Oriflame Sa B Case Study Solution


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Oriflame Sa B Case Study Analysis

Background and Facts

Oriflame Sa B an office materials seller for little and moderate sized organisations has recently been associated with planning for a merger with its competitor House Deport, which has influenced efficiency degrees in departmentswith the senior manager involved in legal complications presented by the government Trade Compensation. With the Marketing Head advancing 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 duty in the near future. With challenges in the type of a possible social adjustment and reduced employee spirits, the company wants a total reengineering effort at the advertising division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective social change at the marketing department of Oriflame Sa B is boosting unpredictability in the working environment leading to various difficulties for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting calculated decisions because Stapes Inc. needed to abandon its plans of combining with Workplace Deport after the Federal Profession Commission's treatment at the same time. Offered the truth that the store has a global visibility with branches in UK, U.S.A., Canada and Germany, political factors in each of these countries may have the ability to impact efficiency or critical objectives. Federal Trade Commission's antitrust suit against the merger occupied beneficial time of the organization's elderly management recommending that 'political' factors can have major effects for a worldwide business.

Economic Factors: Financial factors such as the development of small companies in the international scenario suggest that Oriflame Sa B is flourishing in a setting where there is prospective development of businesses. In addition to this, fact that shop customers are mostly trying to find workplace materials for office recommends that the market has an increasing trend of entrepreneurs as well as home based companies.

Social factors: Social fads in the economic situation reveal that clients are searching for comfort in addition to attractive prices. Market research demonstrates how the client for Oriflame Sa B lacks awareness concerning finding solutions which can use a mix of convenience and inexpensive.

Technical factors: Modern technology plays a vital duty in Oriflame Sa B's organisation strategy especially as the organization is piloting Technology facilities which would use innovation sales as well as assistance in the kind of memory upgrades, outer setups. (Summary of BUG in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Business Behavior problems can be seen in Oriflame Sa B's case as highlighted in this section.

Apprehensions regarding cultural modification: There is worry about a social adjustment that would occur once Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising with a lot of the team member already revealing unhappiness over this prospective relocation. This expected adjustment has created stress and anxiety in the work environment which has actually been combined with the past tension of preparing the company for a prospective merger with House Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is lack of employees that can match the stressful environment of a fast-paced organization. Not just does this cause trouble in finding the appropriate people, it places tension on new hires as can not stand up to the pace and also stress that the organization anticipates them to bear.

Dual Coverage Lines: Novices locate this organizational culture difficult as well as tough to handle particularly as populated line relationships are meant to be weak as a whole and unbiased setting and also performance evaluation is still done by the strong line supervisor. This means that beginners could lose clearness concerning their corresponding functions as well as purposes specifically as populated line reporting does not maintain them in straight interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles although it had been hypothesized that the latter would take Krasnow's position came as a blow to her morale. Lewis may have been capable as well as suitable for the task but the reality that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Task Insecurity: Worry and also insecurity can be determined as 2 significant worries that Lewis would certainly be managing especially as the merger has currently be terminated and two elderly execs of the advertising and marketing department would be leaving. The entire responsibility of the department would be dropping on Lewis's shoulders who would not simply supervise of brining about a cultural change yet would additionally need to prove herself in her new function.

Incompatible Management Style of Leader: Lewis's management style as well as its conflict with the advertising and marketing division's duty can also be seen as an OB obstacle particularly as she has been utilized to handling concerns in the procedures division where employees are taught to concentrate on procedures and also obtain them right. The advertising department on the other hand can be viewed as a group of people that are used to being nurtured by Krasnow that concentrated much more on output than procedures.

Interdepartmental Arguments: Interdepartmental differences between 3 departments, advertising, merchandizing and procedures respectively over the allowance of the marketing mix can be determined as one more OB issue. The advertising division does not share the exact same vision as the various other two departments regarding the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and also procedures divisions do not concur over the marketing mix allowance amongst one an additional either.

Fragmentation in Advertising And Marketing Department: Fragmentation in between the advertising and marketing divisions can be identified as an additional OB issue which can require additional focus. The truth that the advertising and marketing sections in the marketing division are detached is preventing both departments from getting from each other's experience as well as competence. Combination of marketing with retailing and procedures would come to be harder if the advertising department itself is disintegrated which can be one more potential OB concern.

Oriflame Sa B Analysis

Numerous concepts have actually been made use of to explain the scenarios to get more clearness regarding the situation available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers believe that juniors are passive and also lazy, have little aspiration and stand up to modification. The hard version of this concept stressed threat, tight controls, dangers as well as penalties. Gradually it creates reduced productivity, subtle sabotage as well as rivalry (Deal, 2003). Although the circumstance at Oriflame Sa B is not completely adhering to Concept X, it can be seen that brand-new hires are finding this atmosphere instead stressful which might eventually bring about a greater inclination of the monitoring in the direction of Concept X. As per McGregor's promoted sight, which he called Concept Y, the vital job of the monitoring is to set up organizational problems to ensure that people can achieve their own goals best by guiding their initiatives towards business rewards. If people locate no contentment in their job, the administration would certainly have little option but to depend on theory X and also outside control (Bargain, 2003). Even while evaluating Lewis's monitoring design, concept X might have been suitable in the operations division to some extent yet the Marketing department would need dependence on Concept Y to get the imagination and originality from the teams.

