Molycorp Financing The Production Of Rare Earth Minerals A Case Study Analysis


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Background and Facts

Molycorp Financing The Production Of Rare Earth Minerals A an office products seller for little and also moderate sized services has actually recently been associated with preparing for a merger with its competitor House Deport, which has actually affected performance levels in departmentswith the elderly supervisor associated with legal issues presented by the government Trade Compensation. With the Advertising Head putting forward the information of his separation from the business 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 form of a potential social modification as well as low employee spirits, the organization is in need of a total reengineering effort at the advertising department.

Issue Statement
Porter's 5 Forces Analysis
The prospective social adjustment at the marketing division of Molycorp Financing The Production Of Rare Earth Minerals A is boosting unpredictability in the working environment resulting in numerous obstacles for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting strategic choices considering that Stapes Inc. had to abandon its strategies of merging with Office Deport after the Federal Profession Payment's treatment while doing so. Offered the reality that the shop has an international existence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries might be able to impact performance or tactical goals. Federal Profession Compensation's antitrust fit against the merger used up important time of the organization's senior monitoring suggesting that 'political' factors can have major implications for a global business.

Economic Factors: Financial factors such as the appearance of small businesses in the worldwide situation recommend that Molycorp Financing The Production Of Rare Earth Minerals A is growing in an environment where there is possible growth of companies. Along with this, reality that store customers are mostly searching for workplace materials for office suggests that the market has an increasing pattern of business owners as well as online companies.

Social factors: Social patterns in the economic climate reveal that customers are seeking convenience along with appealing rates. Marketing research demonstrates how the customer for Molycorp Financing The Production Of Rare Earth Minerals A lacks awareness concerning discovering options which can supply a mix of benefit and also inexpensive.

Technological factors: Technology plays a crucial duty in Molycorp Financing The Production Of Rare Earth Minerals A's company technique particularly as the organization is piloting Technology facilities which would certainly use innovation sales as well as assistance in the form of memory upgrades, outer installations. (Summary of INSECT in appendix 2).

OB Issues as well as Effects.

Numerous underlying Business Behavior problems can be seen in Molycorp Financing The Production Of Rare Earth Minerals A's case as highlighted in this section.

Uneasiness about cultural adjustment: There is concern about a social adjustment that would happen when Todd Krasnow leaves from his position as the Exec Vice President of Advertising with most of the employee already showing discontent over this possible step. This expected change has developed anxiety in the work environment which has been paired with the previous tension of preparing the company for a possible merging with Home Deport.
Pest Analysis
Demanding Job Environment for Newcomers: There is shortage of workers that can match the difficult atmosphere of a hectic company. Not just does this result in problem in discovering the ideal people, it puts anxiety on new hires as can not withstand the speed and stress that the organization anticipates them to bear.

Double Reporting Lines: Newcomers find this business culture cumbersome and tough to handle specifically as dotted line relationships are implied to be weak generally and also unbiased setup and also efficiency analysis is still done by the strong line supervisor. This means that novices can lose clearness concerning their corresponding duties and also objectives specifically as dotted line coverage does not keep them in straight interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles even though it had actually been hypothesized that the latter would take Krasnow's placement came as a blow to her morale. Lewis might have been capable as well as proper for the job yet the fact that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Anxiety & Work Insecurity: Concern and also instability can be recognized as two major issues that Lewis would certainly be managing especially as the merger has currently be cancelled and also 2 senior executives of the marketing division would certainly be leaving. The whole obligation of the division would be falling on Lewis's shoulders who would not just supervise of brining about a cultural change yet would likewise have to prove herself in her new role.

Incompatible Administration Design of Leader: Lewis's administration design and its incompatibility with the advertising division's role can also be seen as an OB difficulty especially as she has been made use of to handling problems in the operations department where personnel are shown to concentrate on procedures and get them right. The advertising and marketing division on the various other hand can be seen as a group of people that are made use of to being nurtured by Krasnow that focused much more on outcome than processes.

Interdepartmental Arguments: Interdepartmental disputes in between 3 departments, advertising and marketing, merchandizing and operations respectively over the allotment of the marketing mix can be identified as an additional OB worry. Although the advertising department does not share the same vision as the various other two divisions relating to the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing and also operations divisions do not agree over the marketing mix allocation among one another either.

Fragmentation in Marketing Department: Disintegration in between the advertising and marketing divisions can be recognized as one more OB problem which might require additional interest. The reality that the marketing and advertising sections in the advertising and marketing department are separated is preventing both divisions from acquiring from each other's experience and also proficiency. Combination of marketing with merchandising as well as operations would come to be more difficult if the advertising department itself is disintegrated which can be an additional prospective OB problem.

Molycorp Financing The Production Of Rare Earth Minerals A Analysis

Different theories have been used to describe the scenarios to obtain further clearness concerning the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most supervisors think that juniors are easy and lazy, have little ambition and stand up to adjustment. The hard version of this concept highlighted threat, limited controls, hazards as well as punishments. Gradually it creates low efficiency, subtle sabotage as well as competition (Offer, 2003). Although the situation at Molycorp Financing The Production Of Rare Earth Minerals A is not totally complying with Theory X, it can be seen that brand-new hires are finding this environment instead difficult which may at some point result in a higher disposition of the monitoring in the direction of Concept X. As per McGregor's supported view, which he called Concept Y, the vital task of the management is to set up business problems so that individuals can achieve their own goals best by guiding their efforts in the direction of business benefits. If people find no contentment in their work, the management would have little choice yet to rely on concept X and exterior control (Offer, 2003). Even while assessing Lewis's administration style, theory X might have been suitable in the operations division to some extent but the Advertising and marketing division would require dependence on Theory Y to get the creative thinking and also originality from the groups.

