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Rio Tintos Ore Mining Making Hay From Water Case Study Solution

CASE SOLUTION

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Rio Tintos Ore Mining Making Hay From Water Case Study Solution

Background and Facts

Rio Tintos Ore Mining Making Hay From Water a workplace supplies seller for little and medium sized organisations has lately been involved in planning for a merging with its rival House Deport, which has affected efficiency levels in departmentswith the senior supervisor involved in legal problems presented by the government Profession Compensation. With the Marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the existing head of operations has been asked to take the function in the future. With challenges in the form of a prospective social adjustment and also low employee spirits, the company wants a total reengineering effort at the advertising department.

Problem Declaration
Porter's 5 Forces Analysis
The prospective cultural change at the advertising division of Rio Tintos Ore Mining Making Hay From Water is increasing uncertainty in the working environment bring about various challenges for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing strategic choices because Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Profession Compensation's treatment while doing so. Offered the fact that the shop has an international presence with branches in UK, USA, Canada and Germany, political factors in each of these countries might have the ability to influence efficiency or tactical goals. Federal Trade Compensation's antitrust match versus the merging took up beneficial time of the company's elderly management suggesting that 'political' factors can have significant implications for an international company.

Economic Factors: Financial factors such as the appearance of small companies in the international scenario suggest that Rio Tintos Ore Mining Making Hay From Water is growing in an environment where there is potential growth of services. In addition to this, truth that shop consumers are primarily seeking office supplies for home offices suggests that the market has a rising fad of entrepreneurs and also home businesses.

Social factors: Social fads in the economy reveal that consumers are trying to find ease along with eye-catching rates. Marketing research shows how the customer for Rio Tintos Ore Mining Making Hay From Water lacks awareness regarding discovering remedies which can supply a combination of convenience and also low costs.

Technical factors: Innovation plays a vital function in Rio Tintos Ore Mining Making Hay From Water's business method specifically as the organization is piloting Innovation centers which would certainly provide innovation sales and support in the type of memory upgrades, outer installments. (Summary of INSECT in appendix 2).

OB Issues and also Effects.

A number of underlying Organizational Behavior problems can be seen in Rio Tintos Ore Mining Making Hay From Water's case as highlighted in this area.

Concerns regarding social change: There is concern about a social modification that would certainly happen as soon as Todd Krasnow leaves from his placement as the Executive Vice President of Marketing with most of the team member already revealing discontent over this potential relocation. This predicted modification has created stress in the workplace which has actually been combined with the past anxiety of preparing the firm for a potential merging with Residence Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is scarcity of personnel that can match the demanding environment of a hectic organization. Not only does this result in trouble in locating the best individuals, it places stress and anxiety on new hires as can not hold up against the pace and stress that the company expects them to birth.

Double Coverage Lines: Novices locate this business culture difficult as well as tough to cope with especially as populated line partnerships are indicated to be weak as a whole and also unbiased setup as well as efficiency analysis is still done by the solid line manager. This implies that newcomers can shed quality concerning their particular functions and also goals especially as dotted line reporting does not keep them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had actually been guessed that the last would certainly take Krasnow's placement came as an impact to her spirits. Lewis might have been qualified and also proper for the task yet the reality that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from solutions.

Anxiety & Work Insecurity: Worry and instability can be identified as two major issues that Lewis would be managing particularly as the merger has actually now be cancelled and also two senior executives of the advertising and marketing department would be leaving. The entire responsibility of the department would be falling on Lewis's shoulders who would not simply supervise of brining concerning a cultural change but would likewise have to verify herself in her brand-new function.

Incompatible Management Design of Leader: Lewis's management design and its incompatibility with the advertising division's duty can additionally be seen as an OB challenge particularly as she has actually been used to handling issues in the operations division where personnel are taught to focus on procedures and obtain them. The advertising and marketing division on the various other hand can be viewed as a team of people that are utilized to being supported by Krasnow who focused a lot more on output than processes.

Interdepartmental Disputes: Interdepartmental differences in between three divisions, advertising and marketing, merchandizing and also procedures respectively over the allocation of the advertising and marketing mix can be recognized as another OB concern. The advertising department does not share the same vision as the other 2 departments pertaining to the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and also procedures departments do not concur over the advertising mix allocation amongst one another either.

