Qalaa Holdings And The Egyptian Refining Company Case Study Solution


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Qalaa Holdings And The Egyptian Refining Company Case Study Solution

Background and Facts

Qalaa Holdings And The Egyptian Refining Company a workplace supplies seller for little and also moderate sized businesses has recently been associated with planning for a merging with its rival House Deport, which has affected effectiveness degrees in departmentswith the elderly supervisor associated with legal difficulties put forth by the government Trade Compensation. With the Advertising and marketing Head advancing the information of his departure from the business in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the function in the near future. With difficulties in the type of a potential social modification and also reduced worker spirits, the company wants a total reengineering effort at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The potential social modification at the advertising and marketing department of Qalaa Holdings And The Egyptian Refining Company is increasing unpredictability in the workplace causing numerous challenges for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing calculated choices since Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Profession Commission's treatment in the process. Provided the truth that the store has a global visibility with branches in UK, USA, Canada as well as Germany, political factors in each of these countries might be able to affect efficiency or critical goals. Federal Profession Commission's antitrust suit versus the merger used up important time of the organization's senior administration suggesting that 'political' factors can have serious implications for an international business.

Economic Factors: Financial factors such as the development of small businesses in the international scenario suggest that Qalaa Holdings And The Egyptian Refining Company is flourishing in an environment where there is possible growth of services. Reality that shop customers are mainly looking for workplace supplies for home offices recommends that the market has a rising trend of business owners and also house based businesses.

Social factors: Social fads in the economic climate reveal that customers are seeking comfort in addition to appealing rates. Market research shows how the customer for Qalaa Holdings And The Egyptian Refining Company lacks recognition concerning finding remedies which can offer a combination of benefit and also affordable.

Technical factors: Technology plays a crucial function in Qalaa Holdings And The Egyptian Refining Company's service approach particularly as the company is piloting Innovation centers which would supply innovation sales and support in the form of memory upgrades, outer installments. (Summary of BUG in appendix 2).

OB Issues as well as Manifestations.

Several underlying Organizational Actions problems can be seen in Qalaa Holdings And The Egyptian Refining Company's case as highlighted in this area.

Worries regarding cultural change: There is worry concerning a social modification that would take place as soon as Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising with a lot of the staff members already showing discontent over this prospective action. This anticipated modification has actually created tension in the workplace which has actually been paired with the previous stress of preparing the firm for a possible merger with Home Deport.
Pest Analysis
Demanding Job Atmosphere for Newcomers: There is shortage of workers that can match the stressful setting of a hectic organization. Not just does this cause problem in locating the ideal people, it puts tension on new hires as can not withstand the rate as well as pressure that the organization expects them to birth.

Double Reporting Lines: Beginners find this business society difficult as well as challenging to manage specifically as dotted line relationships are suggested to be weak generally and unbiased setting and also efficiency examination is still done by the strong line manager. This implies that novices might lose quality concerning their particular duties and also goals especially as populated line reporting does not keep them in straight communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had been guessed that the last would take Krasnow's setting came as an impact to her spirits. Lewis may have been capable and also proper for the work yet the reality that Kransnow's departure would make Coles a straight report to Lewis may have been the factor for Coles' resignation from services.

Worry & Job Insecurity: Concern and instability can be identified as two significant problems that Lewis would certainly be managing particularly as the merging has now be cancelled and also two senior executives of the advertising and marketing department would be leaving. The whole responsibility of the division would certainly be dropping on Lewis's shoulders who would not simply supervise of brining about a cultural modification however would certainly likewise have to confirm herself in her brand-new duty.

Incompatible Monitoring Style of Leader: Lewis's management style and its conflict with the advertising and marketing division's role can additionally be seen as an OB obstacle particularly as she has actually been used to managing concerns in the procedures division where employees are taught to focus on procedures and also obtain them right. The advertising department on the other hand can be seen as a group of individuals that are utilized to being supported by Krasnow who concentrated a lot more on result than processes.

Interdepartmental Differences: Interdepartmental differences between 3 departments, advertising, merchandizing and also operations specifically over the allotment of the advertising and marketing mix can be identified as one more OB issue. The advertising department does not share the same vision as the other two departments concerning the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing as well as operations divisions do not agree over the marketing mix appropriation amongst one another either.

Disintegration in Advertising And Marketing Division: Disintegration in between the advertising and marketing divisions can be recognized as another OB problem which might require additional attention. The fact that the marketing and advertising areas in the advertising department are separated is avoiding both divisions from obtaining from each various other's experience and also expertise. Assimilation of marketing with retailing as well as operations would become harder if the advertising and marketing division itself is degenerated which can be another possible OB issue.

