Background and Facts
Philip Morris Companies Inc B a workplace materials retailer for tiny and average sized services has lately been involved in preparing for a merger with its rival House Deport, which has affected efficiency degrees in departmentswith the senior manager involved in legal complications put forth by the federal Profession Payment. With the Marketing Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the current head of operations has actually been asked to take the role in the future. With challenges in the type of a potential cultural modification and also low employee morale, the company requires a full reengineering effort at the marketing division.Trouble Declaration
The prospective cultural change at the advertising division of Philip Morris Companies Inc B is increasing uncertainty in the working environment bring about numerous challenges for the Jeannie Lewis that would be changing the head of the department in one year. nalysis
PEST analysis
Political Factors: Political factors play a major function in affecting tactical decisions considering that Stapes Inc. needed to abandon its strategies of merging with Office Deport after the Federal Trade Commission's intervention while doing so. Provided the fact that the shop has an international existence with branches in UK, USA, Canada and also Germany, political consider each of these nations might have the ability to influence performance or calculated objectives. Federal Trade Commission's antitrust fit versus the merger took up valuable time of the organization's senior administration suggesting that 'political' factors can have severe implications for a global organisation.
Economic Factors: Economic factors such as the appearance of local business in the worldwide situation recommend that Philip Morris Companies Inc B is flourishing in an atmosphere where there is possible development of businesses. In addition to this, reality that store consumers are mostly trying to find office products for office recommends that the marketplace has an increasing pattern of business owners as well as home based services.
Social factors: Social fads in the economic situation show that consumers are trying to find ease along with appealing costs. Marketing research demonstrates how the client for Philip Morris Companies Inc B lacks understanding about discovering solutions which can provide a mix of ease as well as low costs.
Technical factors: Innovation plays a crucial function in Philip Morris Companies Inc B's business strategy specifically as the organization is piloting Innovation facilities which would use technology sales and assistance in the type of memory upgrades, outer setups. (Recap of PARASITE in appendix 2).
OB Issues as well as Manifestations.
Several underlying Business Habits concerns can be seen in Philip Morris Companies Inc B's case as highlighted in this area.
Worries about cultural adjustment: There is apprehension about a cultural modification that would certainly happen when Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with the majority of the staff members currently showing unhappiness over this potential step. This expected adjustment has actually developed tension in the office which has been paired with the past tension of preparing the company for a prospective merger with Home Deport.
Demanding Job Setting for Newcomers: There is scarcity of workers that can match the difficult atmosphere of a busy organization. Not only does this lead to difficulty in finding the right individuals, it puts stress and anxiety on new hires as can not endure the rate as well as pressure that the organization anticipates them to birth.
Double Reporting Lines: Beginners locate this business society troublesome and also hard to manage particularly as dotted line partnerships are meant to be weaker in general as well as objective setting as well as efficiency analysis is still done by the solid line manager. This indicates that newcomers might shed clearness concerning their respective functions and also goals specifically as dotted line reporting does not keep them in straight interaction with the solid line managers.
Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had actually been speculated that the last would take Krasnow's placement came as a blow to her morale. Lewis may have been qualified and also ideal for the job however the reality that Kransnow's separation would make Coles a straight record to Lewis might have been the factor for Coles' resignation from services.
Anxiety & Work Instability: Anxiety and also instability can be determined as 2 major worries that Lewis would be managing particularly as the merging has actually currently be terminated and 2 senior execs of the advertising division would certainly be leaving. The entire responsibility of the department would be falling on Lewis's shoulders that would certainly not just supervise of brining concerning a social modification however would certainly likewise have to verify herself in her brand-new duty.
Inappropriate Management Design of Leader: Lewis's monitoring design and its conflict with the advertising and marketing division's duty can additionally be seen as an OB challenge particularly as she has actually been used to managing problems in the operations department where employees are instructed to concentrate on processes as well as get them. The advertising department on the other hand can be seen as a team of individuals that are utilized to being nurtured by Krasnow who focused more on output than processes.
Interdepartmental Disputes: Interdepartmental differences in between 3 departments, advertising and marketing, merchandizing as well as operations respectively over the allocation of the advertising and marketing mix can be recognized as another OB concern. Although the advertising division does not share the exact same vision as the other two divisions pertaining to the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and procedures departments do not concur over the advertising and marketing mix allotment amongst each other either.
Disintegration in Marketing Department: Disintegration between the advertising and marketing divisions can be recognized as another OB issue which might need more attention. The reality that the marketing and advertising areas in the marketing division are separated is protecting against both divisions from getting from each various other's experience and also knowledge. Integration of advertising with retailing and also operations would come to be more difficult if the advertising and marketing division itself is degenerated which can be an additional possible OB problem.
Philip Morris Companies Inc B Analysis
Different theories have been made use of to clarify the situations to obtain further clarity concerning the scenario available.
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers think that subordinates are passive and also lazy, have little ambition and withstand change. The situation at Philip Morris Companies Inc B is not totally adhering to Theory X, it can be seen that new hires are discovering this setting instead demanding which may eventually lead to a greater inclination of the management in the direction of Concept X. Also while analyzing Lewis's management style, theory X may have been ideal in the procedures division to some level yet the Advertising and marketing division would certainly call for dependence on Concept Y in order to get the imagination and also creativity from the groups.
