Novartis A Being A Global Leader Case Study Solution


Home >> Harvard >> Novartis A Being A Global Leader >>

Novartis A Being A Global Leader Case Study Analysis

Background and Facts

Novartis A Being A Global Leader a workplace materials store for small as well as moderate sized companies has lately been associated with planning for a merger with its rival House Deport, which has actually affected efficiency degrees in departmentswith the elderly manager involved in legal issues put forth by the federal Trade Payment. With the Advertising and marketing Head advancing the news of his departure from the business in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the function in the future. With obstacles in the type of a possible cultural change and also reduced worker spirits, the organization is in need of a total reengineering initiative at the advertising department.

Trouble Statement
Porter's 5 Forces Analysis
The prospective social modification at the advertising and marketing department of Novartis A Being A Global Leader is enhancing uncertainty in the workplace causing numerous challenges for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting critical choices considering that Stapes Inc. needed to desert its plans of merging with Office Deport after the Federal Profession Commission's treatment while doing so. Given the truth that the store has a global existence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries may have the ability to influence performance or strategic goals. Federal Trade Payment's antitrust match against the merging occupied beneficial time of the company's senior monitoring recommending that 'political' factors can have serious effects for a global company.

Economic Factors: Financial factors such as the introduction of local business in the global scenario recommend that Novartis A Being A Global Leader is prospering in a setting where there is possible growth of companies. Fact that store clients are primarily looking for workplace materials for home offices suggests that the market has a climbing fad of business owners as well as home based companies.

Social factors: Social trends in the economic climate reveal that consumers are seeking benefit in addition to appealing prices. Marketing research shows how the client for Novartis A Being A Global Leader lacks understanding concerning finding solutions which can provide a combination of convenience and also low costs.

Technical factors: Modern technology plays an important function in Novartis A Being A Global Leader's organisation approach especially as the company is piloting Innovation facilities which would offer innovation sales as well as assistance in the kind of memory upgrades, peripheral installations. (Recap of BUG in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Business Behavior concerns can be seen in Novartis A Being A Global Leader's case as highlighted in this area.

Apprehensions regarding cultural adjustment: There is uneasiness concerning a cultural modification that would occur once Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising And Marketing with most of the personnel already revealing unhappiness over this possible step. This anticipated change has actually developed stress in the office which has actually been coupled with the past stress and anxiety of preparing the firm for a possible merger with Home Deport.
Pest Analysis
Demanding Work Environment for Newcomers: There is scarcity of workers that can match the difficult atmosphere of a hectic organization. Not just does this bring about trouble in locating the ideal people, it places anxiety on new hires as can not endure the speed and also stress that the company expects them to birth.

Twin Coverage Lines: Beginners locate this business culture cumbersome as well as challenging to deal with specifically as dotted line relationships are indicated to be weaker in general and also objective setup and performance analysis is still done by the strong line manager. This indicates that newcomers might lose clarity concerning their respective roles as well as goals particularly as dotted line coverage does not maintain them in straight interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles despite the fact that it had been speculated that the latter would certainly take Krasnow's setting came as an impact to her morale. Lewis might have been capable as well as proper for the job 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.

Concern & Task Insecurity: Fear and also insecurity can be determined as two major issues that Lewis would certainly be taking care of particularly as the merging has currently be cancelled as well as 2 senior execs of the advertising division would be leaving. The entire responsibility of the division would be falling on Lewis's shoulders that would not simply be in charge of brining about a cultural change but would certainly likewise need to confirm herself in her new duty.

Incompatible Monitoring Design of Leader: Lewis's management style and its incompatibility with the advertising division's role can additionally be seen as an OB difficulty especially as she has been made use of to taking care of problems in the operations division where personnel are instructed to focus on procedures and also get them. The advertising department on the various other hand can be viewed as a team of individuals that are utilized to being nurtured by Krasnow that concentrated more on result than procedures.

Interdepartmental Disputes: Interdepartmental disputes in between three divisions, advertising, merchandizing and also operations respectively over the allocation of the advertising and marketing mix can be identified as another OB issue. The advertising and marketing department does not share the exact same vision as the other 2 departments concerning the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and procedures divisions do not agree over the advertising and marketing mix allowance among one an additional either.

Disintegration in Marketing Division: Disintegration in between the marketing and advertising divisions can be recognized as another OB concern which might need further interest. The fact that the marketing and advertising sections in the advertising and marketing department are separated is protecting against both departments from getting from each various other's experience and know-how. Integration of marketing with retailing and procedures would end up being more difficult if the advertising division itself is disintegrated which can be one more prospective OB problem.

