Petrochina International Corporate Governance With Chinese Characteristics Case Study Help


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Petrochina International Corporate Governance With Chinese Characteristics Case Study Solution

Background and Facts

Petrochina International Corporate Governance With Chinese Characteristics an office supplies retailer for tiny and also medium sized services has actually lately been associated with planning for a merger with its competitor Residence Deport, which has actually influenced effectiveness levels in departmentswith the elderly manager associated with legal difficulties put forth by the government Trade Commission. With the Advertising Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the near future. With obstacles in the type of a possible cultural change and reduced employee spirits, the organization requires a total reengineering initiative at the advertising department.

Issue Statement
Porter's 5 Forces Analysis
The possible social adjustment at the advertising and marketing division of Petrochina International Corporate Governance With Chinese Characteristics is raising unpredictability in the working environment leading to different difficulties for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting strategic decisions since Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Trade Commission's intervention while doing so. Given the fact that the store has an international presence with branches in UK, UNITED STATES, Canada and also Germany, political consider each of these nations might be able to affect efficiency or critical objectives. Federal Trade Commission's antitrust fit against the merger occupied beneficial time of the company's elderly management recommending that 'political' factors can have major implications for an international service.

Economic Factors: Financial factors such as the development of small companies in the worldwide situation suggest that Petrochina International Corporate Governance With Chinese Characteristics is growing in a setting where there is potential growth of organisations. Along with this, truth that shop clients are mainly trying to find office materials for home offices recommends that the market has a climbing trend of entrepreneurs as well as home organisations.

Social factors: Social trends in the economic situation reveal that clients are trying to find convenience as well as eye-catching rates. Market research demonstrates how the consumer for Petrochina International Corporate Governance With Chinese Characteristics lacks understanding regarding discovering solutions which can offer a mix of benefit and also affordable.

Technical factors: Technology plays an essential role in Petrochina International Corporate Governance With Chinese Characteristics's company approach particularly as the organization is piloting Modern technology centers which would certainly offer technology sales as well as assistance in the form of memory upgrades, peripheral installments. (Summary of PEST in appendix 2).

OB Issues and also Effects.

Several underlying Organizational Habits problems can be seen in Petrochina International Corporate Governance With Chinese Characteristics's case as highlighted in this section.

Worries about cultural adjustment: There is apprehension about a social change that would certainly happen once Todd Krasnow leaves from his position as the Exec Vice President of Marketing with the majority of the team member already revealing discontent over this possible action. This expected change has actually created anxiety in the work environment which has actually been combined with the previous stress and anxiety of preparing the firm for a potential merging with House Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is shortage of personnel that can match the stressful setting of a busy company. Not only does this bring about problem in finding the appropriate individuals, it puts tension on new hires as can not hold up against the speed and also stress that the company expects them to bear.

Double Reporting Lines: Beginners find this organizational culture difficult and also tough to deal with especially as populated line partnerships are meant to be weak as a whole and objective setup as well as performance examination is still done by the solid line manager. This means that beginners might shed clearness regarding their corresponding duties and also goals particularly as dotted line coverage does not keep them in direct interaction with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles despite the fact that it had actually been guessed that the latter would take Krasnow's placement came as a blow to her morale. Lewis may have been capable and ideal for the job yet the reality that Kransnow's separation would make Coles a direct report to Lewis may have been the reason for Coles' resignation from services.

Anxiety & Job Insecurity: Worry as well as instability can be determined as two major worries that Lewis would be taking care of particularly as the merging has actually currently be cancelled and also 2 elderly executives of the advertising and marketing department would certainly be leaving. The whole obligation of the department would certainly be dropping on Lewis's shoulders who would certainly not simply be in charge of brining about a social modification however would also have to prove herself in her new role.

Incompatible Management Design of Leader: Lewis's administration design and also its incompatibility with the marketing division's duty can also be seen as an OB obstacle specifically as she has actually been used to taking care of issues in the procedures division where workers are instructed to concentrate on processes and also get them. The advertising and marketing division on the various other hand can be seen as a team of people that are used to being nurtured by Krasnow that focused extra on output than procedures.

Interdepartmental Disputes: Interdepartmental arguments between 3 divisions, advertising, merchandizing and also operations specifically over the allotment of the marketing mix can be determined as an additional OB worry. Although the advertising and marketing department does not share the same vision as the various other two departments pertaining to the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and also operations departments do not agree over the marketing mix allocation among one another either.

Disintegration in Marketing Department: Disintegration in between the marketing and advertising departments can be identified as another OB concern which might need more interest. The reality that the advertising and marketing sections in the advertising and marketing division are separated is stopping both divisions from getting from each various other's experience as well as competence. Integration of marketing with retailing and also procedures would end up being more difficult if the advertising department itself is degenerated which can be an additional prospective OB concern.

Petrochina International Corporate Governance With Chinese Characteristics Analysis

Various concepts have actually been used to describe the scenarios to obtain additional clearness regarding the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of managers think that juniors are passive and also careless, have little passion and also resist adjustment. The scenario at Petrochina International Corporate Governance With Chinese Characteristics is not completely following Concept X, it can be seen that brand-new hires are locating this setting rather demanding which might at some point lead to a greater disposition of the management towards Concept X. Also while evaluating Lewis's administration design, concept X may have been suitable in the procedures division to some degree yet the Advertising and marketing department would certainly need reliance on Theory Y in order to obtain the creativity and also originality from the groups.

