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Note On The Caspian Oil Pipelines Case Study Analysis

CASE SOLUTION

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Note On The Caspian Oil Pipelines Case Study Solution

Background and Facts

Note On The Caspian Oil Pipelines an office supplies retailer for tiny as well as moderate sized businesses has recently been involved in preparing for a merger with its competitor Home Deport, which has impacted performance degrees in departmentswith the senior manager involved in legal issues presented by the government Trade Compensation. With the Marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the role in the near future. With challenges in the kind of a potential cultural change as well as reduced staff member morale, the company needs a total reengineering effort at the advertising and marketing division.

Issue Declaration

The prospective social adjustment at the advertising and marketing department of Note On The Caspian Oil Pipelines is raising uncertainty in the workplace leading to different challenges for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing strategic choices considering that Stapes Inc. needed to abandon its plans of combining with Workplace Deport after the Federal Trade Payment's intervention while doing so. Offered the fact that the shop has a global visibility with branches in UK, USA, Canada as well as Germany, political factors in each of these countries may be able to influence efficiency or calculated objectives. Federal Profession Compensation's antitrust fit versus the merger took up important time of the organization's senior administration suggesting that 'political' factors can have severe implications for an international business.

Economic Factors: Economic factors such as the emergence of local business in the international scenario recommend that Note On The Caspian Oil Pipelines is thriving in an environment where there is prospective development of businesses. In addition to this, fact that store clients are primarily trying to find office products for office recommends that the marketplace has an increasing pattern of entrepreneurs as well as home organisations.

Social factors: Social trends in the economy reveal that consumers are searching for ease along with eye-catching prices. Market research shows how the consumer for Note On The Caspian Oil Pipelines lacks recognition about locating options which can supply a mix of benefit and also affordable.

Technological factors: Technology plays a vital function in Note On The Caspian Oil Pipelines's company method particularly as the organization is piloting Innovation facilities which would certainly supply innovation sales and support in the form of memory upgrades, peripheral installments. (Recap of INSECT in appendix 2).

OB Issues as well as Effects.

A number of underlying Business Actions concerns can be seen in Note On The Caspian Oil Pipelines's case as highlighted in this section.

Apprehensions concerning social modification: There is uneasiness regarding a cultural modification that would take place once Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Marketing with most of the personnel currently revealing unhappiness over this potential action. This predicted modification has created tension in the work environment which has actually been coupled with the past tension of preparing the firm for a potential merging with House Deport.

Demanding Task Atmosphere for Newcomers: There is scarcity of employees that can match the demanding environment of a hectic organization. Not only does this bring about trouble in discovering the appropriate people, it places anxiety on new hires as can not stand up to the pace and stress that the company expects them to birth.

Dual Coverage Lines: Newbies locate this business society cumbersome and challenging to cope with particularly as populated line relationships are indicated to be weaker in general and unbiased setup as well as performance examination is still done by the solid line manager. This indicates that beginners could lose clarity about their particular functions and purposes especially as populated line reporting does not maintain them in direct interaction with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles despite the fact that it had been guessed that the latter would certainly take Krasnow's position came as an impact to her spirits. Lewis may have been qualified and proper for the task but the fact that Kransnow's separation would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from services.

Fear & Work Insecurity: Anxiety and also insecurity can be recognized as 2 significant worries that Lewis would be managing especially as the merging has now be cancelled and 2 senior execs of the marketing department would be leaving. The whole responsibility of the division would be dropping on Lewis's shoulders that would certainly not simply supervise of brining regarding a cultural change however would also have to confirm herself in her brand-new duty.

Incompatible Administration Style of Leader: Lewis's administration style as well as its conflict with the advertising department's duty can likewise be viewed as an OB obstacle specifically as she has been made use of to handling concerns in the operations department where personnel are taught to focus on processes and also obtain them right. The marketing division on the various other hand can be seen as a group of individuals that are utilized to being supported by Krasnow that concentrated more on output than processes.

Interdepartmental Disagreements: Interdepartmental disputes between three departments, advertising, merchandizing and procedures specifically over the appropriation of the marketing mix can be recognized as an additional OB problem. The advertising department does not share the exact same vision as the other 2 divisions relating to the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and operations divisions do not agree over the marketing mix allowance among one an additional either.

Fragmentation in Marketing Division: Fragmentation between the advertising and marketing divisions can be recognized as another OB concern which might require additional focus. The truth that the advertising and marketing areas in the advertising and marketing division are separated is stopping both departments from obtaining from each other's experience and competence. Assimilation of marketing with merchandising and also procedures would become more difficult if the advertising department itself is broken down which can be one more prospective OB issue.

Note On The Caspian Oil Pipelines Analysis

Numerous theories have been utilized to explain the conditions to get additional clearness about the scenario available.

McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers believe that juniors are passive as well as careless, have little aspiration as well as withstand adjustment. The tough version of this theory highlighted coercion, limited controls, risks and also penalties. With time it generates reduced efficiency, subtle sabotage and competition (Bargain, 2003). Although the circumstance at Note On The Caspian Oil Pipelines is not totally adhering to Theory X, it can be seen that brand-new hires are locating this atmosphere rather stressful which may eventually cause a greater inclination of the management towards Concept X. As per McGregor's supported view, which he called Theory Y, the essential task of the management is to prepare business problems to make sure that individuals can accomplish their own goals best by guiding their initiatives towards organizational rewards. If people locate no fulfillment in their work, the administration would have little selection but to count on concept X as well as exterior control (Bargain, 2003). Also while evaluating Lewis's administration style, theory X might have appropriated in the operations division to some extent but the Advertising division would certainly require dependence on Theory Y to get the creative thinking and originality from the teams.

Tuckman's Synergy Theory: As much as Lewis's worry regarding bringing harmony between the advertising and advertising and marketing division is worried, this would originally lead to clash as talked about by Bruce Tuckman in his 'Team effort Theory'. By incorporating the advertising and also advertising department's work, there may be the exact same preliminary separate which might lead to the 2nd phase of 'storming' where the teams test one another.

Bridges' Transition Model: Based On William Bridge's concept (appendix 4), individuals are rather awkward with adjustment, which is noticeable by the scenario at Note On The Caspian Oil Pipelines The situation can be viewed as a regular course of life if is studied according to Bridge's theory where he describes that individuals experience three phases of transition when they experience adjustment. 'End, shedding and Letting go', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When individuals exist with change, they enter phase one and so there may be emotions like sadness, unpredictability, frustration, rage, concern, rejection and also disorientation.The situation at the marketing division of Note On The Caspian Oil Pipelines is comparable so Lewis can obtain comfy with the suggestion that it is not phenomenal behavior. In the 2nd phase, there may be a need to link the gap between the new as well as old culture so Lewis might have to encounter this challenge when Krasnow leaves. There may be low morale as well as reduced efficiency at this phase which must not be taken as a trouble. It is during this phase that Lewis will certainly have to offer assistance to the department to ensure that they can discover an orientation. It can be seen just how Krasnow has actually currently made this transition simpler by making Lewis obtain associated with the division a year before his real departure. According to Bridges' Model, stage 3 will certainly bring about openness to discovering, High power as well as dedication as people will certainly accept the adjustment (Bridges, 2004).

Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has goes over the relevance of 'security requires as being a lower degree need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel secure and out of risk' is at the 2nd level of needs. Before an employee can be made to establish emotionally, he requires to have his 'Physiological 'and 'Safety and security' needs met.

SWOT Analysis for Note On The Caspian Oil Pipelines Case Study



Implication of Analysis.

The OB analysis has actually checked out numerous theories to understand just how to manage the current circumstance available. The adhering to 3 options have actually been proposed to help Lewis manage the business obstacles in the marketing division. Each of these options has actually been proposed for easing the shift needed to bring the advertising division in line with the needs of the marketplace as well as for making the cultural modification that would certainly comply with when the existing leader leaves.

Integration of marketing and advertising functions. Separating Adverting as well as Manufacturing functions. Integration of Marketing with Workflow.

Analysis of Alternatives.

Integration of Advertising & Advertising And Marketing Functions: The internal advertising and marketing company of Note On The Caspian Oil Pipelines is already stamina for the organization in terms of saving up on overheads connected to marketing and promo. Because no brand-new employment has been done after Bridget Cole's departure with the coverage line being straight designated to Krasnow for the advertising feature, this is a favorable possibility for integrating the marketing and advertising features. Judith Shapiro that has earlier been talked to by Lewis throughout the earlier merging days has expertise in business-to-business marketing in addition to agency and retail advertising experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to handle both advertising and marketing functions.

The benefit of this method is that it will certainly incorporate the two functions while reducing the demand for working with an additional source for marketing. Lewis would certainly be heading the advertising division and in any kind of case her replacement would certainly be needed for the present duty that she is carrying out. The drawback of this alternative is that outside hiring may cause bitterness from interior personnel who may be looking at the position of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Production: Provided the competitive stress as well as high quality work required from the advertising and marketing company, it is suggested that Lewis needs to permit the manufacturing system to be a different function from the advertising unit. Considering that the majority of advertising firms had these 2 features as separate units, it makes even more sense to comply with the standard.

Combination of Marketing with Procedures: Given that Lewis is already taking treatment of the marketing as well as operations departments all at once; it makes sense to incorporate the 2 functions because she has actually been successfully taking care of both ends. The fact that Lewis has to adapt her administration design for the advertising department recommends that these two divisions would be culturally varied.

Suggestion.



An examination of the 3 options suggests that combination of advertising and marketing and operations would certainly not be a practical step due to the large differences in between both departments although that presently Lewis is dealing with both. While splitting up of the production function might have been a positive relocation for the advertising department, the reality that it would imply positioning a 3rd function under Lewis's wing suggests this must be avoided too. The combination of the advertising and marketing department is the very best choice in regards to obtaining the ideal results from the department. An activity plan for this alternative is discussed below.

Action Strategy.

Lewis will certainly take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing 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 part of marketing under advertising and marketing feature.

Lewis will divide herself from operations.

An autonomous leadership design with employee empowerment will be utilized in marketing department.

Open up door plan and emphasis on cross departmental interaction will certainly be aimed at getting rid of discord.

Backup plan.

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