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Keystone Xl Pipeline Case Study Solution

Background and Facts

Keystone Xl Pipeline a workplace materials seller for little and medium sized services has lately been involved in preparing for a merging with its competitor Home Deport, which has impacted efficiency degrees in departmentswith the elderly supervisor involved in legal problems presented by the federal Trade Payment. With the Marketing Head advancing the news of his separation from the business in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the future. With difficulties in the type of a possible social change and also reduced worker morale, the organization needs a total reengineering initiative at the marketing department.

Issue Statement
Porter's 5 Forces Analysis
The potential cultural modification at the marketing department of Keystone Xl Pipeline is increasing uncertainty in the workplace leading to different difficulties for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing calculated decisions since Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Trade Commission's treatment at the same time. Offered the fact that the shop has a worldwide visibility with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these nations might be able to impact performance or calculated objectives. Federal Profession Payment's antitrust fit versus the merger used up beneficial time of the organization's senior management recommending that 'political' factors can have serious implications for an international company.

Economic Factors: Economic factors such as the appearance of small businesses in the international scenario recommend that Keystone Xl Pipeline is prospering in an environment where there is potential development of organisations. In addition to this, reality that shop customers are mostly looking for office products for office suggests that the marketplace has a rising trend of entrepreneurs as well as home services.

Social factors: Social fads in the economic climate reveal that consumers are looking for comfort in addition to appealing costs. Market research shows how the consumer for Keystone Xl Pipeline does not have recognition about locating remedies which can supply a mix of convenience and also inexpensive.

Technical factors: Technology plays a vital duty in Keystone Xl Pipeline's business technique specifically as the company is piloting Technology centers which would supply innovation sales and assistance in the type of memory upgrades, outer setups. (Recap of PARASITE in appendix 2).

OB Issues as well as Effects.

Numerous underlying Organizational Actions problems can be seen in Keystone Xl Pipeline's case as highlighted in this area.

Worries concerning cultural change: There is concern about a cultural adjustment that would certainly happen as soon as Todd Krasnow leaves from his setting as the Exec Vice President of Advertising And Marketing with the majority of the personnel already revealing unhappiness over this prospective step. This predicted change has created stress in the workplace which has been coupled with the past stress of preparing the company for a potential merger with Residence Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is shortage of employees that can match the difficult environment of a hectic organization. Not just does this cause problem in finding the ideal individuals, it places stress on brand-new hires as can not stand up to the rate and pressure that the company anticipates them to bear.

Twin Coverage Lines: Newcomers locate this organizational society difficult and also difficult to handle particularly as populated line partnerships are indicated to be weaker generally and objective setup as well as performance analysis is still done by the solid line manager. This implies that beginners might shed clarity concerning their particular roles and also objectives particularly as dotted line coverage does not maintain them in direct interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles although it had been speculated that the last would take Krasnow's setting came as a blow to her spirits. Lewis might have been capable and also proper for the task yet the reality that Kransnow's departure would make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Anxiety & Job Insecurity: Concern as well as insecurity can be determined as 2 significant worries that Lewis would certainly be managing especially as the merging has actually now be terminated and two elderly executives of the advertising division would be leaving. The entire obligation of the department would certainly be falling on Lewis's shoulders that would certainly not simply be in charge of brining about a social adjustment but would certainly additionally need to prove herself in her brand-new role.

Inappropriate Management Style of Leader: Lewis's management style as well as its incompatibility with the advertising department's role can additionally be seen as an OB challenge especially as she has been utilized to managing issues in the operations division where employees are educated to focus on procedures and also get them right. The marketing department on the various other hand can be viewed as a team of people who are utilized to being nurtured by Krasnow who focused much more on outcome than procedures.

Interdepartmental Differences: Interdepartmental disagreements in between 3 divisions, marketing, merchandizing and also procedures respectively over the allowance of the marketing mix can be identified as another OB concern. Although the advertising division does not share the exact same vision as the various other 2 departments pertaining to the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and procedures departments do not concur over the advertising and marketing mix allowance among one another either.

Fragmentation in Advertising Department: Fragmentation between the advertising and marketing divisions can be determined as an additional OB concern which could require more focus. The fact that the marketing and advertising areas in the marketing department are separated is protecting against both departments from obtaining from each other's experience and knowledge. Combination of marketing with merchandising and procedures would become harder if the marketing division itself is disintegrated which can be one more potential OB problem.

Keystone Xl Pipeline Analysis

Numerous theories have actually been made use of to clarify the conditions to obtain additional clearness regarding the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of managers think that juniors are passive and lazy, have little ambition and also withstand change. The scenario at Keystone Xl Pipeline is not totally adhering to Concept X, it can be seen that brand-new hires are locating this environment rather difficult which might at some point lead to a greater inclination of the management in the direction of Theory X. Also while analyzing Lewis's monitoring design, concept X might have been ideal in the procedures division to some degree however the Marketing division would certainly call for reliance on Theory Y in order to get the creative thinking and originality from the teams.

