Microfinance In Bolivia A Meeting With The President Of The Republic Case Study Solution


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Microfinance In Bolivia A Meeting With The President Of The Republic Case Study Analysis

Background and Facts

Microfinance In Bolivia A Meeting With The President Of The Republic a workplace products retailer for tiny and average sized services has just recently been involved in preparing for a merging with its competitor Home Deport, which has actually impacted effectiveness levels in departmentswith the senior supervisor involved in lawful complications presented by the federal Trade Payment. With the Marketing Head advancing the news of his separation from the business in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the function in the near future. With difficulties in the type of a potential social modification and low employee morale, the organization wants a total reengineering initiative at the marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising department of Microfinance In Bolivia A Meeting With The President Of The Republic is enhancing unpredictability in the workplace leading to different difficulties for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting critical decisions since Stapes Inc. had to abandon its plans of combining with Workplace Deport after the Federal Trade Payment's intervention at the same time. Offered the reality that the store has a worldwide existence with branches in UK, USA, Canada and Germany, political consider each of these nations might be able to impact performance or strategic goals. Federal Profession Compensation's antitrust suit versus the merging took up important time of the organization's elderly management recommending that 'political' factors can have serious ramifications for a worldwide organisation.

Economic Factors: Economic factors such as the appearance of small businesses in the worldwide circumstance recommend that Microfinance In Bolivia A Meeting With The President Of The Republic is thriving in an environment where there is possible growth of companies. Fact that shop clients are primarily looking for office materials for house offices recommends that the market has an increasing pattern of entrepreneurs and residence based organisations.

Social factors: Social trends in the economic situation show that clients are trying to find benefit in addition to appealing rates. Marketing research shows how the consumer for Microfinance In Bolivia A Meeting With The President Of The Republic does not have recognition about discovering services which can provide a mix of benefit and low costs.

Technical factors: Technology plays an important role in Microfinance In Bolivia A Meeting With The President Of The Republic's service method especially as the company is piloting Modern technology facilities which would certainly offer technology sales and support in the form of memory upgrades, outer installments. (Recap of PARASITE in appendix 2).

OB Issues and also Manifestations.

Several underlying Business Habits concerns can be seen in Microfinance In Bolivia A Meeting With The President Of The Republic's case as highlighted in this section.

Concerns regarding social adjustment: There is worry regarding a cultural modification that would certainly take place once Todd Krasnow leaves from his position as the Exec Vice President of Marketing with the majority of the employee already revealing unhappiness over this possible relocation. This expected adjustment has actually created stress and anxiety in the work environment which has actually been paired with the past stress and anxiety of preparing the company for a prospective merging with House Deport.
Pest Analysis
Difficult Task Environment for Newcomers: There is lack of workers that can match the stressful setting of a fast-paced organization. Not only does this cause difficulty in finding the best people, it puts stress and anxiety on new hires as can not stand up to the pace and pressure that the company anticipates them to bear.

Double Reporting Lines: Newbies discover this business culture cumbersome and also challenging to handle specifically as dotted line relationships are implied to be weaker in general and also unbiased setting and efficiency examination is still done by the solid line manager. This means that newbies can lose clarity concerning their corresponding functions and objectives specifically as populated line reporting does not keep them in direct communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles although it had been guessed that the last would certainly take Krasnow's position came as a strike to her spirits. Lewis might have been capable and suitable for the job yet the truth that Kransnow's separation would make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Worry & Work Insecurity: Anxiety and also insecurity can be determined as 2 major concerns that Lewis would be taking care of particularly as the merger has actually now be terminated and two elderly executives of the marketing division would certainly be leaving. The whole duty of the division would certainly be falling on Lewis's shoulders that would certainly not simply be in charge of brining concerning a cultural adjustment but would certainly likewise have to show herself in her new role.

Inappropriate Monitoring Design of Leader: Lewis's management design and its incompatibility with the marketing division's duty can also be seen as an OB obstacle especially as she has been utilized to taking care of problems in the procedures department where workers are shown to focus on procedures and get them. The marketing department on the other hand can be seen as a group of individuals who are used to being supported by Krasnow that focused more on outcome than processes.

Interdepartmental Disputes: Interdepartmental disputes in between three departments, marketing, merchandizing and operations respectively over the allotment of the marketing mix can be recognized as one more OB concern. The advertising division does not share the exact same vision as the various other two divisions concerning the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing and operations departments do not concur over the advertising and marketing mix allocation amongst one another either.

Disintegration in Advertising And Marketing Division: Fragmentation between the marketing and advertising divisions can be identified as another OB problem which might require further interest. The reality that the advertising and marketing areas in the advertising and marketing department are separated is preventing both divisions from acquiring from each various other's experience and proficiency. Integration of advertising and marketing with merchandising and also procedures would end up being more difficult if the advertising division itself is degenerated which can be another prospective OB issue.

