Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 2 Case Study Help


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Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 2 Case Study Solution

Background and Facts

Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 2 a workplace products merchant for little as well as average sized businesses has actually just recently been involved in planning for a merger with its competitor House Deport, which has actually impacted performance levels in departmentswith the senior supervisor involved in lawful problems presented by the government Profession Commission. With the Advertising and marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the current head of operations has actually been asked to take the function in the future. With difficulties in the type of a prospective cultural adjustment and also low employee spirits, the organization wants a complete reengineering initiative at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The prospective cultural modification at the marketing division of Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 2 is raising unpredictability in the working environment leading to numerous challenges for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in affecting calculated choices considering that Stapes Inc. had to desert its plans of combining with Workplace Deport after the Federal Profession Compensation's intervention in the process. Provided the truth that the store has a worldwide visibility with branches in UK, USA, Canada and also Germany, political factors in each of these countries might have the ability to influence efficiency or critical goals. Federal Trade Commission's antitrust fit versus the merging occupied beneficial time of the company's senior administration suggesting that 'political' factors can have major effects for a global business.

Economic Factors: Financial factors such as the development of small businesses in the international situation suggest that Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 2 is thriving in an atmosphere where there is potential growth of companies. Along with this, truth that store consumers are mainly trying to find office products for home offices suggests that the marketplace has an increasing fad of business owners and also home based businesses.

Social factors: Social trends in the economy show that clients are trying to find ease as well as eye-catching prices. Marketing research shows how the customer for Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 2 lacks awareness regarding locating options which can use a mix of benefit and also affordable.

Technological factors: Innovation plays an essential duty in Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 2's organisation technique specifically as the company is piloting Innovation centers which would offer technology sales and assistance in the form of memory upgrades, outer setups. (Recap of BUG in appendix 2).

OB Issues and also Effects.

Numerous underlying Business Behavior concerns can be seen in Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 2's case as highlighted in this area.

Apprehensions regarding cultural modification: There is concern about a cultural change that would certainly happen when Todd Krasnow leaves from his placement as the Executive Vice President of Advertising And Marketing with the majority of the team member already revealing unhappiness over this potential relocation. This expected adjustment has developed stress and anxiety in the work environment which has been paired with the past stress of preparing the firm for a prospective merging with Home Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is lack of personnel that can match the demanding environment of a hectic company. Not just does this lead to problem in finding the ideal people, it puts stress on brand-new hires as can not withstand the rate as well as pressure that the organization anticipates them to birth.

Twin Coverage Lines: Beginners locate this organizational society troublesome and also tough to cope with particularly as dotted line relationships are suggested to be weak in general and also unbiased setting as well as performance assessment is still done by the strong line manager. This implies that newbies could lose clarity regarding their corresponding roles as well as objectives particularly as dotted line coverage does not keep them in direct communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles although it had been guessed that the last would certainly take Krasnow's setting came as an impact to her spirits. Lewis might have been capable as well as proper for the job but the reality that Kransnow's separation would make Coles a direct record to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Job Insecurity: Concern as well as insecurity can be identified as two significant worries that Lewis would be handling especially as the merging has actually currently be terminated and also two senior executives of the advertising division would be leaving. The entire obligation of the department would certainly be dropping on Lewis's shoulders that would certainly not simply be in charge of brining about a social modification yet would certainly also have to confirm herself in her new function.

Inappropriate Management Style of Leader: Lewis's administration style and also its conflict with the advertising and marketing division's function can likewise be seen as an OB challenge particularly as she has been made use of to taking care of problems in the operations division where personnel are instructed to concentrate on procedures as well as obtain them. The advertising and marketing division on the various other hand can be seen as a group of individuals who are used to being nurtured by Krasnow that concentrated a lot more on output than procedures.

Interdepartmental Arguments: Interdepartmental arguments between 3 departments, advertising, merchandizing and procedures respectively over the allocation of the marketing mix can be recognized as another OB worry. Although the advertising and marketing division does not share the same vision as the other two departments pertaining to the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing as well as operations divisions do not agree over the advertising and marketing mix allowance among each other either.

Disintegration in Advertising Department: Disintegration between the advertising and marketing divisions can be recognized as another OB issue which might need more interest. The fact that the marketing and advertising sections in the advertising and marketing department are disconnected is protecting against both divisions from obtaining from each various other's experience and also competence. Combination of advertising and marketing with retailing as well as procedures would certainly end up being harder if the marketing department itself is degenerated which can be an additional potential OB issue.

Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 2 Analysis

Different theories have actually been used to explain the circumstances to get more clearness regarding the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of supervisors believe that subordinates are easy as well as lazy, have little ambition and also stand up to change. The tough variation of this theory highlighted browbeating, tight controls, threats as well as penalties. In time it produces low productivity, refined sabotage and also rivalry (Deal, 2003). Although the scenario at Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 2 is not entirely adhering to Concept X, it can be seen that brand-new hires are discovering this setting rather stressful which may ultimately result in a higher inclination of the administration towards Concept X. According to McGregor's supported sight, which he called Theory Y, the crucial job of the management is to organize organizational problems so that people can achieve their very own goals best by directing their efforts in the direction of organizational incentives. If people find no fulfillment in their job, the monitoring would certainly have little selection however to depend on theory X and also exterior control (Deal, 2003). Also while assessing Lewis's administration style, concept X might have appropriated in the procedures division to some extent yet the Advertising and marketing department would require reliance on Concept Y to get the imagination and creativity from the groups.

Tuckman's Synergy Concept: As much as Lewis's worry concerning bringing consistency between the advertising and marketing and marketing department is worried, this would at first lead to contrast as gone over by Bruce Tuckman in his 'Team effort Theory'. By incorporating the advertising as well as advertising and marketing department's work, there might be the exact same first detach which can lead to the second phase of 'storming' where the groups test one an additional.

When individuals are provided with change, they enter phase one as well as so there might be feelings like despair, unpredictability, aggravation, rage, fear, denial as well as disorientation.The situation at the advertising and marketing department of Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 2 is comparable so Lewis can get comfortable with the suggestion that it is not extraordinary behavior. It is throughout this phase that Lewis will certainly have to provide support to the department so that they can discover a sense of instructions. It can be seen exactly how Krasnow has already made this shift easier by making Lewis obtain included in the department a year before his actual departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has discusses the importance of 'protection needs as being a reduced degree 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 protected as well as out of threat' is at the 2nd level of needs. Before a staff member can be made to develop psychologically, he needs to have his 'Physiological 'and 'Safety' requires fulfilled.

SWOT Analysis for Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 2 Case Study

Effects of Analysis.

The OB analysis has looked at various concepts to recognize exactly how to deal with the existing situation at hand. The following three alternatives have been recommended to assist Lewis handle the business difficulties in the marketing department. Each of these options has actually been recommended for alleviating the change required to bring the marketing division in accordance with the needs of the marketplace and also for making the cultural adjustment that would certainly follow as soon as the present leader leaves.

Integration of advertising and marketing functions. Dividing Adverting and also Manufacturing functions. Combination of Marketing with Procedures.

Analysis of Alternatives.

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

The benefit of this approach is that it will certainly incorporate the two features while decreasing the requirement for hiring an additional source for advertising and marketing. Lewis would certainly be heading the advertising division and in any type of case her substitute would be needed for the current function that she is carrying out. The negative aspect of this alternative is that exterior hiring might cause bitterness from inner workers who may be considering the setting of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and Manufacturing: Provided the affordable stress and also high top quality work required from the marketing company, it is advised that Lewis ought to allow the production device to be a separate function from the advertising and marketing system. Because the majority of advertising firms had these two features as separate devices, it makes more feeling to comply with the norm.

Combination of Advertising And Marketing with Operations: Given that Lewis is already taking care of the advertising and marketing as well as procedures departments all at once; it makes good sense to incorporate the two functions because she has been efficiently looking after both ends. The truth that the two departments already have major distinctions over allocation of resources suggests that this combination may be able to bring about consistency especially as Lewis would certainly be heading both ends.However there are different disadvantages of this move particularly as it would place way too much worry over Lewis's shoulders. The truth that Lewis has to adapt her administration design for the advertising department recommends that these two divisions would certainly be culturally diverse. In addition to this, Lewis might not have the ability to use one type of leadership style to both divisions which can lead to ineffectiveness in either among the two features.


An analysis of the three alternatives shows that assimilation of advertising and marketing and also procedures would certainly not be a viable relocation as a result of the vast differences between both departments despite the fact that presently Lewis is managing both. While splitting up of the manufacturing feature may have been a desirable action for the marketing department, the reality that it would certainly mean placing a third function under Lewis's wing means this should be avoided too. The combination of the advertising department is the very best alternative in regards to getting the optimum arise from the department. An action prepare for this option is talked about listed below.

Action Plan.
Lewis will certainly take over the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

Manufacturing function will certainly continue to be part of marketing under marketing function.

Lewis will separate herself from operations.

An autonomous management style with staff member empowerment will be used in advertising division.

Open up door policy and also focus on cross departmental interaction will be targeted at getting rid of disharmony.

Contingency strategy.

If the integration does not exercise as intended, a contingency strategy would comply with which would certainly separate the manufacturing function from the marketing function to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising and marketing division without an SVP. Because case the manufacturing feature will absolutely be divided by placing it under an SVP manufacturing.