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 merchant for little and moderate sized organisations has actually recently been involved in preparing for a merger with its rival House Deport, which has actually impacted performance levels in departmentswith the elderly manager involved in legal issues presented by the government Profession Compensation. With the Advertising and marketing Head putting forward 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 function in the near future. With obstacles in the type of a potential social change and also reduced staff member spirits, the organization requires a full reengineering initiative at the advertising division.

Problem Declaration
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising and marketing department of Molycorp Financing The Production Of Rare Earth Minerals A is boosting unpredictability in the workplace bring about various obstacles 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 strategic decisions because Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Profession Compensation'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 countries might have the ability to influence performance or calculated objectives. Federal Trade Compensation's antitrust fit versus the merger took up important time of the company's elderly management recommending that 'political' factors can have severe ramifications for a global company.

Economic Factors: Economic factors such as the introduction of local business in the global situation recommend that Molycorp Financing The Production Of Rare Earth Minerals A is thriving in a setting where there is prospective development of organisations. Along with this, reality that shop clients are mostly seeking workplace materials for home offices recommends that the market has a rising fad of business owners and online companies.

Social factors: Social fads in the economy show that consumers are searching for convenience along with attractive rates. Market research demonstrates how the consumer for Molycorp Financing The Production Of Rare Earth Minerals A lacks awareness regarding finding remedies which can supply a mix of benefit as well as inexpensive.

Technical factors: Innovation plays a vital role in Molycorp Financing The Production Of Rare Earth Minerals A's organisation strategy especially as the organization is piloting Innovation facilities which would certainly provide modern technology sales and support in the type of memory upgrades, peripheral installations. (Summary of INSECT in appendix 2).

OB Issues and Effects.

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

Apprehensions concerning cultural modification: There is concern regarding a cultural change that would certainly happen once Todd Krasnow leaves from his position as the Executive Vice President of Marketing with the majority of the staff members already revealing unhappiness over this possible relocation. This predicted change has actually created stress and anxiety in the work environment which has been combined with the previous anxiety of preparing the company for a potential merging with Residence Deport.
Pest Analysis
Difficult Task Atmosphere for Newcomers: There is lack of employees that can match the stressful environment of a busy company. Not only does this result in difficulty in locating the ideal people, it puts stress on brand-new hires as can not endure the pace and pressure that the company expects them to birth.

Dual Reporting Lines: Newbies locate this business society troublesome as well as challenging to manage particularly as dotted line relationships are indicated to be weaker as a whole as well as objective setting as well as efficiency assessment is still done by the solid line manager. This indicates that beginners might shed quality about their respective roles and also goals especially as dotted line reporting does not maintain them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles despite the fact that it had actually been hypothesized that the latter would certainly take Krasnow's placement came as a blow to her morale. Lewis might have been qualified and also proper for the job but the reality that Kransnow's departure would make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Task Instability: Fear as well as instability can be identified as 2 significant worries that Lewis would be taking care of especially as the merger has now be terminated and also two elderly executives of the marketing division would be leaving. The whole duty of the department would be falling on Lewis's shoulders that would not simply supervise of brining regarding a cultural change yet would certainly likewise have to show herself in her new function.

Incompatible Management Style of Leader: Lewis's monitoring design and its incompatibility with the advertising and marketing department's role can also be seen as an OB challenge particularly as she has actually been utilized to dealing with concerns in the procedures division where workers are taught to concentrate on processes and also obtain them. The advertising and marketing division on the various other hand can be seen as a team of people who are utilized to being nurtured by Krasnow who concentrated extra on outcome than procedures.

Interdepartmental Arguments: Interdepartmental disputes in between 3 departments, marketing, merchandizing and procedures specifically over the allowance of the marketing mix can be determined as one more OB worry. The marketing division does not share the same vision as the various other 2 departments regarding the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and procedures departments do not agree over the advertising mix allotment among one another either.

Disintegration in Advertising And Marketing Division: Fragmentation between the marketing and advertising divisions can be determined as an additional OB problem which might need more focus. The reality that the marketing and advertising sections in the marketing department are disconnected is avoiding both divisions from gaining from each other's experience and also know-how. Assimilation of marketing with merchandising and also operations would certainly come to be more difficult if the marketing division itself is disintegrated which can be one more prospective OB issue.

Molycorp Financing The Production Of Rare Earth Minerals A Analysis

Numerous concepts have been made use of to explain the scenarios to obtain additional quality regarding the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers think that staffs are passive and also lazy, have little aspiration as well as resist modification. The situation 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 atmosphere rather demanding which might ultimately lead to a greater disposition of the administration towards Concept X. Even while evaluating Lewis's management design, theory X may have been ideal in the operations division to some extent however the Advertising and marketing department would certainly call for dependence on Theory Y in order to obtain the creative thinking and originality from the teams.

