Nelson Paper Products Inc Case Study Analysis


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Background and Facts

Nelson Paper Products Inc an office supplies store for tiny and also average sized businesses has recently been associated with planning for a merger with its rival Residence Deport, which has actually affected efficiency degrees in departmentswith the senior manager associated with lawful difficulties put forth by the government Trade Compensation. With the Advertising and marketing Head putting forward the information of his separation from the firm in one year, Jeannie Lewis, the present head of operations has been asked to take the function in the near future. With difficulties in the kind of a possible social adjustment as well as reduced worker morale, the organization is in need of a complete reengineering initiative at the advertising division.

Issue Statement
Porter's 5 Forces Analysis
The potential cultural adjustment at the marketing division of Nelson Paper Products Inc is boosting uncertainty in the workplace resulting in various obstacles for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in affecting critical decisions because Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Profession Compensation's intervention in the process. Given the fact that the shop has a global existence with branches in UK, USA, Canada and also Germany, political factors in each of these countries might be able to affect efficiency or strategic goals. Federal Trade Commission's antitrust match versus the merger occupied useful time of the organization's senior management recommending that 'political' factors can have serious effects for a worldwide service.

Economic Factors: Economic factors such as the introduction of small companies in the global situation suggest that Nelson Paper Products Inc is flourishing in a setting where there is potential growth of companies. Fact that shop customers are primarily looking for workplace supplies for residence workplaces suggests that the market has a rising fad of business owners and also residence based businesses.

Social factors: Social trends in the economic climate show that clients are seeking convenience along with attractive costs. Marketing research shows how the customer for Nelson Paper Products Inc does not have awareness concerning finding options which can supply a combination of benefit and low costs.

Technological factors: Modern technology plays a vital duty in Nelson Paper Products Inc's service approach specifically as the organization is piloting Modern technology facilities which would use technology sales and assistance in the kind of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues and also Symptoms.

A number of underlying Business Behavior concerns can be seen in Nelson Paper Products Inc's case as highlighted in this section.

Uneasiness regarding cultural change: There is worry regarding a cultural change that would happen when Todd Krasnow leaves from his placement as the Exec Vice President of Marketing with the majority of the team member currently showing unhappiness over this potential relocation. This anticipated modification has actually produced stress in the workplace which has actually been paired with the past anxiety of preparing the company for a possible merging with Home Deport.
Pest Analysis
Difficult Task Environment for Newcomers: There is lack of personnel that can match the stressful setting of a busy company. Not just does this lead to difficulty in discovering the best people, it places stress and anxiety on new hires as can not withstand the pace and also pressure that the company anticipates them to birth.

Twin Coverage Lines: Beginners find this organizational society difficult and also tough to deal with especially as populated line partnerships are implied to be weaker in general as well as unbiased setting and also efficiency assessment is still done by the strong line supervisor. This indicates that beginners might lose quality concerning their respective duties and also objectives especially as dotted line coverage does not keep them in direct communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles even though it had been guessed that the latter would take Krasnow's setting came as an impact to her spirits. Lewis may have been qualified and also appropriate for the job but the reality that Kransnow's departure would make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Worry & Job Insecurity: Worry and insecurity can be identified as two major issues that Lewis would certainly be managing particularly as the merging has actually currently be cancelled as well as two senior executives of the advertising and marketing department would be leaving. The entire duty of the division would be dropping on Lewis's shoulders that would certainly not just supervise of brining about a cultural change yet would certainly likewise have to prove herself in her new function.

Incompatible Management Design of Leader: Lewis's monitoring design as well as its conflict with the advertising division's role can likewise be viewed as an OB challenge especially as she has actually been used to handling problems in the procedures division where workers are taught to focus on procedures as well as get them right. The marketing department on the various other hand can be viewed as a group of people who are utilized to being nurtured by Krasnow that focused a lot more on result than processes.

Interdepartmental Differences: Interdepartmental differences in between 3 departments, marketing, merchandizing and also operations specifically over the allocation of the advertising and marketing mix can be recognized as another OB issue. Although the marketing division does not share the same vision as the various other 2 divisions concerning the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and also procedures departments do not agree over the advertising mix allocation among each other either.

Fragmentation in Marketing Division: Fragmentation between the marketing and advertising departments can be recognized as one more OB issue which might require further focus. The reality that the marketing and advertising areas in the advertising and marketing division are disconnected is protecting against both departments from getting from each other's experience and also know-how. Integration of advertising with merchandising and procedures would certainly become more difficult if the advertising division itself is broken down which can be another possible OB problem.

