Molycorp Issuing The Happy Meal Securities B Case Study Analysis


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Molycorp Issuing The Happy Meal Securities B Case Study Analysis

Background and Facts

Molycorp Issuing The Happy Meal Securities B a workplace supplies merchant for small as well as medium sized businesses has actually just recently been associated with planning for a merger with its rival Home Deport, which has impacted effectiveness degrees in departmentswith the elderly manager involved in lawful problems put forth by the federal Trade Payment. With the Marketing Head advancing the information of his departure from the firm in one year, Jeannie Lewis, the present head of operations has been asked to take the duty in the future. With obstacles in the type of a possible social adjustment and reduced employee morale, the organization wants a full reengineering effort at the marketing department.

Problem Statement

The prospective cultural change at the advertising division of Molycorp Issuing The Happy Meal Securities B is raising unpredictability in the workplace causing different challenges for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting tactical decisions considering that Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Trade Payment's intervention while doing so. Offered the reality that the store has a worldwide visibility with branches in UK, USA, Canada and also Germany, political consider each of these countries may have the ability to affect performance or calculated objectives. Federal Profession Commission's antitrust match against the merger occupied important time of the organization's elderly monitoring recommending that 'political' factors can have significant implications for an international business.

Economic Factors: Economic factors such as the appearance of local business in the international situation recommend that Molycorp Issuing The Happy Meal Securities B is growing in an environment where there is prospective development of services. Truth that store clients are mostly looking for office products for house offices suggests that the market has a climbing fad of entrepreneurs and residence based companies.

Social factors: Social patterns in the economy show that consumers are searching for comfort in addition to attractive costs. Market research shows how the customer for Molycorp Issuing The Happy Meal Securities B lacks understanding concerning finding solutions which can supply a combination of ease and also inexpensive.

Technological factors: Modern technology plays a vital duty in Molycorp Issuing The Happy Meal Securities B's organisation method especially as the company is piloting Modern technology centers which would certainly offer technology sales and also support in the type of memory upgrades, peripheral setups. (Summary of PEST in appendix 2).

OB Issues as well as Manifestations.

Several underlying Organizational Behavior problems can be seen in Molycorp Issuing The Happy Meal Securities B's case as highlighted in this area.

Concerns concerning cultural change: There is apprehension regarding a social adjustment that would take place as soon as Todd Krasnow leaves from his placement as the Exec Vice President of Advertising with the majority of the staff members already revealing unhappiness over this potential move. This predicted modification has developed anxiety in the work environment which has actually been combined with the past stress of preparing the firm for a prospective merging with Residence Deport.

Demanding Job Setting for Newcomers: There is scarcity of workers that can match the demanding setting of a fast-paced organization. Not only does this cause problem in discovering the ideal people, it places tension on new hires as can not withstand the speed and pressure that the organization expects them to bear.

Twin Reporting Lines: Novices discover this organizational society difficult and also difficult to manage particularly as populated line connections are implied to be weaker in general and objective setup and also efficiency examination is still done by the strong line supervisor. This indicates that novices can shed quality about their particular functions and objectives specifically as populated line reporting does not keep them in straight communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles although it had been hypothesized that the latter would certainly take Krasnow's setting came as a strike to her spirits. Lewis may have been qualified as well as appropriate for the job however the fact that Kransnow's departure would certainly make Coles a straight record to Lewis might have been the reason for Coles' resignation from solutions.

Concern & Task Insecurity: Worry and also insecurity can be determined as two significant worries that Lewis would be dealing with specifically as the merger has currently be terminated and also 2 elderly executives of the advertising and marketing department would certainly be leaving. The entire duty of the department would be falling on Lewis's shoulders who would not simply be in charge of brining regarding a social adjustment yet would likewise have to show herself in her new duty.

Inappropriate Management Design of Leader: Lewis's administration style and also its conflict with the advertising division's function can likewise be seen as an OB obstacle particularly as she has actually been used to managing problems in the procedures division where employees are taught to focus on procedures and also obtain them right. The advertising division on the other hand can be viewed as a group of individuals who are utilized to being supported by Krasnow that focused much more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental disagreements in between 3 departments, marketing, merchandizing and operations respectively over the allotment of the advertising and marketing mix can be identified as one more OB worry. Although the marketing department does not share the very same vision as the other 2 departments concerning the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and also procedures divisions do not concur over the advertising and marketing mix allocation amongst one another either.