Microfinance In Bolivia A Meeting With The President Of The Republic Analysis

Numerous concepts have been used to clarify the circumstances to get more clarity regarding the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers believe that staffs are passive as well as careless, have little aspiration and also resist change. The hard variation of this theory emphasized browbeating, tight controls, dangers as well as punishments. Over time it produces reduced productivity, subtle sabotage and rivalry (Offer, 2003). Although the scenario at Microfinance In Bolivia A Meeting With The President Of The Republic is not completely adhering to Theory X, it can be seen that new hires are finding this setting rather difficult which may at some point cause a higher inclination of the monitoring in the direction of Theory X. According to McGregor's promoted sight, which he called Concept Y, the crucial job of the administration is to organize business conditions so that people can achieve their own objectives best by guiding their efforts in the direction of organizational rewards. If individuals find no contentment in their work, the administration would certainly have little choice but to rely on concept X and external control (Deal, 2003). Also while examining Lewis's monitoring design, concept X may have been suitable in the operations division to some extent but the Advertising and marketing department would require reliance on Theory Y in order to get the creativity and also creativity from the teams.

Tuckman's Synergy Theory: As far as Lewis's problem about bringing harmony in between the advertising and also advertising division is worried, this would originally lead to conflict as talked about by Bruce Tuckman in his 'Teamwork Concept'. By integrating the marketing and marketing division's job, there might be the same preliminary separate which might lead to the second phase of 'storming' where the groups test one another.

When people are presented with change, they enter stage one and so there may be emotions like unhappiness, uncertainty, irritation, rage, fear, denial and also disorientation.The circumstance at the advertising division of Microfinance In Bolivia A Meeting With The President Of The Republic is similar so Lewis can get comfortable with the idea that it is not phenomenal actions. It is during this phase that Lewis will have to provide support to the division so that they can discover a sense of instructions. It can be seen exactly how Krasnow has already made this change simpler by making Lewis get involved in the division a year before his actual departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has reviews the significance of 'safety and security needs as being a reduced level demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel secure and also out of danger' is at the 2nd level of demands. Before a staff member can be made to develop emotionally, he requires to have his 'Physiological 'as well as 'Safety and security' needs met.

SWOT Analysis for Microfinance In Bolivia A Meeting With The President Of The Republic Case Study

Effects of Analysis.

The OB analysis has looked at numerous concepts to comprehend just how to cope with the existing situation at hand. The adhering to three options have actually been recommended to help Lewis manage the business challenges in the advertising and marketing department. Each of these options has actually been recommended for relieving the transition required to bring the advertising division in line with the demands of the marketplace and also for making the social change that would follow when the present leader leaves.

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

Assessment of Alternatives.

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

The benefit of this approach is that it will certainly incorporate both features while decreasing the requirement for employing an added source for advertising. Along with this, Lewis would certainly be heading the marketing division and also in any case her substitute would certainly be required for the existing duty that she is performing. The disadvantage of this alternative is that outside hiring might cause bitterness from internal workers who might be looking at the placement of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting as well as Production: Given the competitive pressures and high top quality work required from the marketing company, it is suggested that Lewis needs to allow the manufacturing device to be a separate function from the advertising device. Because a lot of advertising and marketing companies had these two functions as separate devices, it makes even more feeling to adhere to the standard.

Integration of Advertising with Workflows: Because Lewis is already taking care of the advertising as well as operations divisions concurrently; it makes good sense to integrate both features considering that she has actually been effectively caring for both ends. The reality that the two departments already have major distinctions over allocation of resources suggests that this combination might be able to cause consistency especially as Lewis would certainly be heading both ends.However there are numerous negative aspects of this step specifically as it would certainly put excessive burden over Lewis's shoulders. The reality that Lewis needs to adapt her management style for the advertising department suggests that these 2 divisions would certainly be culturally diverse. Lewis might not be able to use one type of leadership style to both divisions which can result in inefficiency in either one of the two features.


An examination of the 3 alternatives suggests that integration of advertising and marketing as well as operations would not be a practical step as a result of the substantial distinctions in between both divisions despite the fact that presently Lewis is managing both. While splitting up of the production feature might have been a positive action for the marketing department, the reality that it would indicate placing a 3rd function under Lewis's wing implies this ought to be stayed clear of as well. The combination of the advertising department is the very best choice in terms of obtaining the optimum results from the division. An activity prepare for this alternative is reviewed below.

Action Plan.
Lewis will certainly take control of the role of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Manufacturing function will continue to be part of marketing under advertising function.

Lewis will certainly separate herself from procedures.

A democratic leadership style with employee empowerment will certainly be used in marketing division.

Open up door plan and also emphasis on cross department communication will certainly be focused on eliminating disharmony.

Contingency strategy.

If the integration does not exercise as planned, a backup plan would adhere to which would certainly separate the production feature from the advertising and marketing feature to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising and marketing department without an SVP. Because case the production function will most definitely be separated by putting it under an SVP manufacturing.