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Remaking The Rainbow Nation South Africa 2002 Case Study Help

CASE SOLUTION

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Remaking The Rainbow Nation South Africa 2002 Case Study Solution

Background and Facts

Remaking The Rainbow Nation South Africa 2002 a workplace materials seller for little as well as medium sized services has actually just recently been associated with preparing for a merging with its rival Home Deport, which has actually influenced effectiveness levels in departmentswith the senior supervisor involved in lawful issues put forth by the federal Trade Compensation. With the Advertising and marketing Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the role in the future. With difficulties in the type of a prospective social change and low worker morale, the company requires a complete reengineering initiative at the advertising and marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The possible social adjustment at the advertising and marketing department of Remaking The Rainbow Nation South Africa 2002 is enhancing uncertainty in the working environment causing numerous difficulties for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting tactical choices considering that Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Profession Payment's intervention while doing so. Provided the reality that the shop has an international existence with branches in UK, USA, Canada and Germany, political factors in each of these countries may be able to affect performance or tactical objectives. Federal Trade Compensation's antitrust match against the merger used up important time of the company's elderly administration suggesting that 'political' factors can have severe ramifications for a global company.

Economic Factors: Economic factors such as the introduction of small companies in the worldwide circumstance recommend that Remaking The Rainbow Nation South Africa 2002 is thriving in a setting where there is possible growth of services. In addition to this, fact that store customers are primarily seeking workplace products for home offices recommends that the marketplace has a rising fad of business owners as well as online businesses.

Social factors: Social patterns in the economy show that clients are looking for benefit in addition to eye-catching prices. Market research shows how the consumer for Remaking The Rainbow Nation South Africa 2002 lacks understanding regarding discovering options which can offer a combination of benefit and also low costs.

Technological factors: Modern technology plays an essential duty in Remaking The Rainbow Nation South Africa 2002's organisation strategy especially as the organization is piloting Innovation facilities which would offer modern technology sales and assistance in the type of memory upgrades, outer installations. (Summary of PEST in appendix 2).

OB Issues and Effects.

Several underlying Organizational Actions issues can be seen in Remaking The Rainbow Nation South Africa 2002's case as highlighted in this area.

Apprehensions concerning social adjustment: There is worry concerning a cultural change that would take place when Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising And Marketing with a lot of the team member already showing discontent over this prospective relocation. This expected change has actually produced anxiety in the work environment which has actually been paired with the previous tension of preparing the firm for a prospective merger with Home Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is lack of personnel that can match the difficult environment of a fast-paced organization. Not only does this lead to trouble in locating the best individuals, it puts anxiety on brand-new hires as can not hold up against the speed and stress that the organization anticipates them to bear.

Double Coverage Lines: Beginners find this organizational society cumbersome and tough to deal with especially as populated line relationships are implied to be weak generally and also unbiased setup as well as performance evaluation is still done by the solid line supervisor. This suggests that newcomers can lose quality about their particular duties and objectives specifically as populated line coverage does not keep them in straight communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles even though it had been hypothesized that the latter would certainly take Krasnow's setting came as a blow to her morale. Lewis might have been capable and ideal for the job but the truth that Kransnow's departure would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Anxiety & Job Instability: Concern and instability can be identified as two significant issues that Lewis would be handling particularly as the merger has actually currently be cancelled and also two elderly execs of the advertising and marketing division would certainly be leaving. The whole responsibility of the division would be dropping on Lewis's shoulders who would certainly not simply supervise of brining concerning a cultural adjustment however would certainly likewise have to prove herself in her brand-new function.

Inappropriate Administration Style of Leader: Lewis's administration design and its incompatibility with the marketing division's role can likewise be seen as an OB difficulty particularly as she has been utilized to managing issues in the operations division where workers are educated to focus on processes and also get them. The marketing department on the other hand can be seen as a group of individuals that are used to being nurtured by Krasnow that focused a lot more on outcome than processes.

Interdepartmental Differences: Interdepartmental disagreements between 3 divisions, advertising and marketing, merchandizing and also procedures specifically over the allotment of the advertising and marketing mix can be determined as an additional OB problem. Although the marketing division does not share the same vision as the various other two departments pertaining to the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and operations departments do not concur over the advertising mix allocation among one another either.

Fragmentation in Advertising And Marketing Division: Disintegration between the marketing and advertising divisions can be determined as another OB issue which can need more attention. The reality that the marketing and advertising sections in the marketing department are detached is stopping both departments from gaining from each other's experience and also know-how. Integration of marketing with retailing as well as procedures would become harder if the advertising and marketing department itself is degenerated which can be one more possible OB concern.

Remaking The Rainbow Nation South Africa 2002 Analysis

Numerous theories have been utilized to clarify the scenarios to get more clarity concerning the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many managers believe that juniors are easy and lazy, have little passion and stand up to change. The difficult variation of this concept stressed browbeating, limited controls, threats and also penalties. With time it generates reduced performance, refined sabotage and also competition (Deal, 2003). Although the circumstance at Remaking The Rainbow Nation South Africa 2002 is not totally following Concept X, it can be seen that new hires are finding this setting rather demanding which might eventually bring about a greater inclination of the management in the direction of Concept X. According to McGregor's promoted sight, which he called Concept Y, the vital job of the monitoring is to set up organizational conditions to ensure that people can attain their very own objectives best by guiding their initiatives towards business incentives. If individuals find no fulfillment in their work, the management would certainly have little choice but to depend on concept X and exterior control (Offer, 2003). Also while examining Lewis's management design, concept X may have appropriated in the operations division somewhat however the Advertising division would need dependence on Concept Y so as to get the creative thinking and originality from the teams.