Tuckman's Teamwork Theory: As much as Lewis's issue about bringing consistency between the advertising as well as advertising division is concerned, this would initially lead to clash as reviewed by Bruce Tuckman in his 'Teamwork Concept'. By combining the advertising and marketing as well as marketing department's work, there might be the very same first disconnect which might lead to the second phase of 'storming' where the teams test one an additional.

Bridges' Transition Model: Based On William Bridge's theory (appendix 4), people are quite uneasy with change, which is noticeable by the circumstance at Oriflame Sa B The scenario can be seen as a regular training course of life if is studied according to Bridge's theory where he clarifies that individuals undergo three phases of transition when they experience adjustment. 'Ending, shedding and Letting go', The Neutral Area and also 'The New Starting' (Bridges, 2004). When people are presented with change, they go into phase one and so there may be feelings like unhappiness, unpredictability, aggravation, anger, fear, denial and disorientation.The scenario at the advertising and marketing division of Oriflame Sa B is comparable so Lewis can get comfortable with the concept that it is not extraordinary actions. In the second phase, there might be a requirement to connect the void in between the brand-new and also old society so Lewis might need to encounter this challenge when Krasnow leaves. There might be reduced morale and reduced performance at this phase which need to not be taken as a setback. It is throughout this phase that Lewis will have to offer guidance to the department so that they can locate a sense of direction. It can be seen just how Krasnow has actually already made this change less complicated by making Lewis get involved in the division a year before his real separation. As per Bridges' Version, stage three will certainly cause visibility to discovering, High energy as well as commitment as individuals will embrace the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has reviews the significance of 'security needs as being a lower degree demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel safe and secure as well as out of risk' is at the 2nd degree of needs. Prior to a worker can be made to establish emotionally, he requires to have his 'Physiological 'and 'Safety' needs satisfied.

SWOT Analysis for Oriflame Sa B Case Study

Effects of Analysis.

The OB analysis has taken a look at different concepts to understand exactly how to handle the current circumstance handy. The following 3 alternatives have been proposed to help Lewis deal with the organizational challenges in the marketing division. Each of these alternatives has been proposed for easing the shift required to bring the advertising and marketing department according to the demands of the market as well as for making the social change that would adhere to as soon as the current leader leaves.

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

Assessment of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis during the earlier merging days has expertise in business-to-business advertising and marketing along with firm as well as retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to manage both marketing as well as advertising features.

The advantage of this technique is that it will integrate both functions while decreasing the need for employing an added resource for advertising and marketing. Lewis would certainly be heading the advertising and marketing division as well as in any case her substitute would certainly be required for the current role that she is carrying out. The negative aspect of this option is that exterior hiring might cause resentment from interior workers that might be eying the setting of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and Manufacturing: Offered the competitive pressures and also top quality work needed from the ad agency, it is recommended that Lewis needs to permit the manufacturing system to be a different feature from the advertising and marketing unit. Considering that the majority of ad agency had these two features as different units, it makes even more feeling to adhere to the standard. Both functions might be able to concentrate on their core activates extra effectively. The negative aspect of this method would certainly be that additional expenses would have to be borne for establishing up separate manufacturing features. A manufacturing head might have to be worked with which might enhance overheads for the company.

Combination of Marketing with Operations: Given that Lewis is already taking care of the marketing and procedures divisions concurrently; it makes sense to integrate the two features given that she has actually been effectively looking after both ends. The fact that the two departments already have significant distinctions over appropriation of sources recommends that this integration may have the ability to cause harmony particularly as Lewis would be heading both ends.However there are various disadvantages of this relocation particularly as it would certainly place excessive problem over Lewis's shoulders. The reality that Lewis has to adjust her administration style for the marketing department recommends that these two departments would be culturally diverse. Lewis might not be able to use one type of management design to both divisions which could result in inefficiency in either one of the two functions.


An examination of the 3 options suggests that integration of advertising and marketing and also operations would not be a feasible step due to the vast differences in between the two divisions although that presently Lewis is managing both. While separation of the production feature may have been a positive step for the advertising and marketing department, the reality that it would suggest positioning a third function under Lewis's wing suggests this should be prevented also. The assimilation of the advertising and marketing department is the most effective choice in regards to getting the ideal results from the department. An activity plan for this option is reviewed below.

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

Marketing and advertising functions would be combined.

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

Production function will continue to be component of advertising and marketing under advertising and marketing feature.

Lewis will certainly separate herself from operations.

A democratic management design with employee empowerment will be made use of in advertising and marketing division.

Open door plan and focus on cross department interaction will certainly be focused on getting rid of discord.

Backup plan.

If the assimilation does not exercise as intended, a contingency plan would follow which would divide the production function from the advertising and marketing feature to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising division without an SVP. Because case the production feature will absolutely be separated by placing it under an SVP production.