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Rbc Financing Oil Sands B Case Study Solution

CASE STUDY

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Rbc Financing Oil Sands B Case Study Solution

Background and Facts

Rbc Financing Oil Sands B a workplace materials seller for little as well as average sized services has actually recently been involved in preparing for a merger with its rival House Deport, which has influenced efficiency levels in departmentswith the elderly supervisor associated with legal complications put forth by the government Trade Payment. With the Advertising and marketing Head advancing the news of his separation from the company in one year, Jeannie Lewis, the current head of operations has been asked to take the role in the future. With challenges in the type of a possible social change as well as low employee morale, the organization needs a complete reengineering initiative at the advertising and marketing department.

Problem Statement
Porter's 5 Forces Analysis
The potential social change at the advertising division of Rbc Financing Oil Sands B is boosting unpredictability in the workplace bring about numerous difficulties for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing calculated decisions since Stapes Inc. had to desert its strategies of combining with Workplace Deport after the Federal Profession Commission's intervention in the process. Given the reality that the shop has an international existence with branches in UK, UNITED STATES, Canada and Germany, political consider each of these countries might be able to affect efficiency or critical objectives. Federal Profession Payment's antitrust suit versus the merger used up important time of the organization's senior administration recommending that 'political' factors can have major ramifications for a global organisation.

Economic Factors: Financial factors such as the introduction of local business in the international situation recommend that Rbc Financing Oil Sands B is prospering in a setting where there is potential growth of companies. Along with this, reality that shop consumers are mainly searching for office supplies for office suggests that the market has a climbing fad of business owners and also online services.

Social factors: Social fads in the economic climate show that consumers are searching for ease in addition to eye-catching costs. Market research shows how the consumer for Rbc Financing Oil Sands B lacks recognition concerning discovering services which can offer a mix of comfort as well as low costs.

Technical factors: Modern technology plays a crucial function in Rbc Financing Oil Sands B's company approach especially as the organization is piloting Innovation centers which would certainly offer technology sales and also assistance in the type of memory upgrades, peripheral installations. (Recap of PEST in appendix 2).

OB Issues and Symptoms.

Several underlying Organizational Habits concerns can be seen in Rbc Financing Oil Sands B's case as highlighted in this section.

Worries concerning cultural change: There is worry concerning a cultural change that would certainly take place when Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising And Marketing with a lot of the personnel already revealing discontent over this potential relocation. This expected change has developed tension in the workplace which has been combined with the previous stress of preparing the firm for a potential merger with Home Deport.
Pest Analysis
Difficult Task Atmosphere for Newcomers: There is shortage of personnel that can match the demanding environment of a hectic organization. Not just does this cause trouble in finding the ideal individuals, it puts stress on new hires as can not stand up to the pace as well as pressure that the organization anticipates them to birth.

Double Coverage Lines: Newcomers locate this organizational society cumbersome and also challenging to deal with specifically as dotted line relationships are implied to be weak in general and also objective setting and also efficiency assessment is still done by the strong line supervisor. This implies that beginners might lose clarity regarding their particular roles and also objectives particularly as populated line coverage does not keep them in direct communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles even though it had actually been guessed that the last would take Krasnow's setting came as a strike to her morale. Lewis may have been qualified as well as proper for the task yet the truth that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from services.

Worry & Work Insecurity: Fear as well as insecurity can be recognized as two major issues that Lewis would be taking care of especially as the merging has currently be cancelled and two senior execs of the marketing department would be leaving. The entire duty of the division would be dropping on Lewis's shoulders who would not just supervise of brining about a social adjustment but would additionally need to show herself in her brand-new duty.

Incompatible Management Style of Leader: Lewis's administration design and its incompatibility with the advertising division's role can also be seen as an OB challenge specifically as she has been made use of to dealing with problems in the operations division where employees are instructed to focus on processes as well as get them. The marketing division on the various other hand can be viewed as a group of individuals who are used to being supported by Krasnow who concentrated a lot more on output than procedures.

Interdepartmental Arguments: Interdepartmental disagreements between three departments, advertising, merchandizing as well as procedures specifically over the allocation of the marketing mix can be identified as an additional OB problem. Although the advertising division does not share the exact same vision as the other two divisions regarding the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and also operations divisions do not agree over the advertising mix appropriation among each other either.

Fragmentation in Advertising Division: Fragmentation between the marketing and advertising divisions can be recognized as another OB problem which might require additional attention. The reality that the marketing and advertising sections in the advertising division are detached is avoiding both departments from getting from each various other's experience as well as know-how. Assimilation of advertising with retailing and also operations would certainly come to be more difficult if the advertising and marketing department itself is disintegrated which can be one more possible OB problem.

Rbc Financing Oil Sands B Analysis

Numerous theories have been utilized to discuss the conditions to get additional quality concerning the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of supervisors believe that juniors are passive as well as careless, have little aspiration and withstand adjustment. The difficult version of this concept highlighted coercion, limited controls, threats and penalties. In time it creates reduced efficiency, subtle sabotage and rivalry (Deal, 2003). Although the situation at Rbc Financing Oil Sands B is not entirely adhering to Concept X, it can be seen that new hires are locating this atmosphere instead difficult which might ultimately bring about a greater disposition of the management towards Concept X. According to McGregor's advocated sight, which he called Theory Y, the important task of the monitoring is to arrange business problems so that people can attain their very own goals best by routing their efforts in the direction of business incentives. If people locate no contentment in their work, the management would certainly have little option yet to rely upon concept X as well as outside control (Bargain, 2003). Even while analyzing Lewis's administration style, theory X might have appropriated in the operations division somewhat but the Advertising department would certainly need dependence on Theory Y in order to get the creative thinking as well as originality from the teams.

