Lafarge Market Entry Into Romania Video Dvd Case Study Analysis


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Background and Facts

Lafarge Market Entry Into Romania Video Dvd an office supplies merchant for tiny and also medium sized organisations has lately been associated with preparing for a merger with its rival Home Deport, which has actually influenced efficiency degrees in departmentswith the senior manager involved in lawful problems put forth by the government Profession Compensation. With the Marketing Head advancing the news of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the function in the near future. With challenges in the form of a prospective cultural adjustment as well as low staff member morale, the company is in need of a total reengineering effort at the marketing division.

Problem Statement
Porter's 5 Forces Analysis
The prospective social modification at the advertising and marketing division of Lafarge Market Entry Into Romania Video Dvd is increasing uncertainty in the working environment bring about various difficulties for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in affecting tactical decisions because Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Trade Payment's treatment at the same time. Offered the reality that the store has an international presence with branches in UK, U.S.A., Canada and Germany, political consider each of these countries might have the ability to influence performance or tactical goals. Federal Trade Compensation's antitrust suit against the merger used up valuable time of the organization's elderly monitoring suggesting that 'political' factors can have serious ramifications for an international company.

Economic Factors: Economic factors such as the appearance of small businesses in the international scenario suggest that Lafarge Market Entry Into Romania Video Dvd is flourishing in a setting where there is possible growth of businesses. Along with this, reality that store customers are primarily trying to find office materials for home offices recommends that the marketplace has a rising fad of entrepreneurs and online businesses.

Social factors: Social patterns in the economy reveal that clients are looking for ease along with eye-catching costs. Market research demonstrates how the consumer for Lafarge Market Entry Into Romania Video Dvd lacks awareness about discovering remedies which can offer a mix of benefit and also affordable.

Technical factors: Modern technology plays a crucial role in Lafarge Market Entry Into Romania Video Dvd's company strategy particularly as the organization is piloting Modern technology centers which would certainly supply technology sales and assistance in the type of memory upgrades, peripheral installations. (Recap of PEST in appendix 2).

OB Issues and also Effects.

Numerous underlying Organizational Actions problems can be seen in Lafarge Market Entry Into Romania Video Dvd's case as highlighted in this section.

Worries concerning social adjustment: There is worry about a social adjustment that would occur when Todd Krasnow leaves from his position as the Executive Vice Head Of State of Marketing with a lot of the employee currently revealing unhappiness over this possible step. This anticipated adjustment has actually produced stress in the work environment which has actually been coupled with the previous stress of preparing the company for a possible merger with House Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is shortage of employees that can match the difficult atmosphere of a fast-paced company. Not only does this bring about difficulty in discovering the best individuals, it places tension on brand-new hires as can not withstand the pace as well as pressure that the company anticipates them to bear.

Double Coverage Lines: Novices locate this business society cumbersome and also difficult to manage particularly as dotted line partnerships are indicated to be weaker as a whole as well as unbiased setting and performance assessment is still done by the strong line manager. This means that newbies might shed clearness about their corresponding duties as well as goals especially as populated line coverage does not keep them in direct interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles even though it had actually been speculated that the last would take Krasnow's setting came as an impact to her morale. Lewis might have been qualified and also appropriate for the job but the truth that Kransnow's departure would certainly make Coles a straight report to Lewis may have been the reason for Coles' resignation from solutions.

Concern & Job Instability: Concern as well as insecurity can be identified as 2 significant issues that Lewis would be handling particularly as the merging has actually currently be terminated and two elderly execs of the advertising department would be leaving. The whole duty of the division would certainly be dropping on Lewis's shoulders that would certainly not just supervise of brining regarding a social change yet would additionally need to prove herself in her brand-new function.

Inappropriate Monitoring Design of Leader: Lewis's monitoring design and its conflict with the marketing division's role can additionally be seen as an OB challenge especially as she has been utilized to handling problems in the procedures department where employees are shown to focus on procedures and get them. The advertising division on the other hand can be viewed as a team of people who are utilized to being nurtured by Krasnow who concentrated extra on outcome than procedures.

Interdepartmental Differences: Interdepartmental differences between 3 departments, advertising and marketing, merchandizing as well as procedures respectively over the allocation of the marketing mix can be determined as one more OB issue. Although the advertising division does not share the very same vision as the other 2 departments regarding the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing as well as procedures departments do not agree over the advertising mix appropriation amongst each other either.

Fragmentation in Advertising And Marketing Division: Disintegration in between the advertising and marketing divisions can be recognized as another OB issue which might need more interest. The fact that the advertising and marketing sections in the marketing division are disconnected is preventing both departments from gaining from each other's experience as well as expertise. Assimilation of marketing with merchandising and operations would certainly come to be more difficult if the marketing division itself is broken down which can be an additional potential OB problem.

