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Rent Seeking Behaviour In The Power Market Case Study Analysis

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Rent Seeking Behaviour In The Power Market Case Study Solution

Background and Facts

Rent Seeking Behaviour In The Power Market an office products store for small as well as medium sized businesses has actually just recently been associated with planning for a merging with its competitor Home Deport, which has impacted effectiveness levels in departmentswith the elderly manager involved in legal complications presented by the federal Profession Payment. With the Advertising and marketing Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the duty in the future. With difficulties in the kind of a potential cultural change and reduced worker morale, the company wants a total reengineering effort at the marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective social modification at the advertising and marketing division of Rent Seeking Behaviour In The Power Market is enhancing unpredictability in the workplace resulting in various difficulties for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing critical choices considering that Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Trade Commission's intervention in the process. Offered the fact that the shop has an international visibility with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries may be able to influence performance or strategic goals. Federal Trade Payment's antitrust suit against the merger used up useful time of the organization's elderly management suggesting that 'political' factors can have serious effects for a global service.

Economic Factors: Economic factors such as the introduction of local business in the global circumstance suggest that Rent Seeking Behaviour In The Power Market is prospering in a setting where there is possible development of services. Reality that shop consumers are primarily looking for workplace materials for residence offices suggests that the market has a climbing pattern of entrepreneurs as well as residence based organisations.

Social factors: Social patterns in the economic climate reveal that customers are seeking convenience along with eye-catching prices. Marketing research shows how the client for Rent Seeking Behaviour In The Power Market does not have awareness about discovering solutions which can supply a mix of benefit and also low costs.

Technical factors: Innovation plays an important duty in Rent Seeking Behaviour In The Power Market's service strategy specifically as the organization is piloting Innovation centers which would provide modern technology sales and assistance in the kind of memory upgrades, peripheral setups. (Recap of PARASITE in appendix 2).

OB Issues as well as Manifestations.

Several underlying Business Habits issues can be seen in Rent Seeking Behaviour In The Power Market's case as highlighted in this area.

Worries regarding cultural modification: There is worry regarding a social change that would certainly happen when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Marketing with most of the personnel currently showing discontent over this potential move. This expected change has developed tension in the workplace which has been combined with the past stress of preparing the company for a potential merger with House Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is shortage of employees that can match the stressful environment of a busy organization. Not just does this cause trouble in locating the right people, it puts stress and anxiety on brand-new hires as can not withstand the speed as well as pressure that the company expects them to birth.

Double Coverage Lines: Newcomers find this organizational culture cumbersome and also hard to manage especially as dotted line partnerships are suggested to be weak in general and also objective setup and efficiency assessment is still done by the strong line manager. This suggests that beginners can shed clarity concerning their corresponding duties and also purposes specifically as populated line coverage does not keep them in direct communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles although it had been hypothesized that the latter would take Krasnow's setting came as a strike to her morale. Lewis may have been capable and also suitable for the work but the reality that Kransnow's departure would make Coles a direct report to Lewis may have been the reason for Coles' resignation from services.

Concern & Work Instability: Fear and also instability can be identified as 2 significant problems that Lewis would certainly be dealing with specifically as the merging has now be terminated and 2 senior execs of the advertising department would be leaving. The entire duty of the department would certainly be falling on Lewis's shoulders who would certainly not simply be in charge of brining regarding a social change but would additionally need to confirm herself in her new function.

Inappropriate Management Style of Leader: Lewis's monitoring style and also its conflict with the advertising department's role can also be viewed as an OB difficulty specifically as she has actually been used to dealing with concerns in the procedures division where employees are educated to focus on processes and obtain them right. The advertising and marketing department on the other hand can be viewed as a team of people who are utilized to being nurtured by Krasnow who focused extra on result than procedures.

Interdepartmental Disagreements: Interdepartmental disputes between three divisions, advertising and marketing, merchandizing as well as operations specifically over the allowance of the advertising and marketing mix can be recognized as one more OB issue. Although the marketing division does not share the exact same vision as the various other 2 divisions regarding the aloocation of the marketing mix twoards promos and advertsing, the merchandizing and operations departments do not concur over the advertising and marketing mix allocation amongst each other either.

Fragmentation in Advertising And Marketing Division: Disintegration in between the marketing and advertising departments can be recognized as one more OB concern which could need additional interest. The truth that the marketing and advertising sections in the advertising and marketing division are detached is avoiding both departments from acquiring from each various other's experience and also competence. Assimilation of marketing with retailing as well as operations would certainly come to be more difficult if the advertising division itself is broken down which can be an additional prospective OB worry.

Rent Seeking Behaviour In The Power Market Analysis

Different theories have actually been used to explain the circumstances to get further clearness concerning the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers think that staffs are passive and also lazy, have little passion as well as resist change. The circumstance at Rent Seeking Behaviour In The Power Market is not entirely complying with Concept X, it can be seen that new hires are finding this setting instead demanding which may ultimately lead to a better disposition of the administration towards Theory X. Even while assessing Lewis's administration design, theory X may have been appropriate in the procedures department to some level yet the Advertising and marketing department would need reliance on Concept Y in order to obtain the imagination and creativity from the groups.

