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Nutra Foods Case Study Analysis

Background and Facts

Nutra Foods an office materials merchant for small and also medium sized companies has actually recently been associated with planning for a merger with its competitor Home Deport, which has actually affected effectiveness levels in departmentswith the senior manager associated with legal issues put forth by the government Profession Compensation. With the Marketing Head advancing the information of his departure from the business in one year, Jeannie Lewis, the current head of operations has been asked to take the duty in the near future. With obstacles in the form of a possible social adjustment and also low staff member spirits, the organization wants a total reengineering initiative at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural change at the advertising and marketing division of Nutra Foods is increasing unpredictability in the workplace leading to numerous obstacles for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in affecting calculated decisions since Stapes Inc. had to desert its strategies of combining with Workplace Deport after the Federal Trade Commission's treatment in the process. Provided the reality that the shop has a global visibility with branches in UK, UNITED STATES, Canada and Germany, political consider each of these nations might be able to affect performance or critical objectives. Federal Profession Compensation's antitrust match versus the merging took up beneficial time of the company's senior monitoring recommending that 'political' factors can have serious ramifications for an international company.

Economic Factors: Financial factors such as the development of small businesses in the global circumstance suggest that Nutra Foods is growing in an atmosphere where there is potential growth of organisations. In addition to this, truth that shop customers are mostly looking for office materials for home offices recommends that the marketplace has a climbing pattern of entrepreneurs and also online services.

Social factors: Social trends in the economic situation reveal that clients are looking for benefit along with attractive rates. Market research shows how the customer for Nutra Foods does not have awareness concerning finding options which can use a combination of comfort and also low costs.

Technological factors: Modern technology plays a vital role in Nutra Foods's organisation approach specifically as the organization is piloting Technology facilities which would certainly provide technology sales and also assistance in the type of memory upgrades, outer installments. (Recap of PEST in appendix 2).

OB Issues and also Effects.

A number of underlying Organizational Actions concerns can be seen in Nutra Foods's case as highlighted in this section.

Uneasiness about cultural adjustment: There is uneasiness regarding a cultural change that would certainly occur as soon as Todd Krasnow leaves from his placement as the Executive Vice President of Advertising with a lot of the employee already showing unhappiness over this possible step. This anticipated modification has actually produced stress and anxiety in the office which has been coupled with the past stress of preparing the company for a possible merging with Residence Deport.
Pest Analysis
Difficult Task Environment for Newcomers: There is scarcity of employees that can match the difficult setting of a fast-paced company. Not only does this result in trouble in finding the best individuals, it places tension on new hires as can not withstand the rate and pressure that the company expects them to birth.

Twin Reporting Lines: Beginners find this organizational society difficult and tough to cope with specifically as dotted line connections are meant to be weaker in general as well as objective setup and also efficiency evaluation is still done by the strong line manager. This implies that newbies might lose quality regarding their respective roles as well as objectives particularly as dotted line coverage does not keep them in direct interaction with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles despite the fact that it had actually been speculated that the latter would certainly take Krasnow's placement came as a strike to her spirits. Lewis might have been capable and also appropriate for the job but the reality that Kransnow's separation would make Coles a direct report to Lewis may have been the factor for Coles' resignation from services.

Anxiety & Work Instability: Fear as well as instability can be identified as 2 significant concerns that Lewis would be handling especially as the merger has now be terminated and also two elderly execs of the advertising and marketing division would be leaving. The whole responsibility of the department would be dropping on Lewis's shoulders who would not just be in charge of brining regarding a cultural change but would certainly also have to show herself in her brand-new function.

Inappropriate Management Style of Leader: Lewis's management design and also its incompatibility with the advertising department's function can likewise be seen as an OB challenge especially as she has been made use of to managing problems in the procedures division where employees are taught to concentrate on procedures as well as obtain them right. The marketing division on the other hand can be seen as a team of people who are used to being nurtured by Krasnow that focused much more on output than procedures.

Interdepartmental Disputes: Interdepartmental differences between 3 departments, advertising, merchandizing and procedures respectively over the appropriation of the advertising and marketing mix can be identified as one more OB worry. The advertising division does not share the same vision as the various other two departments concerning the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and also operations divisions do not concur over the advertising and marketing mix allowance among one another either.

Fragmentation in Advertising And Marketing Department: Disintegration between the marketing and advertising divisions can be identified as one more OB issue which could require more focus. The fact that the advertising and marketing sections in the advertising division are detached is stopping both divisions from gaining from each other's experience as well as proficiency. Assimilation of marketing with merchandising as well as procedures would end up being harder if the advertising division itself is disintegrated which can be one more possible OB worry.

Nutra Foods Analysis

Numerous theories have actually been made use of to explain the scenarios to obtain further clearness concerning the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers think that staffs are easy and careless, have little ambition as well as resist modification. The difficult version of this theory emphasized browbeating, tight controls, risks and penalties. Over time it generates low productivity, subtle sabotage and also rivalry (Offer, 2003). The circumstance at Nutra Foods is not totally adhering to Concept X, it can be seen that brand-new hires are locating this environment instead difficult which may ultimately lead to a higher inclination of the management in the direction of Theory X. According to McGregor's promoted view, which he called Theory Y, the crucial job of the management is to arrange business problems to ensure that people can achieve their very own goals best by directing their initiatives towards organizational incentives. If individuals locate no complete satisfaction in their job, the management would certainly have little option yet to depend on theory X and also external control (Deal, 2003). Even while examining Lewis's monitoring style, theory X might have appropriated in the procedures department to some extent however the Advertising department would call for dependence on Theory Y in order to get the creative thinking and originality from the teams.

