Procter And Gamble Co Accounting For Organization 2005 Case Study Solution


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Procter And Gamble Co Accounting For Organization 2005 Case Study Solution

Background and Facts

Procter And Gamble Co Accounting For Organization 2005 an office materials retailer for tiny and moderate sized businesses has actually recently been associated with planning for a merger with its rival House Deport, which has impacted efficiency degrees in departmentswith the senior supervisor involved in legal issues put forth by the federal Trade Payment. With the Marketing Head putting forward the information of his separation from the business in one year, Jeannie Lewis, the current head of operations has been asked to take the duty in the near future. With challenges in the kind of a possible social modification and also low staff member spirits, the company wants a complete reengineering effort at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The potential cultural adjustment at the marketing division of Procter And Gamble Co Accounting For Organization 2005 is enhancing unpredictability in the working environment bring about numerous challenges for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing tactical decisions given that Stapes Inc. had to abandon its plans of combining with Workplace Deport after the Federal Profession Commission's intervention at the same time. Provided the fact that the shop has a worldwide existence with branches in UK, USA, Canada as well as Germany, political consider each of these countries might be able to affect performance or calculated goals. Federal Profession Compensation's antitrust fit against the merger took up beneficial time of the organization's elderly administration recommending that 'political' factors can have significant ramifications for an international organisation.

Economic Factors: Financial factors such as the development of local business in the global circumstance suggest that Procter And Gamble Co Accounting For Organization 2005 is thriving in a setting where there is prospective development of companies. Along with this, fact that shop customers are primarily trying to find workplace materials for home offices suggests that the marketplace has a rising fad of entrepreneurs and also home based organisations.

Social factors: Social trends in the economic climate show that clients are trying to find benefit along with eye-catching rates. Marketing research demonstrates how the customer for Procter And Gamble Co Accounting For Organization 2005 does not have awareness about finding solutions which can provide a combination of comfort and also inexpensive.

Technological factors: Innovation plays a vital duty in Procter And Gamble Co Accounting For Organization 2005's organisation technique especially as the organization is piloting Modern technology centers which would certainly offer innovation sales and also assistance in the kind of memory upgrades, outer installations. (Summary of PEST in appendix 2).

OB Issues and also Effects.

Several underlying Organizational Actions issues can be seen in Procter And Gamble Co Accounting For Organization 2005's case as highlighted in this section.

Apprehensions regarding cultural modification: There is apprehension about a social adjustment that would occur as soon as Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with the majority of the team member currently revealing discontent over this possible action. This predicted change has developed stress and anxiety in the office which has actually been combined with the previous stress and anxiety of preparing the company for a prospective merger with Home Deport.
Pest Analysis
Difficult Task Environment for Newcomers: There is lack of workers that can match the stressful setting of a busy company. Not only does this bring about problem in finding the appropriate people, it places stress on new hires as can not withstand the pace and pressure that the company anticipates them to birth.

Twin Reporting Lines: Newbies find this organizational society difficult and tough to cope with especially as populated line relationships are indicated to be weaker as a whole as well as unbiased setting and also performance assessment is still done by the solid line manager. This means that newbies can lose clearness about their respective functions and also goals especially as populated line reporting does not keep them in direct communication with the strong line managers.

Bitterness 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 latter would take Krasnow's setting came as an impact to her morale. Lewis may have been qualified and proper for the work but the truth that Kransnow's departure would make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Fear & Job Insecurity: Fear as well as insecurity can be determined as 2 major concerns that Lewis would be dealing with specifically as the merging has currently be cancelled and 2 senior executives of the marketing department would be leaving. The entire responsibility of the department would certainly be dropping on Lewis's shoulders who would certainly not simply supervise of brining regarding a social adjustment yet would certainly likewise need to prove herself in her brand-new duty.

Inappropriate Administration Design of Leader: Lewis's monitoring design and its conflict with the advertising department's duty can also be seen as an OB obstacle particularly as she has been utilized to taking care of concerns in the procedures division where personnel are educated to focus on processes and get them. The advertising and marketing division on the various other hand can be seen as a team of people that are made use of to being nurtured by Krasnow who focused a lot more on outcome than processes.

Interdepartmental Arguments: Interdepartmental disputes between three divisions, advertising, merchandizing as well as operations specifically over the allocation of the advertising and marketing mix can be determined as one more OB issue. Although the advertising and marketing department does not share the same vision as the various other 2 divisions relating to the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and also operations departments do not concur over the advertising mix appropriation among each other either.

Fragmentation in Advertising And Marketing Division: Fragmentation between the marketing and advertising divisions can be identified as another OB concern which can require further interest. The truth that the marketing and advertising areas in the marketing division are detached is avoiding both divisions from obtaining from each various other's experience and also knowledge. Assimilation of marketing with retailing and also procedures would come to be harder if the marketing division itself is broken down which can be another possible OB issue.