Tuckman's Synergy Concept: As far as Lewis's issue concerning bringing consistency between the advertising and marketing and also marketing department is concerned, this would at first lead to contrast as reviewed by Bruce Tuckman in his 'Team effort Concept'. By combining the advertising and marketing department's work, there may be the very same initial disconnect which could lead to the second stage of 'storming' where the teams test one another.

Bridges' Change Model: As per William Bridge's theory (appendix 4), individuals are fairly awkward with modification, which is noticeable by the scenario at Rent Seeking Behaviour In The Power Market The scenario can be seen as a normal training course of life if is researched according to Bridge's theory where he explains that individuals go through three phases of transition when they experience modification. 'Closing, losing and Releasing', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When people exist with change, they go into phase one and so there may be emotions like unhappiness, uncertainty, irritation, anger, fear, denial and disorientation.The scenario at the advertising department of Rent Seeking Behaviour In The Power Market is comparable so Lewis can obtain comfy with the suggestion that it is not amazing habits. In the 2nd stage, there may be a requirement to link the gap between the new and old society so Lewis might have to encounter this experience once Krasnow leaves. There might be reduced morale and also low productivity at this phase which must not be taken as a problem. It is throughout this stage that Lewis will have to provide support to the department to ensure that they can locate a sense of direction. It can be seen how Krasnow has currently made this shift easier by making Lewis obtain involved in the division a year prior to his actual separation. According to Bridges' Model, stage three will produce visibility to knowing, High power and also commitment as people will certainly embrace the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Requirement power structure: The OB issue related to insecurity at the work environment has been caused to start with by the modification in administration as well as secondly by the fact that the merging will no more be started. Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has goes over the value of 'protection requires as being a reduced degree requirement of a human for causing inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the demand to really feel secure as well as untouched' is at the 2nd level of demands. Before an employee can be made to create psychologically, he needs to have his 'Physiological 'and also 'Safety' needs fulfilled. This shows that unless the personnel are made to really feel safe regarding their current work status in Rent Seeking Behaviour In The Power Market they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Rent Seeking Behaviour In The Power Market Case Study



Implication of Analysis.

The OB analysis has considered numerous theories to recognize just how to manage the current situation available. The adhering to 3 choices have actually been proposed to assist Lewis take care of the business difficulties in the advertising division. Each of these options has actually been proposed for alleviating the shift needed to bring the advertising and marketing department in accordance with the needs of the marketplace as well as for making the social adjustment that would comply with as soon as the existing leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting as well as Manufacturing functions. Assimilation of Marketing with Procedures.

Analysis of Alternatives.

Judith Shapiro who has earlier been interviewed by Lewis during the earlier merger days has know-how in business-to-business advertising along with agency and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to deal with both advertising and marketing as well as advertising and marketing functions.

The benefit of this method is that it will certainly incorporate the two functions while lowering the requirement for working with an additional resource for marketing. Lewis would certainly be heading the advertising and marketing division as well as in any kind of case her replacement would certainly be needed for the existing role that she is doing. The disadvantage of this option is that outside hiring may bring about animosity from inner employees who might be considering the placement of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting as well as Manufacturing: Offered the affordable pressures as well as top quality job needed from the advertising agency, it is suggested that Lewis ought to allow the production system to be a separate feature from the marketing system. Since many advertising agencies had these 2 functions as separate units, it makes more sense to adhere to the norm. In addition to this, both functions may have the ability to concentrate on their core triggers more successfully. The drawback of this strategy would certainly be that additional expenses would certainly have to be birthed for setting up separate production features. A manufacturing head might have to be worked with which could increase expenses for the company.

Integration of Advertising And Marketing with Operations: Given that Lewis is currently taking care of the advertising as well as procedures departments simultaneously; it makes feeling to integrate the 2 functions considering that she has actually been effectively taking treatment of both ends. The truth that Lewis has to adapt her monitoring design for the marketing division recommends that these two divisions would certainly be culturally varied.

Suggestion.



An evaluation of the three choices shows that integration of marketing and also procedures would not be a feasible move as a result of the substantial distinctions in between both departments despite the fact that presently Lewis is dealing with both. While splitting up of the manufacturing feature might have been a desirable step for the advertising department, the fact that it would suggest putting a third feature under Lewis's wing means this need to be stayed clear of too. The integration of the marketing department is the best alternative in terms of obtaining the ideal results from the division. An action prepare for this alternative is reviewed below.

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

Advertising and Marketing features would certainly be merged.

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

Manufacturing function will remain component of advertising and marketing under advertising and marketing feature.

Lewis will divide herself from procedures.

An autonomous management design with staff member empowerment will certainly be made use of in advertising and marketing division.

Open door policy and focus on cross department interaction will be focused on eliminating dissonance.

Backup plan.

If the assimilation does not exercise as prepared, a contingency plan would certainly adhere to which would separate the production function from the marketing feature to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will be heading the marketing division without an SVP. In that case the production function will definitely be separated by putting it under an SVP production.