Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 3 Case Study Solution


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Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 3 Case Study Analysis

Background and Facts

Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 3 a workplace products merchant for small and medium sized organisations has lately been involved in preparing for a merging with its competitor Residence Deport, which has affected performance degrees in departmentswith the senior manager involved in legal issues put forth by the government Trade Compensation. With the Advertising and marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the role in the near future. With obstacles in the kind of a possible cultural adjustment and reduced staff member spirits, the organization requires a complete reengineering initiative at the advertising and marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The potential social modification at the advertising and marketing department of Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 3 is raising unpredictability in the working environment resulting in different challenges for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing tactical decisions given that Stapes Inc. had to desert its plans of merging with Office Deport after the Federal Profession Commission's intervention at the same time. Given the fact that the shop has an international existence with branches in UK, USA, Canada and Germany, political consider each of these countries may have the ability to impact performance or calculated objectives. Federal Profession Payment's antitrust fit against the merging took up useful time of the organization's senior management suggesting that 'political' factors can have major effects for a global business.

Economic Factors: Economic factors such as the emergence of small companies in the international situation suggest that Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 3 is growing in an atmosphere where there is possible development of organisations. Fact that store customers are mainly looking for office supplies for home offices recommends that the market has a rising trend of entrepreneurs as well as house based organisations.

Social factors: Social trends in the economic situation reveal that consumers are trying to find benefit as well as attractive rates. Marketing research shows how the customer for Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 3 lacks recognition concerning locating remedies which can provide a mix of benefit and also inexpensive.

Technological factors: Modern technology plays a vital function in Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 3's business approach particularly as the organization is piloting Technology facilities which would offer modern technology sales as well as assistance in the kind of memory upgrades, peripheral setups. (Summary of PARASITE in appendix 2).

OB Issues and Manifestations.

Several underlying Organizational Behavior problems can be seen in Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 3's case as highlighted in this section.

Uneasiness concerning social change: There is concern regarding a social modification that would occur once Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising with a lot of the personnel already showing unhappiness over this possible action. This anticipated adjustment has actually developed anxiety in the work environment which has actually been combined with the previous tension of preparing the firm for a prospective merger with House Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is shortage of personnel that can match the demanding setting of a busy organization. Not only does this result in trouble in discovering the right individuals, it puts stress and anxiety on brand-new hires as can not hold up against the pace and stress that the organization expects them to bear.

Dual Reporting Lines: Novices find this organizational society troublesome as well as tough to handle especially as populated line connections are meant to be weak in general as well as unbiased setting and also performance examination is still done by the solid line supervisor. This implies that novices might lose quality regarding their corresponding duties as well as objectives specifically as dotted line reporting does not maintain them in straight communication with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles although it had been speculated that the last would certainly take Krasnow's setting came as an impact to her morale. Lewis might have been qualified and suitable for the job however the reality that Kransnow's departure would certainly make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Anxiety & Work Instability: Concern and instability can be determined as 2 significant issues that Lewis would certainly be handling specifically as the merger has now be terminated and also two elderly execs of the marketing department would certainly be leaving. The whole duty of the division would be dropping on Lewis's shoulders who would not just supervise of brining regarding a social change however would additionally have to confirm herself in her new duty.

Inappropriate Monitoring Design of Leader: Lewis's administration design and its conflict with the advertising division's duty can also be seen as an OB obstacle especially as she has actually been made use of to dealing with issues in the operations department where employees are taught to focus on processes and also obtain them. The marketing division on the other hand can be viewed as a group of individuals who are used to being supported by Krasnow who focused more on result than processes.

Interdepartmental Disputes: Interdepartmental disagreements between 3 divisions, advertising, merchandizing and also operations specifically over the allocation of the marketing mix can be identified as one more OB issue. The marketing division does not share the exact same vision as the various other two divisions concerning the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing as well as operations departments do not concur over the advertising and marketing mix allowance amongst one another either.

Disintegration in Marketing Division: Fragmentation between the marketing and advertising departments can be recognized as another OB issue which can need additional attention. The fact that the advertising and marketing sections in the marketing division are detached is protecting against both departments from getting from each various other's experience as well as expertise. Integration of advertising and marketing with retailing and procedures would certainly become harder if the advertising department itself is disintegrated which can be another prospective OB issue.

Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 3 Analysis

Numerous concepts have been utilized to describe the circumstances to obtain further clarity concerning the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of managers think that juniors are easy and also lazy, have little passion and stand up to adjustment. The scenario at Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 3 is not totally complying with Concept X, it can be seen that new hires are finding this setting instead stressful which may eventually lead to a higher inclination of the administration in the direction of Theory X. Also while assessing Lewis's administration design, concept X may have been appropriate in the procedures department to some degree however the Advertising department would call for dependence on Theory Y in order to get the creative thinking as well as originality from the teams.

Tuckman's Synergy Concept: As far as Lewis's concern concerning bringing consistency between the advertising and marketing as well as advertising division is concerned, this would originally lead to clash as talked about by Bruce Tuckman in his 'Synergy Concept'. By integrating the marketing and also advertising department's work, there might be the exact same first disconnect which might lead to the 2nd stage of 'storming' where the teams test one an additional.

When people are provided with adjustment, they get in stage one and so there may be emotions like unhappiness, uncertainty, aggravation, anger, concern, denial and also disorientation.The circumstance at the marketing department of Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 3 is comparable so Lewis can get comfortable with the concept that it is not remarkable actions. It is throughout this phase that Lewis will have to provide advice to the department so that they can discover a feeling of instructions. It can be seen just how Krasnow has already made this shift easier by making Lewis obtain involved in the division a year before his actual departure.
Vrio Analysis
Maslow's Demand power structure: The OB issue related to insecurity at the office has actually been activated firstly by the modification in monitoring as well as second of all by the truth that the merging will certainly no more be started. Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has goes over the value of 'protection requires as being a lower level requirement of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel safe and secure and safe' goes to the second level of requirements. Prior to a worker can be made to create mentally, he needs to have his 'Physical 'as well as 'Security' needs satisfied. This suggests that unless the workers are made to feel protected concerning their current employment standing in Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 3 they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 3 Case Study

Ramification of Analysis.

The OB analysis has actually taken a look at various theories to recognize just how to manage the existing situation at hand. The adhering to 3 alternatives have been recommended to help Lewis handle the business difficulties in the advertising department. Each of these alternatives has been recommended for easing the change required to bring the advertising division according to the requirements of the market and also for making the social adjustment that would follow once the existing leader leaves.

Integration of marketing and advertising functions. Dividing Adverting and also Production functions. Assimilation of Advertising with Procedures.

Examination of Alternatives.

Integration of Advertising & Marketing Functions: The in-house advertising and marketing agency of Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 3 is currently stamina for the company in terms of conserving up on expenses associated with advertising as well as promo. Considering that no brand-new recruitment has actually been done after Bridget Cole's separation with the reporting line being straight appointed to Krasnow for the advertising feature, this is a beneficial opportunity for incorporating the advertising and marketing features. Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merging days has proficiency in business-to-business advertising together with company and also retail advertising and marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to deal with both marketing and advertising functions.

The advantage of this technique is that it will incorporate the two functions while minimizing the need for working with an additional source for marketing. Lewis would be heading the advertising department as well as in any type of case her replacement would certainly be needed for the current role that she is executing. The disadvantage of this alternative is that exterior hiring may cause resentment from inner employees that might be considering the setting of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and Manufacturing: Given the competitive stress and high quality work needed from the advertising and marketing company, it is recommended that Lewis should allow the manufacturing system to be a separate function from the advertising and marketing unit. Given that a lot of marketing firms had these 2 features as different units, it makes even more sense to follow the standard.

Assimilation of Marketing with Operations: Considering that Lewis is already taking care of the marketing as well as procedures divisions concurrently; it makes feeling to incorporate the 2 functions because she has been efficiently taking care of both ends. The reality that Lewis has to adapt her monitoring design for the advertising division recommends that these two departments would be culturally varied.


An analysis of the three choices indicates that combination of marketing and also operations would certainly not be a possible step because of the large differences in between both departments although that presently Lewis is dealing with both. While splitting up of the manufacturing function may have been a favorable move for the advertising division, the reality that it would certainly suggest placing a 3rd feature under Lewis's wing implies this need to be avoided. The assimilation of the advertising and marketing division is the very best alternative in regards to getting the optimum arise from the division. An activity prepare for this option is reviewed below.

Activity Strategy.
Lewis will take control of the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would be combined.

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

Production feature will certainly remain component of advertising under advertising feature.

Lewis will divide herself from procedures.

A democratic leadership design with staff member empowerment will be made use of in advertising department.

Open door plan as well as emphasis on cross departmental interaction will be aimed at eliminating discord.

Backup plan.

If the integration does not work out as intended, a contingency plan would certainly follow which would separate the manufacturing function from the marketing function to decrease 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 division without an SVP. In that case the production feature will absolutely be separated by positioning it under an SVP manufacturing.