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


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Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 1 Case Study Analysis

Background and Facts

Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 1 an office products merchant for tiny and also average sized companies has recently been involved in planning for a merging with its competitor Home Deport, which has actually influenced performance levels in departmentswith the elderly manager associated with lawful difficulties presented by the government Trade Payment. With the Advertising and marketing Head putting forward the news of his separation from the firm in one year, Jeannie Lewis, the current head of operations has been asked to take the role in the near future. With challenges in the type of a possible social change and also low employee spirits, the organization is in need of a total reengineering initiative at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The potential social modification at the advertising and marketing department of Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 1 is boosting unpredictability in the workplace bring about numerous difficulties for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in impacting calculated choices considering that Stapes Inc. had to abandon its strategies of combining with Workplace Deport after the Federal Trade Payment's treatment in the process. Offered the reality that the shop has a worldwide presence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these nations might have the ability to influence efficiency or calculated objectives. Federal Trade Commission's antitrust suit against the merging took up useful time of the company's elderly administration suggesting that 'political' factors can have severe ramifications for a global business.

Economic Factors: Economic factors such as the development of local business in the worldwide scenario recommend that Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 1 is flourishing in an environment where there is prospective development of businesses. In addition to this, reality that store customers are mostly searching for workplace supplies for home offices recommends that the market has a rising trend of entrepreneurs as well as online businesses.

Social factors: Social fads in the economic situation show that clients are trying to find comfort in addition to attractive prices. Marketing research demonstrates how the client for Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 1 lacks understanding concerning finding solutions which can provide a combination of comfort as well as inexpensive.

Technological factors: Modern technology plays a crucial function in Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 1's organisation method particularly as the organization is piloting Modern technology centers which would certainly use modern technology sales and also assistance in the form of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues and Effects.

A number of underlying Business Habits issues can be seen in Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 1's case as highlighted in this area.

Worries about cultural modification: There is worry concerning a social adjustment that would happen once Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with the majority of the personnel currently revealing unhappiness over this possible move. This predicted modification has actually produced anxiety in the office which has actually been paired with the past tension of preparing the company for a possible merger with House Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is lack of workers that can match the demanding setting of a hectic organization. Not just does this cause difficulty in locating the best people, it places stress and anxiety on new hires as can not stand up to the pace and also stress that the company anticipates them to birth.

Dual Coverage Lines: Beginners discover this business society cumbersome and also tough to manage particularly as dotted line relationships are indicated to be weaker as a whole as well as unbiased setup and performance assessment is still done by the solid line manager. This suggests that beginners can lose clearness concerning their respective functions and purposes especially as populated line reporting does not keep them in straight interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles although it had been hypothesized that the latter would take Krasnow's placement came as a strike to her spirits. Lewis may have been capable and ideal for the work however the fact that Kransnow's departure would make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Concern & Job Instability: Concern and also insecurity can be identified as two significant worries that Lewis would be dealing with specifically as the merger has now be cancelled and 2 senior execs of the marketing division would be leaving. The whole obligation of the department would certainly be falling on Lewis's shoulders who would certainly not just supervise of brining regarding a social modification but would also need to confirm herself in her new role.

Incompatible Administration Design of Leader: Lewis's management design and also its incompatibility with the advertising and marketing division's duty can additionally be seen as an OB difficulty particularly as she has actually been used to dealing with problems in the operations department where personnel are shown to concentrate on procedures and get them. The advertising and marketing department on the other hand can be viewed as a team of individuals who are used to being supported by Krasnow that focused much more on outcome than processes.

Interdepartmental Arguments: Interdepartmental differences between three departments, marketing, merchandizing and procedures respectively over the allocation of the marketing mix can be identified as another OB concern. Although the advertising and marketing division does not share the very same vision as the various other 2 departments relating to the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and operations divisions do not agree over the advertising and marketing mix allotment among each other either.

Fragmentation in Advertising Division: Fragmentation between the marketing and advertising departments can be identified as an additional OB concern which can need more attention. The reality that the marketing and advertising areas in the advertising and marketing department are disconnected is stopping both divisions from acquiring from each various other's experience as well as competence. Combination of advertising and marketing with retailing as well as procedures would become harder if the advertising department itself is degenerated which can be an additional prospective OB issue.

Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 1 Analysis

Different theories have actually been made use of to explain the conditions to get further clearness regarding the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers think that juniors are passive as well as careless, have little ambition and also withstand change. The circumstance at Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 1 is not totally complying with Concept X, it can be seen that new hires are locating this setting instead stressful which might at some point lead to a better inclination of the management in the direction of Concept X. Even while assessing Lewis's administration design, concept X might have been appropriate in the procedures division to some extent however the Advertising and marketing department would require dependence on Theory Y in order to get the imagination and also creativity from the groups.

