Philip Morris Companies Inc C Case Study Help


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Philip Morris Companies Inc C Case Study Help

Background and Facts

Philip Morris Companies Inc C a workplace products store for small as well as moderate sized companies has recently been involved in planning for a merging with its rival Residence Deport, which has influenced effectiveness levels in departmentswith the elderly supervisor associated with legal issues presented by the government Profession Compensation. 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 challenges in the form of a prospective cultural adjustment and also reduced employee morale, the company needs a total reengineering effort at the marketing department.

Problem Statement
Porter's 5 Forces Analysis
The possible social modification at the advertising and marketing division of Philip Morris Companies Inc C is enhancing uncertainty in the workplace resulting in different difficulties for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting calculated choices given that Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Profession Compensation's treatment while doing so. Provided the fact that the store has a worldwide existence with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these countries might be able to influence performance or tactical goals. Federal Profession Compensation's antitrust match against the merger took up beneficial time of the company's senior monitoring suggesting that 'political' factors can have significant effects for an international organisation.

Economic Factors: Financial factors such as the introduction of small businesses in the worldwide situation suggest that Philip Morris Companies Inc C is thriving in an environment where there is prospective growth of organisations. Fact that store customers are primarily looking for office supplies for residence workplaces suggests that the market has an increasing trend of business owners as well as residence based organisations.

Social factors: Social patterns in the economic climate reveal that customers are seeking ease along with appealing rates. Marketing research shows how the customer for Philip Morris Companies Inc C does not have understanding concerning discovering options which can provide a combination of ease and also low costs.

Technical factors: Innovation plays a vital function in Philip Morris Companies Inc C's company technique particularly as the company is piloting Innovation centers which would certainly provide modern technology sales and assistance in the kind of memory upgrades, peripheral installations. (Summary of INSECT in appendix 2).

OB Issues and also Symptoms.

A number of underlying Organizational Actions concerns can be seen in Philip Morris Companies Inc C's case as highlighted in this area.

Concerns about cultural change: There is worry about a cultural modification that would certainly occur as soon as Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising with most of the team member already revealing discontent over this prospective relocation. This expected modification has developed anxiety in the office which has actually been coupled with the past anxiety of preparing the company for a possible merging with Residence Deport.
Pest Analysis
Stressful Job Environment for Newcomers: There is shortage of workers that can match the difficult atmosphere of a hectic organization. Not just does this bring about trouble in discovering the right people, it places stress on brand-new hires as can not hold up against the speed and also pressure that the organization anticipates them to bear.

Dual Reporting Lines: Novices discover this organizational culture difficult and hard to manage particularly as populated line relationships are meant to be weak in general and unbiased setting and performance evaluation is still done by the solid line manager. This indicates that newbies could lose clarity regarding their respective roles and purposes specifically as populated line reporting does not maintain them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles even though it had actually been guessed that the last would certainly take Krasnow's placement came as a strike to her morale. Lewis may have been capable and also ideal for the work but the fact that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the reason for Coles' resignation from services.

Concern & Task Instability: Worry and also insecurity can be recognized as two significant worries that Lewis would be taking care of specifically as the merger has actually currently be terminated and also 2 elderly executives of the advertising division would certainly be leaving. The whole responsibility of the department would certainly be dropping on Lewis's shoulders that would not simply supervise of brining about a cultural adjustment but would likewise need to verify herself in her brand-new function.

Incompatible Monitoring Style of Leader: Lewis's management design as well as its incompatibility with the advertising department's duty can additionally be seen as an OB challenge particularly as she has been made use of to handling concerns in the procedures division where workers are instructed to focus on procedures and obtain them. The advertising and marketing division on the various other hand can be seen as a team of people who are used to being nurtured by Krasnow that concentrated a lot more on result than procedures.

Interdepartmental Disagreements: Interdepartmental disagreements between three divisions, marketing, merchandizing and procedures respectively over the allocation of the marketing mix can be recognized as one more OB worry. Although the advertising and marketing division does not share the very same vision as the other 2 departments concerning the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and operations departments do not agree over the marketing mix appropriation among one another either.

Disintegration in Advertising Department: Fragmentation between the advertising and marketing departments can be recognized as another OB concern which might need further interest. The reality that the marketing and advertising areas in the advertising and marketing division are separated is preventing both departments from acquiring from each various other's experience and proficiency. Assimilation of marketing with retailing and operations would become harder if the advertising division itself is degenerated which can be an additional prospective OB issue.

