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Keystone Xl Pipeline Case Study Solution

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Keystone Xl Pipeline Case Study Solution

Background and Facts

Keystone Xl Pipeline an office products retailer for small and moderate sized services has lately been involved in preparing for a merger with its competitor House Deport, which has impacted effectiveness degrees in departmentswith the elderly manager involved in legal problems put forth by the government Profession Compensation. With the Marketing Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the function in the near future. With obstacles in the kind of a prospective cultural modification and also low staff member morale, the organization needs a complete reengineering initiative at the advertising department.

Issue Statement
Porter's 5 Forces Analysis
The possible cultural change at the marketing department of Keystone Xl Pipeline is increasing uncertainty in the working environment resulting in numerous 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 function in influencing tactical decisions considering that Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Profession Payment's treatment while doing so. Given the fact that the shop has an international existence with branches in UK, U.S.A., Canada and Germany, political consider each of these nations might be able to influence performance or strategic objectives. Federal Profession Compensation's antitrust match against the merger took up beneficial time of the organization's elderly management suggesting that 'political' factors can have serious ramifications for a global business.

Economic Factors: Economic factors such as the development of local business in the worldwide circumstance suggest that Keystone Xl Pipeline is flourishing in an environment where there is prospective development of organisations. Along with this, reality that store consumers are mostly looking for workplace materials for office recommends that the market has an increasing pattern of business owners and also online companies.

Social factors: Social patterns in the economic situation show that consumers are trying to find comfort as well as attractive prices. Market research demonstrates how the consumer for Keystone Xl Pipeline does not have recognition concerning finding options which can use a combination of comfort and also low costs.

Technical factors: Technology plays an essential function in Keystone Xl Pipeline's service technique especially as the organization is piloting Modern technology facilities which would certainly offer modern technology sales and assistance in the form of memory upgrades, peripheral installments. (Recap of PARASITE in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Business Behavior concerns can be seen in Keystone Xl Pipeline's case as highlighted in this area.

Concerns concerning social change: There is uneasiness concerning a cultural modification that would certainly take place once Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising with a lot of the staff members currently showing discontent over this potential move. This anticipated change has actually developed anxiety in the workplace which has been coupled with the previous tension of preparing the firm for a potential merging with Residence Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is scarcity of workers that can match the stressful environment of a busy company. Not only does this result in trouble in finding the best individuals, it places anxiety on new hires as can not hold up against the speed and also pressure that the company expects them to birth.

Dual Coverage Lines: Newcomers find this business culture troublesome and also difficult to cope with specifically as dotted line partnerships are meant to be weak as a whole and objective setup and performance analysis is still done by the strong line supervisor. This suggests that beginners could lose clarity concerning their respective roles and also purposes specifically as populated line coverage does not keep them in direct communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles even though it had actually been guessed that the latter would take Krasnow's position came as a blow to her spirits. Lewis might have been capable and also proper for the task however the reality that Kransnow's separation would certainly make Coles a straight record to Lewis may have been the factor for Coles' resignation from solutions.

Concern & Job Instability: Worry and insecurity can be recognized as two significant concerns that Lewis would certainly be dealing with particularly as the merging has actually now be cancelled and also two senior executives of the advertising and marketing division would certainly be leaving. The entire duty of the department would be falling on Lewis's shoulders that would certainly not just supervise of brining regarding a cultural modification however would certainly likewise have to confirm herself in her brand-new function.

Incompatible Management Style of Leader: Lewis's management design and its incompatibility with the advertising and marketing division's duty can additionally be seen as an OB obstacle specifically as she has been made use of to taking care of problems in the operations division where employees are instructed to concentrate on procedures and also get them right. The advertising and marketing division on the various other hand can be seen as a team of individuals that are made use of to being nurtured by Krasnow that concentrated extra on output than procedures.

Interdepartmental Disagreements: Interdepartmental disputes in between three divisions, advertising and marketing, merchandizing and also operations specifically over the allowance of the advertising mix can be recognized as one more OB problem. The marketing division does not share the same vision as the other two divisions regarding the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and also procedures departments do not concur over the marketing mix allowance among one another either.

Fragmentation in Advertising Department: Disintegration between the marketing and advertising divisions can be determined as another OB problem which might need further focus. The fact that the advertising and marketing sections in the advertising department are disconnected is stopping both divisions from acquiring from each various other's experience and proficiency. Combination of marketing with merchandising as well as operations would certainly come to be harder if the advertising division itself is disintegrated which can be another prospective OB concern.

