Menu

Natura Cosmeticos Sa Case Study Help

CASE HELP

Home >> Harvard >> Natura Cosmeticos Sa >>

Natura Cosmeticos Sa Case Study Help

Background and Facts

Natura Cosmeticos Sa a workplace products seller for little and also medium sized services has recently been involved in preparing for a merging with its rival Home Deport, which has influenced performance degrees in departmentswith the elderly manager associated with lawful difficulties presented by the government Profession Commission. With the Advertising Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the future. With difficulties in the form of a possible cultural change and also reduced employee morale, the company is in need of a complete reengineering initiative at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The potential cultural change at the advertising and marketing department of Natura Cosmeticos Sa is boosting unpredictability in the workplace bring about different difficulties for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting strategic decisions since Stapes Inc. had to abandon its plans of merging with Office Deport after the Federal Trade Commission's intervention in the process. Given the reality that the store has a global presence with branches in UK, U.S.A., Canada and Germany, political factors in each of these countries may have the ability to affect efficiency or calculated objectives. Federal Profession Compensation's antitrust suit against the merging used up valuable time of the company's elderly management suggesting that 'political' factors can have serious ramifications for a worldwide business.

Economic Factors: Financial factors such as the emergence of local business in the international situation suggest that Natura Cosmeticos Sa is flourishing in an atmosphere where there is prospective development of organisations. Fact that shop customers are mainly looking for workplace supplies for home workplaces recommends that the market has a climbing fad of business owners and also residence based organisations.

Social factors: Social trends in the economy reveal that clients are looking for benefit along with eye-catching rates. Marketing research demonstrates how the consumer for Natura Cosmeticos Sa does not have understanding regarding discovering options which can use a combination of benefit as well as inexpensive.

Technical factors: Innovation plays a vital duty in Natura Cosmeticos Sa's service approach particularly as the organization is piloting Innovation facilities which would use innovation sales and support in the form of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues and Manifestations.

Numerous underlying Organizational Behavior problems can be seen in Natura Cosmeticos Sa's case as highlighted in this area.

Concerns regarding social modification: There is apprehension about a social change that would occur when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Marketing with most of the staff members currently revealing unhappiness over this possible move. This expected adjustment has actually created anxiety in the work environment which has been paired with the previous anxiety of preparing the company for a possible merging with House Deport.
Pest Analysis
Stressful Task Setting for Newcomers: There is shortage of workers that can match the demanding setting of a fast-paced organization. Not only does this lead to problem in locating the appropriate people, it puts stress and anxiety on brand-new hires as can not withstand the pace as well as stress that the organization anticipates them to birth.

Dual Reporting Lines: Novices locate this organizational society troublesome and also hard to handle especially as populated line partnerships are indicated to be weak generally as well as objective setting as well as performance analysis is still done by the solid line manager. This suggests that novices can shed clarity regarding their corresponding roles as well as objectives specifically as populated line reporting does not maintain them in straight communication with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles although it had actually been speculated that the latter would certainly take Krasnow's placement came as an impact to her spirits. Lewis may have been capable as well as appropriate for the job but the fact that Kransnow's departure would certainly make Coles a direct report to Lewis may have been the reason for Coles' resignation from solutions.

Concern & Work Insecurity: Anxiety as well as insecurity can be identified as two major worries that Lewis would certainly be dealing with particularly as the merging has now be cancelled and also two elderly executives of the advertising department would be leaving. The entire responsibility of the department would certainly be falling on Lewis's shoulders who would certainly not just be in charge of brining concerning a social modification but would certainly additionally have to verify herself in her brand-new role.

Incompatible Monitoring Style of Leader: Lewis's administration style as well as its incompatibility with the marketing department's role can also be seen as an OB difficulty specifically as she has been utilized to managing concerns in the procedures division where workers are instructed to focus on procedures and obtain them right. The advertising department on the other hand can be seen as a team of individuals who are made use of to being supported by Krasnow that focused more on outcome than processes.

Interdepartmental Disagreements: Interdepartmental disagreements between 3 departments, advertising, merchandizing and operations specifically over the allowance of the advertising mix can be recognized as another OB issue. The marketing department does not share the very same vision as the various other 2 departments concerning the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and also procedures departments do not agree over the advertising mix allowance amongst one an additional either.

Disintegration in Advertising And Marketing Department: Fragmentation in between the advertising and marketing divisions can be identified as another OB concern which can need more attention. The truth that the advertising and marketing areas in the advertising and marketing division are detached is protecting against both departments from acquiring from each various other's experience and know-how. Combination of advertising and marketing with retailing as well as operations would certainly end up being more difficult if the advertising and marketing department itself is broken down which can be an additional possible OB concern.

Natura Cosmeticos Sa Analysis

Numerous concepts have been used to describe the scenarios to get additional quality about the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of managers believe that juniors are easy and also careless, have little aspiration and resist adjustment. The situation at Natura Cosmeticos Sa is not totally following Concept X, it can be seen that brand-new hires are discovering this atmosphere rather difficult which might ultimately lead to a greater disposition of the administration towards Theory X. Also while examining Lewis's management design, theory X may have been ideal in the procedures division to some degree however the Marketing department would call for reliance on Theory Y in order to obtain the creativity and originality from the teams.