Tuckman's Team effort Concept: As for Lewis's problem concerning bringing harmony between the advertising and marketing division is concerned, this would initially lead to contrast as discussed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). According to Tuckman's theory shown in appendix 3, throughout the first stage of team advancement, people might not bond, as they are hectic finding their location in the team. By incorporating the marketing and advertising department's work, there might coincide initial separate which might lead to the second phase of 'storming' where the groups challenge one another. It is just during the third phase or 'norming' when they would come with each other to share ideas prior to the team can bring about harmony in the fourth phase 'executing'.

Bridges' Change Design: According To William Bridge's concept (appendix 4), people are rather awkward with change, which is obvious by the scenario at Rbc Financing Oil Sands B The scenario can be seen as a regular training course of life if is researched based on Bridge's theory where he discusses that individuals undergo three phases of transition when they experience modification. 'End, losing and Letting go', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When individuals exist with adjustment, they enter stage one and so there might be feelings like sadness, unpredictability, aggravation, anger, concern, denial and also disorientation.The circumstance at the marketing department of Rbc Financing Oil Sands B is comparable so Lewis can obtain comfy with the concept that it is not amazing behavior. In the second stage, there may be a need to connect the void in between the new and old society so Lewis might have to face this experience as soon as Krasnow leaves. There might be reduced morale and low efficiency at this phase which need to not be taken as a problem. It is during this stage that Lewis will certainly have to provide guidance to the division so that they can locate an orientation. It can be seen just how Krasnow has actually already made this change less complicated by making Lewis obtain associated with the department a year prior to his real departure. According to Bridges' Model, stage three will produce visibility to discovering, High energy and dedication as people will certainly embrace the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has talks about the value of 'protection needs as being a reduced level need of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel safe and out of risk' is at the 2nd level of needs. Before a worker can be made to establish mentally, he needs to have his 'Physical 'and also 'Safety' requires met.

SWOT Analysis for Rbc Financing Oil Sands B Case Study



Ramification of Analysis.

The OB analysis has actually checked out various theories to understand how to deal with the present scenario handy. The following 3 alternatives have been suggested to assist Lewis deal with the organizational challenges in the advertising division. Each of these alternatives has actually been suggested for reducing the transition needed to bring the marketing department according to the needs of the market as well as for making the social adjustment that would certainly follow as soon as the current leader leaves.

Combination of advertising and marketing features. Dividing Adverting as well as Manufacturing functions. Integration of Marketing with Workflow.

Examination of Alternatives.

Combination of Advertising And Marketing & Advertising Functions: The in-house advertising agency of Rbc Financing Oil Sands B is currently strength for the organization in terms of saving up on overheads associated with advertising and marketing as well as promo. Considering that no new recruitment has actually been done after Bridget Cole's departure with the reporting line being straight appointed to Krasnow for the advertising and marketing function, this is a favorable opportunity for incorporating the marketing and advertising features. Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merger days has proficiency in business-to-business marketing along with firm and retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to handle both marketing and advertising features.

The benefit of this method is that it will certainly integrate both functions while reducing the need for hiring an extra source for advertising. In addition to this, Lewis would be heading the advertising and marketing division as well as all the same her substitute would certainly be needed for the present role that she is performing. The disadvantage of this alternative is that external hiring might cause resentment from inner employees who might be looking at the placement of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Production: Provided the affordable stress and also high top quality work needed from the advertising and marketing company, it is advised that Lewis must enable the manufacturing unit to be a separate feature from the advertising unit. Given that most advertising and marketing agencies had these 2 features as separate units, it makes even more feeling to comply with the standard.

Assimilation of Advertising And Marketing with Workflows: Considering that Lewis is already taking care of the advertising and operations divisions simultaneously; it makes feeling to incorporate the 2 functions since she has actually been successfully taking care of both ends. The fact that Lewis has to adapt her management style for the advertising department suggests that these 2 departments would be culturally diverse.

Suggestion.



An evaluation of the 3 choices indicates that assimilation of advertising and marketing as well as procedures would not be a feasible relocation because of the vast differences in between both divisions despite the fact that currently Lewis is taking care of both. While separation of the production function may have been a favorable move for the advertising department, the truth that it would certainly indicate placing a 3rd feature under Lewis's wing suggests this should be stayed clear of as well. The assimilation of the marketing division is the very best option in regards to obtaining the optimal arise from the department. An action prepare for this choice is talked about below.

Action Strategy.
Recommendation
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 place as SVP of marketing and advertising.

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

Lewis will certainly separate herself from operations.

A democratic leadership design with staff member empowerment will be utilized in advertising and marketing division.

Open door policy and emphasis on cross departmental communication will certainly be aimed at removing disharmony.

Contingency strategy.

If the integration does not work out as planned, a backup strategy would adhere to which would certainly separate the manufacturing function from the advertising and marketing function to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the marketing department without an SVP. In that case the production feature will definitely be divided by positioning it under an SVP production.