Nelson Paper Products Inc Analysis

Different theories have been used to clarify the conditions to obtain more clearness concerning the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers believe that staffs are easy and careless, have little passion and also stand up to modification. The tough variation of this concept stressed threat, limited controls, hazards as well as punishments. Gradually it creates low efficiency, refined sabotage and also competition (Bargain, 2003). Although the situation at Nelson Paper Products Inc is not completely following Concept X, it can be seen that new hires are finding this setting rather difficult which might at some point bring about a higher inclination of the administration in the direction of Theory X. As per McGregor's supported sight, which he called Theory Y, the vital job of the management is to set up organizational problems so that people can accomplish their own goals best by guiding their initiatives in the direction of organizational rewards. If individuals discover no complete satisfaction in their work, the administration would certainly have little selection but to count on concept X and exterior control (Offer, 2003). Even while examining Lewis's management style, theory X may have appropriated in the procedures division to some extent but the Advertising and marketing department would need dependence on Theory Y in order to get the creativity and originality from the teams.

Tuckman's Team effort Theory: Regarding Lewis's concern concerning bringing harmony between the advertising and marketing division is worried, this would at first lead to clash as reviewed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, throughout the initial phase of group growth, individuals may not bond, as they are busy finding their place in the group. By combining the advertising and marketing department's job, there might coincide first disconnect which can bring about the 2nd stage of 'storming' where the groups test one another. It is only throughout the third stage or 'norming' when they would certainly come together to share suggestions prior to the group can bring about harmony in the 4th phase 'executing'.

When individuals are provided with adjustment, they go into phase one as well as so there might be feelings like despair, unpredictability, disappointment, anger, fear, denial and disorientation.The situation at the advertising department of Nelson Paper Products Inc is comparable so Lewis can get comfortable with the concept that it is not amazing behavior. It is throughout this stage that Lewis will certainly have to provide guidance to the division so that they can find a feeling of direction. It can be seen just how Krasnow has currently made this shift less complicated by making Lewis obtain entailed in the division a year before his real departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has talks about the value of 'protection requires as being a reduced degree demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel safe and secure as well as out of risk' is at the 2nd level of demands. Prior to a staff member can be made to establish psychologically, he requires to have his 'Physical 'and also 'Security' requires met.

SWOT Analysis for Nelson Paper Products Inc Case Study

Ramification of Analysis.

The OB analysis has taken a look at different concepts to recognize just how to handle the present scenario available. The adhering to three alternatives have actually been recommended to aid Lewis take care of the organizational difficulties in the marketing department. Each of these alternatives has actually been proposed for relieving the transition required to bring the marketing division in accordance with the requirements of the marketplace as well as for making the cultural change that would certainly follow when the present leader leaves.

Integration of marketing and advertising functions. Separating Adverting and Manufacturing functions. Integration of Marketing with Operations.

Examination of Alternatives.

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

The benefit of this method is that it will certainly integrate both functions while minimizing the requirement for hiring an additional source for advertising and marketing. Lewis would be heading the advertising and marketing division and also in any kind of case her replacement would be required for the existing function that she is doing. The negative aspect of this choice is that external hiring might produce bitterness from inner employees that may be eying the setting of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting as well as Manufacturing: Provided the affordable pressures and premium quality job needed from the advertising agency, it is suggested that Lewis should allow the production unit to be a different function from the advertising and marketing unit. Since a lot of ad agency had these 2 features as separate units, it makes more sense to follow the standard. Both features might be able to concentrate on their core activates more efficiently. The drawback of this strategy would be that added expenses would have to be birthed for setting up different manufacturing features. A production head may have to be worked with which can increase expenses for the organization.

Combination of Advertising And Marketing with Operations: Because Lewis is currently taking care of the advertising and marketing and also procedures departments all at once; it makes sense to integrate the two features because she has actually been efficiently taking treatment of both ends. The reality that Lewis has to adjust her monitoring style for the advertising and marketing division suggests that these 2 divisions would be culturally diverse.


An examination of the three alternatives shows that assimilation of advertising and procedures would not be a feasible move due to the large distinctions between the 2 divisions despite the truth that presently Lewis is taking care of both. While separation of the manufacturing feature might have been a desirable step for the advertising and marketing department, the truth that it would imply placing a 3rd function under Lewis's wing means this must be avoided.

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

Marketing and advertising features would certainly be merged.

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

Manufacturing function will stay component of marketing under advertising and marketing function.

Lewis will separate herself from operations.

A democratic management design with worker empowerment will be utilized in advertising department.

Open door plan and also emphasis on cross departmental communication will certainly be aimed at removing dissonance.

Backup strategy.

If the combination does not work out as planned, a backup strategy would adhere to which would separate the production feature from the advertising and marketing function to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the advertising division without an SVP. In that case the manufacturing function will most definitely be separated by positioning it under an SVP production.