Rio Tinto And Mining In Mongolia The Oyu Tolgoi Deposit Case Study Solution


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Rio Tinto And Mining In Mongolia The Oyu Tolgoi Deposit Case Study Analysis

Background and Facts

Rio Tinto And Mining In Mongolia The Oyu Tolgoi Deposit an office supplies store for tiny and moderate sized businesses has actually just recently been associated with planning for a merger with its competitor Home Deport, which has affected effectiveness levels in departmentswith the senior supervisor associated with legal difficulties presented by the government Profession Compensation. With the Marketing Head advancing the information of his departure from the company in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the role in the future. With obstacles in the kind of a prospective social modification as well as low staff member morale, the organization needs a complete reengineering effort at the marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The prospective social change at the advertising department of Rio Tinto And Mining In Mongolia The Oyu Tolgoi Deposit is increasing uncertainty in the working environment causing different difficulties for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting strategic decisions considering that Stapes Inc. had to abandon its plans of merging with Workplace Deport after the Federal Profession Payment's treatment while doing so. Provided the reality that the shop has an international visibility with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations may have the ability to affect performance or tactical objectives. Federal Profession Compensation's antitrust fit versus the merger used up useful time of the company's elderly monitoring suggesting that 'political' factors can have severe implications for an international business.

Economic Factors: Economic factors such as the emergence of small businesses in the international circumstance recommend that Rio Tinto And Mining In Mongolia The Oyu Tolgoi Deposit is thriving in an atmosphere where there is possible growth of organisations. Fact that store consumers are mainly looking for office products for house workplaces recommends that the market has a climbing pattern of business owners and house based organisations.

Social factors: Social trends in the economic situation show that clients are searching for benefit along with appealing prices. Marketing research demonstrates how the consumer for Rio Tinto And Mining In Mongolia The Oyu Tolgoi Deposit lacks understanding concerning finding options which can offer a mix of benefit as well as low costs.

Technological factors: Innovation plays an important function in Rio Tinto And Mining In Mongolia The Oyu Tolgoi Deposit's company method specifically as the company is piloting Modern technology facilities which would offer technology sales and also assistance in the type of memory upgrades, peripheral installations. (Summary of PEST in appendix 2).

OB Issues and also Effects.

Numerous underlying Business Actions problems can be seen in Rio Tinto And Mining In Mongolia The Oyu Tolgoi Deposit's case as highlighted in this area.

Uneasiness regarding cultural modification: There is apprehension about a social adjustment that would happen once Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Marketing with the majority of the personnel already revealing unhappiness over this prospective action. This predicted modification has produced tension in the workplace which has been combined with the previous anxiety of preparing the firm for a prospective merger with House Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is shortage of workers that can match the difficult setting of a busy company. Not only does this result in trouble in locating the best individuals, it puts stress and anxiety on new hires as can not withstand the rate and pressure that the company expects them to birth.

Twin Reporting Lines: Novices find this organizational culture troublesome as well as difficult to manage particularly as populated line relationships are implied to be weaker as a whole as well as unbiased setting and also efficiency analysis is still done by the strong line manager. This means that beginners might lose quality concerning their respective roles as well as objectives particularly as dotted line reporting does not keep them in straight communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles although it had been guessed that the last would certainly take Krasnow's placement came as a blow to her morale. Lewis may have been qualified and proper for the job however the reality that Kransnow's departure would make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Concern & Task Insecurity: Anxiety as well as instability can be identified as 2 major issues that Lewis would be handling specifically as the merger has actually currently be cancelled as well as 2 elderly executives of the marketing department would be leaving. The whole responsibility of the department would be falling on Lewis's shoulders who would certainly not just be in charge of brining regarding a social change however would certainly likewise need to show herself in her brand-new duty.

Incompatible Management Design of Leader: Lewis's administration style as well as its conflict with the advertising and marketing department's duty can additionally be seen as an OB obstacle particularly as she has been used to taking care of issues in the procedures division where employees are instructed to concentrate on processes and also obtain them. The advertising department on the other hand can be viewed as a team of individuals who are made use of to being nurtured by Krasnow that concentrated more on output than processes.

Interdepartmental Disputes: Interdepartmental arguments between three divisions, advertising and marketing, merchandizing and procedures respectively over the allotment of the advertising and marketing mix can be determined as one more OB problem. Although the advertising department does not share the very same vision as the other 2 departments concerning the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing as well as procedures departments do not concur over the advertising mix appropriation amongst each other either.

Fragmentation in Advertising And Marketing Division: Disintegration in between the advertising and marketing departments can be identified as one more OB problem which might require additional interest. The fact that the marketing and advertising areas in the advertising department are detached is stopping both departments from obtaining from each other's experience and also expertise. Combination of advertising with merchandising as well as procedures would certainly end up being harder if the advertising and marketing department itself is disintegrated which can be another possible OB concern.

Rio Tinto And Mining In Mongolia The Oyu Tolgoi Deposit Analysis

Various concepts have been made use of to describe the situations to get more quality concerning the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most supervisors think that subordinates are passive and careless, have little ambition as well as resist modification. The hard variation of this concept emphasized threat, tight controls, risks as well as penalties. Over time it produces low efficiency, subtle sabotage as well as competition (Offer, 2003). Although the situation at Rio Tinto And Mining In Mongolia The Oyu Tolgoi Deposit is not completely complying with Concept X, it can be seen that new hires are finding this atmosphere rather stressful which may eventually lead to a greater inclination of the administration towards Concept X. Based on McGregor's promoted sight, which he called Concept Y, the vital task of the management is to organize business problems to make sure that people can achieve their very own goals best by routing their initiatives in the direction of organizational benefits. If individuals locate no satisfaction in their job, the monitoring would certainly have little option however to count on concept X as well as external control (Offer, 2003). Also while analyzing Lewis's monitoring style, theory X might have appropriated in the operations division somewhat yet the Advertising department would certainly require reliance on Concept Y in order to get the imagination and originality from the teams.

