Olam Accounting For Biological Assets Case Study Analysis


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Olam Accounting For Biological Assets Case Study Help

Background and Facts

Olam Accounting For Biological Assets an office products store for tiny and moderate sized organisations has actually recently been associated with planning for a merger with its competitor Home Deport, which has actually impacted performance levels in departmentswith the senior manager involved in legal complications put forth by the federal Profession Payment. With the Advertising Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the near future. With challenges in the kind of a possible cultural modification as well as reduced staff member morale, the company needs a complete reengineering initiative at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising division of Olam Accounting For Biological Assets is raising unpredictability in the workplace causing various 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 role in influencing calculated choices since Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Profession Payment's intervention while doing so. Offered the reality that the shop has an international existence with branches in UK, USA, Canada and Germany, political factors in each of these nations might have the ability to affect performance or calculated objectives. Federal Profession Payment's antitrust suit versus the merging took up useful time of the company's senior management suggesting that 'political' factors can have serious effects for an international service.

Economic Factors: Financial factors such as the introduction of local business in the global situation recommend that Olam Accounting For Biological Assets is prospering in an environment where there is possible growth of organisations. Reality that store clients are mostly looking for workplace materials for residence offices suggests that the market has a climbing fad of business owners as well as home based services.

Social factors: Social fads in the economy show that clients are searching for ease in addition to appealing costs. Market research demonstrates how the consumer for Olam Accounting For Biological Assets lacks awareness regarding discovering solutions which can provide a combination of comfort and inexpensive.

Technological factors: Technology plays an important duty in Olam Accounting For Biological Assets's company technique particularly as the company is piloting Modern technology facilities which would use innovation sales and also support in the form of memory upgrades, peripheral installations. (Recap of BUG in appendix 2).

OB Issues as well as Symptoms.

Several underlying Organizational Behavior issues can be seen in Olam Accounting For Biological Assets's case as highlighted in this section.

Apprehensions concerning cultural change: There is concern regarding a social adjustment that would take place once Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Marketing with most of the employee currently showing unhappiness over this possible action. This expected modification has actually developed stress and anxiety in the office which has actually been combined with the previous stress of preparing the firm for a potential merger with Residence Deport.
Pest Analysis
Stressful Job Atmosphere for Newcomers: There is lack of personnel that can match the stressful atmosphere of a busy company. Not only does this result in problem in locating the right people, it puts stress and anxiety on new hires as can not hold up against the rate as well as pressure that the organization expects them to birth.

Dual Coverage Lines: Newcomers discover this business culture troublesome and tough to manage specifically as dotted line partnerships are meant to be weaker generally and unbiased setup as well as performance evaluation is still done by the solid line manager. This indicates that novices might lose quality concerning their respective roles and objectives specifically as dotted line coverage does not keep them in direct communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles although it had actually been hypothesized that the last would certainly take Krasnow's placement came as an impact to her morale. Lewis may have been capable as well as ideal for the job yet the reality that Kransnow's separation would certainly make Coles a straight report to Lewis may have been the reason for Coles' resignation from services.

Worry & Task Instability: Anxiety and also instability can be identified as 2 significant concerns that Lewis would certainly be taking care of especially as the merging has actually now be cancelled and also two elderly execs of the advertising department would be leaving. The entire responsibility of the department would be falling on Lewis's shoulders that would not just be in charge of brining about a cultural modification but would certainly additionally need to verify herself in her brand-new role.

Incompatible Administration Style of Leader: Lewis's monitoring style and also its incompatibility with the marketing department's function can additionally be viewed as an OB challenge specifically as she has actually been utilized to handling concerns in the procedures department where personnel are shown to focus on procedures and obtain them right. The advertising department on the various other hand can be seen as a team of individuals that are made use of to being nurtured by Krasnow that focused more on outcome than processes.

Interdepartmental Disputes: Interdepartmental disagreements between 3 departments, advertising and marketing, merchandizing and procedures specifically over the allocation of the advertising and marketing mix can be determined as an additional OB worry. The advertising department does not share the exact same vision as the other two departments relating to the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and operations divisions do not concur over the advertising mix allotment amongst one an additional either.

Fragmentation in Advertising Division: Fragmentation between the marketing and advertising departments can be recognized as one more OB issue which could need additional attention. The truth that the advertising and marketing areas in the advertising division are detached is stopping both divisions from obtaining from each various other's experience as well as experience. Combination of marketing with merchandising and also operations would come to be harder if the advertising division itself is degenerated which can be an additional prospective OB worry.

Olam Accounting For Biological Assets Analysis

Numerous concepts have been used to discuss the circumstances to obtain more clearness regarding the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many managers believe that staffs are passive as well as careless, have little ambition as well as withstand adjustment. The tough version of this concept emphasized threat, tight controls, risks and penalties. In time it creates reduced productivity, subtle sabotage as well as rivalry (Offer, 2003). The circumstance at Olam Accounting For Biological Assets is not totally following Concept X, it can be seen that brand-new hires are locating this atmosphere instead difficult which might eventually lead to a higher inclination of the management towards Theory X. According to McGregor's advocated view, which he called Theory Y, the important job of the administration is to prepare business problems to make sure that people can accomplish their very own objectives best by guiding their initiatives towards business rewards. If individuals discover no fulfillment in their job, the monitoring would certainly have little selection however to count on theory X and external control (Bargain, 2003). Also while analyzing Lewis's monitoring style, theory X may have appropriated in the operations division to some extent yet the Advertising and marketing division would certainly require dependence on Concept Y to get the creativity as well as creativity from the teams.

