Kaiser Steel Corp 1984 Case Study Help


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Kaiser Steel Corp 1984 Case Study Help

Background and Facts

Kaiser Steel Corp 1984 an office materials store for tiny as well as medium sized businesses has actually recently been associated with planning for a merger with its rival Home Deport, which has actually impacted effectiveness degrees in departmentswith the senior manager associated with lawful complications presented by the federal Profession Compensation. With the Marketing Head putting forward the news of his separation from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the function in the near future. With obstacles in the type of a possible social modification as well as reduced employee spirits, the organization is in need of a complete reengineering initiative at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The possible cultural modification at the advertising department of Kaiser Steel Corp 1984 is raising uncertainty in the working environment 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 significant role in affecting critical decisions since Stapes Inc. had to abandon its plans of combining with Workplace Deport after the Federal Trade Payment's treatment while doing so. Offered the truth that the shop has an international visibility with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries may be able to influence efficiency or strategic goals. Federal Profession Payment's antitrust suit versus the merging took up important time of the company's elderly administration recommending that 'political' factors can have major effects for a worldwide organisation.

Economic Factors: Financial factors such as the appearance of local business in the global scenario recommend that Kaiser Steel Corp 1984 is thriving in an environment where there is prospective development of organisations. Truth that shop clients are mainly looking for workplace supplies for house workplaces recommends that the market has a rising trend of business owners and also residence based companies.

Social factors: Social fads in the economy show that customers are searching for comfort in addition to attractive prices. Marketing research shows how the consumer for Kaiser Steel Corp 1984 does not have understanding about finding solutions which can offer a mix of ease and also affordable.

Technical factors: Technology plays a crucial role in Kaiser Steel Corp 1984's business method especially as the company is piloting Innovation centers which would offer innovation sales as well as assistance in the kind of memory upgrades, outer installations. (Summary of BUG in appendix 2).

OB Issues as well as Effects.

A number of underlying Business Actions concerns can be seen in Kaiser Steel Corp 1984's case as highlighted in this section.

Worries about cultural modification: There is uneasiness concerning a cultural adjustment that would certainly happen as soon as Todd Krasnow leaves from his placement as the Executive Vice President of Advertising And Marketing with a lot of the staff members currently revealing discontent over this possible relocation. This anticipated modification has actually created stress in the office which has been coupled with the past stress and anxiety of preparing the firm for a potential merger with Residence Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is shortage of personnel that can match the demanding setting of a busy organization. Not only does this lead to problem in locating the appropriate individuals, it places tension on brand-new hires as can not stand up to the pace as well as stress that the organization anticipates them to bear.

Twin Reporting Lines: Beginners discover this organizational society difficult and challenging to manage especially as populated line partnerships are implied to be weak as a whole as well as unbiased setting as well as performance evaluation is still done by the solid line manager. This implies that newbies might shed clarity regarding their corresponding duties and purposes particularly as populated line coverage does not keep them in straight communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles although it had actually been guessed that the last would take Krasnow's setting came as a blow to her spirits. Lewis may have been capable and ideal for the work yet the truth that Kransnow's separation would make Coles a straight record to Lewis may have been the factor for Coles' resignation from services.

Fear & Task Insecurity: Fear as well as instability can be recognized as 2 major worries that Lewis would be taking care of particularly as the merger has actually now be cancelled as well as two senior executives of the advertising and marketing department would be leaving. The entire responsibility of the department would be dropping on Lewis's shoulders that would not just be in charge of brining about a cultural change yet would also have to show herself in her brand-new function.

Inappropriate Management Design of Leader: Lewis's administration design as well as its incompatibility with the advertising department's role can additionally be viewed as an OB obstacle specifically as she has been used to managing concerns in the operations department where workers are shown to concentrate on processes and get them right. The marketing division on the other hand can be viewed as a group of individuals who are used to being supported by Krasnow that focused extra on result than procedures.

Interdepartmental Disagreements: Interdepartmental disputes in between 3 departments, advertising, merchandizing and also operations specifically over the allotment of the advertising mix can be identified as an additional OB concern. Although the advertising and marketing division does not share the exact same vision as the other two departments pertaining to the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and operations divisions do not concur over the marketing mix appropriation among each other either.

Disintegration in Marketing Department: Disintegration in between the marketing and advertising departments can be identified as another OB problem which might need further interest. The reality that the marketing and advertising areas in the advertising and marketing department are disconnected is avoiding both divisions from getting from each various other's experience as well as proficiency. Assimilation of marketing with retailing as well as operations would come to be more difficult if the marketing division itself is disintegrated which can be one more possible OB worry.

Kaiser Steel Corp 1984 Analysis

Different theories have actually been used to explain the situations to get additional clarity about the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most managers think that subordinates are easy as well as lazy, have little ambition and withstand change. The situation at Kaiser Steel Corp 1984 is not totally adhering to Concept X, it can be seen that brand-new hires are discovering this setting rather demanding which might at some point lead to a greater disposition of the monitoring in the direction of Concept X. Even while assessing Lewis's administration design, concept X may have been ideal in the operations division to some level however the Advertising and marketing division would need reliance on Theory Y in order to get the creativity and creativity from the teams.