Procter And Gamble Co Accounting For Organization 2005 Analysis

Numerous concepts have actually been made use of to describe the conditions to obtain further clarity regarding the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of managers think that staffs are passive and also careless, have little ambition and also resist change. The difficult version of this theory stressed browbeating, tight controls, dangers and also punishments. In time it generates low efficiency, subtle sabotage as well as rivalry (Deal, 2003). The scenario at Procter And Gamble Co Accounting For Organization 2005 is not entirely complying with Concept X, it can be seen that brand-new hires are locating this setting rather stressful which might at some point lead to a better inclination of the monitoring towards Concept X. As per McGregor's advocated view, which he called Concept Y, the vital job of the management is to arrange business conditions so that individuals can achieve their very own goals best by directing their initiatives in the direction of business incentives. If individuals discover no complete satisfaction in their job, the administration would have little option but to rely upon concept X as well as external control (Bargain, 2003). Even while assessing Lewis's monitoring style, concept X might have been suitable in the operations department to some extent but the Marketing division would certainly require reliance on Concept Y to get the creative thinking and also creativity from the groups.

Tuckman's Teamwork Concept: As much as Lewis's concern regarding bringing harmony between the advertising and also advertising division is worried, this would at first lead to contrast as reviewed by Bruce Tuckman in his 'Team effort Concept'. By integrating the marketing as well as advertising division's work, there may be the exact same initial disconnect which can lead to the second phase of 'storming' where the teams challenge one another.

When individuals are presented with change, they get in phase one as well as so there may be feelings like unhappiness, unpredictability, frustration, anger, fear, denial and disorientation.The circumstance at the advertising and marketing division of Procter And Gamble Co Accounting For Organization 2005 is similar so Lewis can get comfy with the idea that it is not extraordinary behavior. It is throughout this phase that Lewis will have to give assistance to the division so that they can locate a sense of direction. It can be seen just how Krasnow has already made this shift simpler by making Lewis obtain involved in the department a year prior to his real separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has goes over the value of 'safety and security requires as being a lower level need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel safe and secure and also out of danger' is at the 2nd level of requirements. Prior to a worker can be made to establish emotionally, he requires to have his 'Physiological 'as well as 'Safety' needs fulfilled.

SWOT Analysis for Procter And Gamble Co Accounting For Organization 2005 Case Study

Ramification of Analysis.

The OB analysis has actually considered different concepts to recognize how to cope with the existing scenario handy. The following 3 alternatives have been proposed to help Lewis deal with the business difficulties in the advertising division. Each of these choices has actually been suggested for easing the shift needed to bring the marketing department in accordance with the requirements of the marketplace as well as for making the cultural modification that would certainly follow once the existing leader leaves.

Assimilation of advertising and marketing features. Separating Adverting as well as Production functions. Assimilation of Marketing with Operations.

Analysis of Alternatives.

Integration of Marketing & Advertising Functions: The internal advertising company of Procter And Gamble Co Accounting For Organization 2005 is already toughness for the company in terms of saving up on overheads related to marketing and promotion. Since no brand-new employment has been done after Bridget Cole's separation with the reporting line being directly appointed to Krasnow for the advertising and marketing feature, this is a positive opportunity for integrating the marketing and advertising functions. Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merger days has knowledge in business-to-business advertising along with agency and also retail advertising and marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to deal with both marketing and advertising functions.

The benefit of this approach is that it will certainly integrate both functions while reducing the requirement for working with an additional resource for marketing. In addition to this, Lewis would certainly be heading the marketing division and also in any case her replacement would be required for the present duty that she is carrying out. The downside of this alternative is that external hiring may cause animosity from inner employees that may be eying the setting of EVP after Lewis takes over Krasnow's setting.

Separating Adverting as well as Manufacturing: Offered the affordable stress as well as excellent quality work required from the ad agency, it is advised that Lewis should enable the manufacturing system to be a different function from the marketing unit. Since most advertising agencies had these two functions as separate devices, it makes even more sense to adhere to the norm. Both features may be able to focus on their core activates much more effectively. The downside of this strategy would certainly be that additional costs would certainly have to be birthed for establishing up different manufacturing functions. Along with this, a manufacturing head may need to be employed which can raise overheads for the company.

Combination of Advertising with Operations: Because Lewis is already looking after the advertising as well as operations divisions simultaneously; it makes sense to integrate both features since she has actually been successfully looking after both ends. The reality that the two departments currently have significant differences over allocation of resources suggests that this integration may have the ability to bring about consistency especially as Lewis would certainly be heading both ends.However there are different drawbacks of this relocation particularly as it would place too much problem over Lewis's shoulders. The fact that Lewis needs to adapt her management style for the advertising and marketing department recommends that these 2 departments would be culturally diverse. Lewis might not be able to use one kind of leadership style to both departments which can result in inadequacy in either one of the two features.


An analysis of the three choices suggests that integration of marketing as well as operations would not be a feasible action due to the large distinctions between the two divisions regardless of the reality that currently Lewis is managing both. While splitting up of the production function might have been a positive relocation for the advertising and marketing department, the fact that it would mean putting a third function under Lewis's wing means this need to be stayed clear of.

Action Strategy.
Lewis will take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would be combined.

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

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

Lewis will certainly divide herself from procedures.

A democratic leadership style with employee empowerment will certainly be utilized in advertising department.

Open door policy and also emphasis on cross department interaction will be focused on eliminating discord.

Contingency strategy.

If the combination does not work out as prepared, a backup plan would certainly comply with which would certainly divide the manufacturing function from the advertising feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising and marketing department without an SVP. Because case the production feature will most definitely be divided by positioning it under an SVP manufacturing.