Molycorp Issuing The Happy Meal Securities B Case Study Help


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Molycorp Issuing The Happy Meal Securities B Case Study Solution

Background and Facts

Molycorp Issuing The Happy Meal Securities B an office products merchant for small and also average sized companies has actually just recently been associated with planning for a merging with its rival Residence Deport, which has impacted effectiveness degrees in departmentswith the senior supervisor involved in lawful problems presented by the government Trade Commission. With the Advertising and marketing Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the duty in the future. With challenges in the form of a possible social adjustment and also reduced employee spirits, the company needs a full reengineering effort at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The prospective cultural adjustment at the advertising department of Molycorp Issuing The Happy Meal Securities B is boosting unpredictability in the working environment causing various challenges 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 function in affecting critical decisions since Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Trade Commission's intervention in the process. Provided the truth that the shop has an international existence with branches in UK, USA, Canada and also Germany, political consider each of these nations may be able to affect performance or tactical goals. Federal Profession Payment's antitrust suit against the merger occupied important time of the company's senior administration suggesting that 'political' factors can have significant effects for a worldwide company.

Economic Factors: Financial factors such as the appearance of local business in the worldwide situation recommend that Molycorp Issuing The Happy Meal Securities B is flourishing in a setting where there is potential growth of businesses. Fact that shop customers are mainly looking for workplace products for residence workplaces recommends that the market has a climbing trend of business owners and house based businesses.

Social factors: Social trends in the economic climate reveal that customers are searching for convenience along with appealing costs. Marketing research shows how the customer for Molycorp Issuing The Happy Meal Securities B lacks recognition regarding locating solutions which can supply a mix of ease and low costs.

Technical factors: Modern technology plays a crucial function in Molycorp Issuing The Happy Meal Securities B's organisation approach particularly as the organization is piloting Modern technology centers which would provide innovation sales and assistance in the type of memory upgrades, outer installations. (Recap of PEST in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Organizational Actions concerns can be seen in Molycorp Issuing The Happy Meal Securities B's case as highlighted in this section.

Worries about social adjustment: There is apprehension about a cultural adjustment that would certainly take place once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising And Marketing with a lot of the staff members currently revealing discontent over this prospective step. This predicted change has actually developed tension in the work environment which has actually been combined with the past stress of preparing the company for a potential merging with Home Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is shortage of personnel that can match the demanding setting of a busy organization. Not only does this bring about difficulty in discovering the best individuals, it places stress and anxiety on new hires as can not withstand the pace and stress that the company anticipates them to bear.

Twin Coverage Lines: Newbies discover this business culture troublesome as well as hard to cope with especially as populated line partnerships are implied to be weaker generally and also objective setting and also performance examination is still done by the strong line manager. This suggests that novices could shed quality about their particular roles and also goals especially as populated line reporting does not maintain them in straight communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles even though it had actually been speculated that the latter would certainly take Krasnow's setting came as an impact to her spirits. Lewis may have been capable and appropriate for the work however the fact that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Fear & Work Instability: Anxiety and also insecurity can be recognized as two major problems that Lewis would be dealing with especially as the merging has actually currently be cancelled as well as two elderly execs of the marketing department would be leaving. The entire obligation of the division would be dropping on Lewis's shoulders that would not simply supervise of brining concerning a cultural change yet would additionally have to confirm herself in her brand-new duty.

Incompatible Management Design of Leader: Lewis's monitoring design and its conflict with the marketing division's role can additionally be viewed as an OB challenge especially as she has actually been made use of to taking care of issues in the procedures department where employees are shown to concentrate on processes and get them right. The advertising and marketing division on the various other hand can be viewed as a group of individuals that are made use of to being nurtured by Krasnow that concentrated more on output than procedures.

Interdepartmental Arguments: Interdepartmental disputes in between 3 divisions, advertising, merchandizing and procedures respectively over the allowance of the advertising mix can be identified as another OB concern. Although the advertising division does not share the same vision as the various other two divisions pertaining to the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing as well as procedures divisions do not agree over the advertising and marketing mix allowance among one another either.

Disintegration in Advertising And Marketing Division: Fragmentation in between the marketing and advertising departments can be determined as one more OB issue which could require further attention. The fact that the marketing and advertising areas in the advertising and marketing department are detached is protecting against both divisions from gaining from each other's experience and also experience. Integration of advertising with retailing and procedures would certainly end up being more difficult if the advertising and marketing department itself is degenerated which can be an additional possible OB issue.

