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Nova Chemical Corp Case Study Analysis

Background and Facts

Nova Chemical Corp an office supplies merchant for tiny and moderate sized companies has actually recently been involved in preparing for a merging with its competitor Home Deport, which has impacted effectiveness degrees in departmentswith the senior manager involved in lawful issues presented by the federal Trade Compensation. With the Advertising Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the current head of procedures has been asked to take the duty in the future. With challenges in the kind of a possible social change as well as low employee spirits, the organization requires a complete reengineering initiative at the marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The potential social adjustment at the marketing division of Nova Chemical Corp is raising unpredictability in the working environment bring about different challenges for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting tactical choices since Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Trade Commission's intervention while doing so. Offered the reality that the shop has a global visibility with branches in UK, USA, Canada and also Germany, political consider each of these countries might have the ability to impact performance or strategic objectives. Federal Profession Commission's antitrust fit versus the merger occupied important time of the organization's senior management suggesting that 'political' factors can have serious ramifications for a worldwide service.

Economic Factors: Financial factors such as the emergence of local business in the global scenario recommend that Nova Chemical Corp is thriving in a setting where there is possible development of businesses. Truth that shop consumers are mainly looking for office products for residence workplaces recommends that the market has a rising trend of entrepreneurs as well as residence based businesses.

Social factors: Social fads in the economic situation show that consumers are seeking benefit as well as eye-catching prices. Market research demonstrates how the customer for Nova Chemical Corp lacks understanding about locating services which can offer a combination of ease as well as inexpensive.

Technical factors: Innovation plays a crucial function in Nova Chemical Corp's company approach especially as the organization is piloting Technology centers which would provide technology sales and also assistance in the form of memory upgrades, outer installations. (Summary of PARASITE in appendix 2).

OB Issues and Manifestations.

A number of underlying Business Habits issues can be seen in Nova Chemical Corp's case as highlighted in this area.

Uneasiness regarding social change: There is uneasiness about a cultural modification that would certainly take place when Todd Krasnow leaves from his setting as the Executive Vice President of Advertising And Marketing with a lot of the staff members currently showing unhappiness over this possible relocation. This expected adjustment has created anxiety in the workplace which has been combined with the previous tension of preparing the firm for a prospective merging with Residence Deport.
Pest Analysis
Stressful Work Setting for Newcomers: There is shortage of employees that can match the stressful setting of a hectic organization. Not just does this cause difficulty in locating the ideal people, it puts stress on new hires as can not hold up against the pace and stress that the organization expects them to birth.

Double Reporting Lines: Newcomers locate this business culture difficult and hard to cope with specifically as populated line partnerships are suggested to be weaker generally as well as unbiased setting and efficiency evaluation is still done by the strong line manager. This indicates that beginners could shed quality regarding their respective roles and also objectives particularly as populated line coverage does not maintain them in straight communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles although it had been guessed that the latter would certainly take Krasnow's placement came as an impact to her morale. Lewis might have been capable and ideal for the work yet the reality that Kransnow's separation would certainly make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Worry & Task Instability: Concern and instability can be recognized as 2 major worries that Lewis would certainly be handling specifically as the merger has now be cancelled and also two elderly execs of the marketing department would be leaving. The whole obligation of the division would be falling on Lewis's shoulders who would not simply supervise of brining regarding a cultural modification yet would certainly additionally need to confirm herself in her brand-new role.

Incompatible Monitoring Style of Leader: Lewis's monitoring design and its conflict with the advertising department's duty can also be seen as an OB challenge specifically as she has actually been used to managing problems in the procedures department where personnel are shown to focus on processes and obtain them right. The marketing department on the other hand can be seen as a group of people that are made use of to being supported by Krasnow who concentrated much more on outcome than procedures.

Interdepartmental Differences: Interdepartmental differences in between three divisions, marketing, merchandizing as well as procedures respectively over the allocation of the advertising mix can be recognized as an additional OB issue. The advertising division does not share the same vision as the various other two divisions regarding the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing as well as procedures divisions do not agree over the advertising and marketing mix allocation among one an additional either.

Disintegration in Advertising And Marketing Division: Fragmentation between the marketing and advertising departments can be recognized as another OB problem which can need additional focus. The truth that the advertising and marketing sections in the advertising department are separated is avoiding both departments from getting from each various other's experience as well as competence. Assimilation of advertising with retailing and operations would come to be more difficult if the advertising division itself is disintegrated which can be one more prospective OB concern.