Tuckman's Team effort Theory: As much as Lewis's worry regarding bringing harmony between the advertising and advertising and marketing department is worried, this would initially lead to conflict as reviewed by Bruce Tuckman in his 'Team effort Theory'. By combining the advertising and marketing and advertising department's job, there may be the exact same initial detach which might lead to the 2nd phase of 'storming' where the teams test one another.

When people are offered with change, they get in phase one and so there might be emotions like unhappiness, uncertainty, irritation, anger, concern, denial as well as disorientation.The situation at the advertising and marketing department of Olam Accounting For Biological Assets is comparable so Lewis can get comfortable with the concept that it is not remarkable habits. It is during this stage that Lewis will have to offer support to the division so that they can locate a feeling of direction. It can be seen exactly how Krasnow has actually already made this transition less complicated by making Lewis obtain included in the department a year before his actual separation.
Vrio Analysis
Maslow's Requirement pecking order: The OB concern pertaining to instability at the workplace has actually been activated first of all by the adjustment in management and second of all by the reality that the merging will no more be launched. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has discusses the importance of 'protection needs as being a lower degree demand of a human for activating motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to feel safe and also out of danger' is at the 2nd level of requirements. Prior to a staff member can be made to create mentally, he requires to have his 'Physiological 'and also 'Security' needs satisfied. This shows that unless the personnel are made to feel secure about their current employment status in Olam Accounting For Biological Assets they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Olam Accounting For Biological Assets Case Study

Effects of Analysis.

The OB analysis has checked out different concepts to understand how to handle the current circumstance at hand. The complying with three options have been recommended to help Lewis manage the business difficulties in the advertising and marketing department. Each of these alternatives has been recommended for relieving the change required to bring the advertising and marketing department according to the demands of the market as well as for making the social modification that would certainly comply with when the present leader leaves.

Combination of marketing and advertising features. Separating Adverting as well as Production functions. Combination of Advertising And Marketing with Workflow.

Examination of Alternatives.

Integration of Marketing & Marketing Functions: The in-house marketing firm of Olam Accounting For Biological Assets is already strength for the organization in terms of conserving up on overheads associated with marketing and also promotion. Because no new recruitment has actually been done after Bridget Cole's separation with the coverage line being directly appointed to Krasnow for the advertising and marketing function, this is a favorable possibility for incorporating the advertising and marketing functions. Judith Shapiro who has earlier been interviewed by Lewis during the earlier merging days has know-how in business-to-business advertising and marketing along with agency and retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to handle both advertising and marketing features.

The advantage of this approach is that it will incorporate the two functions while lowering the demand for employing an extra resource for marketing. In addition to this, Lewis would be heading the marketing division as well as in any case her substitute would certainly be required for the present function that she is executing. The drawback of this choice is that exterior hiring might cause resentment from interior employees who may be looking at the position of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and also Manufacturing: Provided the competitive pressures as well as high quality work required from the marketing company, it is recommended that Lewis should enable the manufacturing device to be a separate feature from the advertising system. Given that most advertising firms had these 2 functions as separate systems, it makes even more sense to comply with the norm.

Assimilation of Advertising And Marketing with Procedures: Considering that Lewis is already looking after the advertising and procedures divisions simultaneously; it makes sense to integrate both features since she has been successfully taking care of both ends. The truth that both departments already have major distinctions over allocation of sources suggests that this combination may be able to bring about harmony especially as Lewis would be heading both ends.However there are various drawbacks of this relocation particularly as it would certainly put way too much problem over Lewis's shoulders. The reality that Lewis has to adjust her monitoring style for the marketing division suggests that these two divisions would be culturally diverse. Lewis may not be able to use one type of management design to both divisions which can result in inefficiency in either one of the two functions.


An evaluation of the three alternatives indicates that integration of advertising and marketing and also operations would not be a feasible relocation due to the vast distinctions between the two divisions regardless of the reality that presently Lewis is taking care of both. While separation of the production function might have been a favorable relocation for the advertising department, the truth that it would suggest positioning a third function under Lewis's wing means this ought to be stayed clear of.

Activity Strategy.
Lewis will take control of the function of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would be merged.

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

Manufacturing function will stay part of marketing under advertising feature.

Lewis will certainly separate herself from operations.

A democratic management style with employee empowerment will certainly be utilized in advertising and marketing division.

Open door plan and focus on cross departmental communication will be focused on getting rid of disharmony.

Backup strategy.

If the assimilation does not work out as planned, a contingency plan would follow which would certainly divide the manufacturing function from the marketing function to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will be heading the marketing department without an SVP. In that case the production feature will definitely be divided by positioning it under an SVP manufacturing.