Tuckman's Synergy Concept: As much as Lewis's issue about bringing harmony in between the advertising as well as advertising department is concerned, this would originally lead to clash as discussed by Bruce Tuckman in his 'Synergy Concept'. By incorporating the marketing as well as advertising and marketing department's work, there might be the exact same first disconnect which can lead to the 2nd stage of 'storming' where the teams challenge one another.

Bridges' Change Model: Based On William Bridge's theory (appendix 4), people are fairly uneasy with modification, which is apparent by the situation at Remaking The Rainbow Nation South Africa 2002 The scenario can be seen as a typical course of life if is researched as per Bridge's theory where he describes that individuals experience three stages of change when they experience adjustment. 'Closing, losing and also Letting go', The Neutral Area and also 'The New Starting' (Bridges, 2004). When people are presented with modification, they go into phase one therefore there might be emotions like despair, unpredictability, irritation, anger, worry, denial and disorientation.The circumstance at the advertising division of Remaking The Rainbow Nation South Africa 2002 is similar so Lewis can get comfy with the suggestion that it is not extraordinary actions. In the 2nd stage, there might be a demand to connect the space between the brand-new and also old society so Lewis might have to encounter this experience when Krasnow leaves. There might be low morale and also low efficiency at this phase which must not be taken as an obstacle. It is during this phase that Lewis will certainly have to offer guidance to the department to ensure that they can discover a sense of direction. It can be seen how Krasnow has actually currently made this shift easier by making Lewis obtain involved in the division a year before his actual separation. Based on Bridges' Design, stage three will bring about openness to learning, High power and also dedication as people will certainly accept the change (Bridges, 2004).
Vrio Analysis
Maslow's Demand pecking order: The OB concern pertaining to instability at the office has actually been caused firstly by the adjustment in monitoring and also second of all by the truth that the merging will certainly no more be initiated. Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has discusses the importance of 'safety and security requires as being a reduced degree demand of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the requirement to feel safe and secure and also safe' is at the 2nd degree of demands. Prior to an employee can be made to establish psychologically, he requires to have his 'Physiological 'and also 'Safety' needs met. This shows that unless the workers are made to feel protected concerning their present work status in Remaking The Rainbow Nation South Africa 2002 they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Remaking The Rainbow Nation South Africa 2002 Case Study



Effects of Analysis.

The OB analysis has checked out numerous concepts to recognize just how to handle the existing situation handy. The complying with three alternatives have actually been proposed to aid Lewis manage the organizational challenges in the marketing division. Each of these options has actually been recommended for reducing the transition needed to bring the marketing department according to the needs of the marketplace as well as for making the cultural adjustment that would certainly comply with when the present leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting and also Manufacturing functions. Integration of Marketing with Workflow.

Evaluation of Alternatives.

Assimilation of Marketing & Advertising Functions: The internal advertising agency of Remaking The Rainbow Nation South Africa 2002 is currently toughness for the company in regards to conserving up on overheads related to advertising and marketing as well as promotion. Considering that no new recruitment has been done after Bridget Cole's separation with the coverage line being straight appointed to Krasnow for the advertising function, this is a desirable chance for integrating the advertising and marketing features. Judith Shapiro who has earlier been talked to by Lewis during the earlier merging days has know-how in business-to-business advertising in addition to agency as well as retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to manage both advertising and marketing functions.

The advantage of this technique is that it will certainly integrate both functions while minimizing the need for employing an added source for advertising and marketing. Lewis would certainly be heading the advertising and marketing department and in any kind of case her substitute would be required for the current duty that she is performing. The disadvantage of this choice is that external hiring might cause animosity from internal employees who may be considering the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Production: Given the affordable stress and also high quality work required from the ad agency, it is suggested that Lewis ought to permit the production system to be a different function from the marketing device. Given that many advertising agencies had these 2 functions as separate systems, it makes more feeling to follow the norm. In addition to this, both functions may be able to concentrate on their core turns on extra successfully. However, the disadvantage of this approach would be that additional expenses would have to be borne for establishing different production features. A production head may have to be hired which might raise expenses for the organization.

Assimilation of Marketing with Procedures: Since Lewis is currently taking care of the advertising as well as operations divisions all at once; it makes sense to incorporate the two features because she has actually been effectively taking care of both ends. The truth that Lewis has to adjust her management design for the advertising and marketing division suggests that these 2 departments would certainly be culturally diverse.

Referral.



An evaluation of the three alternatives shows that combination of advertising and marketing and procedures would certainly not be a possible step due to the large distinctions in between the two departments regardless of the fact that currently Lewis is managing both. While separation of the production function might have been a beneficial relocation for the advertising department, the reality that it would certainly mean placing a third function under Lewis's wing implies this must be stayed clear of.

Activity Plan.
Recommendation
Lewis will certainly take over the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

Judith Shapiro will certainly be worked with to take Lewis's location as SVP of advertising and marketing.

Manufacturing feature will stay component of advertising under advertising and marketing feature.

Lewis will certainly separate herself from procedures.

An autonomous management design with staff member empowerment will certainly be utilized in advertising division.

Open door plan as well as emphasis on cross departmental communication will be targeted at eliminating discord.

Backup strategy.

If the integration does not exercise as planned, a contingency plan would 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 get employed, Lewis will be heading the marketing department without an SVP. In that case the manufacturing function will absolutely be divided by putting it under an SVP manufacturing.