Nova Chemical Corp Analysis

Various concepts have been utilized to clarify the circumstances to obtain further quality concerning the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers think that juniors are easy and careless, have little aspiration and also withstand change. The hard variation of this theory emphasized threat, tight controls, risks and penalties. Over time it generates low efficiency, refined sabotage and competition (Deal, 2003). The situation at Nova Chemical Corp is not entirely adhering to Theory X, it can be seen that brand-new hires are discovering this environment rather demanding which might at some point lead to a higher disposition of the management towards Concept X. Based on McGregor's advocated sight, which he called Theory Y, the necessary task of the monitoring is to arrange organizational conditions to ensure that individuals can attain their very own goals best by directing their efforts in the direction of business rewards. If individuals locate no complete satisfaction in their job, the management would certainly have little option but to rely upon concept X and also external control (Deal, 2003). Also while evaluating Lewis's administration design, theory X might have appropriated in the procedures division to some extent however the Advertising division would call for dependence on Concept Y so as to get the imagination as well as originality from the teams.

Tuckman's Synergy Theory: As far as Lewis's problem about bringing harmony between the advertising and marketing and advertising division is concerned, this would initially lead to clash as gone over by Bruce Tuckman in his 'Synergy Concept'. By combining the marketing as well as advertising and marketing department's job, there might be the same first detach which might lead to the 2nd phase of 'storming' where the groups test one another.

When individuals are provided with adjustment, they go into stage one and so there may be emotions like despair, uncertainty, disappointment, anger, concern, rejection and also disorientation.The circumstance at the marketing division of Nova Chemical Corp is comparable so Lewis can get comfortable with the idea that it is not remarkable behavior. It is throughout this stage that Lewis will have to give advice to the department so that they can find a sense of direction. It can be seen just how Krasnow has currently made this transition simpler by making Lewis obtain entailed in the department a year prior to his actual departure.
Vrio Analysis
Maslow's Demand pecking order: The OB concern pertaining to instability at the office has been triggered firstly by the modification in management and second of all by the fact that the merging will no more be initiated. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has talks about the value of 'safety needs as being a reduced level requirement of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel safe and also out of danger' is at the second level of requirements. Before a worker can be made to develop psychologically, he requires to have his 'Physiological 'and also 'Security' requires satisfied. This shows that unless the personnel are made to feel secure concerning their existing work standing in Nova Chemical Corp they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Nova Chemical Corp Case Study

Implication of Analysis.

The OB analysis has looked at various theories to recognize how to deal with the current scenario at hand. The adhering to 3 alternatives have actually been suggested to aid Lewis deal with the organizational obstacles in the advertising department. Each of these choices has actually been proposed for reducing the change required to bring the advertising and marketing division in line with the demands of the market and also for making the cultural adjustment that would certainly adhere to as soon as the present leader leaves.

Integration of advertising and marketing features. Separating Adverting as well as Manufacturing features. Combination of Advertising And Marketing with Operations.

Evaluation of Alternatives.

Assimilation of Advertising & Advertising Functions: The in-house advertising agency of Nova Chemical Corp is currently toughness for the company in regards to conserving up on overheads associated with advertising and marketing and also promo. Given that no brand-new recruitment has actually been done after Bridget Cole's separation with the reporting line being straight appointed to Krasnow for the marketing function, this is a desirable chance for incorporating the advertising and marketing features. Judith Shapiro that has earlier been spoken with by Lewis during the earlier merging days has expertise in business-to-business advertising along with firm as well as retail advertising experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to manage both marketing and advertising features.

The advantage of this strategy is that it will certainly integrate the two functions while reducing the demand for working with an added resource for advertising. In addition to this, Lewis would be heading the advertising and marketing division and in any case her replacement would be needed for the existing function that she is doing. The disadvantage of this alternative is that outside hiring might produce resentment from internal employees that may be eying the setting of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and also Manufacturing: Offered the competitive pressures and also high top quality job required from the marketing company, it is advised that Lewis needs to permit the manufacturing unit to be a separate feature from the marketing system. Because a lot of advertising companies had these 2 features as different devices, it makes even more sense to follow the norm.

Combination of Advertising with Operations: Given that Lewis is currently taking care of the advertising and marketing and also operations divisions concurrently; it makes feeling to integrate the two functions considering that she has actually been efficiently taking treatment of both ends. The fact that Lewis has to adjust her administration design for the marketing division suggests that these 2 divisions would be culturally varied.


An analysis of the 3 options indicates that integration of advertising and operations would not be a possible relocation due to the large distinctions between the two departments regardless of the reality that presently Lewis is taking care of both. While splitting up of the production feature might have been a positive action for the marketing department, the truth that it would suggest placing a 3rd function under Lewis's wing means this should be stayed clear of.

Activity Plan.
Lewis will take control of the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

Manufacturing feature will certainly continue to be component of advertising under advertising feature.

Lewis will certainly divide herself from operations.

An autonomous leadership design with staff member empowerment will be made use of in advertising and marketing department.

Open door plan and emphasis on cross departmental communication will be targeted at eliminating disharmony.

Backup strategy.

If the combination does not work out as intended, a backup strategy would certainly follow which would certainly divide the manufacturing feature from the advertising feature to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising division without an SVP. Because case the manufacturing function will most definitely be separated by positioning it under an SVP manufacturing.