Keystone Xl Pipeline Analysis

Various concepts have been made use of to clarify the situations to obtain more clearness regarding the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers think that subordinates are easy and careless, have little passion and withstand adjustment. The tough version of this concept highlighted coercion, tight controls, hazards as well as penalties. Gradually it generates reduced efficiency, subtle sabotage and competition (Deal, 2003). Although the circumstance at Keystone Xl Pipeline is not completely following Theory X, it can be seen that brand-new hires are locating this atmosphere instead demanding which may at some point result in a greater inclination of the administration towards Theory X. Based on McGregor's promoted sight, which he called Concept Y, the important job of the administration is to set up business problems to make sure that people can accomplish their very own objectives best by routing their initiatives in the direction of organizational rewards. If individuals find no contentment in their work, the management would have little choice yet to rely on theory X as well as external control (Bargain, 2003). Also while examining Lewis's management design, concept X might have been suitable in the operations department somewhat however the Advertising and marketing division would certainly call for dependence on Concept Y in order to get the imagination and originality from the groups.

Tuckman's Teamwork Concept: Regarding Lewis's problem regarding bringing harmony in between the marketing and advertising division is concerned, this would at first lead to conflict as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, during the preliminary phase of team advancement, people may not bond, as they are active discovering their area in the team. By combining the advertising and marketing division's work, there may be the same initial disconnect which could lead to the 2nd phase of 'storming' where the teams challenge each other. It is only throughout the third stage or 'norming' when they would come together to share concepts before the team can bring around synergy in the fourth stage 'carrying out'.

When individuals are provided with adjustment, they get in phase one and so there might be feelings like despair, uncertainty, aggravation, rage, fear, denial and disorientation.The circumstance at the advertising and marketing division of Keystone Xl Pipeline is comparable so Lewis can get comfortable with the concept that it is not extraordinary habits. It is during this phase that Lewis will have to provide guidance to the division so that they can discover a sense of instructions. It can be seen how Krasnow has actually already made this change less complicated by making Lewis get involved in the department a year before his actual departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has discusses the relevance of 'protection needs as being a lower level requirement of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel safe and secure and also out of danger' is at the second degree of demands. Before an employee can be made to develop mentally, he needs to have his 'Physiological 'and 'Safety' requires met.

SWOT Analysis for Keystone Xl Pipeline Case Study



Implication of Analysis.

The OB analysis has taken a look at different concepts to recognize just how to manage the present scenario available. The adhering to three alternatives have actually been proposed to help Lewis deal with the business obstacles in the advertising and marketing department. Each of these alternatives has been recommended for relieving the transition needed to bring the advertising and marketing department in accordance with the needs of the marketplace and also for making the social change that would comply with when the present leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting and Manufacturing features. Combination of Advertising And Marketing with Procedures.

Assessment of Alternatives.

Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merger days has competence in business-to-business advertising along with company and also retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to handle both marketing and advertising features.

The benefit of this strategy is that it will certainly integrate the two functions while lowering the requirement for employing an added resource for advertising. Lewis would be heading the marketing department and also in any kind of case her replacement would certainly be required for the current function that she is performing. The drawback of this alternative is that external hiring might produce animosity from internal workers that may be considering the setting of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and also Manufacturing: Provided the competitive pressures as well as high quality work needed from the advertising agency, it is recommended that Lewis should permit the production system to be a separate feature from the marketing system. Considering that the majority of marketing agencies had these 2 functions as separate devices, it makes even more sense to follow the norm.

Integration of Marketing with Operations: Since Lewis is already taking treatment of the advertising and marketing as well as operations divisions at the same time; it makes feeling to integrate the 2 functions since she has been effectively taking treatment of both ends. The fact that Lewis has to adapt her administration style for the advertising division suggests that these two departments would certainly be culturally varied.

Suggestion.



An evaluation of the three options suggests that integration of advertising as well as procedures would not be a possible move due to the vast differences in between the two departments regardless of the reality that currently Lewis is handling both. While splitting up of the production feature may have been a favorable relocation for the marketing division, the truth that it would suggest positioning a third function under Lewis's wing means this ought to be stayed clear of.

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

Advertising and Marketing functions would be combined.

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

Manufacturing feature will certainly remain part of advertising under advertising feature.

Lewis will certainly separate herself from operations.

An autonomous management design with employee empowerment will certainly be utilized in advertising and marketing division.

Open up door plan and focus on cross departmental communication will be aimed at eliminating discord.

Contingency plan.

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