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Restructuring Navigator Gas Transport Plc Case Study Solution

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Restructuring Navigator Gas Transport Plc Case Study Help

Background and Facts

Restructuring Navigator Gas Transport Plc a workplace materials store for tiny and also moderate sized companies has lately been associated with planning for a merger with its competitor Residence Deport, which has actually impacted efficiency levels in departmentswith the senior manager involved in lawful problems presented by the government Trade Commission. With the Advertising and marketing Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the role in the future. With obstacles in the form of a prospective social modification as well as reduced worker morale, the company requires a complete reengineering effort at the advertising department.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective cultural change at the marketing department of Restructuring Navigator Gas Transport Plc is increasing unpredictability in the working environment bring about different challenges for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing strategic choices considering that Stapes Inc. needed to desert its strategies of merging with Office Deport after the Federal Trade Payment's treatment in the process. Provided the fact that the store has a global visibility with branches in UK, USA, Canada as well as Germany, political factors in each of these nations may have the ability to impact efficiency or calculated objectives. Federal Trade Commission's antitrust suit versus the merging used up valuable time of the organization's elderly management suggesting that 'political' factors can have significant ramifications for an international company.

Economic Factors: Financial factors such as the appearance of local business in the worldwide circumstance recommend that Restructuring Navigator Gas Transport Plc is prospering in an atmosphere where there is possible growth of services. Reality that shop consumers are mainly looking for office products for house offices recommends that the market has a climbing trend of entrepreneurs and also residence based companies.

Social factors: Social patterns in the economic climate show that clients are looking for ease in addition to eye-catching prices. Market research shows how the consumer for Restructuring Navigator Gas Transport Plc lacks recognition concerning finding solutions which can use a mix of comfort and also affordable.

Technological factors: Technology plays a vital function in Restructuring Navigator Gas Transport Plc's service technique especially as the company is piloting Technology facilities which would certainly offer technology sales and also assistance in the kind of memory upgrades, peripheral setups. (Recap of INSECT in appendix 2).

OB Issues as well as Symptoms.

Several underlying Business Actions issues can be seen in Restructuring Navigator Gas Transport Plc's case as highlighted in this area.

Concerns concerning social modification: There is concern about a social modification that would take place once Todd Krasnow leaves from his setting as the Exec Vice President of Advertising And Marketing with the majority of the personnel already showing discontent over this potential move. This expected adjustment has actually developed stress in the work environment which has been coupled with the previous tension of preparing the firm for a possible merger with House Deport.
Pest Analysis
Demanding Work Setting for Newcomers: There is shortage of personnel that can match the difficult environment of a busy company. Not just does this lead to trouble in discovering the right people, it puts tension on brand-new hires as can not endure the rate and pressure that the organization expects them to birth.

Twin Reporting Lines: Newcomers find this business society difficult and also challenging to manage particularly as populated line connections are meant to be weak in general and unbiased setting and also performance evaluation is still done by the solid line manager. This means that novices can lose clearness concerning their corresponding duties and also goals particularly as dotted line coverage does not maintain them in straight interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles although it had been guessed that the last would certainly take Krasnow's position came as a strike to her spirits. Lewis may have been qualified and proper for the work yet the reality that Kransnow's separation would make Coles a straight record to Lewis might have been the reason for Coles' resignation from solutions.

Concern & Job Insecurity: Fear and instability can be recognized as two significant concerns that Lewis would be dealing with specifically as the merger has currently be cancelled and two elderly execs of the advertising division would be leaving. The whole duty of the division would be falling on Lewis's shoulders who would certainly not just be in charge of brining about a social adjustment but would certainly additionally need to prove herself in her brand-new role.

Incompatible Management Style of Leader: Lewis's administration style and also its incompatibility with the advertising and marketing department's role can likewise be seen as an OB difficulty particularly as she has been made use of to handling issues in the operations division where employees are instructed to concentrate on procedures as well as obtain them. The advertising division on the various other hand can be seen as a group of individuals who are used to being nurtured by Krasnow who focused a lot more on output than processes.

Interdepartmental Arguments: Interdepartmental disagreements in between three divisions, marketing, merchandizing and operations specifically over the appropriation of the advertising and marketing mix can be identified as one more OB concern. The advertising and marketing division does not share the very same vision as the various other 2 departments pertaining to the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and also operations departments do not concur over the marketing mix allotment among one another either.

Disintegration in Advertising Department: Disintegration between the advertising and marketing divisions can be identified as an additional OB concern which might require further attention. The fact that the advertising and marketing sections in the advertising division are disconnected is stopping both departments from acquiring from each other's experience and knowledge. Combination of advertising with retailing and operations would certainly come to be harder if the advertising and marketing division itself is broken down which can be an additional potential OB concern.

Restructuring Navigator Gas Transport Plc Analysis

Different theories have been made use of to describe the situations to obtain more clearness about the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many managers think that juniors are passive and also lazy, have little passion as well as resist change. The circumstance at Restructuring Navigator Gas Transport Plc is not totally complying with Theory X, it can be seen that brand-new hires are discovering this environment rather difficult which might eventually lead to a higher inclination of the monitoring in the direction of Theory X. Even while examining Lewis's monitoring style, theory X might have been suitable in the procedures division to some degree however the Advertising division would certainly require reliance on Concept Y in order to obtain the creative thinking as well as originality from the groups.

