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


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

Background and Facts

Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 3 an office materials store for little and moderate sized organisations has actually recently been associated with planning for a merging with its rival Residence Deport, which has actually influenced effectiveness levels in departmentswith the elderly supervisor associated with lawful complications presented by the government Profession Compensation. With the Advertising Head putting forward the information of his departure from the business in one year, Jeannie Lewis, the existing head of operations has been asked to take the role in the future. With challenges in the type of a potential social modification as well as reduced employee morale, the organization wants a full reengineering effort at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The possible cultural modification at the marketing division of Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 3 is increasing uncertainty in the workplace resulting in different challenges for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing critical decisions given that Stapes Inc. needed to desert its plans of combining with Workplace Deport after the Federal Profession Compensation's intervention in the process. Provided the fact that the store has a global visibility with branches in UK, UNITED STATES, Canada and also Germany, political consider each of these countries might have the ability to affect performance or critical goals. Federal Trade Compensation's antitrust fit against the merging occupied important time of the company's senior administration suggesting that 'political' factors can have serious implications for an international organisation.

Economic Factors: Financial factors such as the introduction of small businesses in the worldwide situation suggest that Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 3 is thriving in a setting where there is possible growth of companies. Fact that store consumers are mostly looking for workplace materials for home offices suggests that the market has an increasing trend of business owners and also residence based organisations.

Social factors: Social trends in the economy show that customers are trying to find comfort along with attractive prices. Marketing research demonstrates how the client for Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 3 does not have understanding about finding solutions which can provide a mix of convenience and inexpensive.

Technical factors: Modern technology plays an essential duty in Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 3's service method especially as the company is piloting Technology facilities which would offer innovation sales as well as assistance in the type of memory upgrades, outer installations. (Recap of BUG in appendix 2).

OB Issues and also Symptoms.

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

Worries concerning cultural modification: There is apprehension 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 personnel currently revealing discontent over this possible step. This expected change has actually developed stress in the office which has actually been combined with the past stress and anxiety of preparing the firm for a prospective merging with Home Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is scarcity of employees that can match the difficult atmosphere of a hectic company. Not just does this bring about problem in locating the appropriate individuals, it places stress on new hires as can not endure the pace as well as stress that the organization expects them to birth.

Double Reporting Lines: Newcomers discover this business society troublesome and also difficult to cope with particularly as dotted line connections are suggested to be weaker generally and unbiased setup and also performance evaluation is still done by the strong line manager. This suggests that newcomers could shed clarity concerning their corresponding duties and purposes particularly as dotted line reporting does not maintain them in straight communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles despite the fact that it had actually been hypothesized that the latter would certainly take Krasnow's setting came as an impact to her morale. Lewis might have been capable as well as suitable for the work but the reality that Kransnow's departure would make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Work Instability: Fear and insecurity can be identified as 2 significant issues that Lewis would be handling particularly as the merging has currently be terminated as well as 2 elderly executives of the advertising and marketing division would certainly be leaving. The whole duty of the division would certainly be falling on Lewis's shoulders who would certainly not just supervise of brining regarding a social change however would certainly also have to show herself in her new duty.

Incompatible Monitoring Style of Leader: Lewis's administration design and its incompatibility with the marketing department's role can additionally be seen as an OB challenge specifically as she has actually been utilized to handling issues in the operations division where personnel are taught to concentrate on procedures and also obtain them right. The marketing department on the various other hand can be viewed as a group of individuals that are made use of to being nurtured by Krasnow who focused much more on outcome than processes.

Interdepartmental Disputes: Interdepartmental disagreements between three divisions, advertising and marketing, merchandizing and also operations respectively over the allowance of the advertising mix can be determined as an additional OB worry. The advertising and marketing division does not share the very same vision as the various other two departments relating to the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing and also procedures divisions do not concur over the marketing mix appropriation amongst one an additional either.

Fragmentation in Advertising And Marketing Division: Disintegration between the advertising and marketing divisions can be identified as another OB issue which could require more attention. The fact that the advertising and marketing areas in the advertising department are separated is protecting against both departments from gaining from each other's experience as well as proficiency. Combination of advertising with retailing as well as procedures would certainly come to be more difficult if the advertising and marketing department itself is degenerated which can be one more possible OB issue.

Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 3 Analysis

Numerous theories have been used to describe the situations to get further quality concerning the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many supervisors think that staffs are easy as well as careless, have little ambition as well as withstand change. The difficult variation of this concept stressed threat, limited controls, hazards and penalties. Over time it creates low efficiency, subtle sabotage and competition (Offer, 2003). The circumstance at Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 3 is not entirely following Concept X, it can be seen that new hires are discovering this atmosphere rather difficult which may eventually lead to a better inclination of the administration in the direction of Concept X. According to McGregor's promoted view, which he called Concept Y, the crucial job of the monitoring is to set up organizational conditions to make sure that people can attain their own goals best by routing their initiatives in the direction of organizational benefits. If individuals discover no fulfillment in their job, the monitoring would have little choice yet to rely on theory X and also exterior control (Offer, 2003). Also while examining Lewis's monitoring style, theory X might have been suitable in the procedures department to some extent yet the Marketing department would certainly call for reliance on Concept Y to get the creative thinking and creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's concern concerning bringing consistency between the marketing and advertising department is concerned, this would initially cause conflict as discussed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). According to Tuckman's concept received appendix 3, during the initial phase of team development, individuals may not bond, as they are busy locating their area in the team. By incorporating the advertising and marketing division's job, there may coincide preliminary detach which can lead to the second phase of 'storming' where the groups challenge each other. It is just throughout the third phase or 'norming' when they would come together to share concepts prior to the team can bring around synergy in the 4th stage 'carrying out'.