Tuckman's Synergy Concept: As for Lewis's problem regarding bringing harmony between the marketing and advertising division is concerned, this would originally result in clash as discussed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). According to Tuckman's concept shown in appendix 3, throughout the first stage of team development, people might not bond, as they are active finding their area in the group. By integrating the advertising and marketing division's job, there may coincide preliminary disconnect which could bring about the 2nd phase of 'storming' where the groups challenge each other. However, it is just throughout the third stage or 'norming' when they would certainly come together to share suggestions before the group can produce harmony in the fourth phase 'carrying out'.

Bridges' Transition Model: Based On William Bridge's theory (appendix 4), individuals are rather unpleasant with modification, which is evident by the scenario at Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 1 The circumstance can be viewed as a normal training course of life if is studied based on Bridge's concept where he discusses that individuals experience three phases of change when they experience modification. 'End, shedding as well as Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When individuals are presented with modification, they get in phase one and so there may be feelings like sadness, uncertainty, aggravation, rage, fear, rejection and also disorientation.The situation at the advertising division of Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 1 is similar so Lewis can obtain comfy with the suggestion that it is not phenomenal actions. In the second stage, there might be a need to bridge the void in between the new and also old society so Lewis may have to encounter this experience once Krasnow leaves. There might be low morale as well as reduced efficiency at this stage which must not be taken as an obstacle. It is throughout this phase that Lewis will certainly need to offer assistance to the division to make sure that they can discover an orientation. It can be seen exactly how Krasnow has already made this change easier by making Lewis obtain associated with the department a year before his real separation. Based on Bridges' Model, phase three will certainly bring about openness to understanding, High energy as well as commitment as people will certainly embrace the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has discusses the importance of 'safety requires as being a reduced level requirement of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel safe and secure and also out of threat' is at the 2nd degree of demands. Before an employee can be made to establish psychologically, he needs to have his 'Physiological 'as well as 'Safety and security' requires satisfied.

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

Effects of Analysis.

The OB analysis has actually checked out various theories to comprehend just how to cope with the present scenario at hand. The following 3 alternatives have actually been recommended to aid Lewis handle the organizational challenges in the marketing division. Each of these choices has actually been proposed for easing the change required to bring the marketing department in accordance with the demands of the marketplace as well as for making the social change that would certainly follow when the existing leader leaves.

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

Analysis of Alternatives.

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

The benefit of this strategy is that it will incorporate the two functions while lowering the requirement for employing an added resource for advertising. In addition to this, Lewis would be heading the advertising and marketing division as well as in any case her substitute would certainly be required for the present duty that she is executing. The drawback of this option is that exterior hiring may produce resentment from interior personnel who may be looking at the placement of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and Manufacturing: Given the competitive stress and also high top quality work required from the marketing company, it is advised that Lewis must enable the production device to be a different function from the advertising and marketing unit. Because most advertising firms had these two features as separate units, it makes more sense to comply with the standard.

Integration of Advertising with Workflows: Since Lewis is already dealing with the advertising and also procedures departments concurrently; it makes good sense to integrate the two features given that she has been effectively looking after both ends. The fact that both divisions already have significant differences over allocation of sources recommends that this assimilation may be able to produce harmony especially as Lewis would certainly be heading both ends.However there are different downsides of this action particularly as it would certainly put too much problem over Lewis's shoulders. The reality that Lewis has to adapt her monitoring design for the advertising department suggests that these two divisions would be culturally varied. Lewis may not be able to use one kind of leadership style to both divisions which can result in inefficiency in either one of the 2 functions.


An analysis of the 3 choices shows that assimilation of marketing as well as operations would certainly not be a possible step due to the large differences between both departments although that currently Lewis is dealing with both. While splitting up of the manufacturing function might have been a positive step for the marketing division, the fact that it would mean putting a third function under Lewis's wing suggests this need to be stayed clear of. The assimilation of the advertising division is the most effective alternative in regards to getting the ideal arise from the department. An activity prepare for this alternative is discussed listed below.

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

Marketing and advertising features would be merged.

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

Manufacturing function will certainly remain component of advertising under advertising and marketing feature.

Lewis will certainly separate herself from operations.

An autonomous management design with worker empowerment will certainly be utilized in marketing department.

Open door plan and also focus on cross department interaction will certainly be aimed at getting rid of dissonance.

Contingency strategy.

If the integration does not exercise as planned, a contingency strategy would follow which would divide the production function from the advertising and marketing function to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing department without an SVP. Because case the production function will most definitely be divided by placing it under an SVP manufacturing.