Tuckman's Team effort Concept: As far as Lewis's issue regarding bringing harmony in between the marketing as well as advertising division is worried, this would initially lead to contrast as talked about by Bruce Tuckman in his 'Teamwork Theory'. By combining the advertising and also marketing division's job, there might be the same initial separate which could lead to the 2nd stage of 'storming' where the groups challenge one an additional.

Bridges' Transition Model: As per William Bridge's concept (appendix 4), people are rather awkward with modification, which is evident by the scenario at Molycorp Financing The Production Of Rare Earth Minerals A The scenario can be viewed as a regular program of life if is examined based on Bridge's theory where he discusses that individuals experience 3 phases of transition when they experience change. 'End, shedding and Letting go', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When individuals are presented with modification, they enter stage one therefore there may be feelings like unhappiness, unpredictability, irritation, rage, worry, rejection and also disorientation.The situation at the marketing department of Molycorp Financing The Production Of Rare Earth Minerals A is comparable so Lewis can obtain comfortable with the suggestion that it is not amazing actions. In the second stage, there might be a demand to connect the gap in between the new and also old culture so Lewis may need to face this challenge as soon as Krasnow leaves. There might be low spirits and reduced productivity at this stage which must not be taken as a setback. It is during this phase that Lewis will certainly need to offer advice to the department so that they can locate an orientation. It can be seen exactly how Krasnow has currently made this change less complicated by making Lewis get associated with the department a year before his actual separation. Based on Bridges' Model, stage 3 will certainly bring about visibility to discovering, High energy and also dedication as people will embrace the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Requirement pecking order: The OB concern pertaining to instability at the office has actually been caused firstly by the change in monitoring as well as second of all by the reality that the merging will no longer be started. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has discusses the value of 'safety requires as being a lower level demand of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to really feel secure and also out of danger' goes to the second degree of requirements. Prior to a staff member can be made to establish emotionally, he requires to have his 'Physical 'as well as 'Safety and security' requires fulfilled. This indicates that unless the personnel are made to really feel safe regarding their existing employment standing in Molycorp Financing The Production Of Rare Earth Minerals A they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Molycorp Financing The Production Of Rare Earth Minerals A Case Study

Ramification of Analysis.

The OB analysis has actually looked at various concepts to understand just how to manage the current situation handy. The following 3 choices have been recommended to assist Lewis handle the business obstacles in the advertising and marketing division. Each of these choices has actually been suggested for reducing the transition required to bring the advertising division according to the needs of the marketplace and for making the cultural change that would certainly adhere to as soon as the existing leader leaves.

Combination of marketing and advertising functions. Separating Adverting and also Production functions. Combination of Marketing with Workflow.

Evaluation of Alternatives.

Combination of Marketing & Advertising And Marketing Functions: The in-house advertising firm of Molycorp Financing The Production Of Rare Earth Minerals A is currently toughness for the company in regards to saving up on expenses related to advertising and marketing and promo. Considering that no new recruitment has been done after Bridget Cole's departure with the coverage line being directly appointed to Krasnow for the advertising feature, this is a favorable opportunity for incorporating the advertising and marketing features. Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merging days has know-how in business-to-business advertising and marketing together with firm and also retail advertising experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to manage both marketing and advertising functions.

The benefit of this technique is that it will certainly incorporate the two features while lowering the demand for hiring an extra source for advertising. Lewis would be heading the marketing division as well as in any type of case her replacement would certainly be required for the current duty that she is executing. The drawback of this alternative is that exterior hiring may cause bitterness from inner personnel that may be eying the placement of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting as well as Production: Offered the affordable pressures and high quality work needed from the advertising company, it is recommended that Lewis should permit the manufacturing unit to be a different function from the advertising device. Considering that most advertising firms had these two features as separate units, it makes even more feeling to follow the norm.

Combination of Advertising And Marketing with Procedures: Given that Lewis is currently caring for the advertising and operations departments at the same time; it makes sense to incorporate the two functions given that she has been successfully taking care of both ends. The reality that the two divisions currently have major differences over allowance of sources suggests that this combination might be able to produce consistency particularly as Lewis would be heading both ends.However there are numerous negative aspects of this action particularly as it would place too much concern over Lewis's shoulders. The fact that Lewis has to adjust her administration design for the marketing department suggests that these 2 divisions would be culturally diverse. In addition to this, Lewis may not have the ability to apply one kind of leadership design to both departments which can result in inadequacy in either one of both features.


An examination of the 3 choices indicates that integration of advertising and procedures would certainly not be a possible action due to the vast distinctions in between the 2 departments regardless of the fact that presently Lewis is taking care of both. While separation of the production function may have been a positive move for the advertising department, the truth that it would suggest putting a third feature under Lewis's wing means this must be avoided.

Action Plan.
Lewis will certainly take over the function of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would be combined.

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

Manufacturing feature will remain part of advertising under advertising function.

Lewis will certainly divide herself from operations.

An autonomous leadership style with worker empowerment will be used in advertising department.

Open up door plan and focus on cross department interaction will certainly be aimed at getting rid of dissonance.

Backup plan.

If the integration does not work out as planned, a backup plan would comply with which would separate the production feature from the advertising function to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the marketing department without an SVP. Because case the production feature will most definitely be divided by positioning it under an SVP production.