Molycorp Issuing The Happy Meal Securities B Analysis

Numerous theories have actually been made use of to explain the scenarios to get more quality about the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors believe that subordinates are easy and also careless, have little aspiration as well as resist adjustment. The hard version of this theory highlighted threat, limited controls, hazards and also penalties. Gradually it creates reduced performance, refined sabotage and rivalry (Deal, 2003). The scenario at Molycorp Issuing The Happy Meal Securities B is not entirely complying with Theory X, it can be seen that new hires are discovering this atmosphere rather difficult which might at some point lead to a greater disposition of the management towards Theory X. As per McGregor's advocated sight, which he called Concept Y, the crucial job of the management is to organize business conditions so that people can achieve their own goals best by routing their efforts in the direction of business rewards. If individuals find no contentment in their work, the monitoring would have little option yet to depend on concept X and outside control (Deal, 2003). Also while assessing Lewis's management design, theory X might have been suitable in the procedures division to some extent but the Advertising and marketing division would certainly call for dependence on Theory Y so as to get the imagination and also creativity from the groups.

Tuckman's Synergy Theory: As far as Lewis's issue about bringing harmony in between the marketing and advertising division is concerned, this would at first lead to clash as talked about by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). According to Tuckman's theory received appendix 3, throughout the preliminary phase of team growth, people might not bond, as they are hectic locating their location in the team. By integrating the marketing and advertising division's job, there may be the same initial disconnect which might lead to the second stage of 'storming' where the groups challenge one another. Nevertheless, it is only throughout the third phase or 'norming' when they would collaborate to share ideas prior to the group can cause synergy in the 4th phase 'doing'.

When individuals are presented with modification, they enter stage one and so there might be emotions like sadness, unpredictability, aggravation, temper, fear, denial and also disorientation.The scenario at the advertising and marketing department of Molycorp Issuing The Happy Meal Securities B is comparable so Lewis can obtain comfortable with the idea that it is not amazing behavior. It is during this stage that Lewis will certainly have to offer assistance to the department so that they can discover a sense of direction. It can be seen just how Krasnow has actually already made this change simpler by making Lewis get entailed in the department a year before his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has discusses the significance of 'security needs as being a lower level demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to really feel safe and secure as well as out of threat' is at the 2nd level of needs. Prior to a staff member can be made to create psychologically, he requires to have his 'Physical 'and 'Safety' requires fulfilled.

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

Implication of Analysis.

The OB analysis has checked out various concepts to recognize exactly how to manage the current situation available. The complying with three alternatives have actually been proposed to aid Lewis handle the organizational difficulties in the advertising department. Each of these choices has been proposed for easing the shift required to bring the advertising and marketing department according to the demands of the market and also for making the cultural change that would adhere to when the existing leader leaves.

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

Assessment of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis throughout the earlier merger days has know-how in business-to-business marketing along with firm and retail advertising experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to manage both advertising as well as advertising and marketing features.

The benefit of this strategy is that it will certainly incorporate both features while minimizing the demand for hiring an extra resource for advertising and marketing. Lewis would certainly be heading the advertising department and also in any kind of case her replacement would certainly be needed for the present role that she is carrying out. The negative aspect of this alternative is that external hiring may produce resentment from interior workers that may be considering the position of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting as well as Manufacturing: Given the affordable stress and high quality job needed from the advertising and marketing agency, it is suggested that Lewis ought to enable the production system to be a different feature from the marketing unit. Considering that a lot of advertising and marketing companies had these 2 functions as separate units, it makes more sense to adhere to the standard.

Combination of Advertising And Marketing with Operations: Considering that Lewis is currently taking care of the advertising and marketing and procedures divisions simultaneously; it makes feeling to integrate the 2 functions because she has actually been effectively taking care of both ends. The fact that Lewis has to adjust her monitoring style for the advertising and marketing division recommends that these 2 departments would certainly be culturally diverse.


An evaluation of the three options suggests that assimilation of marketing and also operations would not be a possible step because of the large distinctions in between both divisions despite the fact that presently Lewis is handling both. While splitting up of the production feature may have been a desirable step for the marketing division, the fact that it would mean putting a 3rd feature under Lewis's wing indicates this ought to be prevented. The assimilation of the advertising department is the most effective alternative in regards to getting the ideal results from the division. An action plan for this choice is gone over below.

Activity Strategy.
Lewis will certainly take control of the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would be merged.

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

Production feature will certainly continue to be part of marketing under marketing function.

Lewis will certainly divide herself from operations.

An autonomous leadership style with worker empowerment will be utilized in advertising and marketing department.

Open door policy as well as emphasis on cross department interaction will be aimed at eliminating disharmony.

Contingency plan.

If the combination does not work out as planned, a backup plan would follow which would certainly separate the production function from the marketing function to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the marketing department without an SVP. In that case the manufacturing function will most definitely be separated by placing it under an SVP production.