National Power And The Privatization Of The British Power Generation Industry Case Study Solution


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National Power And The Privatization Of The British Power Generation Industry Case Study Solution

Background and Facts

National Power And The Privatization Of The British Power Generation Industry a workplace supplies retailer for small and also average sized organisations has lately been involved in planning for a merging with its competitor House Deport, which has affected efficiency degrees in departmentswith the elderly manager involved in lawful difficulties presented by the government Trade Compensation. With the Advertising Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the current head of operations has actually been asked to take the duty in the future. With challenges in the type of a possible social modification and also low worker morale, the organization needs a full reengineering effort at the advertising and marketing department.

Issue Statement
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising division of National Power And The Privatization Of The British Power Generation Industry is enhancing unpredictability in the working environment causing various difficulties for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in influencing critical decisions considering that Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Profession Compensation's intervention in the process. Given the reality that the store has a worldwide existence with branches in UK, USA, Canada and Germany, political consider each of these nations might be able to affect efficiency or tactical objectives. Federal Profession Commission's antitrust match versus the merging used up valuable time of the organization's senior administration recommending that 'political' factors can have significant ramifications for an international company.

Economic Factors: Economic factors such as the emergence of local business in the global scenario recommend that National Power And The Privatization Of The British Power Generation Industry is prospering in an atmosphere where there is possible development of companies. Along with this, truth that store consumers are primarily seeking office materials for home offices recommends that the marketplace has a climbing pattern of business owners and also home based services.

Social factors: Social trends in the economic situation show that clients are searching for comfort in addition to appealing rates. Market research demonstrates how the consumer for National Power And The Privatization Of The British Power Generation Industry lacks recognition regarding locating solutions which can use a combination of ease and affordable.

Technical factors: Modern technology plays an essential role in National Power And The Privatization Of The British Power Generation Industry's company method especially as the organization is piloting Innovation facilities which would supply innovation sales as well as assistance in the form of memory upgrades, peripheral installments. (Recap of PARASITE in appendix 2).

OB Issues and Effects.

A number of underlying Organizational Habits issues can be seen in National Power And The Privatization Of The British Power Generation Industry's case as highlighted in this area.

Uneasiness concerning cultural modification: There is worry regarding a social change that would certainly take place once Todd Krasnow leaves from his setting as the Exec Vice President of Advertising And Marketing with the majority of the staff members already showing unhappiness over this prospective relocation. This expected change has actually produced tension in the office which has actually been combined with the past stress and anxiety of preparing the firm for a possible merger with House Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is scarcity of employees that can match the stressful atmosphere of a hectic company. Not only does this cause trouble in finding the right individuals, it puts stress and anxiety on brand-new hires as can not withstand the rate as well as pressure that the organization anticipates them to birth.

Double Reporting Lines: Newbies discover this organizational society troublesome and difficult to manage especially as dotted line relationships are meant to be weak as a whole and also unbiased setup and efficiency assessment is still done by the strong line supervisor. This suggests that newcomers can lose clearness about their respective functions and goals specifically as dotted line coverage does not keep them in straight communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been hypothesized that the last would certainly take Krasnow's setting came as a blow to her morale. Lewis might have been capable and appropriate for the work yet the fact that Kransnow's departure would make Coles a direct report to Lewis might have been the factor for Coles' resignation from services.

Anxiety & Work Insecurity: Anxiety and insecurity can be recognized as two significant issues that Lewis would certainly be managing especially as the merging has actually now be terminated and two elderly execs of the marketing division would be leaving. The entire obligation of the division would certainly be falling on Lewis's shoulders who would not simply be in charge of brining concerning a cultural change yet would also have to confirm herself in her brand-new duty.

Incompatible Monitoring Style of Leader: Lewis's monitoring design as well as its incompatibility with the advertising and marketing division's duty can additionally be seen as an OB difficulty specifically as she has actually been made use of to handling problems in the procedures department where employees are educated to concentrate on processes as well as obtain them right. The advertising and marketing division on the various other hand can be viewed as a group of individuals that are used to being supported by Krasnow that focused extra on result than procedures.

Interdepartmental Arguments: Interdepartmental differences between 3 divisions, marketing, merchandizing and also procedures respectively over the allocation of the advertising and marketing mix can be determined as one more OB problem. The marketing division does not share the same vision as the various other two departments concerning the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing as well as operations departments do not concur over the marketing mix allowance among one an additional either.

Disintegration in Advertising Division: Disintegration between the advertising and marketing divisions can be identified as an additional OB issue which could require additional interest. The truth that the advertising and marketing sections in the advertising department are disconnected is avoiding both departments from gaining from each other's experience and also knowledge. Assimilation of advertising with retailing and operations would become harder if the marketing division itself is disintegrated which can be another potential OB concern.

National Power And The Privatization Of The British Power Generation Industry Analysis

Various concepts have been made use of to clarify the conditions to obtain more clearness about the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of supervisors believe that subordinates are easy as well as lazy, have little passion as well as resist adjustment. The difficult version of this concept stressed coercion, limited controls, threats and penalties. Over time it generates reduced productivity, refined sabotage and also competition (Offer, 2003). Although the circumstance at National Power And The Privatization Of The British Power Generation Industry is not completely following Theory X, it can be seen that new hires are finding this environment instead difficult which might eventually bring about a better inclination of the management in the direction of Theory X. According to McGregor's promoted view, which he called Theory Y, the necessary job of the management is to set up organizational problems to make sure that individuals can achieve their very own objectives best by directing their efforts towards business rewards. If people locate no complete satisfaction in their job, the administration would have little selection however to depend on concept X and outside control (Bargain, 2003). Even while assessing Lewis's management design, theory X might have been suitable in the procedures department somewhat however the Advertising and marketing division would certainly need reliance on Concept Y so as to get the creative thinking and originality from the teams.

