London Water A Case Study Solution


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London Water A Case Study Solution

Background and Facts

London Water A an office products merchant for tiny and also medium sized services has just recently been associated with planning for a merging with its rival House Deport, which has actually impacted effectiveness levels in departmentswith the senior supervisor involved in legal difficulties presented by the government Trade Payment. With the Marketing Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the role in the future. With challenges in the type of a possible social modification and low worker morale, the organization requires a complete reengineering effort at the advertising division.

Trouble Statement
Porter's 5 Forces Analysis
The prospective social change at the advertising department of London Water A is enhancing uncertainty in the workplace resulting in various difficulties for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting tactical decisions given that Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Trade Commission's intervention at the same time. Given the fact that the shop has an international existence with branches in UK, USA, Canada and also Germany, political consider each of these nations might be able to influence efficiency or tactical objectives. Federal Trade Payment's antitrust suit against the merger took up valuable time of the company's elderly management recommending that 'political' factors can have severe implications for an international company.

Economic Factors: Economic factors such as the introduction of local business in the global circumstance recommend that London Water A is flourishing in a setting where there is potential growth of businesses. In addition to this, reality that shop customers are mostly looking for workplace products for home offices suggests that the marketplace has a rising trend of entrepreneurs and also online organisations.

Social factors: Social trends in the economic climate show that customers are searching for ease as well as eye-catching costs. Market research demonstrates how the client for London Water A lacks understanding regarding locating solutions which can use a mix of convenience as well as low costs.

Technical factors: Modern technology plays a vital duty in London Water A's service strategy specifically as the company is piloting Modern technology centers which would provide technology sales and assistance in the kind of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues and also Manifestations.

Several underlying Business Habits issues can be seen in London Water A's case as highlighted in this section.

Uneasiness regarding social adjustment: There is concern regarding a cultural modification that would certainly happen as soon as Todd Krasnow leaves from his placement as the Exec Vice President of Advertising And Marketing with a lot of the employee currently revealing discontent over this possible relocation. This expected adjustment has created stress and anxiety in the workplace which has actually been combined with the previous stress of preparing the company for a possible merger with Home Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is lack of personnel that can match the difficult setting of a hectic company. Not just does this result in trouble in discovering the best individuals, it places stress on new hires as can not hold up against the rate as well as stress that the company expects them to bear.

Dual Reporting Lines: Novices discover this organizational society troublesome as well as tough to cope with specifically as populated line partnerships are implied to be weak as a whole and also objective setup as well as performance assessment is still done by the strong line manager. This means that beginners might shed quality about their particular roles and goals particularly as populated line reporting does not maintain them in direct communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles even though it had actually been speculated that the last would certainly take Krasnow's position came as an impact to her morale. Lewis might have been qualified as well as appropriate for the job but the reality that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Task Insecurity: Worry and also insecurity can be determined as 2 significant worries that Lewis would be taking care of specifically as the merger has currently be cancelled as well as two elderly executives of the advertising and marketing department would certainly be leaving. The entire duty of the department would certainly be falling on Lewis's shoulders that would certainly not simply supervise of brining about a social modification however would certainly also need to verify herself in her brand-new role.

Inappropriate Administration Style of Leader: Lewis's monitoring style as well as its incompatibility with the advertising department's role can additionally be viewed as an OB difficulty particularly as she has actually been utilized to taking care of problems in the procedures department where employees are shown to concentrate on procedures and also get them right. The advertising and marketing division on the other hand can be viewed as a team of individuals who are utilized to being nurtured by Krasnow who focused much more on result than procedures.

Interdepartmental Disagreements: Interdepartmental differences between 3 departments, advertising, merchandizing and also operations respectively over the appropriation of the advertising mix can be recognized as one more OB worry. Although the advertising and marketing department does not share the exact same vision as the various other two departments relating to the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing and procedures departments do not agree over the marketing mix allotment amongst each other either.

Disintegration in Advertising Department: Fragmentation in between the advertising and marketing divisions can be determined as an additional OB problem which might need additional interest. The truth that the advertising and marketing sections in the marketing division are separated is stopping both divisions from gaining from each various other's experience as well as competence. Combination of advertising with retailing as well as procedures would come to be more difficult if the advertising division itself is broken down which can be an additional potential OB concern.