Tuckman's Teamwork Theory: Regarding Lewis's worry concerning bringing harmony between the advertising and marketing department is concerned, this would initially cause conflict as discussed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, during the initial phase of team advancement, individuals might not bond, as they are active finding their location in the team. By combining the advertising and marketing division's job, there may coincide initial disconnect which could bring about the second phase of 'storming' where the groups test one another. Nonetheless, it is just during the 3rd stage or 'norming' when they would certainly come together to share suggestions before the team can cause synergy in the fourth stage 'performing'.

When people are offered with change, they get in phase one and also so there may be emotions like unhappiness, uncertainty, aggravation, temper, worry, denial and disorientation.The circumstance at the advertising and marketing department of Natura Cosmeticos Sa is comparable so Lewis can obtain comfy with the concept that it is not phenomenal actions. It is during this stage that Lewis will certainly have to offer guidance to the department so that they can discover a sense of instructions. It can be seen exactly how Krasnow has currently made this transition much easier by making Lewis obtain entailed in the division a year prior to his real separation.
Vrio Analysis
Maslow's Demand hierarchy: The OB problem pertaining to instability at the workplace has been activated to start with by the modification in monitoring and also second of all by the truth that the merging will certainly no more be started. Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has discusses the relevance of 'safety and security requires as being a reduced level requirement of a human for triggering inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the requirement to really feel safe and secure as well as untouched' goes to the second level of demands. Prior to a staff member can be made to create emotionally, he requires to have his 'Physical 'and also 'Safety and security' requires fulfilled. This shows that unless the employees are made to feel safe regarding their existing work status in Natura Cosmeticos Sa they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Natura Cosmeticos Sa Case Study



Effects of Analysis.

The OB analysis has checked out numerous theories to understand just how to handle the present circumstance at hand. The adhering to 3 options have been recommended to help Lewis take care of the business obstacles in the advertising department. Each of these options has actually been proposed for reducing the transition required to bring the marketing division according to the requirements of the market and for making the cultural adjustment that would certainly adhere to once the current leader leaves.

Integration of marketing and advertising features. Separating Adverting and Manufacturing features. Integration of Advertising And Marketing with Procedures.

Assessment of Alternatives.

Combination of Advertising And Marketing & Advertising And Marketing Functions: The in-house marketing company of Natura Cosmeticos Sa is already toughness for the company in terms of conserving up on overheads connected to marketing and promotion. Considering that no brand-new employment has actually been done after Bridget Cole's departure with the reporting line being directly assigned to Krasnow for the marketing feature, this is a favorable opportunity for incorporating the advertising and marketing functions. Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merger days has competence in business-to-business marketing along with agency as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing features.

The advantage of this method is that it will certainly integrate the two features while decreasing the requirement for hiring an extra source for advertising. Lewis would be heading the marketing department and in any case her substitute would certainly be required for the present role that she is executing. The downside of this option is that exterior hiring may bring about animosity from internal workers who might be looking at the placement of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and also Manufacturing: Provided the affordable pressures and premium quality job called for from the ad agency, it is suggested that Lewis must permit the production unit to be a different function from the advertising device. Given that a lot of ad agency had these 2 functions as different devices, it makes even more feeling to comply with the standard. In addition to this, both features may be able to focus on their core activates a lot more successfully. Nonetheless, the drawback of this technique would certainly be that extra prices would need to be borne for establishing different production features. In addition to this, a manufacturing head might have to be hired which can increase expenses for the company.

Assimilation of Advertising with Operations: Since Lewis is already taking care of the advertising and marketing and also procedures departments all at once; it makes feeling to integrate the two features considering that she has been efficiently taking treatment of both ends. The fact that Lewis has to adapt her administration design for the advertising division recommends that these two departments would certainly be culturally diverse.

Referral.



An analysis of the three choices indicates that combination of advertising and also operations would certainly not be a possible move as a result of the substantial distinctions in between both divisions although that currently Lewis is managing both. While splitting up of the manufacturing function might have been a desirable step for the advertising and marketing division, the fact that it would imply placing a third feature under Lewis's wing implies this need to be stayed clear of as well. The assimilation of the advertising division is the very best alternative in terms of getting the optimum arise from the division. An action prepare for this option is gone over listed below.

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

Marketing and advertising functions would be combined.

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

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

Lewis will separate herself from operations.

A democratic leadership style with staff member empowerment will certainly be used in advertising and marketing department.

Open door policy as well as emphasis on cross department interaction will certainly be focused on removing dissonance.

Contingency plan.

If the assimilation does not exercise as intended, a contingency plan would certainly adhere to which would certainly separate the manufacturing feature from the marketing feature to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising division without an SVP. Because case the manufacturing function will definitely be separated by positioning it under an SVP production.