Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 4 Case Study Solution


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Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 4 Case Study Solution

Background and Facts

Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 4 an office materials merchant for little and moderate sized companies has recently been associated with planning for a merging with its competitor Home Deport, which has actually influenced effectiveness degrees in departmentswith the senior supervisor involved in legal issues presented by the federal Profession Payment. With the Marketing Head putting forward the news of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the future. With difficulties in the form of a potential social adjustment as well as low staff member morale, the organization is in need of a complete reengineering effort at the advertising department.

Issue Statement
Porter's 5 Forces Analysis
The potential social change at the marketing department of Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 4 is boosting uncertainty in the workplace causing various obstacles 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 impacting calculated choices since Stapes Inc. had to desert its strategies of combining with Workplace Deport after the Federal Trade Commission's intervention while doing so. Provided the fact that the store has a global visibility with branches in UK, USA, Canada as well as Germany, political consider each of these nations may have the ability to impact efficiency or tactical objectives. Federal Profession Commission's antitrust fit versus the merger used up useful time of the organization's elderly administration suggesting that 'political' factors can have severe effects for a global service.

Economic Factors: Financial factors such as the appearance of local business in the international scenario recommend that Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 4 is flourishing in an environment where there is prospective development of organisations. Along with this, truth that store consumers are mostly searching for workplace supplies for home offices recommends that the market has a rising fad of business owners and home based services.

Social factors: Social trends in the economic climate show that customers are trying to find comfort along with eye-catching prices. Market research shows how the consumer for Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 4 does not have awareness concerning finding solutions which can use a mix of benefit and inexpensive.

Technical factors: Technology plays an essential duty in Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 4's company method particularly as the organization is piloting Innovation facilities which would certainly supply technology sales and also support in the kind of memory upgrades, peripheral setups. (Summary of PEST in appendix 2).

OB Issues as well as Effects.

Numerous underlying Organizational Habits problems can be seen in Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 4's case as highlighted in this section.

Apprehensions regarding cultural change: There is apprehension regarding a social adjustment that would occur when Todd Krasnow leaves from his placement as the Executive Vice President of Advertising with the majority of the team member currently showing discontent over this prospective action. This expected modification has produced anxiety in the work environment which has been combined with the past anxiety of preparing the firm for a possible merger with House Deport.
Pest Analysis
Stressful Work Environment for Newcomers: There is lack of personnel that can match the demanding setting of a busy company. Not only does this lead to problem in discovering the ideal individuals, it puts stress on new hires as can not endure the pace and also stress that the company expects them to bear.

Dual Coverage Lines: Newcomers find this business culture difficult and tough to handle especially as dotted line relationships are indicated to be weaker as a whole and also unbiased setting and also efficiency assessment is still done by the strong line supervisor. This implies that novices could lose quality about their respective roles and objectives particularly as populated line coverage does not maintain them in direct communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had been hypothesized that the last would take Krasnow's setting came as an impact to her morale. Lewis might have been qualified and suitable for the job however the truth that Kransnow's departure would certainly make Coles a straight record to Lewis may have been the factor for Coles' resignation from solutions.

Worry & Job Instability: Worry and also instability can be identified as two significant worries that Lewis would certainly be dealing with specifically as the merging has currently be cancelled as well as 2 senior executives of the advertising department would be leaving. The whole duty of the department would certainly be falling on Lewis's shoulders that would certainly not just be in charge of brining concerning a social adjustment however would likewise have to prove herself in her new duty.

Inappropriate Management Style of Leader: Lewis's monitoring style and also its incompatibility with the advertising and marketing department's role can also be seen as an OB difficulty particularly as she has been made use of to managing problems in the procedures department where employees are instructed to focus on procedures and also get them right. The advertising department on the other hand can be seen as a team of individuals who are used to being supported by Krasnow that concentrated extra on result than processes.

Interdepartmental Disputes: Interdepartmental differences in between three departments, marketing, merchandizing as well as procedures respectively over the allowance of the advertising mix can be identified as an additional OB issue. The advertising and marketing department does not share the very same vision as the other 2 divisions pertaining to the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and operations departments do not agree over the marketing mix appropriation among one an additional either.

Disintegration in Marketing Department: Disintegration in between the marketing and advertising divisions can be recognized as another OB concern which could require further focus. The fact that the advertising and marketing sections in the marketing department are separated is preventing both divisions from getting from each other's experience and also expertise. Integration of advertising and marketing with merchandising and operations would become harder if the advertising and marketing division itself is broken down which can be an additional potential OB issue.

Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 4 Analysis

Different concepts have actually been made use of to clarify the scenarios to obtain further clearness regarding the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of managers think that juniors are passive as well as lazy, have little passion and also withstand adjustment. The difficult version of this theory emphasized threat, tight controls, hazards and also punishments. Gradually it generates reduced performance, subtle sabotage as well as rivalry (Deal, 2003). Although the situation at Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 4 is not entirely complying with Concept X, it can be seen that new hires are locating this atmosphere instead difficult which may eventually bring about a higher disposition of the management towards Concept X. Based on McGregor's promoted sight, which he called Concept Y, the essential task of the administration is to set up business conditions to make sure that people can achieve their own objectives best by routing their initiatives towards business benefits. If individuals locate no contentment in their job, the management would have little option however to rely upon theory X as well as external control (Bargain, 2003). Even while assessing Lewis's management style, concept X may have appropriated in the operations department to some extent however the Advertising division would call for dependence on Concept Y to get the creative thinking and originality from the teams.

Tuckman's Teamwork Theory: Regarding Lewis's worry concerning bringing harmony in between the advertising and marketing division is concerned, this would at first bring about clash as gone over by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's concept shown in appendix 3, during the preliminary phase of group development, individuals might not bond, as they are hectic discovering their place in the team. By combining the advertising and marketing division's job, there might coincide initial disconnect which could lead to the 2nd stage of 'storming' where the teams test one another. Nonetheless, it is only throughout the 3rd stage or 'norming' when they would certainly collaborate to share concepts prior to the group can produce harmony in the fourth phase 'carrying out'.

When individuals are offered with change, they go into phase one as well as so there may be feelings like unhappiness, unpredictability, aggravation, rage, anxiety, rejection as well as disorientation.The scenario at the marketing division of Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 4 is similar so Lewis can get comfortable with the suggestion that it is not remarkable behavior. It is throughout this phase that Lewis will certainly have to offer assistance to the division so that they can locate a sense of direction. It can be seen how Krasnow has actually already made this shift less complicated by making Lewis get involved in the department a year before his actual separation.
Vrio Analysis
Maslow's Requirement hierarchy: The OB concern pertaining to instability at the workplace has actually been set off first of all by the modification in monitoring and secondly by the truth that the merger will certainly no more be initiated. Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has reviews the significance of 'safety and security needs as being a reduced level demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel secure as well as out of danger' goes to the 2nd degree of needs. Before an employee can be made to establish mentally, he needs to have his 'Physiological 'and 'Safety and security' requires satisfied. This suggests that unless the personnel are made to feel safe concerning their present employment status in Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 4 they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Negotiation Exercise On Tradeable Pollution Allowances Group A Utility 4 Case Study

Effects of Analysis.

The OB analysis has actually considered numerous concepts to recognize exactly how to deal with the current situation handy. The complying with three choices have actually been suggested to assist Lewis handle the business difficulties in the advertising and marketing division. Each of these choices has been proposed for relieving the shift needed to bring the advertising division in line with the needs of the marketplace and also for making the social modification that would follow when the existing leader leaves.

Assimilation of advertising and marketing features. Dividing Adverting as well as Production functions. Integration of Advertising with Workflow.

Analysis of Alternatives.

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

The advantage of this method is that it will certainly integrate both functions while minimizing the demand for employing an added source for advertising and marketing. Along with this, Lewis would be heading the advertising division and also all the same her replacement would certainly be needed for the existing duty that she is doing. The drawback of this option is that outside hiring may bring about resentment from interior personnel that may be eying the position of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting as well as Manufacturing: Offered the affordable stress as well as high top quality job called for from the advertising and marketing company, it is recommended that Lewis ought to enable the manufacturing unit to be a separate function from the advertising system. Given that many advertising and marketing firms had these 2 functions as separate devices, it makes more sense to adhere to the standard.

Assimilation of Advertising with Operations: Considering that Lewis is already taking care of the advertising and also operations departments all at once; it makes feeling to incorporate the two functions considering that she has been successfully taking treatment of both ends. The fact that Lewis has to adjust her management design for the advertising division suggests that these 2 departments would be culturally varied.


An examination of the three choices shows that integration of advertising and marketing as well as operations would certainly not be a possible relocation due to the huge distinctions in between the two divisions although that currently Lewis is managing both. While splitting up of the production feature may have been a favorable move for the marketing department, the reality that it would certainly suggest placing a third function under Lewis's wing suggests this must be avoided also. The assimilation of the advertising division is the best choice in terms of getting the ideal arise from the division. An action plan for this alternative is reviewed below.

Action Strategy.
Lewis will take over the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

Production feature will continue to be component of marketing under advertising feature.

Lewis will divide herself from operations.

An autonomous leadership design with staff member empowerment will certainly be used in marketing department.

Open door plan and also focus on cross departmental communication will be targeted at eliminating dissonance.

Contingency plan.

If the combination does not work out as planned, a contingency strategy would adhere to which would certainly separate the manufacturing feature from the marketing function to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising department without an SVP. Because case the production feature will absolutely be divided by putting it under an SVP manufacturing.