Qalaa Holdings And The Egyptian Refining Company Analysis

Various concepts have actually been made use of to clarify the scenarios to get more clearness concerning the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that staffs are passive as well as lazy, have little ambition as well as stand up to change. The tough variation of this theory emphasized browbeating, limited controls, dangers and penalties. Over time it produces low efficiency, subtle sabotage and competition (Deal, 2003). Although the circumstance at Qalaa Holdings And The Egyptian Refining Company is not entirely adhering to Theory X, it can be seen that new hires are discovering this atmosphere rather stressful which may ultimately bring about a better disposition of the monitoring in the direction of Concept X. Based on McGregor's supported sight, which he called Theory Y, the vital job of the administration is to organize organizational conditions to make sure that individuals can attain their own goals best by routing their initiatives towards business benefits. If people discover no contentment in their work, the monitoring would have little choice but to depend on concept X as well as external control (Deal, 2003). Even while analyzing Lewis's administration style, theory X might have appropriated in the operations department to some extent yet the Marketing division would certainly require dependence on Theory Y in order to get the imagination as well as originality from the teams.

Tuckman's Team effort Concept: As much as Lewis's worry about bringing consistency in between the advertising and advertising division is concerned, this would originally lead to contrast as talked about by Bruce Tuckman in his 'Teamwork Theory'. By integrating the marketing and advertising division's work, there may be the exact same first detach which can lead to the second stage of 'storming' where the groups test one an additional.

When people are offered with change, they enter stage one as well as so there may be emotions like despair, unpredictability, frustration, rage, concern, rejection and also disorientation.The circumstance at the marketing division of Qalaa Holdings And The Egyptian Refining Company is comparable so Lewis can get comfy with the idea that it is not remarkable actions. It is during this stage that Lewis will certainly have to offer assistance to the division so that they can find a sense of direction. It can be seen just how Krasnow has currently made this shift less complicated by making Lewis obtain included in the division a year prior to his actual departure.
Vrio Analysis
Maslow's Need power structure: The OB concern related to insecurity at the work environment has actually been caused to start with by the adjustment in monitoring and also second of all by the fact that the merging will certainly no longer be started. Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has talks about the value of 'safety and security requires as being a reduced degree demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel safe as well as unharmed' goes to the 2nd degree of requirements. Before a staff member can be made to create psychologically, he needs to have his 'Physical 'and 'Security' requires fulfilled. This indicates that unless the workers are made to feel secure concerning their present work status in Qalaa Holdings And The Egyptian Refining Company they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Qalaa Holdings And The Egyptian Refining Company Case Study

Effects of Analysis.

The OB analysis has looked at different concepts to recognize exactly how to handle the existing circumstance at hand. The following three alternatives have actually been suggested to aid Lewis take care of the business obstacles in the marketing department. Each of these options has actually been recommended for relieving the change needed to bring the marketing department according to the requirements of the marketplace as well as for making the social change that would certainly follow when the present leader leaves.

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

Assessment of Alternatives.

Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merging days has competence in business-to-business marketing along with agency as well as retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to handle both marketing and advertising and marketing functions.

The benefit of this strategy is that it will certainly incorporate the two functions while lowering the requirement for hiring an additional source for marketing. Lewis would certainly be heading the advertising and marketing department and also in any case her substitute would certainly be needed for the existing role that she is executing. The downside of this option is that outside hiring might bring about bitterness from inner workers that might be looking at the setting of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and Manufacturing: Provided the competitive pressures and also high top quality work called for from the marketing agency, it is advised that Lewis must allow the manufacturing system to be a separate feature from the advertising and marketing system. Because the majority of advertising and marketing firms had these two features as different systems, it makes even more sense to comply with the standard.

Combination of Advertising And Marketing with Workflows: Given that Lewis is currently dealing with the marketing as well as operations departments all at once; it makes sense to incorporate both functions given that she has actually been effectively taking care of both ends. The truth that both departments already have major differences over allocation of sources recommends that this integration may have the ability to cause harmony particularly as Lewis would certainly be heading both ends.However there are different negative aspects of this step particularly as it would place too much worry over Lewis's shoulders. The reality that Lewis needs to adjust her management design for the marketing division suggests that these 2 departments would be culturally diverse. Lewis may not be able to use one kind of management style to both divisions which can result in inadequacy in either one of the two features.


An examination of the 3 options shows that combination of advertising and marketing and operations would certainly not be a viable relocation due to the substantial distinctions in between the 2 divisions despite the fact that presently Lewis is dealing with both. While separation of the production feature might have been a desirable relocation for the marketing department, the truth that it would certainly mean placing a third feature under Lewis's wing indicates this must be stayed clear of.

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

Marketing and advertising features would certainly be combined.

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

Production feature will certainly remain part of advertising under advertising and marketing feature.

Lewis will separate herself from procedures.

An autonomous management design with worker empowerment will be made use of in marketing division.

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

Backup strategy.

If the combination does not work out as prepared, a backup plan would certainly follow which would certainly separate the production feature from the marketing feature to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the marketing department without an SVP. In that case the production function will absolutely be divided by putting it under an SVP manufacturing.