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Nelson Paper Products Inc Case Study Solution

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Nelson Paper Products Inc Case Study Analysis

Background and Facts

Nelson Paper Products Inc an office materials retailer for tiny as well as moderate sized companies has actually recently been associated with preparing for a merger with its competitor Residence Deport, which has affected efficiency degrees in departmentswith the senior supervisor involved in lawful problems put forth by the federal Trade Payment. With the Advertising Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the current head of operations has actually been asked to take the duty in the near future. With difficulties in the form of a prospective cultural modification and also reduced employee spirits, the organization is in need of a full reengineering initiative at the advertising and marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The prospective social modification at the marketing division of Nelson Paper Products Inc is enhancing unpredictability in the working environment causing different obstacles for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting tactical choices considering that Stapes Inc. had to abandon its plans of merging with Office Deport after the Federal Profession Commission's treatment while doing so. Given the reality that the shop has an international presence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these countries may be able to affect performance or tactical objectives. Federal Profession Compensation's antitrust fit versus the merging took up useful time of the company's senior monitoring suggesting that 'political' factors can have serious implications for a global organisation.

Economic Factors: Economic factors such as the development of small companies in the global scenario suggest that Nelson Paper Products Inc is prospering in an atmosphere where there is potential growth of businesses. Fact that shop customers are primarily looking for office products for home workplaces suggests that the market has a climbing fad of business owners and house based companies.

Social factors: Social fads in the economic climate reveal that consumers are trying to find convenience as well as eye-catching rates. Market research demonstrates how the customer for Nelson Paper Products Inc does not have understanding concerning locating solutions which can offer a combination of ease and inexpensive.

Technical factors: Innovation plays a vital duty in Nelson Paper Products Inc's business strategy particularly as the company is piloting Technology facilities which would use innovation sales as well as support in the kind of memory upgrades, outer installations. (Summary of INSECT in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Organizational Habits issues can be seen in Nelson Paper Products Inc's case as highlighted in this section.

Worries about social adjustment: There is concern concerning a social adjustment that would certainly occur as soon as Todd Krasnow leaves from his position as the Executive Vice Head Of State of Marketing with the majority of the employee currently revealing discontent over this possible step. This anticipated adjustment has created stress and anxiety in the workplace which has actually been combined with the previous anxiety of preparing the firm for a prospective merging with Home Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is lack of workers that can match the demanding setting of a hectic organization. Not just does this bring about trouble in locating the best individuals, it puts stress and anxiety on new hires as can not stand up to the speed as well as stress that the company anticipates them to bear.

Dual Reporting Lines: Newcomers discover this organizational culture difficult as well as tough to cope with particularly as dotted line connections are meant to be weak in general and unbiased setting and performance assessment is still done by the solid line supervisor. This indicates that newcomers can lose clearness concerning their corresponding roles and also objectives particularly as populated line coverage does not keep them in direct communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles although it had been hypothesized that the last would certainly take Krasnow's placement came as a blow to her morale. Lewis might have been capable as well as ideal for the work yet the reality that Kransnow's departure would certainly make Coles a straight record to Lewis may have been the factor for Coles' resignation from services.

Fear & Task Insecurity: Worry as well as instability can be identified as two significant concerns that Lewis would certainly be handling particularly as the merging has now be terminated and also two elderly executives of the marketing division would be leaving. The whole obligation of the department would certainly be dropping on Lewis's shoulders who would certainly not just supervise of brining regarding a social adjustment but would likewise have to verify herself in her new duty.

Incompatible Monitoring Style of Leader: Lewis's management design as well as its conflict with the advertising division's duty can also be seen as an OB challenge specifically as she has actually been utilized to dealing with issues in the procedures department where personnel are educated to concentrate on procedures and get them. The advertising and marketing division on the various other hand can be viewed as a team of people who are used to being nurtured by Krasnow who focused more on result than processes.

Interdepartmental Disputes: Interdepartmental arguments between three divisions, marketing, merchandizing as well as operations specifically over the allowance of the advertising mix can be identified as an additional OB concern. Although the advertising and marketing department does not share the exact same vision as the various other 2 divisions pertaining to the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing as well as operations departments do not concur over the advertising and marketing mix allocation amongst one another either.

Disintegration in Advertising Division: Disintegration in between the advertising and marketing divisions can be determined as one more OB concern which might require additional focus. The fact that the advertising and marketing sections in the advertising department are disconnected is protecting against both divisions from acquiring from each other's experience and also expertise. Combination of advertising and marketing with merchandising and also procedures would certainly come to be more difficult if the advertising division itself is degenerated which can be another prospective OB problem.

Nelson Paper Products Inc Analysis

Various theories have been used to clarify the circumstances to get more quality about the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most supervisors think that staffs are easy and lazy, have little aspiration and also resist adjustment. The scenario at Nelson Paper Products Inc is not totally complying with Concept X, it can be seen that new hires are locating this setting instead stressful which may at some point lead to a better disposition of the management in the direction of Concept X. Also while analyzing Lewis's administration design, theory X might have been suitable in the operations division to some level yet the Marketing division would certainly call for dependence on Theory Y in order to get the imagination and also creativity from the teams.

