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


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

Background and Facts

Molycorp Financing The Production Of Rare Earth Minerals A a workplace supplies seller for little and moderate sized organisations has actually recently been associated with planning for a merging with its rival House Deport, which has influenced efficiency degrees in departmentswith the senior supervisor involved in legal problems put forth by the government Trade Compensation. With the Marketing Head advancing the information of his separation from the business in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the duty in the future. With challenges in the form of a potential social change as well as reduced worker morale, the organization requires a total reengineering initiative at the advertising division.

Trouble Statement

The possible social adjustment at the advertising division of Molycorp Financing The Production Of Rare Earth Minerals A is enhancing uncertainty in the working environment bring about numerous difficulties for the Jeannie Lewis that would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting calculated decisions considering that Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Trade Payment's treatment while doing so. Given the fact that the shop has an international existence with branches in UK, U.S.A., Canada and Germany, political factors in each of these nations might have the ability to impact efficiency or tactical goals. Federal Profession Commission's antitrust fit against the merger took up useful time of the organization's senior management recommending that 'political' factors can have major effects for a global organisation.

Economic Factors: Economic factors such as the introduction of local business in the international situation recommend that Molycorp Financing The Production Of Rare Earth Minerals A is thriving in an atmosphere where there is prospective development of companies. Truth that store customers are primarily looking for office materials for house offices recommends that the market has a rising trend of entrepreneurs and also residence based organisations.

Social factors: Social trends in the economic climate reveal that consumers are searching for comfort along with attractive costs. Market research shows how the consumer for Molycorp Financing The Production Of Rare Earth Minerals A lacks recognition concerning locating solutions which can use a combination of convenience and affordable.

Technical factors: Technology plays an essential role in Molycorp Financing The Production Of Rare Earth Minerals A's company approach especially as the organization is piloting Technology centers which would certainly provide technology sales and support in the kind of memory upgrades, outer installments. (Summary of PEST in appendix 2).

OB Issues and also Symptoms.

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

Concerns about cultural adjustment: There is uneasiness regarding a cultural adjustment that would happen as soon as Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Marketing with most of the personnel currently showing discontent over this potential move. This predicted modification has actually developed stress in the office which has been coupled with the past stress and anxiety of preparing the company for a prospective merger with House Deport.

Difficult Job Setting for Newcomers: There is shortage of workers that can match the difficult environment of a fast-paced company. Not just does this result in difficulty in locating the appropriate people, it puts stress and anxiety on brand-new hires as can not hold up against the pace and pressure that the company expects them to bear.

Double Coverage Lines: Newcomers discover this business society difficult and difficult to deal with especially as dotted line partnerships are meant to be weak as a whole and objective setup and also efficiency analysis is still done by the solid line manager. This suggests that novices can lose clearness regarding their particular duties as well as goals especially as dotted line reporting does not maintain them in direct communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles although it had been hypothesized that the latter would take Krasnow's position came as a strike to her morale. Lewis might have been qualified and also appropriate for the job however the fact that Kransnow's separation would make Coles a direct record to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Job Insecurity: Anxiety as well as insecurity can be determined as 2 significant concerns that Lewis would be taking care of particularly as the merger has actually currently be cancelled as well as 2 elderly executives of the marketing department would be leaving. The entire duty of the department would be dropping on Lewis's shoulders who would not simply be in charge of brining regarding a social adjustment but would additionally have to show herself in her brand-new function.

Inappropriate Administration Design of Leader: Lewis's monitoring style as well as its conflict with the marketing department's role can likewise be seen as an OB difficulty specifically as she has actually been used to handling concerns in the procedures department where employees are educated to concentrate on procedures and also get them right. The marketing department on the other hand can be viewed as a group of individuals who are made use of to being nurtured by Krasnow that concentrated extra on result than processes.

Interdepartmental Differences: Interdepartmental differences in between 3 departments, advertising and marketing, merchandizing and also procedures specifically over the allocation of the advertising mix can be recognized as one more OB problem. Although the marketing department does not share the exact same vision as the other two divisions relating to the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing as well as operations divisions do not agree over the marketing mix allotment among one another either.

Disintegration in Advertising And Marketing Division: Disintegration between the advertising and marketing divisions can be recognized as one more OB issue which might require additional focus. The truth that the advertising and marketing sections in the marketing division are separated is protecting against both divisions from obtaining from each various other's experience as well as expertise. Integration of marketing with merchandising and operations would certainly come to be harder if the advertising and marketing division itself is broken down which can be one more possible OB concern.

Molycorp Financing The Production Of Rare Earth Minerals A Analysis

Different concepts have been utilized to explain the situations to get additional quality regarding the circumstance available.

McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most supervisors believe that subordinates are easy and also lazy, have little aspiration as well as withstand modification. The tough variation of this theory emphasized browbeating, limited controls, hazards and also penalties. Gradually it produces low efficiency, subtle sabotage as well as rivalry (Deal, 2003). The circumstance at Molycorp Financing The Production Of Rare Earth Minerals A is not entirely following Theory X, it can be seen that new hires are finding this environment rather demanding which may ultimately lead to a greater disposition of the monitoring in the direction of Concept X. According to McGregor's supported sight, which he called Theory Y, the vital job of the monitoring is to arrange business problems so that people can achieve their own objectives best by directing their efforts in the direction of business benefits. If people discover no satisfaction in their job, the management would certainly have little selection yet to rely on theory X and external control (Deal, 2003). Even while examining Lewis's management design, theory X might have appropriated in the procedures division to some extent however the Advertising and marketing division would certainly need reliance on Concept Y in order to get the creative thinking and also originality from the teams.

Tuckman's Team effort Concept: As for Lewis's problem regarding bringing harmony between the marketing and advertising division is concerned, this would at first lead to clash as gone over by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's concept displayed in appendix 3, throughout the initial stage of team growth, people may not bond, as they are busy discovering their place in the group. By combining the marketing and advertising division's work, there may coincide first disconnect which could result in the second stage of 'storming' where the groups challenge one another. It is only during the third phase or 'norming' when they would certainly come with each other to share suggestions before the team can bring around synergy in the 4th phase 'performing'.

Bridges' Transition Design: Based On William Bridge's concept (appendix 4), individuals are rather unpleasant with adjustment, which is noticeable by the situation at Molycorp Financing The Production Of Rare Earth Minerals A The circumstance can be seen as a typical training course of life if is studied as per Bridge's concept where he discusses that people go through 3 phases of shift when they experience adjustment. 'End, losing as well as Letting go', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When individuals exist with change, they enter stage one and so there may be feelings like unhappiness, uncertainty, disappointment, temper, concern, rejection and disorientation.The circumstance at the advertising division of Molycorp Financing The Production Of Rare Earth Minerals A is similar so Lewis can obtain comfy with the suggestion that it is not amazing actions. In the 2nd phase, there might be a demand to bridge the space in between the brand-new and also old culture so Lewis may need to encounter this experience as soon as Krasnow leaves. There may be low spirits as well as low performance at this stage which should not be taken as an obstacle. It is during this stage that Lewis will certainly need to give guidance to the division to make sure that they can locate an orientation. It can be seen how Krasnow has actually currently made this change simpler by making Lewis obtain associated with the department a year before his actual departure. According to Bridges' Design, phase three will certainly produce openness to discovering, High energy and dedication as people will accept the change (Bridges, 2004).

Maslow's Requirement pecking order: The OB issue related to instability at the work environment has actually been triggered first of all by the modification in management and second of all by the truth that the merger will no longer be started. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has discusses the relevance of 'security requires as being a reduced degree need of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the demand to feel protected as well as safe' goes to the second level of needs. Prior to an employee can be made to create mentally, he requires to have his 'Physical 'and 'Safety' needs fulfilled. This shows that unless the employees are made to really feel safe and secure concerning their present work status 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 checked out numerous concepts to understand just how to deal with the present situation available. The following three alternatives have been proposed to help Lewis deal with the business difficulties in the marketing department. Each of these choices has actually been recommended for alleviating the transition required to bring the advertising division in accordance with the demands of the marketplace and also for making the cultural change that would certainly follow when the existing leader leaves.

Integration of advertising and marketing functions. Separating Adverting and Production features. Assimilation of Advertising with Workflow.

Evaluation of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis during the earlier merging days has experience in business-to-business advertising and marketing along with firm as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to manage both advertising and also advertising and marketing features.

The advantage of this strategy is that it will incorporate the two functions while decreasing the need for hiring an additional resource for marketing. Lewis would be heading the advertising and marketing department and also in any case her replacement would be required for the current function that she is doing. The negative aspect of this option is that outside hiring may produce animosity from interior employees that may be considering the placement of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and also Production: Given the affordable pressures and also high quality work required from the marketing firm, it is advised that Lewis must permit the manufacturing unit to be a different function from the advertising system. Considering that the majority of advertising and marketing companies had these 2 functions as different systems, it makes more sense to follow the standard.

Assimilation of Advertising And Marketing with Procedures: Since Lewis is already taking care of the marketing as well as operations divisions all at once; it makes sense to incorporate the 2 features given that she has been successfully taking care of both ends. The truth that Lewis has to adapt her management design for the advertising division suggests that these 2 departments would certainly be culturally diverse.


An assessment of the three alternatives indicates that integration of marketing and also procedures would not be a feasible step due to the large differences in between the 2 departments regardless of the reality that presently Lewis is taking care of both. While separation of the production feature may have been a beneficial move for the marketing department, the reality that it would mean placing a 3rd feature under Lewis's wing suggests this must be prevented.

Activity Plan.

Lewis will certainly take over the function of EVP Advertising after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Production feature will continue to be component of advertising and marketing under advertising and marketing feature.

Lewis will certainly divide herself from procedures.

An autonomous leadership style with worker empowerment will be utilized in marketing division.

Open door plan and also focus on cross department communication will certainly be aimed at removing disharmony.

Backup strategy.

If the assimilation does not work out as planned, a contingency plan would follow which would divide the manufacturing feature from the marketing feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the production feature will definitely be separated by putting it under an SVP manufacturing.