Mexico City Water Shortage Case Study Analysis


Home >> Harvard >> Mexico City Water Shortage >>

Mexico City Water Shortage Case Study Solution

Background and Facts

Mexico City Water Shortage a workplace supplies merchant for tiny as well as moderate sized services has actually lately been associated with planning for a merger with its rival Home Deport, which has actually influenced effectiveness levels in departmentswith the senior supervisor involved in lawful problems presented by the federal Trade Payment. With the Advertising and marketing Head advancing the information of his departure from the firm in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the function in the near future. With challenges in the kind of a prospective social change and also reduced worker morale, the company is in need of a full reengineering effort at the marketing division.

Issue Statement

The potential social change at the advertising and marketing division of Mexico City Water Shortage is increasing uncertainty in the workplace causing numerous challenges for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing strategic choices given that Stapes Inc. had to desert its plans of merging with Office Deport after the Federal Profession Commission's intervention while doing so. Provided the reality that the shop has a worldwide existence with branches in UK, USA, Canada and also Germany, political consider each of these nations may have the ability to affect performance or strategic goals. Federal Profession Compensation's antitrust match against the merging used up beneficial time of the organization's senior monitoring recommending that 'political' factors can have significant implications for an international service.

Economic Factors: Economic factors such as the appearance of small businesses in the global scenario recommend that Mexico City Water Shortage is growing in a setting where there is potential growth of services. Along with this, reality that shop customers are mainly looking for office supplies for home offices recommends that the market has a climbing trend of business owners and also online services.

Social factors: Social trends in the economic climate show that consumers are searching for convenience in addition to attractive costs. Marketing research shows how the consumer for Mexico City Water Shortage lacks recognition concerning discovering options which can supply a combination of comfort as well as affordable.

Technological factors: Modern technology plays an essential duty in Mexico City Water Shortage's organisation approach particularly as the organization is piloting Modern technology facilities which would certainly provide innovation sales as well as assistance in the type of memory upgrades, outer installments. (Recap of PEST in appendix 2).

OB Issues and also Manifestations.

Numerous underlying Business Habits concerns can be seen in Mexico City Water Shortage's case as highlighted in this area.

Apprehensions concerning social modification: There is worry concerning a cultural change that would occur when Todd Krasnow leaves from his position as the Executive Vice President of Marketing with most of the team member currently revealing discontent over this possible move. This anticipated change has developed anxiety in the workplace which has actually been combined with the previous stress and anxiety of preparing the company for a prospective merging with House Deport.

Difficult Task Setting for Newcomers: There is scarcity of workers that can match the stressful environment of a busy organization. Not only does this cause difficulty in discovering the ideal individuals, it places anxiety on new hires as can not hold up against the rate and also pressure that the company expects them to birth.

Double Coverage Lines: Beginners find this organizational society cumbersome as well as hard to manage especially as dotted line relationships are meant to be weaker generally and also objective setup and also performance evaluation is still done by the strong line supervisor. This suggests that novices can shed clearness about their corresponding functions as well as purposes particularly as dotted line coverage does not keep them in straight communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had actually been speculated that the last would certainly take Krasnow's placement came as an impact to her morale. Lewis might have been qualified and proper for the job yet the truth that Kransnow's separation would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from services.

Worry & Task Instability: Anxiety and also instability can be determined as 2 significant issues that Lewis would certainly be handling especially as the merging has actually currently be cancelled and also 2 senior execs of the advertising division would certainly be leaving. The whole duty of the department would be dropping on Lewis's shoulders that would not simply supervise of brining concerning a social adjustment yet would likewise have to show herself in her brand-new function.

Incompatible Monitoring Style of Leader: Lewis's monitoring design as well as its incompatibility with the advertising division's role can additionally be seen as an OB challenge particularly as she has been made use of to handling issues in the operations division where personnel are taught to concentrate on procedures and get them. The marketing department on the various other hand can be viewed as a group of people that are used to being supported by Krasnow that concentrated a lot more on output than processes.

Interdepartmental Disagreements: Interdepartmental disputes in between three divisions, marketing, merchandizing and operations specifically over the appropriation of the marketing mix can be identified as an additional OB issue. The advertising and marketing department does not share the same vision as the various other two departments concerning the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing and also procedures divisions do not concur over the advertising and marketing mix allowance among one another either.

Fragmentation in Advertising And Marketing Department: Disintegration between the marketing and advertising divisions can be recognized as one more OB concern which could need further interest. The reality that the advertising and marketing sections in the advertising and marketing department are disconnected is avoiding both departments from getting from each various other's experience and also proficiency. Assimilation of advertising and marketing with merchandising and procedures would become more difficult if the advertising and marketing division itself is broken down which can be an additional potential OB concern.

Mexico City Water Shortage Analysis

Different theories have been used to clarify the conditions to get more clearness about the scenario handy.

McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of supervisors believe that staffs are easy and also careless, have little ambition and also resist adjustment. The difficult version of this theory highlighted browbeating, limited controls, threats as well as punishments. Over time it generates low productivity, subtle sabotage and rivalry (Deal, 2003). The situation at Mexico City Water Shortage is not totally following Theory X, it can be seen that new hires are discovering this atmosphere instead demanding which might eventually lead to a better disposition of the administration in the direction of Theory X. Based on McGregor's supported sight, which he called Theory Y, the vital task of the monitoring is to prepare organizational conditions to ensure that individuals can accomplish their very own goals best by guiding their initiatives towards business benefits. If individuals find no complete satisfaction in their job, the monitoring would certainly have little choice but to rely upon theory X and also exterior control (Deal, 2003). Even while examining Lewis's administration design, theory X may have appropriated in the operations division to some extent but the Advertising and marketing department would certainly need reliance on Theory Y to get the imagination and also originality from the groups.

Tuckman's Teamwork Theory: As far as Lewis's concern about bringing consistency in between the advertising and advertising division is worried, this would initially lead to clash as discussed by Bruce Tuckman in his 'Team effort Theory'. By integrating the advertising and marketing and advertising and marketing department's job, there might be the exact same initial detach which might lead to the second stage of 'storming' where the teams challenge one an additional.

Bridges' Shift Model: Based On William Bridge's theory (appendix 4), people are fairly unpleasant with adjustment, which is apparent by the situation at Mexico City Water Shortage The circumstance can be seen as a typical program of life if is studied based on Bridge's theory where he describes that individuals experience 3 stages of shift when they experience change. 'Ending, shedding and Releasing', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When people are presented with adjustment, they go into phase one therefore there might be feelings like sadness, uncertainty, irritation, rage, concern, denial as well as disorientation.The scenario at the marketing division of Mexico City Water Shortage is comparable so Lewis can obtain comfortable with the suggestion that it is not amazing habits. In the second phase, there might be a need to connect the gap between the brand-new and old society so Lewis may need to encounter this challenge once Krasnow leaves. There might be reduced morale and also reduced productivity at this phase which need to not be taken as a trouble. It is throughout this stage that Lewis will have to provide support to the department to make sure that they can locate 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 prior to his real departure. Based on Bridges' Model, phase 3 will certainly cause openness to knowing, High energy as well as dedication as people will welcome the change (Bridges, 2004).

Maslow's Requirement hierarchy: The OB concern pertaining to insecurity at the office has been activated firstly by the modification in monitoring and also second of all by the truth that the merging will certainly no more be started. Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has talks about the importance of 'security requires as being a lower degree demand of a human for setting off motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the requirement to really feel safe and unharmed' goes to the 2nd degree of requirements. Prior to a staff member can be made to develop mentally, he requires to have his 'Physiological 'and also 'Security' needs fulfilled. This suggests that unless the workers are made to really feel safe and secure concerning their current work status in Mexico City Water Shortage they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Mexico City Water Shortage Case Study

Ramification of Analysis.

The OB analysis has considered numerous concepts to comprehend just how to manage the current situation handy. The complying with three alternatives have been recommended to assist Lewis take care of the organizational challenges in the marketing division. Each of these options has been recommended for relieving the change needed to bring the marketing department according to the demands of the market as well as for making the social change that would comply with as soon as the present leader leaves.

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

Analysis of Alternatives.

Integration of Advertising & Advertising Functions: The internal advertising and marketing firm of Mexico City Water Shortage is already toughness for the organization in regards to conserving up on overheads connected to marketing as well as promotion. Because no new recruitment has actually been done after Bridget Cole's departure with the coverage line being directly appointed to Krasnow for the advertising and marketing function, this is a beneficial chance for integrating the marketing and advertising features. Judith Shapiro that has earlier been talked to by Lewis during the earlier merging days has experience in business-to-business advertising and marketing along with agency and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to take care of both marketing and advertising features.

The benefit of this approach is that it will certainly incorporate the two functions while minimizing the requirement for hiring an extra source for advertising and marketing. Along with this, Lewis would be heading the marketing division and regardless her replacement would certainly be needed for the current duty that she is carrying out. The negative aspect of this choice is that exterior hiring might cause bitterness from inner personnel who might be eying the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Manufacturing: Provided the affordable stress and high top quality job called for from the marketing company, it is recommended that Lewis ought to permit the production device to be a different feature from the marketing system. Because the majority of marketing agencies had these 2 functions as different devices, it makes more sense to adhere to the standard.

Assimilation of Advertising with Workflows: Given that Lewis is currently taking care of the advertising and marketing as well as operations departments all at once; it makes sense to integrate the two functions 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 and marketing division recommends that these 2 departments would be culturally diverse.


An analysis of the three alternatives indicates that assimilation of advertising and operations would not be a possible relocation due to the large distinctions between both departments although that presently Lewis is dealing with both. While separation of the production feature might have been a beneficial relocation for the marketing division, the fact that it would certainly indicate positioning a third function under Lewis's wing implies this should be prevented. The integration of the advertising and marketing division is the best choice in regards to obtaining the optimal arise from the department. An activity plan for this alternative is discussed below.

Action Strategy.

Lewis will certainly take control of the role of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would be merged.

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

Manufacturing function will certainly remain part of advertising and marketing under advertising and marketing function.

Lewis will divide herself from operations.

A democratic management design with staff member empowerment will certainly be utilized in marketing department.

Open up door plan and also focus on cross department communication will be targeted at removing dissonance.

Backup strategy.

If the assimilation does not exercise as planned, a backup plan would certainly follow which would separate the production feature from the advertising function to decrease the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising and marketing division without an SVP. In that case the manufacturing function will absolutely be separated by putting it under an SVP production.