Lafarge Market Entry Into Romania Video Dvd Analysis

Different theories have actually been used to discuss the conditions to get more quality about the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers believe that juniors are easy and lazy, have little passion and stand up to modification. The situation at Lafarge Market Entry Into Romania Video Dvd is not totally complying with Concept X, it can be seen that new hires are locating this environment instead stressful which might ultimately lead to a higher disposition of the administration in the direction of Theory X. Even while evaluating Lewis's management style, theory X might have been suitable in the procedures division to some level yet the Marketing department would need reliance on Concept Y in order to get the imagination and also originality from the teams.

Tuckman's Team effort Concept: As far as Lewis's concern concerning bringing consistency between the advertising and marketing division is concerned, this would originally bring about clash as reviewed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, throughout the initial stage of team development, individuals might not bond, as they are active finding their area in the group. By combining the advertising and marketing department's job, there might be the same preliminary detach which might bring about the 2nd phase of 'storming' where the teams test one another. It is just throughout the 3rd phase or 'norming' when they would come together to share concepts before the team can bring around synergy in the fourth phase 'carrying out'.

Bridges' Transition Design: As per William Bridge's theory (appendix 4), individuals are fairly uncomfortable with change, which is evident by the circumstance at Lafarge Market Entry Into Romania Video Dvd The circumstance can be viewed as a regular training course of life if is researched as per Bridge's concept where he describes that individuals experience 3 stages of transition when they experience change. 'Closing, losing and also Letting go', The Neutral Area and also 'The New Beginning' (Bridges, 2004). When individuals are presented with modification, they enter stage one and so there may be emotions like despair, uncertainty, stress, rage, fear, denial and also disorientation.The circumstance at the marketing department of Lafarge Market Entry Into Romania Video Dvd is similar so Lewis can obtain comfortable with the suggestion that it is not phenomenal actions. In the 2nd phase, there might be a demand to bridge the gap in between the new and also old culture so Lewis may need to face this challenge once Krasnow leaves. There may be low spirits and also reduced efficiency at this stage which need to not be taken as a problem. It is during this stage that Lewis will certainly have to offer assistance to the division so that they can find a sense of direction. It can be seen how Krasnow has currently made this transition easier by making Lewis get involved in the department a year before his real departure. Based on Bridges' Version, stage 3 will certainly produce visibility to knowing, High power and dedication as people will certainly welcome the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has goes over the relevance of 'security requires as being a reduced degree requirement of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel safe and also out of threat' is at the 2nd degree of demands. Prior to a staff member can be made to develop mentally, he requires to have his 'Physiological 'as well as 'Safety and security' requires fulfilled.

SWOT Analysis for Lafarge Market Entry Into Romania Video Dvd Case Study

Implication of Analysis.

The OB analysis has actually looked at numerous theories to recognize just how to handle the existing situation handy. The complying with 3 choices have been proposed to assist Lewis handle the business obstacles in the marketing department. Each of these options has actually been proposed for alleviating the transition needed to bring the advertising and marketing division according to the requirements of the marketplace as well as for making the social change that would comply with when the current leader leaves.

Combination of advertising and marketing features. Separating Adverting and also Manufacturing features. Assimilation of Marketing with Procedures.

Evaluation of Alternatives.

Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merger days has proficiency in business-to-business advertising along with firm and also retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to handle both advertising and marketing as well as marketing functions.

The advantage of this strategy is that it will incorporate the two features while minimizing the requirement for employing an additional resource for marketing. Along with this, Lewis would certainly be heading the advertising department and all the same her substitute would be needed for the current role that she is carrying out. The downside of this choice is that external hiring may produce animosity from interior workers who might be looking at the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Manufacturing: Given the competitive stress and also top quality job needed from the advertising agency, it is recommended that Lewis should allow the production system to be a separate feature from the advertising and marketing device. Considering that many ad agency had these two features as separate systems, it makes even more sense to follow the norm. Both functions may be able to focus on their core activates much more efficiently. The negative aspect of this method would be that extra expenses would certainly have to be borne for establishing up separate manufacturing functions. A production head may have to be worked with which might increase overheads for the organization.

Combination of Marketing with Procedures: Since Lewis is already taking treatment of the marketing as well as operations divisions at the same time; it makes feeling to incorporate the 2 functions since she has been efficiently taking care of both ends. The truth that Lewis has to adapt her monitoring style for the advertising division recommends that these two divisions would be culturally varied.


An analysis of the three options indicates that assimilation of marketing and procedures would certainly not be a feasible move due to the large distinctions between the two departments although that currently Lewis is taking care of both. While splitting up of the production function may have been a beneficial step for the advertising division, the truth that it would certainly indicate positioning a third feature under Lewis's wing indicates this need to be prevented also. The integration of the marketing division is the most effective choice in regards to getting the optimum arise from the division. An action prepare for this option is talked about listed below.

Activity Plan.
Lewis will take over the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

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

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

Lewis will certainly divide herself from procedures.

A democratic management design with staff member empowerment will certainly be made use of in advertising division.

Open up door policy as well as focus on cross department communication will certainly be focused on removing disharmony.

Contingency plan.

If the assimilation does not work out as prepared, a backup strategy would certainly comply with which would certainly divide the production function from the advertising feature to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising department without an SVP. Because case the production feature will absolutely be separated by placing it under an SVP manufacturing.