Tuckman's Synergy Theory: As for Lewis's worry regarding bringing harmony in between the marketing and advertising division is concerned, this would originally bring about contrast as talked about by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). As per Tuckman's concept received appendix 3, during the first phase of team development, people may not bond, as they are active discovering their location in the team. By incorporating the marketing and advertising division's job, there may be the same preliminary detach which could result in the second phase of 'storming' where the teams challenge one another. Nevertheless, it is just throughout the third phase or 'norming' when they would certainly come together to share suggestions prior to the team can cause synergy in the fourth stage 'carrying out'.

When people are offered with modification, they get in phase one and also so there may be feelings like sadness, uncertainty, disappointment, rage, concern, rejection as well as disorientation.The circumstance at the advertising and marketing department of Petrochina International Corporate Governance With Chinese Characteristics is similar so Lewis can get comfortable with the concept that it is not remarkable actions. It is during this stage that Lewis will certainly have to give assistance to the department so that they can locate a sense of instructions. It can be seen exactly how Krasnow has already made this change simpler by making Lewis obtain included in the department a year before his actual departure.
Vrio Analysis
Maslow's Need hierarchy: The OB concern related to instability at the work environment has actually been caused first of all by the change in monitoring and secondly by the truth that the merging will certainly no more be initiated. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has discusses the relevance of 'protection requires as being a reduced level need of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel safe as well as unharmed' goes to the 2nd level of demands. Before a staff member can be made to establish emotionally, he requires to have his 'Physiological 'and also 'Safety and security' needs satisfied. This suggests that unless the workers are made to feel protected regarding their current employment condition in Petrochina International Corporate Governance With Chinese Characteristics they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Petrochina International Corporate Governance With Chinese Characteristics Case Study

Implication of Analysis.

The OB analysis has actually looked at various concepts to comprehend how to deal with the current circumstance available. The adhering to 3 choices have been suggested to help Lewis deal with the organizational difficulties in the marketing department. Each of these options has actually been suggested for alleviating the change required to bring the advertising department in accordance with the demands of the market and also for making the social adjustment that would certainly follow once the current leader leaves.

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

Assessment of Alternatives.

Combination of Advertising & Advertising And Marketing Functions: The in-house advertising agency of Petrochina International Corporate Governance With Chinese Characteristics is already stamina for the organization in regards to saving up on expenses associated with marketing and promo. Because no new recruitment has been done after Bridget Cole's separation with the coverage line being directly assigned to Krasnow for the advertising function, this is a favorable opportunity for integrating the advertising and marketing functions. Judith Shapiro who has earlier been talked to by Lewis during the earlier merger days has experience in business-to-business advertising and marketing together with firm as well as retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to deal with both advertising and marketing features.

The advantage of this technique is that it will certainly incorporate the two features while minimizing the need for employing an extra source for marketing. Lewis would certainly be heading the advertising department as well as in any type of case her replacement would be required for the current duty that she is performing. The negative aspect of this choice is that external hiring might bring about animosity from internal employees that may be looking at the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting as well as Production: Provided the competitive stress and also premium quality work needed from the advertising agency, it is advised that Lewis must permit the production system to be a separate function from the marketing unit. Because a lot of advertising agencies had these 2 functions as different devices, it makes more sense to comply with the norm. Along with this, both functions may be able to focus on their core triggers a lot more effectively. The downside of this strategy would be that added costs would certainly have to be birthed for setting up separate manufacturing features. Along with this, a production head might need to be employed which might increase expenses for the company.

Integration of Advertising And Marketing with Operations: Since Lewis is currently taking care of the advertising as well as operations divisions simultaneously; it makes sense to incorporate the two functions considering that she has been efficiently taking treatment of both ends. The truth that Lewis has to adapt her administration design for the advertising and marketing department suggests that these 2 divisions would certainly be culturally varied.


An analysis of the 3 choices suggests that integration of advertising and marketing and also procedures would certainly not be a viable step because of the large differences in between both divisions despite the fact that currently Lewis is handling both. While separation of the production function may have been a favorable step for the advertising and marketing department, the fact that it would mean positioning a 3rd function under Lewis's wing implies this must be prevented. The assimilation of the advertising and marketing division is the best option in regards to getting the optimum results from the division. An activity plan for this choice is gone over listed below.

Action Plan.
Lewis will certainly take control of the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would be merged.

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

Production function will remain part of advertising under advertising function.

Lewis will divide herself from procedures.

A democratic leadership style with staff member empowerment will be utilized in advertising department.

Open door plan and focus on cross department communication will certainly be focused on eliminating disharmony.

Contingency strategy.

If the integration does not work out as intended, a backup strategy would certainly adhere to which would separate the manufacturing function from the marketing feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising and marketing department without an SVP. Because case the production feature will absolutely be separated by positioning it under an SVP production.