Philip Morris Companies Inc C Analysis

Various concepts have actually been used to explain the conditions to get additional clearness about the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors believe that subordinates are passive and also lazy, have little passion and withstand adjustment. The tough version of this concept emphasized browbeating, tight controls, risks and also penalties. Gradually it generates low productivity, subtle sabotage and competition (Offer, 2003). Although the scenario at Philip Morris Companies Inc C is not entirely complying with Theory X, it can be seen that brand-new hires are locating this atmosphere rather demanding which may eventually lead to a higher disposition of the management in the direction of Theory X. According to McGregor's advocated sight, which he called Concept Y, the essential task of the management is to arrange business conditions to make sure that people can achieve their own objectives best by guiding their efforts in the direction of business incentives. If people locate no contentment in their work, the monitoring would certainly have little option however to depend on theory X as well as exterior control (Bargain, 2003). Also while examining Lewis's monitoring style, theory X might have appropriated in the operations division to some extent yet the Marketing division would certainly call for reliance on Concept Y to get the creative thinking and also creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's concern about bringing harmony between the marketing and also marketing department is concerned, this would initially lead to contrast as discussed by Bruce Tuckman in his 'Synergy Concept'. By incorporating the advertising as well as advertising division's work, there may be the exact same preliminary disconnect which can lead to the second phase of 'storming' where the groups challenge one another.

When individuals are offered with adjustment, they get in phase one and so there may be feelings like despair, uncertainty, stress, temper, worry, rejection and disorientation.The situation at the marketing division of Philip Morris Companies Inc C is similar so Lewis can obtain comfortable with the suggestion that it is not amazing behavior. It is during this phase that Lewis will certainly have to give guidance to the division so that they can discover a sense of instructions. It can be seen exactly how Krasnow has actually currently made this shift less complicated by making Lewis get entailed in the department a year before his real departure.
Vrio Analysis
Maslow's Need pecking order: The OB concern pertaining to instability at the work environment has actually been activated to start with by the change in management and also secondly by the fact that the merging will certainly no longer be initiated. Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has goes over the relevance of 'safety and security requires as being a lower level demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel protected and also out of danger' goes to the 2nd level of demands. Before an employee can be made to establish psychologically, he requires to have his 'Physical 'as well as 'Security' requires satisfied. This indicates that unless the personnel are made to really feel safe concerning their existing work status in Philip Morris Companies Inc C they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Philip Morris Companies Inc C Case Study

Effects of Analysis.

The OB analysis has actually considered numerous concepts to comprehend just how to deal with the existing scenario at hand. The following three options have been recommended to help Lewis manage the business obstacles in the marketing division. Each of these options has actually been proposed for alleviating the shift required to bring the advertising and marketing department in line with the requirements of the marketplace as well as for making the cultural change that would certainly follow once the current leader leaves.

Combination of advertising and marketing features. Dividing Adverting and also Production functions. Assimilation of Advertising And Marketing with Operations.

Assessment of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merger days has experience in business-to-business advertising and marketing along with firm and also retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to deal with both advertising and marketing features.

The benefit of this method is that it will certainly incorporate the two features while decreasing the requirement for hiring an added source for advertising and marketing. Lewis would be heading the advertising and marketing department and also in any type of case her replacement would certainly be needed for the existing role that she is doing. The negative aspect of this alternative is that outside hiring may bring about bitterness from interior workers that might be considering the setting of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting as well as Production: Given the competitive pressures as well as high quality work required from the marketing company, it is advised that Lewis needs to allow the production unit to be a separate function from the advertising device. Since the majority of advertising and marketing firms had these 2 features as separate devices, it makes more feeling to comply with the standard.

Integration of Advertising with Operations: Given that Lewis is already dealing with the marketing and operations divisions all at once; it makes sense to integrate the two functions because she has actually been successfully taking care of both ends. The reality that both departments already have major distinctions over appropriation of resources recommends that this assimilation might have the ability to produce harmony specifically as Lewis would be heading both ends.However there are numerous drawbacks of this relocation especially as it would certainly put excessive burden over Lewis's shoulders. The reality that Lewis needs to adjust her management design for the marketing division recommends that these 2 divisions would certainly be culturally diverse. Along with this, Lewis might not have the ability to apply one sort of management style to both departments which might cause inadequacy in either among both functions.


An examination of the three options shows that assimilation of marketing as well as procedures would certainly not be a feasible relocation as a result of the huge differences in between both divisions despite the fact that currently Lewis is dealing with both. While splitting up of the manufacturing function might have been a desirable step for the marketing division, the truth that it would imply positioning a 3rd feature under Lewis's wing indicates this must be avoided. The combination of the advertising department is the most effective alternative in regards to getting the optimal results from the division. An action prepare for this choice is discussed below.

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

Marketing and advertising features would be combined.

Judith Shapiro will be hired to take Lewis's place as SVP of marketing and advertising.

Manufacturing feature will remain part of advertising under advertising feature.

Lewis will certainly separate herself from procedures.

An autonomous leadership design with employee empowerment will be used in advertising and marketing department.

Open door policy and also focus on cross departmental interaction will be aimed at getting rid of dissonance.

Contingency plan.

If the assimilation does not exercise as planned, a backup plan would certainly follow which would certainly divide the manufacturing feature from the advertising and marketing feature to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the advertising and marketing division without an SVP. In that case the production feature will absolutely be separated by positioning it under an SVP manufacturing.