Bridges' Shift Design: Based On William Bridge's concept (appendix 4), individuals are quite awkward with adjustment, which is apparent by the scenario at Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 3 The circumstance can be viewed as a regular program of life if is examined according to Bridge's concept where he discusses that individuals go through three stages of shift when they experience adjustment. 'End, shedding and Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When individuals are presented with modification, they enter stage one therefore there might be feelings like unhappiness, unpredictability, disappointment, anger, worry, rejection and disorientation.The situation at the marketing department of Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 3 is comparable so Lewis can get comfortable with the suggestion that it is not extraordinary actions. In the second stage, there might be a need to link the gap between the new as well as old culture so Lewis may have to encounter this experience as soon as Krasnow leaves. There might be reduced morale as well as low performance at this phase which must not be taken as a trouble. It is during this stage that Lewis will have to provide support to the division to make sure that they can locate an orientation. It can be seen how Krasnow has actually currently made this transition much easier by making Lewis obtain involved in the department a year before his actual separation. According to Bridges' Model, phase three will certainly produce visibility to discovering, High power as well as dedication as individuals will accept the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Demand pecking order: The OB issue related to instability at the workplace has actually been triggered first of all by the modification in administration and also second of all by the truth that the merging will certainly no more be started. Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has goes over the significance of 'safety needs as being a lower degree requirement of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel safe and secure and untouched' is at the second degree of needs. Prior to a staff member can be made to create mentally, he requires to have his 'Physiological 'as well as 'Safety and security' needs met. This shows that unless the workers are made to really feel protected regarding their existing employment condition in Negotiation Exercise On Tradeable Pollution Allowances Group C Utility 3 they may not reach 'Self-Fulfillment'. (King, 2009).

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

Ramification of Analysis.

The OB analysis has considered different concepts to comprehend how to manage the existing circumstance handy. The adhering to three alternatives have been recommended to assist Lewis take care of the organizational obstacles in the marketing division. Each of these alternatives has been proposed for alleviating the transition needed to bring the marketing division in line with the requirements of the marketplace and for making the social change that would comply with once the present leader leaves.

Combination of marketing and advertising features. Separating Adverting and Production functions. Combination of Advertising with Workflow.

Assessment of Alternatives.

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

The advantage of this strategy is that it will certainly incorporate both functions while reducing the need for employing an added source for advertising and marketing. Along with this, Lewis would certainly be heading the advertising and marketing department as well as in any case her replacement would be required for the existing role that she is performing. The drawback of this option is that outside hiring might cause bitterness from inner workers that may be considering the placement of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and also Production: Offered the competitive pressures and also high top quality work required from the marketing agency, it is suggested that Lewis ought to enable the manufacturing device to be a separate feature from the marketing device. Since a lot of marketing firms had these two functions as separate systems, it makes more feeling to adhere to the norm.

Combination of Advertising with Procedures: Considering that Lewis is currently taking care of the advertising as well as procedures departments concurrently; it makes sense to integrate the two functions because she has been successfully dealing with both ends. The truth that both departments currently have major differences over appropriation of sources suggests that this assimilation might have the ability to produce consistency specifically as Lewis would certainly be heading both ends.However there are various disadvantages of this action particularly as it would certainly put too much problem over Lewis's shoulders. The reality that Lewis needs to adapt her monitoring design for the advertising division suggests that these two divisions would be culturally diverse. Lewis might not be able to use one type of leadership design to both divisions which could result in ineffectiveness in either one of the 2 features.


An evaluation of the 3 options indicates that combination of advertising and operations would not be a feasible relocation due to the vast distinctions between both divisions although that presently Lewis is dealing with both. While splitting up of the production feature might have been a positive relocation for the advertising department, the fact that it would imply positioning a third function under Lewis's wing suggests this need to be avoided also. The combination of the advertising division is the best option in terms of getting the ideal results from the department. An action plan for this alternative is reviewed below.

Activity Plan.
Lewis will take control of the role of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Manufacturing feature will continue to be component of advertising and marketing under advertising feature.

Lewis will certainly divide herself from procedures.

An autonomous management design with worker empowerment will certainly be made use of in advertising and marketing division.

Open door plan and focus on cross departmental communication will certainly be focused on getting rid of discord.

Contingency strategy.

If the integration does not exercise as planned, a contingency strategy would follow which would certainly separate the manufacturing feature from the advertising feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising division without an SVP. Because case the manufacturing function will certainly be divided by putting it under an SVP production.