London Water A Analysis

Numerous theories have actually been utilized to explain the situations to obtain more quality about the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many supervisors think that staffs are easy and lazy, have little ambition and also stand up to change. The situation at London Water A is not completely complying with Concept X, it can be seen that brand-new hires are discovering this environment rather demanding which might at some point lead to a better inclination of the administration towards Concept X. Also while analyzing Lewis's administration design, concept X might have been ideal in the procedures division to some degree but the Advertising and marketing department would need reliance on Theory Y in order to get the creative thinking as well as creativity from the teams.

Tuckman's Teamwork Theory: Regarding Lewis's problem about bringing consistency in between the marketing and advertising department is concerned, this would originally lead to conflict as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). According to Tuckman's theory received appendix 3, during the initial phase of group development, people might not bond, as they are hectic finding their location in the team. By integrating the advertising and marketing department's job, there might coincide first separate which might cause the second phase of 'storming' where the teams test one another. It is only during the 3rd stage or 'norming' when they would come with each other to share ideas before the team can bring around synergy in the fourth phase 'carrying out'.

When people are offered with modification, they get in stage one and so there might be feelings like despair, unpredictability, disappointment, temper, worry, rejection and also disorientation.The circumstance at the advertising division of London Water A is comparable so Lewis can get comfortable with the suggestion that it is not extraordinary actions. It is during this phase that Lewis will have to provide guidance to the department so that they can locate a sense of instructions. It can be seen just how Krasnow has already made this transition less complicated by making Lewis obtain involved in the department a year prior to his real separation.
Vrio Analysis
Maslow's Demand hierarchy: The OB problem pertaining to insecurity at the workplace has been activated first of all by the change in management and second of all by the fact that the merger will no longer be initiated. Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has goes over the relevance of 'safety requires as being a lower degree demand of a human for setting off inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to really feel protected and also out of danger' is at the second level of requirements. Prior to a worker can be made to establish psychologically, he needs to have his 'Physical 'and also 'Safety and security' requires satisfied. This shows that unless the workers are made to really feel safe regarding their existing employment condition in London Water A they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for London Water A Case Study

Implication of Analysis.

The OB analysis has actually checked out different concepts to recognize how to manage the present scenario handy. The adhering to three options have actually been proposed to help Lewis deal with the organizational challenges in the advertising division. Each of these options has actually been suggested for easing the transition needed to bring the advertising and marketing department in line with the needs of the marketplace and also for making the social change that would follow when the existing leader leaves.

Assimilation of advertising and marketing functions. Dividing Adverting and Manufacturing functions. Assimilation of Marketing with Procedures.

Evaluation of Alternatives.

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

The advantage of this strategy is that it will certainly integrate both features while lowering the requirement for working with an added source for marketing. Lewis would certainly be heading the advertising and marketing division as well as in any type of case her replacement would be needed for the present function that she is carrying out. The drawback of this option is that exterior hiring might produce bitterness from internal workers who may be eying the setting of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting as well as Manufacturing: Given the competitive stress as well as high quality job needed from the advertising agency, it is recommended that Lewis should allow the manufacturing system to be a different function from the advertising unit. Because the majority of advertising agencies had these two functions as separate units, it makes more sense to follow the standard.

Assimilation of Advertising with Operations: Since Lewis is already taking care of the advertising and marketing and procedures departments concurrently; it makes sense to integrate the two features considering that she has actually been efficiently taking treatment of both ends. The truth that Lewis has to adjust her management style for the advertising department recommends that these two departments would certainly be culturally diverse.


An assessment of the three options indicates that integration of marketing and also procedures would certainly not be a feasible move due to the vast differences between the 2 departments despite the truth that presently Lewis is taking care of both. While splitting up of the manufacturing feature may have been a beneficial step for the advertising and marketing department, the fact that it would imply putting a 3rd feature under Lewis's wing indicates this must be avoided.

Action Plan.
Lewis will take over the duty of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

Production feature will remain part of advertising under marketing feature.

Lewis will divide herself from operations.

An autonomous leadership style with worker empowerment will be made use of in advertising division.

Open up door policy as well as focus on cross department interaction will be aimed at removing discord.

Backup strategy.

If the integration does not exercise as prepared, a contingency strategy would certainly follow which would divide the manufacturing feature from the marketing feature to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising department without an SVP. Because case the manufacturing function will certainly be separated by positioning it under an SVP manufacturing.