Tuckman's Team effort Concept: As far as Lewis's issue about bringing harmony in between the marketing and also advertising department is concerned, this would at first lead to conflict as reviewed by Bruce Tuckman in his 'Synergy Theory'. By combining the advertising and marketing and advertising and marketing division's work, there may be the same first detach which could lead to the 2nd phase of 'storming' where the teams challenge one another.

Bridges' Change Design: According To William Bridge's concept (appendix 4), individuals are rather uneasy with adjustment, which is obvious by the scenario at National Power And The Privatization Of The British Power Generation Industry The situation can be seen as a typical program of life if is studied according to Bridge's concept where he describes that individuals go through three phases of transition when they experience change. 'Ending, shedding and also Letting go', The Neutral Zone and 'The New Starting' (Bridges, 2004). When people are presented with change, they get in stage one and so there may be emotions like unhappiness, unpredictability, disappointment, temper, fear, rejection and disorientation.The situation at the marketing department of National Power And The Privatization Of The British Power Generation Industry is comparable so Lewis can obtain comfy with the idea that it is not remarkable actions. In the second phase, there may be a need to connect the space in between the brand-new as well as old culture so Lewis may need to face this ordeal once Krasnow leaves. There might be low morale as well as low performance at this stage which should not be taken as a setback. It is during this stage that Lewis will have to give support to the division to make sure that they can locate a sense of direction. It can be seen how Krasnow has actually currently made this shift simpler by making Lewis get associated with the division a year before his actual separation. As per Bridges' Model, stage three will certainly bring about openness to understanding, High energy and also dedication as people will accept the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Demand hierarchy: The OB problem pertaining to instability at the work environment has been caused firstly by the modification in monitoring and second of all by the truth that the merger will no longer be started. Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has goes over the relevance of 'security requires as being a reduced degree requirement of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel protected as well as unharmed' is at the second degree of requirements. Prior to a worker can be made to develop mentally, he needs to have his 'Physiological 'and also 'Safety' needs fulfilled. This suggests that unless the personnel are made to feel protected about their existing work standing in National Power And The Privatization Of The British Power Generation Industry they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for National Power And The Privatization Of The British Power Generation Industry Case Study

Ramification of Analysis.

The OB analysis has checked out numerous theories to recognize how to manage the current circumstance handy. The complying with 3 alternatives have actually been proposed to help Lewis take care of the business obstacles in the marketing department. Each of these options has actually been suggested for reducing the shift needed to bring the advertising division according to the needs of the market and also for making the social adjustment that would adhere to as soon as the existing leader leaves.

Combination of marketing and advertising features. Dividing Adverting and Manufacturing features. Assimilation of Marketing with Workflow.

Examination of Alternatives.

Integration of Advertising & Advertising And Marketing Functions: The in-house advertising firm of National Power And The Privatization Of The British Power Generation Industry is currently strength for the organization in regards to conserving up on expenses related to advertising and promo. Considering that no brand-new recruitment has actually been done after Bridget Cole's separation with the coverage line being straight designated to Krasnow for the advertising feature, this is a desirable opportunity for incorporating the marketing and advertising features. Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merging days has competence in business-to-business advertising and marketing along with company and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to handle both advertising and marketing functions.

The advantage of this method is that it will certainly incorporate the two features while reducing the demand for working with an added source for marketing. Lewis would certainly be heading the advertising and marketing division as well as in any type of case her substitute would certainly be needed for the existing role that she is doing. The disadvantage of this alternative is that exterior hiring might produce resentment from inner employees that may be eying the placement of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and Production: Given the affordable pressures and also high quality job required from the advertising and marketing agency, it is recommended that Lewis ought to enable the manufacturing device to be a different function from the advertising device. Considering that many advertising and marketing companies had these two features as different devices, it makes even more sense to comply with the norm.

Combination of Marketing with Operations: Considering that Lewis is currently taking care of the advertising and marketing as well as operations divisions concurrently; it makes sense to incorporate the 2 features since she has been efficiently taking care of both ends. The reality that Lewis has to adjust her administration style for the advertising division recommends that these 2 departments would be culturally varied.


An examination of the 3 alternatives suggests that integration of marketing as well as operations would not be a practical step due to the substantial distinctions between the 2 divisions in spite of the truth that presently Lewis is dealing with both. While separation of the manufacturing function might have been a desirable move for the marketing department, the fact that it would mean positioning a third function under Lewis's wing suggests this must be avoided.

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

Marketing and advertising functions would certainly be combined.

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

Production feature will remain component of marketing under advertising and marketing function.

Lewis will certainly divide herself from procedures.

An autonomous management style with staff member empowerment will be used in marketing division.

Open up door plan as well as emphasis on cross departmental communication will certainly be targeted at getting rid of discord.

Backup strategy.

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