Tuckman's Teamwork Concept: As far as Lewis's concern about bringing harmony between the advertising and marketing and advertising department is concerned, this would initially lead to conflict as reviewed by Bruce Tuckman in his 'Team effort Theory'. By incorporating the advertising and marketing as well as marketing division's work, there might be the same first detach which can lead to the 2nd stage of 'storming' where the groups test one another.
Bridges' Transition Model: As per William Bridge's concept (appendix 4), people are fairly uncomfortable with adjustment, which is apparent by the circumstance at Philip Morris Companies Inc B The situation can be seen as a normal course of life if is examined as per Bridge's theory where he describes that individuals experience 3 stages of change when they experience change. 'End, shedding and Releasing', The Neutral Area and 'The New Starting' (Bridges, 2004). When individuals exist with modification, they enter stage one and so there might be feelings like unhappiness, unpredictability, stress, rage, worry, denial as well as disorientation.The situation at the advertising and marketing department of Philip Morris Companies Inc B is similar so Lewis can get comfortable with the concept that it is not phenomenal habits. In the second stage, there might be a demand to link the void in between the brand-new and also old society so Lewis may have to face this challenge when Krasnow leaves. There may be low morale and reduced efficiency at this phase which should not be taken as a trouble. It is throughout this stage that Lewis will have to offer guidance to the division to make sure that they can locate an orientation. It can be seen how Krasnow has currently made this shift simpler by making Lewis get involved in the department a year prior to his real departure. Based on Bridges' Model, stage three will certainly cause visibility to discovering, High energy and also dedication as individuals will certainly accept the modification (Bridges, 2004).
Maslow's Demand hierarchy: The OB issue related to insecurity at the workplace has actually been triggered first of all by the modification in monitoring as well as second of all by the truth that the merger will no longer be launched. Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has reviews the importance of 'safety needs as being a reduced level need of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel secure as well as unharmed' is at the 2nd degree of requirements. Before a staff member can be made to develop psychologically, he requires to have his 'Physiological 'and also 'Security' requires met. This indicates that unless the personnel are made to really feel protected about their present work status in Philip Morris Companies Inc B they might not reach 'Self-Fulfillment'. (King, 2009).
SWOT Analysis for Philip Morris Companies Inc B Case Study
Implication of Analysis.
The OB analysis has taken a look at various concepts to comprehend just how to deal with the current scenario available. The complying with three choices have actually been recommended to assist Lewis manage the organizational difficulties in the advertising and marketing department. Each of these options has actually been recommended for reducing the transition required to bring the advertising and marketing division in line with the needs of the marketplace and also for making the social change that would comply with as soon as the existing leader leaves.
Integration of marketing and advertising features. Dividing Adverting and Manufacturing functions. Integration of Marketing with Procedures.
Analysis of Alternatives.
Combination of Advertising And Marketing & Advertising Functions: The in-house advertising and marketing agency of Philip Morris Companies Inc B is currently strength for the organization in terms of saving up on overheads related to advertising and marketing as well as promotion. Considering that no brand-new employment has actually been done after Bridget Cole's separation with the reporting line being straight appointed to Krasnow for the advertising function, this is a beneficial chance for integrating the marketing and advertising functions. Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merging days has knowledge in business-to-business marketing in addition to firm and retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to handle both marketing and advertising functions.
The advantage of this method is that it will certainly incorporate both functions while decreasing the requirement for working with an added source for advertising and marketing. Lewis would certainly be heading the advertising and marketing division and also in any case her replacement would be required for the present role that she is performing. The downside of this choice is that exterior hiring may cause animosity from internal employees who might be considering the placement of EVP after Lewis takes over Krasnow's placement.
Dividing Adverting and also Manufacturing: Offered the affordable stress and high quality job needed from the marketing agency, it is suggested that Lewis must allow the production device to be a different function from the advertising unit. Considering that the majority of marketing firms had these 2 features as different systems, it makes even more sense to follow the standard.
Integration of Advertising with Procedures: Since Lewis is currently taking treatment of the advertising as well as operations departments concurrently; it makes feeling to integrate the two functions considering that she has been successfully taking treatment of both ends. The reality that Lewis has to adapt her management design for the advertising department suggests that these 2 departments would be culturally varied.
Recommendation.
An assessment of the 3 options indicates that assimilation of marketing and operations would certainly not be a practical step due to the huge distinctions in between the 2 divisions regardless of the truth that presently Lewis is managing both. While splitting up of the production function may have been a desirable action for the marketing division, the fact that it would suggest putting a 3rd function under Lewis's wing means this need to be avoided.
Activity Strategy.
Lewis will certainly take over the function of EVP Marketing after Krasnow leaves.
Advertising and Marketing functions would be combined.
Judith Shapiro will be employed to take Lewis's area as SVP of marketing and advertising.
Production feature will certainly stay component of advertising under marketing function.
Lewis will divide herself from operations.
A democratic management style with staff member empowerment will be utilized in advertising division.
Open door policy and focus on cross departmental interaction will be targeted at eliminating disharmony.
Contingency plan.
If the integration does not work out as planned, a backup plan would certainly follow which would separate the manufacturing function from the advertising and marketing feature to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the marketing department without an SVP. Because case the manufacturing function will certainly be divided by putting it under an SVP manufacturing.