Tuckman's Synergy Theory: As far as Lewis's issue regarding bringing consistency between the advertising and marketing and also advertising and marketing department is concerned, this would originally lead to clash as discussed by Bruce Tuckman in his 'Team effort Concept'. By integrating the advertising and also marketing division's work, there may be the very same initial separate which could lead to the second phase of 'storming' where the teams test one another.

Bridges' Shift Design: According To William Bridge's concept (appendix 4), people are quite unpleasant with adjustment, which is obvious by the situation at Keystone Xl Pipeline The scenario can be viewed as a typical program of life if is studied as per Bridge's concept where he describes that individuals go through 3 phases of change when they experience change. 'Closing, shedding as well as Releasing', The Neutral Area and 'The New Starting' (Bridges, 2004). When people exist with adjustment, they enter phase one and so there may be emotions like unhappiness, uncertainty, stress, temper, worry, denial as well as disorientation.The situation at the marketing division of Keystone Xl Pipeline is comparable so Lewis can get comfortable with the suggestion that it is not remarkable actions. In the second phase, there might be a need to connect the gap between the new and old society so Lewis may need to face this challenge when Krasnow leaves. There may be low spirits and also low productivity at this stage which ought to not be taken as a problem. It is during this phase that Lewis will certainly have to give advice to the department to ensure that they can discover an orientation. It can be seen how Krasnow has already made this change less complicated by making Lewis obtain associated with the department a year before his real separation. As per Bridges' Version, phase three will certainly bring about openness to learning, High power and also commitment as individuals will accept the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has goes over the relevance of 'protection requires as being a reduced degree demand of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to really feel protected and out of danger' is at the second level of demands. Before an employee can be made to develop mentally, he needs to have his 'Physical 'and also 'Safety and security' requires met.

SWOT Analysis for Keystone Xl Pipeline Case Study

Ramification of Analysis.

The OB analysis has actually taken a look at numerous concepts to recognize just how to deal with the current circumstance available. The following three options have actually been suggested to aid Lewis manage the organizational obstacles in the advertising and marketing department. Each of these choices has actually been suggested for reducing the transition needed to bring the advertising division in line with the demands of the marketplace and for making the social modification that would certainly adhere to as soon as the present leader leaves.

Integration of advertising and marketing functions. Dividing Adverting and Production functions. Combination of Advertising And Marketing with Workflow.

Evaluation of Alternatives.

Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merging days has knowledge in business-to-business advertising and marketing along with firm and retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to manage both advertising and marketing and also advertising and marketing functions.

The advantage of this approach is that it will integrate the two functions while decreasing the need for working with an additional source for advertising and marketing. Lewis would be heading the marketing department as well as in any case her replacement would certainly be required for the current duty that she is executing. The disadvantage of this alternative is that outside hiring may produce resentment from inner employees that may be considering the setting of EVP after Lewis takes over Krasnow's position.

Separating Adverting and also Production: Offered the affordable pressures as well as high quality work called for from the ad agency, it is advised that Lewis needs to allow the manufacturing system to be a separate feature from the advertising and marketing system. Considering that many ad agency had these 2 functions as different units, it makes more sense to adhere to the standard. Both functions may be able to focus on their core turns on a lot more efficiently. The disadvantage of this approach would be that extra expenses would certainly have to be borne for establishing up separate manufacturing features. A manufacturing head might have to be employed which could boost expenses for the company.

Combination of Marketing with Procedures: Given that Lewis is currently taking care of the marketing and operations departments at the same time; it makes sense to integrate the 2 features considering that she has actually been efficiently taking care of both ends. The truth that Lewis has to adjust her monitoring style for the marketing division suggests that these two departments would certainly be culturally diverse.


An evaluation of the three choices shows that integration of advertising and marketing and also operations would certainly not be a feasible relocation due to the substantial distinctions between the 2 divisions in spite of the fact that currently Lewis is managing both. While separation of the production feature might have been a favorable relocation for the advertising department, the fact that it would certainly mean placing a 3rd feature under Lewis's wing suggests this ought to be prevented.

Activity Strategy.
Lewis will certainly take over the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

Production feature will certainly continue to be component of marketing under marketing feature.

Lewis will separate herself from procedures.

A democratic leadership style with employee empowerment will be used in advertising department.

Open door policy as well as focus on cross departmental communication will certainly be focused on eliminating dissonance.

Contingency plan.

If the combination does not exercise as prepared, a contingency strategy would comply with which would divide the production function from the advertising and marketing feature to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising and marketing department without an SVP. Because case the manufacturing function will definitely be separated by positioning it under an SVP manufacturing.