Tuckman's Teamwork Theory: As for Lewis's issue regarding bringing consistency in between the advertising and marketing division is concerned, this would initially result in contrast as discussed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). According to Tuckman's concept received appendix 3, throughout the preliminary phase of group growth, people may not bond, as they are busy discovering their place in the group. By incorporating the marketing and advertising department's work, there might coincide first detach which can lead to the 2nd stage of 'storming' where the groups challenge one another. Nevertheless, it is only during the 3rd phase or 'norming' when they would integrate to share concepts before the group can cause synergy in the 4th phase 'carrying out'.

Bridges' Transition Model: Based On William Bridge's theory (appendix 4), people are rather uneasy with change, which is noticeable by the circumstance at Nelson Paper Products Inc The circumstance can be viewed as a normal training course of life if is researched based on Bridge's theory where he clarifies that people undergo 3 phases of transition when they experience change. 'End, losing as well as Letting go', The Neutral Area and 'The New Beginning' (Bridges, 2004). When individuals exist with modification, they enter phase one and so there may be emotions like sadness, uncertainty, disappointment, rage, worry, denial as well as disorientation.The situation at the advertising department of Nelson Paper Products Inc is comparable so Lewis can obtain comfy with the suggestion that it is not extraordinary actions. In the 2nd stage, there might be a requirement to bridge the void in between the brand-new as well as old society so Lewis may have to face this challenge once Krasnow leaves. There may be reduced morale and reduced efficiency at this stage which need to not be taken as a setback. It is during this phase that Lewis will certainly have to provide advice to the division so that they can find a sense of direction. It can be seen just how Krasnow has already made this shift simpler by making Lewis obtain associated with the department a year prior to his actual separation. Based on Bridges' Model, phase 3 will certainly produce openness to knowing, High power and commitment as individuals will certainly embrace the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has goes over the significance of 'protection requires as being a lower degree demand of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel protected and out of danger' is at the 2nd level of demands. Prior to a worker can be made to create mentally, he needs to have his 'Physical 'as well as 'Security' requires met.

SWOT Analysis for Nelson Paper Products Inc Case Study



Effects of Analysis.

The OB analysis has taken a look at various theories to comprehend exactly how to cope with the existing circumstance at hand. The following 3 choices have actually been recommended to aid Lewis deal with the business difficulties in the marketing division. Each of these options has been proposed for reducing the change needed to bring the marketing division in accordance with the requirements of the market and for making the cultural modification that would certainly adhere to when the existing leader leaves.

Combination of marketing and advertising functions. Dividing Adverting and Production features. Assimilation of Advertising And Marketing with Workflow.

Evaluation of Alternatives.

Assimilation of Marketing & Advertising And Marketing Functions: The internal marketing company of Nelson Paper Products Inc is already toughness for the organization in regards to saving up on expenses connected to advertising and marketing and also promotion. Because no brand-new recruitment has been done after Bridget Cole's separation with the reporting line being straight designated to Krasnow for the advertising and marketing feature, this is a positive possibility for integrating the marketing and advertising functions. Judith Shapiro who has actually earlier been spoken with by Lewis throughout the earlier merger days has competence in business-to-business marketing together with agency as well as retail marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to handle both advertising and marketing features.

The advantage of this method is that it will integrate the two functions while reducing the requirement for hiring an extra source for marketing. Along with this, Lewis would be heading the advertising department and also regardless her replacement would certainly be required for the current function that she is carrying out. The downside of this option is that exterior hiring might cause resentment from internal personnel that might be looking at the placement of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and Manufacturing: Given the competitive pressures and premium quality work called for from the advertising agency, it is suggested that Lewis should enable the manufacturing unit to be a separate feature from the advertising and marketing device. Given that a lot of ad agency had these 2 functions as different devices, it makes more feeling to adhere to the standard. Both functions might be able to concentrate on their core activates a lot more effectively. The drawback of this approach would be that additional expenses would certainly have to be borne for setting up separate manufacturing features. A manufacturing head might have to be hired which might raise expenses for the organization.

Integration of Advertising with Workflows: Because Lewis is already dealing with the advertising and marketing and procedures departments simultaneously; it makes good sense to incorporate both functions considering that she has actually been successfully looking after both ends. The reality that the two departments currently have significant differences over allocation of sources suggests that this assimilation may be able to cause harmony particularly as Lewis would be heading both ends.However there are different disadvantages of this action especially as it would certainly put way too much concern over Lewis's shoulders. The truth that Lewis has to adjust her administration design for the advertising and marketing division recommends that these two departments would certainly be culturally varied. Along with this, Lewis might not be able to use one type of management design to both divisions which might result in inefficiency in either one of the two functions.

Referral.



An analysis of the three alternatives shows that combination of advertising and marketing and also procedures would not be a practical relocation due to the vast differences between the 2 divisions in spite of the fact that currently Lewis is taking care of both. While splitting up of the production function may have been a desirable step for the marketing division, the reality that it would suggest positioning a 3rd function under Lewis's wing suggests this must be stayed clear of.

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

Marketing and advertising functions would be merged.

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

Production function will certainly remain part of advertising and marketing under advertising function.

Lewis will certainly divide herself from operations.

A democratic leadership style with staff member empowerment will certainly be made use of in marketing department.

Open up door policy and emphasis on cross departmental interaction will certainly be focused on removing discord.

Backup strategy.

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