Tuckman's Team effort Concept: As for Lewis's worry about bringing consistency in between the marketing and advertising department is worried, this would at first bring about contrast as gone over by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). Based on Tuckman's theory shown in appendix 3, during the first phase of group development, individuals might not bond, as they are busy locating their place in the group. By combining the marketing and advertising department's work, there may be the same first detach which might cause the second stage of 'storming' where the teams test one another. However, it is only during the third phase or 'norming' when they would certainly integrate to share concepts prior to the group can cause harmony in the fourth phase 'doing'.

When people are provided with change, they get in phase one as well as so there may be emotions like unhappiness, uncertainty, disappointment, temper, fear, denial and disorientation.The scenario at the advertising division of Molycorp Financing The Production Of Rare Earth Minerals A is comparable so Lewis can obtain comfortable with the idea that it is not amazing habits. It is during this phase that Lewis will certainly have to provide advice to the department so that they can discover a sense of instructions. It can be seen just how Krasnow has currently made this transition less complicated by making Lewis obtain involved in the division a year prior to his actual separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has goes over the significance of 'security needs as being a reduced level requirement of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel protected and out of threat' is at the 2nd degree of demands. Before an employee can be made to develop emotionally, he requires to have his 'Physical 'and 'Safety' needs satisfied.

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

Effects of Analysis.

The OB analysis has actually looked at various theories to recognize just how to manage the existing circumstance at hand. The complying with 3 choices have actually been recommended to help Lewis handle the organizational difficulties in the advertising division. Each of these options has been proposed for reducing the shift needed to bring the marketing department in accordance with the demands of the market as well as for making the social modification that would certainly comply with when the existing leader leaves.

Combination of advertising and marketing features. Separating Adverting and also Production features. Combination of Advertising And Marketing with Workflow.

Analysis of Alternatives.

Assimilation of Marketing & Advertising And Marketing Functions: The internal advertising and marketing agency of Molycorp Financing The Production Of Rare Earth Minerals A is currently strength for the organization in regards to conserving up on expenses connected to marketing and also promo. Because no new employment has actually been done after Bridget Cole's departure with the coverage line being directly assigned to Krasnow for the marketing feature, this is a positive chance for integrating the marketing and advertising functions. Judith Shapiro who has earlier been talked to by Lewis during the earlier merger days has experience in business-to-business advertising along with agency as well as retail marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to take care of both marketing and advertising functions.

The advantage of this approach is that it will incorporate both features while lowering the requirement for employing an extra resource for advertising and marketing. In addition to this, Lewis would be heading the advertising and marketing department and also regardless her replacement would be required for the existing duty that she is carrying out. The disadvantage of this alternative is that outside hiring might cause animosity from internal employees that may be looking at the setting of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting as well as Manufacturing: Given the affordable stress and also high top quality job required from the advertising and marketing agency, it is suggested that Lewis needs to permit the production device to be a different feature from the advertising and marketing system. Given that a lot of advertising agencies had these 2 features as different devices, it makes even more feeling to follow the norm.

Assimilation of Advertising with Workflows: Because Lewis is already caring for the marketing and operations departments at the same time; it makes sense to integrate both features given that she has been successfully taking care of both ends. The fact that the two departments currently have major distinctions over allotment of resources recommends that this combination might be able to cause harmony specifically as Lewis would be heading both ends.However there are numerous drawbacks of this action specifically as it would certainly put excessive concern over Lewis's shoulders. The fact that Lewis needs to adjust her administration design for the marketing department recommends that these two departments would certainly be culturally diverse. Lewis might not be able to apply one type of management design to both divisions which can result in ineffectiveness in either one of the two functions.


An evaluation of the three options suggests that integration of marketing and procedures would certainly not be a viable step due to the huge differences between the two divisions in spite of the fact that presently Lewis is dealing with both. While separation of the manufacturing feature may have been a beneficial action for the advertising department, the truth that it would certainly suggest positioning a third function under Lewis's wing means this ought to be stayed clear of.

Action Plan.
Lewis will take over the role of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be merged.

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

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

Lewis will certainly divide herself from operations.

A democratic management design with employee empowerment will be made use of in marketing division.

Open door plan and emphasis on cross department interaction will certainly be targeted at eliminating disharmony.

Contingency plan.

If the combination does not work out as intended, a contingency strategy would certainly adhere to which would certainly divide the production feature from the marketing function to decrease the lots 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. In that case the production feature will definitely be divided by putting it under an SVP manufacturing.