Tuckman's Team effort Theory: As for Lewis's worry regarding bringing harmony between the marketing and advertising division is concerned, this would originally bring about contrast as talked about by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, during the first phase of group advancement, people may not bond, as they are busy discovering their place in the team. By integrating the advertising and marketing division's work, there might coincide initial disconnect which could result in the 2nd stage of 'storming' where the teams test each other. Nonetheless, it is just during the 3rd phase or 'norming' when they would come together to share concepts before the team can produce harmony in the 4th stage 'carrying out'.

Bridges' Transition Design: Based On William Bridge's theory (appendix 4), individuals are fairly awkward with adjustment, which is apparent by the situation at Restructuring Navigator Gas Transport Plc The circumstance can be seen as a typical program of life if is studied based on Bridge's theory where he explains that individuals undergo three phases of change when they experience change. 'Ending, shedding and also Releasing', The Neutral Area and also 'The New Beginning' (Bridges, 2004). When people exist with modification, they enter stage one and so there might be feelings like unhappiness, uncertainty, disappointment, anger, anxiety, denial as well as disorientation.The scenario at the advertising and marketing department of Restructuring Navigator Gas Transport Plc is similar so Lewis can get comfortable with the concept that it is not phenomenal behavior. In the second stage, there may be a need to link the gap between the brand-new as well as old society so Lewis may need to encounter this challenge as soon as Krasnow leaves. There may be low morale and also reduced efficiency at this phase which should not be taken as a setback. It is during this stage that Lewis will have to provide support to the department so that they can locate an orientation. It can be seen exactly how Krasnow has already made this change simpler by making Lewis get involved in the division a year before his real separation. Based on Bridges' Model, phase 3 will certainly bring about openness to discovering, High power as well as dedication as people will accept the change (Bridges, 2004).
Vrio Analysis
Maslow's Requirement hierarchy: The OB problem pertaining to insecurity at the office has been triggered to start with by the change in monitoring and secondly by the fact that the merger will certainly no more be initiated. Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has discusses the value of 'protection needs as being a lower level demand of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel safe and secure as well as safe' goes to the 2nd degree of needs. Prior to an employee can be made to create emotionally, he requires to have his 'Physical 'as well as 'Safety' needs fulfilled. This indicates that unless the employees are made to really feel protected regarding their present work status in Restructuring Navigator Gas Transport Plc they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Restructuring Navigator Gas Transport Plc Case Study



Ramification of Analysis.

The OB analysis has actually looked at various theories to understand how to deal with the present situation available. The adhering to 3 choices have actually been recommended to assist Lewis deal with the organizational difficulties in the advertising and marketing department. Each of these options has been proposed for reducing the shift needed to bring the advertising division in accordance with the demands of the market and for making the social adjustment that would certainly adhere to when the current leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting and Production functions. Integration of Marketing with Operations.

Evaluation of Alternatives.

Assimilation of Advertising And Marketing & Advertising Functions: The internal marketing company of Restructuring Navigator Gas Transport Plc is already strength for the organization in regards to conserving up on overheads connected to advertising and marketing and also promotion. Given that no new employment has actually been done after Bridget Cole's departure with the coverage line being straight appointed to Krasnow for the advertising and marketing function, this is a favorable opportunity for integrating the marketing and advertising features. Judith Shapiro who has actually earlier been spoken with by Lewis throughout the earlier merger days has expertise in business-to-business advertising in addition to company and also retail advertising and marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to manage both marketing and advertising features.

The advantage of this approach is that it will certainly incorporate the two functions while reducing the requirement for hiring an extra source for advertising. Lewis would certainly be heading the advertising division and in any kind of case her replacement would be required for the current role that she is executing. The downside of this alternative is that outside hiring may bring about animosity from inner workers that might be eying the placement of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and also Manufacturing: Given the affordable stress and also high top quality work needed from the advertising and marketing agency, it is advised that Lewis needs to permit the production system to be a different function from the advertising unit. Because many marketing companies had these two features as separate devices, it makes even more feeling to adhere to the norm.

Integration of Advertising with Procedures: Because Lewis is already looking after the marketing and procedures divisions at the same time; it makes sense to integrate both functions considering that she has actually been successfully caring for both ends. The truth that both departments currently have major differences over allowance of resources suggests that this combination might be able to produce consistency specifically as Lewis would certainly be heading both ends.However there are numerous drawbacks of this step specifically as it would certainly place excessive problem over Lewis's shoulders. The fact that Lewis needs to adapt her monitoring style for the advertising department recommends that these two departments would certainly be culturally varied. Lewis might not be able to apply one kind of management design to both divisions which might result in inefficiency in either one of the two functions.

Recommendation.



An assessment of the three choices shows that integration of advertising and marketing and procedures would not be a feasible move as a result of the substantial distinctions in between both divisions despite the fact that currently Lewis is dealing with both. While separation of the manufacturing function may have been a favorable relocation for the advertising and marketing department, the reality that it would mean positioning a 3rd function under Lewis's wing means this must be prevented. The combination of the marketing department is the most effective alternative in terms of getting the optimum results from the division. An action plan for this option is gone over listed below.

Action Strategy.
Recommendation
Lewis will certainly take control of the function of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be combined.

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

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

Lewis will certainly separate herself from procedures.

A democratic leadership design with worker empowerment will certainly be utilized in advertising division.

Open up door plan and emphasis on cross department communication will certainly be aimed at removing disharmony.

Backup plan.

If the integration does not exercise as prepared, a contingency plan would comply with which would certainly divide the production feature from the marketing feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising and marketing department without an SVP. Because case the manufacturing function will most definitely be separated by positioning it under an SVP production.