Tuckman's Team effort Theory: As far as Lewis's worry about bringing consistency between the advertising and marketing and also advertising division is worried, this would at first lead to conflict as gone over by Bruce Tuckman in his 'Synergy Concept'. By incorporating the advertising and also advertising division's work, there may be the very same initial separate which could lead to the 2nd stage of 'storming' where the groups challenge one an additional.

Bridges' Shift Design: Based On William Bridge's concept (appendix 4), people are quite unpleasant with change, which is noticeable by the circumstance at Kaiser Steel Corp 1984 The circumstance can be viewed as a normal training course of life if is studied based on Bridge's concept where he explains that people go through three phases of change when they experience change. 'Ending, losing and Letting go', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When individuals are presented with adjustment, they get in phase one and so there might be emotions like sadness, unpredictability, frustration, temper, anxiety, denial as well as disorientation.The scenario at the marketing division of Kaiser Steel Corp 1984 is comparable so Lewis can get comfy with the concept that it is not remarkable actions. In the second stage, there might be a need to connect the void between the new and also old culture so Lewis may have to encounter this ordeal when Krasnow leaves. There may be low spirits as well as low performance at this stage which ought to not be taken as a trouble. It is throughout this stage that Lewis will have to give advice to the division to ensure that they can locate a sense of direction. It can be seen just how Krasnow has actually already made this shift easier by making Lewis obtain associated with the division a year prior to his actual separation. Based on Bridges' Version, stage 3 will bring about visibility to understanding, High power and commitment as people will embrace the change (Bridges, 2004).
Vrio Analysis
Maslow's Need hierarchy: The OB problem pertaining to insecurity at the work environment has actually been set off to start with by the adjustment in administration as well as second of all by the reality that the merging will no longer be started. Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has goes over the significance of 'protection needs as being a reduced level requirement of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel protected and untouched' is at the second level of requirements. Prior to a worker can be made to create mentally, he requires to have his 'Physical 'and 'Safety and security' needs satisfied. This indicates that unless the personnel are made to really feel safe and secure concerning their present work condition in Kaiser Steel Corp 1984 they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Kaiser Steel Corp 1984 Case Study

Implication of Analysis.

The OB analysis has actually considered different concepts to recognize how to cope with the current scenario handy. The following three options have been proposed to assist Lewis take care of the business challenges in the advertising division. Each of these alternatives has actually been suggested for alleviating the transition needed to bring the advertising and marketing division in accordance with the needs of the market and also for making the cultural adjustment that would follow as soon as the present leader leaves.

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

Analysis of Alternatives.

Integration of Advertising & Advertising Functions: The in-house advertising firm of Kaiser Steel Corp 1984 is already stamina for the organization in regards to conserving up on overheads related to marketing and also promo. Considering that no new employment has actually been done after Bridget Cole's separation with the reporting line being directly assigned to Krasnow for the advertising feature, this is a beneficial opportunity for incorporating the advertising and marketing features. Judith Shapiro that has earlier been interviewed by Lewis during the earlier merger days has proficiency in business-to-business advertising along with company and also retail advertising experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to take care of both marketing and advertising features.

The benefit of this technique is that it will integrate the two functions while lowering the requirement for working with an additional source for advertising. In addition to this, Lewis would be heading the advertising and marketing division as well as in any case her substitute would certainly be needed for the existing duty that she is carrying out. The negative aspect of this choice is that outside hiring might cause animosity from interior personnel who may be looking at the placement of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and also Production: Offered the competitive pressures and high top quality work required from the advertising agency, it is recommended that Lewis should enable the manufacturing system to be a separate function from the advertising and marketing system. Considering that most marketing firms had these two features as separate units, it makes more sense to comply with the standard.

Assimilation of Advertising And Marketing with Operations: Considering that Lewis is currently caring for the marketing and also operations departments at the same time; it makes sense to incorporate the two features considering that she has been effectively looking after both ends. The truth that the two departments already have major differences over appropriation of sources recommends that this integration might be able to cause harmony especially as Lewis would be heading both ends.However there are different negative aspects of this move especially as it would certainly place too much problem over Lewis's shoulders. The reality that Lewis needs to adapt her monitoring design for the advertising and marketing department recommends that these 2 departments would certainly be culturally varied. Lewis might not be able to apply one type of management style to both departments which might result in inefficiency in either one of the two features.


An examination of the 3 options suggests that integration of advertising and also operations would not be a possible relocation due to the vast distinctions in between the two departments despite the fact that presently Lewis is taking care of both. While splitting up of the manufacturing function might have been a positive action for the advertising department, the fact that it would certainly imply positioning a 3rd feature under Lewis's wing suggests this must be stayed clear of.

Action Plan.
Lewis will take over the function of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

Manufacturing feature will certainly remain component of advertising and marketing under advertising feature.

Lewis will divide herself from procedures.

An autonomous leadership design with worker empowerment will certainly be used in advertising department.

Open door policy and also focus on cross department communication will be aimed at eliminating discord.

Contingency plan.

If the integration does not work out as planned, a backup strategy would adhere to which would certainly separate the manufacturing feature from the advertising and marketing feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the marketing department without an SVP. Because case the production feature will definitely be separated by placing it under an SVP production.