Disintegration in Advertising And Marketing Division: Fragmentation in between the advertising and marketing divisions can be determined as an additional OB concern which might require more focus. The truth that the advertising and marketing areas in the marketing division are separated is protecting against both divisions from acquiring from each various other's experience as well as knowledge. Assimilation of advertising and marketing with retailing as well as procedures would certainly become harder if the marketing department itself is disintegrated which can be another potential OB issue.

Molycorp Issuing The Happy Meal Securities B Analysis

Numerous theories have been utilized to explain the situations to get more clarity regarding the situation available.

McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers believe that staffs are easy and lazy, have little passion as well as withstand change. The scenario at Molycorp Issuing The Happy Meal Securities B is not completely following Concept X, it can be seen that new hires are finding this setting rather stressful which may at some point lead to a higher disposition of the monitoring in the direction of Theory X. Even while evaluating Lewis's monitoring style, concept X might have been suitable in the operations department to some level but the Advertising division would call for dependence on Concept Y in order to obtain the creativity as well as originality from the teams.

Tuckman's Team effort Concept: As much as Lewis's problem regarding bringing consistency between the marketing as well as advertising department is worried, this would at first lead to contrast as gone over by Bruce Tuckman in his 'Synergy Concept'. By incorporating the marketing as well as advertising and marketing department's work, there might be the very same first detach which might lead to the second stage of 'storming' where the teams test one another.

When people are presented with adjustment, they get in phase one and so there may be emotions like despair, unpredictability, frustration, anger, worry, denial and disorientation.The scenario at the marketing division of Molycorp Issuing The Happy Meal Securities B is comparable so Lewis can get comfortable with the suggestion that it is not remarkable habits. It is during this stage that Lewis will certainly have to provide guidance to the division so that they can locate a sense of instructions. It can be seen how Krasnow has currently made this change simpler by making Lewis get involved in the division a year prior to his actual separation.

Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has reviews the relevance of 'protection needs as being a reduced degree demand of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel safe and also out of threat' is at the second degree of needs. Before an employee can be made to create psychologically, he requires to have his 'Physical 'as well as 'Security' requires met.

SWOT Analysis for Molycorp Issuing The Happy Meal Securities B Case Study

Effects of Analysis.

The OB analysis has actually taken a look at various theories to recognize exactly how to deal with the current circumstance handy. The complying with 3 options have been proposed to assist Lewis take care of the organizational difficulties in the marketing division. Each of these options has been recommended for relieving the shift required to bring the marketing division in line with the requirements of the marketplace and also for making the social modification that would certainly comply with when the current leader leaves.

Combination of advertising and marketing features. Dividing Adverting and Manufacturing functions. Assimilation of Advertising with Procedures.

Assessment of Alternatives.

Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merging days has proficiency in business-to-business advertising and marketing along with firm and also retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to take care of both marketing and also marketing features.

The benefit of this technique is that it will incorporate both functions while minimizing the need for working with an extra resource for marketing. Lewis would certainly be heading the advertising and marketing division and also in any case her replacement would be needed for the present function that she is carrying out. The downside of this alternative is that exterior hiring might cause animosity from interior personnel that may be considering the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Manufacturing: Given the affordable pressures and also high top quality work called for from the advertising and marketing agency, it is advised that Lewis needs to enable the manufacturing unit to be a separate function from the advertising system. Given that a lot of advertising and marketing firms had these two features as different units, it makes more feeling to follow the norm.

Combination of Advertising And Marketing with Operations: Given that Lewis is already taking care of the advertising and procedures departments at the same time; it makes sense to integrate the 2 features since she has been successfully taking treatment of both ends. The fact that Lewis has to adjust her monitoring style for the advertising division suggests that these 2 divisions would certainly be culturally varied.


An assessment of the three choices indicates that integration of advertising and operations would not be a practical relocation due to the substantial distinctions between the 2 departments regardless of the reality that presently Lewis is taking care of both. While separation of the manufacturing function might have been a favorable action for the marketing division, the truth that it would certainly imply placing a 3rd function under Lewis's wing suggests this should be prevented.

Activity Strategy.

Lewis will take over the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

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

Lewis will separate herself from procedures.

An autonomous leadership design with worker empowerment will be made use of in advertising division.

Open up door policy and focus on cross departmental interaction will be aimed at getting rid of dissonance.

Contingency plan.

If the integration does not work out as planned, a backup strategy would follow which would divide the manufacturing feature from the advertising feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising and marketing department without an SVP. In that case the manufacturing function will definitely be divided by putting it under an SVP manufacturing.