Marketing with Operations: Given that Lewis is currently taking care of the marketing and also operations departments simultaneously; it makes feeling to integrate the two features since she has been efficiently taking treatment of both ends. The fact that Lewis has to adapt her management style for the advertising division suggests that these two departments would be culturally varied.


An examination of the 3 choices indicates that assimilation of advertising as well as procedures would not be a practical action due to the vast differences between both divisions despite the fact that presently Lewis is dealing with both. While separation of the manufacturing function might have been a favorable action for the marketing division, the reality that it would mean placing a third function under Lewis's wing means this must be avoided too. The combination of the advertising and marketing division is the very best alternative in terms of getting the optimal arise from the department. An activity plan for this choice is talked about listed below.

Activity Plan.

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

Marketing and advertising features would certainly be merged.

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

Production function will remain part of advertising under advertising feature.

Lewis will divide herself from operations.

An autonomous leadership design with staff member empowerment will be made use of in advertising and marketing department.

Open up door policy and also emphasis on cross departmental interaction will be targeted at removing dissonance.

Backup plan.

If the assimilation does not exercise as intended, a backup plan would certainly adhere to which would divide the manufacturing function from the marketing function to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising and marketing division without an SVP. In that case the manufacturing function will certainly be divided by positioning it under an SVP manufacturing.