Tuckman's Synergy Theory: As much as Lewis's problem regarding bringing harmony in between the marketing and also advertising and marketing division is concerned, this would initially lead to clash as reviewed by Bruce Tuckman in his 'Team effort Concept'. By integrating the advertising as well as advertising and marketing division's job, there might be the exact same initial detach which might lead to the 2nd phase of 'storming' where the groups challenge one an additional.

Bridges' Shift Version: As per William Bridge's concept (appendix 4), individuals are fairly uneasy with modification, which is obvious by the scenario at Rio Tinto And Mining In Mongolia The Oyu Tolgoi Deposit The scenario can be viewed as a typical program of life if is examined as per Bridge's theory where he explains that individuals experience 3 stages of change when they experience modification. 'Closing, losing and also Releasing', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When people are presented with modification, they enter stage one therefore there may be emotions like unhappiness, unpredictability, disappointment, rage, fear, rejection and disorientation.The situation at the advertising department of Rio Tinto And Mining In Mongolia The Oyu Tolgoi Deposit is comparable so Lewis can obtain comfy with the idea that it is not remarkable behavior. In the 2nd stage, there may be a demand to bridge the space between the brand-new and old culture so Lewis might have to encounter this experience when Krasnow leaves. There might be reduced spirits and low productivity at this phase which should not be taken as an obstacle. It is throughout this stage that Lewis will have to provide guidance to the division to make sure that they can discover an orientation. It can be seen how Krasnow has actually currently made this shift simpler by making Lewis get involved in the department a year before his real departure. Based on Bridges' Version, stage three will cause openness to understanding, High power as well as dedication as people will welcome the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has talks about the relevance of 'safety and security requires as being a lower degree requirement of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel protected and out of risk' is at the 2nd degree of needs. Before a worker can be made to create emotionally, he needs to have his 'Physical 'as well as 'Security' requires fulfilled.

SWOT Analysis for Rio Tinto And Mining In Mongolia The Oyu Tolgoi Deposit Case Study

Implication of Analysis.

The OB analysis has looked at different theories to recognize exactly how to deal with the present situation available. The complying with 3 choices have actually been suggested to aid Lewis handle the business difficulties in the advertising division. Each of these choices has been proposed for alleviating the shift required to bring the marketing division in line with the demands of the market and also for making the social adjustment that would certainly follow when the current leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting as well as Manufacturing functions. Combination of Advertising And Marketing with Workflow.

Evaluation of Alternatives.

Judith Shapiro that has earlier been talked to by Lewis throughout the earlier merger days has experience in business-to-business marketing along with company as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to manage both marketing and advertising and marketing functions.

The benefit of this technique is that it will integrate the two features while lowering the demand for hiring an extra source for advertising and marketing. Lewis would be heading the marketing department and also in any type of case her substitute would certainly be required for the existing duty that she is doing. The downside of this option is that outside hiring may cause bitterness from inner employees who might be looking at the setting of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting as well as Production: Given the competitive stress and also excellent quality job needed from the ad agency, it is advised that Lewis ought to allow the production system to be a separate function from the advertising system. Because most advertising agencies had these 2 functions as separate devices, it makes more sense to adhere to the standard. Both features might be able to concentrate on their core triggers extra successfully. Nonetheless, the negative aspect of this strategy would be that added prices would certainly have to be borne for setting up different manufacturing features. A production head might have to be worked with which might increase expenses for the company.

Combination of Advertising with Procedures: Given that Lewis is currently taking care of the marketing and also operations departments at the same time; it makes sense to incorporate the two features given that she has been successfully caring for both ends. The reality that the two divisions already have major differences over appropriation of sources recommends that this assimilation might be able to cause harmony especially as Lewis would certainly be heading both ends.However there are various downsides of this action especially as it would certainly put too much worry over Lewis's shoulders. The truth that Lewis needs to adapt her monitoring style for the advertising department recommends that these two departments would be culturally varied. Lewis may not be able to use one type of leadership style to both divisions which can result in inefficiency in either one of the 2 features.


An assessment of the three alternatives shows that integration of advertising and marketing and also operations would not be a viable step due to the large distinctions between the two departments although that currently Lewis is dealing with both. While separation of the manufacturing function might have been a beneficial step for the advertising and marketing department, the reality that it would mean positioning a third feature under Lewis's wing indicates this must be avoided as well. The assimilation of the marketing division is the most effective choice in regards to obtaining the optimum arise from the department. An activity plan for this alternative is talked about below.

Activity Plan.
Lewis will certainly take control of the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Production function will remain component of marketing under marketing feature.

Lewis will certainly divide herself from operations.

An autonomous leadership style with employee empowerment will certainly be made use of in marketing department.

Open up door policy and emphasis on cross department communication will certainly be targeted at eliminating discord.

Backup strategy.

If the assimilation does not exercise as intended, a contingency plan would certainly comply with which would divide the manufacturing function from the advertising and marketing function to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising and marketing department without an SVP. In that case the production feature will most definitely be separated by positioning it under an SVP production.