Napocor Privatization Power In The Philippines Case Study Solution


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Napocor Privatization Power In The Philippines Case Study Help

Background and Facts

Napocor Privatization Power In The Philippines a workplace products merchant for small and medium sized services has just recently been associated with preparing for a merger with its rival Home Deport, which has actually impacted performance levels in departmentswith the elderly manager involved in legal issues presented by the federal Profession Commission. With the Advertising Head putting forward the news of his separation from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the function in the future. With obstacles in the type of a possible social change and reduced staff member spirits, the company needs a complete reengineering effort at the advertising and marketing division.

Issue Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising division of Napocor Privatization Power In The Philippines is raising uncertainty in the workplace resulting in various difficulties for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting strategic choices considering that Stapes Inc. had to abandon its strategies of combining with Workplace Deport after the Federal Profession Commission's treatment while doing so. Given the truth that the shop has a global presence with branches in UK, USA, Canada and also Germany, political factors in each of these countries might have the ability to impact performance or strategic goals. Federal Profession Payment's antitrust suit against the merger occupied valuable time of the company's senior management suggesting that 'political' factors can have major implications for an international company.

Economic Factors: Financial factors such as the emergence of small companies in the global circumstance suggest that Napocor Privatization Power In The Philippines is thriving in a setting where there is potential growth of services. Fact that shop customers are mainly looking for workplace materials for house offices suggests that the market has a climbing fad of business owners and also home based organisations.

Social factors: Social trends in the economic situation reveal that customers are looking for comfort in addition to appealing costs. Market research shows how the consumer for Napocor Privatization Power In The Philippines does not have awareness concerning finding solutions which can use a combination of ease as well as low costs.

Technological factors: Technology plays an essential duty in Napocor Privatization Power In The Philippines's company approach especially as the organization is piloting Modern technology facilities which would certainly use modern technology sales as well as assistance in the type of memory upgrades, outer installments. (Recap of INSECT in appendix 2).

OB Issues and Symptoms.

Numerous underlying Business Habits problems can be seen in Napocor Privatization Power In The Philippines's case as highlighted in this area.

Apprehensions about social adjustment: There is uneasiness concerning a social change that would certainly take place when Todd Krasnow leaves from his position as the Exec Vice President of Marketing with a lot of the employee currently showing unhappiness over this potential relocation. This anticipated modification has produced stress and anxiety in the work environment which has been coupled with the previous tension of preparing the firm for a potential merger with Home Deport.
Pest Analysis
Stressful Task Setting for Newcomers: There is scarcity of personnel that can match the difficult atmosphere of a fast-paced company. Not just does this bring about difficulty in discovering the right people, it places tension on new hires as can not hold up against the rate and stress that the company expects them to bear.

Twin Coverage Lines: Beginners locate this business society difficult as well as difficult to handle especially as populated line relationships are implied to be weaker as a whole and objective setting and efficiency evaluation is still done by the solid line manager. This suggests that newbies could shed clearness regarding their corresponding roles and purposes especially as populated line coverage does not maintain them in direct interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles although it had actually been hypothesized that the last would certainly take Krasnow's placement came as a strike to her spirits. Lewis might have been qualified and also ideal for the job however the truth that Kransnow's departure would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Concern & Job Instability: Fear and also instability can be recognized as two major issues that Lewis would be taking care of particularly as the merging has actually currently be terminated as well as 2 elderly executives of the advertising department would certainly be leaving. The entire obligation of the department would be falling on Lewis's shoulders who would not just supervise of brining about a cultural change but would additionally need to show herself in her new function.

Incompatible Monitoring Style of Leader: Lewis's management style and its incompatibility with the marketing division's duty can additionally be viewed as an OB difficulty especially as she has been made use of to dealing with issues in the operations department where workers are taught to focus on processes as well as get them right. The advertising department on the other hand can be viewed as a group of people that are utilized to being nurtured by Krasnow that concentrated extra on result than procedures.

Interdepartmental Disputes: Interdepartmental differences in between 3 divisions, advertising, merchandizing as well as procedures specifically over the appropriation of the advertising and marketing mix can be determined as one more OB issue. Although the marketing department does not share the very same vision as the various other 2 departments regarding the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and procedures divisions do not concur over the advertising mix allocation amongst one another either.

Fragmentation in Advertising And Marketing Division: Disintegration in between the marketing and advertising departments can be identified as one more OB issue which can need additional interest. The fact that the marketing and advertising areas in the advertising and marketing division are separated is stopping both departments from obtaining from each various other's experience and also knowledge. Combination of marketing with merchandising and procedures would certainly end up being more difficult if the marketing division itself is degenerated which can be one more prospective OB concern.

