Mexico City Water Shortage Case Study Solution


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

Mexico City Water Shortage Case Study Analysis

Background and Facts

Mexico City Water Shortage a workplace materials store for small and average sized businesses has just recently been involved in preparing for a merging with its competitor House Deport, which has affected effectiveness levels in departmentswith the elderly manager involved in lawful problems put forth by the federal Profession Payment. With the Advertising Head advancing 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 duty in the near future. With challenges in the type of a prospective social modification and also low employee spirits, the organization is in need of a complete reengineering effort at the advertising and marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The possible social modification at the advertising department of Mexico City Water Shortage is boosting uncertainty in the working environment causing various obstacles for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in influencing tactical decisions because Stapes Inc. had to abandon its strategies of combining with Workplace Deport after the Federal Profession Compensation's treatment at the same time. Offered the fact that the shop has a worldwide presence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries may have the ability to affect performance or tactical goals. Federal Profession Payment's antitrust match versus the merger took up useful time of the organization's elderly administration suggesting that 'political' factors can have major implications for an international company.

Economic Factors: Economic factors such as the emergence of small businesses in the international scenario recommend that Mexico City Water Shortage is flourishing in an atmosphere where there is possible development of organisations. Fact that shop consumers are mainly looking for office materials for house workplaces recommends that the market has an increasing fad of business owners as well as residence based businesses.

Social factors: Social trends in the economy reveal that clients are seeking benefit along with attractive prices. Marketing research demonstrates how the customer for Mexico City Water Shortage lacks awareness regarding locating options which can use a combination of convenience and also affordable.

Technological factors: Technology plays an important role in Mexico City Water Shortage's organisation approach particularly as the company is piloting Modern technology centers which would certainly offer technology sales and also support in the kind of memory upgrades, outer installments. (Summary of BUG in appendix 2).

OB Issues and also Effects.

A number of underlying Business Behavior problems can be seen in Mexico City Water Shortage's case as highlighted in this section.

Apprehensions concerning social change: There is concern concerning a cultural modification that would certainly take place when Todd Krasnow leaves from his position as the Executive Vice President of Advertising with the majority of the team member already showing discontent over this prospective move. This expected modification has actually created anxiety in the work environment which has been coupled with the past stress and anxiety of preparing the firm for a potential merger with Home Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is scarcity of workers that can match the demanding environment of a fast-paced company. Not just does this cause trouble in discovering the right people, it puts stress and anxiety on brand-new hires as can not stand up to the rate as well as stress that the company expects them to bear.

Dual Coverage Lines: Novices find this organizational society troublesome and also challenging to manage especially as dotted line partnerships are implied to be weaker in general and objective setup as well as performance examination is still done by the solid line supervisor. This implies that beginners can shed quality regarding their respective roles and also purposes especially as dotted line coverage does not maintain them in straight interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had been guessed that the latter would certainly take Krasnow's placement came as an impact to her spirits. Lewis might have been qualified and suitable for the task yet the reality that Kransnow's departure would make Coles a direct report to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Work Instability: Fear and also insecurity can be identified as two major concerns that Lewis would be handling especially as the merging has actually currently be cancelled as well as two senior execs of the advertising division would certainly be leaving. The entire responsibility of the division would be falling on Lewis's shoulders who would not simply supervise of brining concerning a cultural modification however would certainly also have to verify herself in her brand-new duty.

Incompatible Management Design of Leader: Lewis's management style and also its incompatibility with the advertising and marketing department's duty can likewise be seen as an OB obstacle specifically as she has actually been used to managing concerns in the operations division where workers are educated to focus on procedures and also obtain them. The advertising and marketing division on the other hand can be seen as a team of people that are made use of to being nurtured by Krasnow who focused extra on result than processes.

Interdepartmental Disputes: Interdepartmental disagreements between three divisions, marketing, merchandizing and procedures specifically over the appropriation of the marketing mix can be determined as one more OB worry. Although the marketing department does not share the same vision as the various other two divisions concerning the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and also operations divisions do not agree over the advertising mix appropriation among one another either.

Disintegration in Advertising And Marketing Division: Fragmentation in between the marketing and advertising departments can be determined as an additional OB problem which could require additional interest. The truth that the advertising and marketing areas in the advertising and marketing department are detached is avoiding both departments from gaining from each other's experience as well as expertise. Assimilation of marketing with retailing and also operations would certainly end up being more difficult if the marketing department itself is degenerated which can be one more potential OB problem.

Mexico City Water Shortage Analysis

Numerous concepts have been utilized to explain the scenarios to obtain additional clearness regarding the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of supervisors think that juniors are easy and careless, have little aspiration as well as stand up to modification. The hard variation of this concept emphasized browbeating, limited controls, risks and also punishments. With time it creates reduced performance, subtle sabotage as well as competition (Offer, 2003). Although the situation at Mexico City Water Shortage is not totally following Theory X, it can be seen that brand-new hires are finding this setting rather difficult which may ultimately cause a better disposition of the monitoring in the direction of Concept X. Based on McGregor's advocated sight, which he called Theory Y, the essential job of the administration is to set up organizational problems so that individuals can achieve their own objectives best by routing their efforts in the direction of business benefits. If individuals discover no complete satisfaction in their job, the administration would have little selection but to depend on concept X as well as external control (Deal, 2003). Also while assessing Lewis's management design, theory X may have been suitable in the procedures division somewhat but the Marketing department would need reliance on Concept Y to get the imagination and also originality from the groups.

