Negotiation Exercise On Tradeable Pollution Allowances Group B Utility 1 Case Study Solution


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Negotiation Exercise On Tradeable Pollution Allowances Group B Utility 1 Case Study Solution

Background and Facts

Negotiation Exercise On Tradeable Pollution Allowances Group B Utility 1 a workplace materials seller for tiny and also average sized organisations has just recently been involved in preparing for a merger with its competitor Residence Deport, which has influenced efficiency degrees in departmentswith the senior manager involved in legal problems presented by the federal Profession Payment. With the Advertising Head putting forward the information of his separation from the business in one year, Jeannie Lewis, the current head of operations has been asked to take the function in the future. With obstacles in the kind of a potential cultural modification as well as reduced employee spirits, the company is in need of a complete reengineering effort at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The potential cultural change at the marketing division of Negotiation Exercise On Tradeable Pollution Allowances Group B Utility 1 is increasing unpredictability in the working environment resulting in numerous challenges for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting calculated decisions because Stapes Inc. needed to abandon its plans of combining with Office Deport after the Federal Profession Compensation's treatment while doing so. Provided the fact that the shop has a worldwide existence with branches in UK, USA, Canada and also Germany, political consider each of these countries may have the ability to influence performance or tactical objectives. Federal Trade Payment's antitrust suit versus the merger occupied useful time of the company's elderly administration suggesting that 'political' factors can have significant effects for a worldwide business.

Economic Factors: Financial factors such as the emergence of local business in the worldwide circumstance recommend that Negotiation Exercise On Tradeable Pollution Allowances Group B Utility 1 is flourishing in an atmosphere where there is possible growth of businesses. Along with this, reality that shop clients are mainly trying to find office supplies for home offices recommends that the market has an increasing fad of entrepreneurs and online companies.

Social factors: Social trends in the economic climate reveal that consumers are looking for ease along with appealing prices. Market research demonstrates how the customer for Negotiation Exercise On Tradeable Pollution Allowances Group B Utility 1 does not have recognition concerning locating solutions which can provide a mix of comfort as well as affordable.

Technological factors: Modern technology plays a vital role in Negotiation Exercise On Tradeable Pollution Allowances Group B Utility 1's organisation method specifically as the organization is piloting Innovation facilities which would certainly offer innovation sales and also assistance in the type of memory upgrades, outer installations. (Summary of INSECT in appendix 2).

OB Issues and Effects.

A number of underlying Organizational Behavior concerns can be seen in Negotiation Exercise On Tradeable Pollution Allowances Group B Utility 1's case as highlighted in this section.

Uneasiness concerning social change: There is concern regarding a social adjustment that would take place when Todd Krasnow leaves from his position as the Exec Vice President of Marketing with most of the team member currently revealing unhappiness over this prospective move. This predicted modification has actually developed tension in the workplace which has actually been paired with the previous tension of preparing the company for a potential merging with Home Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is shortage of employees that can match the difficult atmosphere of a fast-paced organization. Not just does this cause difficulty in finding the right people, it puts anxiety on brand-new hires as can not stand up to the pace as well as pressure that the company anticipates them to birth.

Dual Reporting Lines: Beginners find this organizational society troublesome as well as challenging to handle particularly as dotted line connections are suggested to be weak as a whole as well as objective setup and performance assessment is still done by the solid line manager. This indicates that beginners could lose quality regarding their particular functions and objectives especially as dotted line coverage does not keep them in straight communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles despite the fact that it had been hypothesized that the last would take Krasnow's position came as an impact to her spirits. Lewis might have been qualified and also ideal for the job yet the reality that Kransnow's departure would make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Concern & Task Instability: Worry and also instability can be identified as two major issues that Lewis would certainly be handling specifically as the merger has actually currently be cancelled and also two elderly execs of the advertising and marketing division would be leaving. The entire responsibility of the department would certainly be falling on Lewis's shoulders who would not just be in charge of brining concerning a social adjustment however would certainly additionally have to confirm herself in her brand-new function.

Inappropriate Management Style of Leader: Lewis's administration design and its incompatibility with the marketing department's role can likewise be seen as an OB obstacle especially as she has been utilized to dealing with issues in the operations department where personnel are shown to focus on procedures as well as obtain them. The advertising department on the other hand can be viewed as a group of individuals that are used to being supported by Krasnow that concentrated more on output than processes.

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

Fragmentation in Advertising Division: Disintegration in between the marketing and advertising divisions can be identified as an additional OB concern which might require additional interest. The fact that the marketing and advertising areas in the marketing department are disconnected is preventing both departments from gaining from each various other's experience as well as knowledge. Combination of advertising and marketing with retailing and also operations would become more difficult if the advertising department itself is degenerated which can be an additional potential OB worry.