Tuckman's Synergy Concept: As far as Lewis's problem regarding bringing consistency between the advertising as well as marketing department is concerned, this would at first lead to contrast as gone over by Bruce Tuckman in his 'Team effort Theory'. By combining the advertising and marketing as well as marketing division's job, there might be the exact same initial separate which might lead to the second phase of 'storming' where the teams challenge one an additional.

Bridges' Shift Model: As per William Bridge's concept (appendix 4), individuals are fairly awkward with adjustment, which is apparent by the circumstance at Nutra Foods The circumstance can be viewed as a typical training course of life if is researched based on Bridge's theory where he discusses that people experience three stages of shift when they experience change. 'Ending, shedding and Letting go', The Neutral Area and also 'The New Starting' (Bridges, 2004). When people exist with modification, they go into phase one and so there might be feelings like despair, unpredictability, frustration, rage, anxiety, denial and also disorientation.The situation at the advertising department of Nutra Foods is similar so Lewis can get comfortable with the concept that it is not amazing behavior. In the second stage, there may be a need to connect the void between the brand-new and also old society so Lewis might have to face this experience once Krasnow leaves. There might be reduced spirits as well as low performance at this stage which must not be taken as a trouble. It is during this phase that Lewis will certainly need to provide support to the division to make sure that they can find a sense of direction. It can be seen just how Krasnow has actually already made this transition simpler by making Lewis obtain associated with the department a year prior to his real separation. According to Bridges' Design, stage three will cause visibility to knowing, High power and dedication as people will certainly embrace the change (Bridges, 2004).
Vrio Analysis
Maslow's Requirement hierarchy: The OB issue pertaining to insecurity at the office has been triggered firstly by the change in monitoring and also secondly by the reality that the merging will no longer be initiated. Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has goes over the value of 'safety requires as being a reduced degree requirement of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel secure as well as out of danger' is at the second level of requirements. Prior to an employee can be made to create mentally, he requires to have his 'Physiological 'and also 'Safety and security' requires satisfied. This suggests that unless the personnel are made to really feel protected about their current employment status in Nutra Foods they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Nutra Foods Case Study



Effects of Analysis.

The OB analysis has actually checked out different theories to recognize just how to handle the current scenario handy. The complying with 3 choices have been suggested to assist Lewis handle the organizational obstacles in the marketing department. Each of these choices has been suggested for reducing the transition needed to bring the advertising and marketing department in accordance with the demands of the market and for making the social adjustment that would comply with once the present leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting and also Manufacturing features. Integration of Advertising And Marketing with Procedures.

Evaluation of Alternatives.

Combination of Advertising & Advertising Functions: The in-house advertising and marketing company of Nutra Foods is currently strength for the organization in terms of saving up on expenses associated with advertising and promotion. Considering that no brand-new recruitment has been done after Bridget Cole's departure with the coverage line being straight assigned to Krasnow for the advertising and marketing feature, this is a favorable opportunity for integrating the advertising and marketing functions. Judith Shapiro that has earlier been talked to by Lewis throughout the earlier merging days has know-how in business-to-business advertising and marketing in addition to agency and retail advertising experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to take care of both advertising and marketing functions.

The advantage of this strategy is that it will certainly incorporate both features while lowering the need for working with an additional source for advertising. Lewis would certainly be heading the marketing department and also in any case her substitute would be needed for the existing duty that she is doing. The disadvantage of this choice is that exterior hiring might produce animosity from inner personnel that may be eying the placement of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and also Manufacturing: Offered the competitive stress as well as high quality job required from the advertising and marketing firm, it is recommended that Lewis ought to enable the manufacturing unit to be a different function from the advertising and marketing unit. Considering that many advertising firms had these 2 functions as different devices, it makes even more sense to adhere to the standard.

Combination of Marketing with Procedures: Considering that Lewis is already caring for the advertising and marketing as well as procedures divisions all at once; it makes good sense to incorporate the two functions since she has been successfully looking after both ends. The fact that both divisions already have major distinctions over allowance of sources suggests that this combination may be able to bring about consistency especially as Lewis would certainly be heading both ends.However there are numerous disadvantages of this step especially as it would put too much concern over Lewis's shoulders. The fact that Lewis has to adapt her administration style for the advertising and marketing division recommends that these 2 divisions would certainly be culturally diverse. Along with this, Lewis might not have the ability to use one sort of leadership style to both divisions which could result in ineffectiveness in either one of both functions.

Recommendation.



An assessment of the three choices shows that integration of advertising and marketing as well as operations would certainly not be a practical action due to the huge distinctions between the two divisions regardless of the fact that currently Lewis is managing both. While separation of the production function may have been a favorable move for the advertising and marketing division, the reality that it would certainly imply placing a 3rd function under Lewis's wing implies this need to be avoided.

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

Advertising and Marketing functions would certainly be combined.

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

Production function will certainly remain component of advertising and marketing under advertising and marketing feature.

Lewis will certainly divide herself from operations.

An autonomous leadership style with staff member empowerment will certainly be made use of in advertising and marketing division.

Open up door policy as well as emphasis on cross department communication will be aimed at getting rid of discord.

Backup strategy.

If the combination does not work out as prepared, a contingency strategy would certainly follow which would certainly separate the production feature from the advertising function to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will be heading the advertising department without an SVP. In that case the manufacturing function will absolutely be separated by putting it under an SVP manufacturing.