Novartis A Being A Global Leader Analysis

Various theories have actually been used to discuss the scenarios to get further clearness regarding the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers believe that staffs are easy as well as careless, have little passion and withstand adjustment. The scenario at Novartis A Being A Global Leader is not totally complying with Theory X, it can be seen that new hires are discovering this environment rather difficult which may at some point lead to a higher disposition of the monitoring in the direction of Concept X. Even while analyzing Lewis's management design, theory X might have been appropriate in the operations division to some degree but the Marketing department would call for dependence on Concept Y in order to get the imagination as well as originality from the teams.

Tuckman's Synergy Theory: As far as Lewis's issue about bringing consistency in between the advertising and marketing and marketing department is concerned, this would initially lead to contrast as talked about by Bruce Tuckman in his 'Teamwork Concept'. By combining the advertising and advertising division's job, there might be the exact same initial disconnect which might lead to the 2nd phase of 'storming' where the teams challenge one another.

When individuals are provided with modification, they go into stage one and also so there may be emotions like despair, unpredictability, frustration, rage, fear, rejection as well as disorientation.The situation at the advertising department of Novartis A Being A Global Leader is comparable so Lewis can obtain comfortable with the suggestion that it is not amazing habits. It is during this phase that Lewis will certainly have to offer support to the department so that they can locate a feeling of direction. It can be seen exactly how Krasnow has actually already made this change less complicated by making Lewis obtain included in the department a year prior to his real departure.
Vrio Analysis
Maslow's Need hierarchy: The OB concern related to instability at the workplace has been caused to start with by the adjustment in administration as well as secondly by the fact that the merging will no more be started. Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has goes over the significance of 'security needs as being a reduced level demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel safe and secure as well as unharmed' goes to the 2nd level of demands. Prior to an employee can be made to develop mentally, he needs to have his 'Physical 'and 'Safety' requires fulfilled. This indicates that unless the personnel are made to feel safe regarding their current work status in Novartis A Being A Global Leader they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Novartis A Being A Global Leader Case Study

Implication of Analysis.

The OB analysis has taken a look at numerous concepts to understand how to deal with the current circumstance available. The adhering to 3 choices have been recommended to assist Lewis take care of the organizational difficulties in the advertising department. Each of these options has been proposed for alleviating the transition needed to bring the advertising department according to the needs of the market and for making the cultural modification that would certainly follow once the existing leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting as well as Production features. Assimilation of Marketing with Operations.

Assessment of Alternatives.

Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merger days has competence in business-to-business advertising and marketing along with agency and retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to deal with both marketing as well as marketing functions.

The advantage of this strategy is that it will incorporate both functions while reducing the need for working with an added resource for advertising. In addition to this, Lewis would be heading the marketing department and all the same her replacement would certainly be needed for the current function that she is executing. The negative aspect of this option is that outside hiring might bring about animosity from internal workers that might be looking at the setting of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting as well as Manufacturing: Given the competitive stress as well as premium quality job needed from the ad agency, it is recommended that Lewis should permit the manufacturing device to be a different feature from the advertising unit. Since the majority of advertising agencies had these 2 functions as different units, it makes more sense to follow the standard. Along with this, both functions might have the ability to concentrate on their core activates a lot more successfully. The disadvantage of this technique would certainly be that additional costs would have to be birthed for setting up different manufacturing functions. A production head might have to be worked with which can boost overheads for the organization.

Combination of Advertising with Procedures: Since Lewis is already taking treatment of the advertising and marketing and procedures departments all at once; it makes sense to integrate the two features because she has been efficiently taking treatment of both ends. The fact that Lewis has to adjust her management style for the advertising department recommends that these two departments would be culturally varied.


An assessment of the three choices suggests that integration of marketing as well as procedures would not be a viable relocation as a result of the huge distinctions in between the two departments despite the fact that presently Lewis is handling both. While separation of the production function might have been a positive action for the advertising and marketing department, the truth that it would certainly indicate putting a 3rd function under Lewis's wing indicates this must be avoided. The combination of the marketing department is the best choice in terms of obtaining the optimum results from the department. An action plan for this alternative is discussed listed below.

Action Plan.
Lewis will certainly take over the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

Manufacturing feature will remain component of marketing under advertising feature.

Lewis will certainly divide herself from procedures.

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

Open up door policy and also emphasis on cross department interaction will be focused on getting rid of discord.

Contingency strategy.

If the integration does not exercise as planned, a backup strategy would comply with which would certainly divide the production function from the marketing feature to decrease the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising department without an SVP. Because case the production feature will absolutely be divided by positioning it under an SVP manufacturing.