Negotiation Exercise On Tradeable Pollution Allowances Group B Utility 1 Analysis

Numerous concepts have been utilized to clarify the scenarios to obtain further clarity about the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of supervisors think that juniors are easy and also careless, have little aspiration and withstand modification. The situation at Negotiation Exercise On Tradeable Pollution Allowances Group B Utility 1 is not completely adhering to Concept X, it can be seen that brand-new hires are finding this setting instead difficult which might eventually lead to a greater inclination of the management in the direction of Concept X. Also while assessing Lewis's management design, concept X might have been appropriate in the operations division to some level however the Advertising and marketing division would certainly require reliance on Theory Y in order to obtain the imagination and also originality from the teams.

Tuckman's Team effort Theory: As far as Lewis's concern concerning bringing harmony in between the marketing and advertising division is concerned, this would originally bring about conflict as talked about by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's theory displayed in appendix 3, during the preliminary stage of team development, individuals might not bond, as they are hectic discovering their place in the group. By incorporating the marketing and advertising department's work, there might be the same preliminary disconnect which could result in the 2nd stage of 'storming' where the teams test one another. It is only throughout the 3rd stage or 'norming' when they would come with each other to share suggestions before the group can bring about synergy in the 4th stage 'carrying out'.

When individuals are presented with modification, they enter phase one and so there may be feelings like sadness, unpredictability, frustration, temper, concern, rejection and also disorientation.The circumstance at the advertising division of Negotiation Exercise On Tradeable Pollution Allowances Group B Utility 1 is similar so Lewis can get comfy with the idea that it is not amazing actions. It is throughout this phase that Lewis will certainly have to provide advice to the department so that they can discover a feeling of instructions. It can be seen just how Krasnow has actually currently made this shift simpler by making Lewis get entailed in the department a year before his real departure.
Vrio Analysis
Maslow's Need hierarchy: The OB problem pertaining to insecurity at the office has actually been set off to start with by the modification in monitoring and also second of all by the fact that the merging will no more be launched. Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has goes over the importance of 'security needs as being a reduced level demand of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel safe as well as safe' is at the second level of requirements. Before a staff member can be made to create mentally, he requires to have his 'Physical 'and also 'Safety and security' needs satisfied. This shows that unless the workers are made to feel safe regarding their present employment status in Negotiation Exercise On Tradeable Pollution Allowances Group B Utility 1 they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Negotiation Exercise On Tradeable Pollution Allowances Group B Utility 1 Case Study

Effects of Analysis.

The OB analysis has considered different theories to recognize how to deal with the present scenario available. The following 3 options have been recommended to aid Lewis handle the business challenges in the advertising and marketing division. Each of these alternatives has been recommended for relieving the shift needed to bring the advertising department in line with the demands of the marketplace and also for making the cultural modification that would follow when the current leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting and also Production functions. Integration of Advertising with Operations.

Evaluation of Alternatives.

Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merger days has proficiency in business-to-business marketing along with company and retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to take care of both advertising and advertising and marketing functions.

The advantage of this strategy is that it will integrate both features while decreasing the demand for working with an extra resource for marketing. Lewis would be heading the advertising and marketing department and also in any kind of case her replacement would certainly be required for the present role that she is carrying out. The downside of this alternative is that external hiring may cause resentment from inner personnel who may be looking at the placement of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and Production: Given the competitive stress and high quality job needed from the marketing company, it is recommended that Lewis needs to allow the production unit to be a different function from the marketing system. Considering that a lot of marketing agencies had these 2 features as different units, it makes even more sense to follow the norm.

Integration of Advertising And Marketing with Workflows: Since Lewis is already taking care of the advertising and marketing and also operations departments at the same time; it makes sense to incorporate the 2 functions because she has been successfully taking care of both ends. The fact that Lewis has to adapt her administration design for the advertising department suggests that these 2 departments would be culturally diverse.


An examination of the 3 alternatives suggests that integration of advertising and procedures would certainly not be a practical move due to the large differences in between the 2 divisions despite the reality that presently Lewis is taking care of both. While separation of the production function may have been a beneficial action for the advertising department, the truth that it would certainly imply placing a 3rd feature under Lewis's wing implies this ought to be stayed clear of.

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

Advertising and Marketing functions would be merged.

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

Manufacturing function will certainly stay part of marketing under marketing feature.

Lewis will certainly divide herself from operations.

A democratic management style with staff member empowerment will certainly be used in advertising division.

Open up door policy and emphasis on cross department interaction will certainly be targeted at getting rid of disharmony.

Backup strategy.

If the integration does not exercise as prepared, a backup plan would certainly adhere to which would divide the production feature from the marketing function to reduce the tons 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. Because case the production feature will most definitely be separated by putting it under an SVP production.