Napocor Privatization Power In The Philippines Analysis

Different concepts have been used to explain the conditions to obtain additional clarity regarding the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many managers think that staffs are easy and also careless, have little passion as well as stand up to modification. The circumstance at Napocor Privatization Power In The Philippines is not entirely complying with Theory X, it can be seen that new hires are discovering this environment instead difficult which may eventually lead to a better disposition of the administration in the direction of Theory X. Even while assessing Lewis's management style, theory X may have been appropriate in the operations department to some degree yet the Advertising and marketing department would require reliance on Concept Y in order to get the imagination and originality from the groups.

Tuckman's Synergy Theory: Regarding Lewis's concern regarding bringing harmony in between the advertising and marketing division is worried, this would initially cause contrast as gone over by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). According to Tuckman's concept received appendix 3, during the first stage of group advancement, individuals might not bond, as they are hectic locating their area in the team. By incorporating the advertising and marketing division's job, there might be the same initial disconnect which could cause the second phase of 'storming' where the groups challenge each other. However, it is only throughout the third stage or 'norming' when they would integrate to share concepts prior to the group can produce harmony in the fourth stage 'performing'.

When individuals are presented with change, they go into stage one and so there might be emotions like despair, uncertainty, irritation, temper, fear, rejection as well as disorientation.The scenario at the advertising department of Napocor Privatization Power In The Philippines is similar so Lewis can obtain comfortable with the concept that it is not amazing actions. It is throughout this stage that Lewis will certainly have to give advice to the division so that they can locate a sense of instructions. It can be seen just how Krasnow has actually already made this transition simpler by making Lewis get involved in the division a year before his actual departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has discusses the value of 'protection requires as being a lower degree demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to feel secure and out of risk' is at the second degree of demands. Prior to an employee can be made to create psychologically, he needs to have his 'Physiological 'and also 'Safety and security' requires fulfilled.

SWOT Analysis for Napocor Privatization Power In The Philippines Case Study

Ramification of Analysis.

The OB analysis has actually checked out different theories to recognize how to manage the present scenario available. The following three choices have actually been suggested to aid Lewis deal with the business difficulties in the marketing department. Each of these options has actually been suggested for easing the transition needed to bring the advertising division according to the requirements of the market and for making the cultural adjustment that would comply with when the existing leader leaves.

Integration of marketing and advertising features. Dividing Adverting and Manufacturing features. Integration of Advertising And Marketing with Workflow.

Assessment of Alternatives.

Integration of Marketing & Advertising And Marketing Functions: The in-house advertising and marketing firm of Napocor Privatization Power In The Philippines is already stamina for the company in terms of saving up on overheads related to advertising and promo. Given that no new recruitment has actually been done after Bridget Cole's separation with the reporting line being directly designated to Krasnow for the advertising and marketing function, this is a positive opportunity for incorporating the marketing and advertising features. Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merging days has experience in business-to-business advertising and marketing in addition to firm as well as retail marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to handle both marketing and advertising functions.

The advantage of this method is that it will certainly incorporate the two features while decreasing the demand for employing an additional source for marketing. In addition to this, Lewis would be heading the advertising and marketing department and also in any case her replacement would certainly be needed for the present function that she is performing. The drawback of this alternative is that exterior hiring may cause bitterness from internal employees who might be considering the setting of EVP after Lewis takes over Krasnow's position.

Separating Adverting and also Manufacturing: Provided the affordable stress and high top quality job needed from the advertising firm, it is suggested that Lewis must permit the production unit to be a separate function from the advertising and marketing unit. Considering that the majority of marketing agencies had these 2 functions as separate devices, it makes even more sense to adhere to the norm.

Assimilation of Advertising And Marketing with Operations: Because Lewis is currently taking care of the advertising and also procedures divisions at the same time; it makes sense to incorporate the two features because she has actually been efficiently taking treatment of both ends. The truth that Lewis has to adapt her administration style for the advertising and marketing department suggests that these 2 divisions would certainly be culturally varied.


An evaluation of the three choices shows that assimilation of marketing and also procedures would certainly not be a feasible step due to the substantial distinctions between the two departments although that presently Lewis is dealing with both. While separation of the production feature may have been a positive action for the advertising division, the fact that it would mean positioning a 3rd feature under Lewis's wing implies this must be prevented. The integration of the advertising and marketing department is the very best choice in terms of obtaining the ideal arise from the division. An action plan for this choice is gone over listed below.

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

Advertising and Marketing functions would be combined.

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

Manufacturing feature will certainly continue to be part of advertising under advertising and marketing feature.

Lewis will certainly divide herself from operations.

A democratic leadership style with staff member empowerment will certainly be made use of in marketing department.

Open door plan and focus on cross departmental communication will certainly be focused on eliminating dissonance.

Contingency plan.

If the integration does not exercise as prepared, a contingency strategy would certainly comply with which would separate the production function from the marketing feature to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the marketing division without an SVP. Because case the production function will most definitely be separated by positioning it under an SVP production.