Tuckman's Team effort Concept: As far as Lewis's worry about bringing consistency in between the marketing and advertising division is concerned, this would at first lead to conflict as reviewed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). According to Tuckman's theory shown in appendix 3, during the preliminary stage of group advancement, people might not bond, as they are hectic discovering their location in the team. By integrating the advertising and marketing division's job, there might be the same initial separate which could lead to the second phase of 'storming' where the teams test each other. Nevertheless, it is only throughout the 3rd phase or 'norming' when they would certainly come together to share ideas before the group can cause harmony in the fourth phase 'executing'.

When individuals are offered with adjustment, they go into phase one and also so there may be feelings like unhappiness, unpredictability, frustration, rage, concern, rejection and disorientation.The scenario at the marketing division of Mexico City Water Shortage is comparable so Lewis can get comfy with the idea that it is not amazing actions. It is throughout this stage that Lewis will have to offer guidance to the division so that they can discover a feeling of instructions. It can be seen just how Krasnow has actually currently made this shift easier by making Lewis get included in the department a year before his real separation.
Vrio Analysis
Maslow's Demand pecking order: The OB problem pertaining to insecurity at the workplace has been caused firstly by the change in administration and also secondly by the truth that the merging will certainly no more be launched. Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has talks about the value of 'safety requires as being a reduced level need of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel protected as well as untouched' is at the second level of needs. Prior to an employee can be made to develop psychologically, he needs to have his 'Physiological 'and also 'Security' needs fulfilled. This suggests that unless the workers are made to really feel safe and secure regarding their existing work status in Mexico City Water Shortage they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Mexico City Water Shortage Case Study

Ramification of Analysis.

The OB analysis has actually checked out various concepts to comprehend how to deal with the current situation available. The following 3 alternatives have actually been suggested to help Lewis handle the business difficulties in the marketing department. Each of these choices has actually been suggested for reducing the change needed to bring the advertising and marketing department in line with the needs of the market as well as for making the cultural modification that would adhere to when the existing leader leaves.

Integration of advertising and marketing features. Dividing Adverting and also Manufacturing functions. Combination of Advertising And Marketing with Operations.

Examination of Alternatives.

Assimilation of Advertising & Marketing Functions: The in-house advertising firm of Mexico City Water Shortage is currently stamina for the company in terms of conserving up on expenses associated with advertising and also promotion. Considering that no new employment has actually been done after Bridget Cole's departure with the coverage line being directly appointed to Krasnow for the advertising and marketing feature, this is a beneficial chance for integrating the advertising and marketing features. Judith Shapiro who has earlier been interviewed by Lewis during the earlier merger days has know-how in business-to-business advertising and marketing along with company and also retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to manage both marketing and advertising features.

The advantage of this method is that it will incorporate the two functions while decreasing the requirement for hiring an added resource for advertising and marketing. Lewis would be heading the marketing department and in any kind of case her substitute would be needed for the existing role that she is executing. The drawback of this option is that external hiring might cause animosity from internal workers who may be considering the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Manufacturing: Offered the affordable stress and also high quality work required from the advertising agency, it is suggested that Lewis should allow the manufacturing device to be a separate feature from the advertising and marketing device. Considering that the majority of advertising and marketing agencies had these 2 features as different systems, it makes even more sense to adhere to the norm.

Assimilation of Advertising And Marketing with Operations: Considering that Lewis is currently dealing with the marketing and also procedures divisions all at once; it makes good sense to integrate the two functions because she has been effectively caring for both ends. The truth that the two divisions currently have major differences over allocation of resources recommends that this assimilation might have the ability to bring about harmony particularly as Lewis would certainly be heading both ends.However there are different negative aspects of this move specifically as it would put excessive concern over Lewis's shoulders. The reality that Lewis has to adapt her administration style for the marketing department recommends that these two departments would be culturally diverse. Lewis might not be able to apply one kind of management style to both divisions which could result in ineffectiveness in either one of the 2 features.


An examination of the 3 alternatives suggests that assimilation of advertising and procedures would not be a practical relocation due to the vast distinctions between the 2 departments despite the truth that presently Lewis is handling both. While splitting up of the manufacturing feature may have been a beneficial relocation for the advertising and marketing division, the truth that it would certainly indicate putting a third feature under Lewis's wing implies this need to be stayed clear of.

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

Advertising and Marketing features would certainly be combined.

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

Manufacturing function will certainly continue to be component of marketing under advertising and marketing function.

Lewis will certainly divide herself from procedures.

An autonomous management style with staff member empowerment will be used in marketing department.

Open up door plan and emphasis on cross department interaction will be focused on eliminating disharmony.

Contingency strategy.

If the combination does not work out as intended, a contingency plan would certainly follow which would certainly divide the production function from the advertising feature to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the marketing division without an SVP. Because case the manufacturing function will certainly be separated by putting it under an SVP manufacturing.