Disintegration in Advertising And Marketing Department: Disintegration in between the marketing and advertising divisions can be recognized as another OB concern which can need additional interest. The fact that the advertising and marketing sections in the advertising division are disconnected is preventing both departments from getting from each other's experience and also know-how. Integration of marketing with merchandising and also operations would come to be more difficult if the marketing division itself is disintegrated which can be an additional prospective OB worry.

Rio Tintos Ore Mining Making Hay From Water Analysis

Different theories have been made use of to explain the conditions to get further quality about the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many supervisors believe that subordinates are passive and also lazy, have little ambition and also withstand modification. The scenario at Rio Tintos Ore Mining Making Hay From Water is not entirely following Concept X, it can be seen that brand-new hires are finding this environment instead stressful which might ultimately lead to a better disposition of the administration towards Theory X. Also while examining Lewis's monitoring design, concept X might have been ideal in the operations division to some level however the Advertising department would certainly call for dependence on Theory Y in order to get the creativity and also originality from the groups.

Tuckman's Team effort Concept: As for Lewis's worry concerning bringing harmony in between the marketing and advertising department is concerned, this would at first lead to clash as discussed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, during the first phase of group growth, individuals might not bond, as they are active finding their area in the team. By combining the marketing and advertising department's job, there might be the same first detach which can lead to the 2nd phase of 'storming' where the teams test each other. It is just throughout the third phase or 'norming' when they would come together to share ideas prior to the team can bring about synergy in the 4th phase 'performing'.

Bridges' Transition Model: Based On William Bridge's theory (appendix 4), people are rather awkward with adjustment, which is evident by the circumstance at Rio Tintos Ore Mining Making Hay From Water The situation can be seen as a normal training course of life if is researched as per Bridge's theory where he clarifies that individuals undergo 3 phases of transition when they experience adjustment. 'Closing, shedding and Releasing', The Neutral Area and 'The New Beginning' (Bridges, 2004). When individuals exist with adjustment, they enter stage one and so there might be feelings like despair, unpredictability, frustration, anger, fear, denial as well as disorientation.The situation at the marketing department of Rio Tintos Ore Mining Making Hay From Water is similar so Lewis can obtain comfortable with the concept that it is not amazing behavior. In the 2nd phase, there might be a need to link the space between the brand-new and also old culture so Lewis might need to encounter this ordeal when Krasnow leaves. There might be low morale and reduced performance at this phase which must not be taken as an obstacle. It is throughout this stage that Lewis will need to give guidance to the department to ensure that they can discover a sense of direction. It can be seen just how Krasnow has actually currently made this change much easier by making Lewis get associated with the department a year prior to his actual departure. As per Bridges' Model, phase 3 will cause openness to understanding, High energy and also commitment as people will welcome the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has reviews the value of 'safety and security needs as being a lower level demand of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel safe and secure and out of danger' is at the 2nd level of requirements. Before a staff member can be made to develop mentally, he requires to have his 'Physical 'as well as 'Security' needs fulfilled.

SWOT Analysis for Rio Tintos Ore Mining Making Hay From Water Case Study



Effects of Analysis.

The OB analysis has looked at various theories to understand exactly how to cope with the existing circumstance available. The following 3 alternatives have actually been recommended to assist Lewis manage the organizational challenges in the advertising department. Each of these choices has been proposed for easing the transition needed to bring the marketing division in accordance with the needs of the marketplace as well as for making the cultural change that would certainly follow when the current leader leaves.

Integration of marketing and advertising features. Dividing Adverting and Production features. Combination of Advertising And Marketing with Workflow.

Evaluation of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merger days has competence in business-to-business advertising and marketing along with firm as well as retail advertising experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to take care of both advertising and marketing and advertising functions.

The benefit of this approach is that it will certainly integrate both features while reducing the demand for employing an added source for advertising and marketing. In addition to this, Lewis would be heading the advertising division as well as regardless her replacement would certainly be needed for the present role that she is carrying out. The disadvantage of this option is that external hiring might bring about animosity from internal employees who may be eying the setting of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and also Manufacturing: Given the competitive stress as well as high quality job called for from the advertising agency, it is suggested that Lewis ought to enable the production system to be a different feature from the advertising and marketing system. Since a lot of advertising and marketing firms had these two functions as different systems, it makes more feeling to comply with the standard.

Integration of Advertising And Marketing with Workflows: Since Lewis is currently taking treatment of the advertising and marketing as well as operations departments simultaneously; it makes sense to incorporate the two features considering that she has actually been successfully taking care of both ends. The reality that Lewis has to adapt her administration style for the advertising department recommends that these 2 divisions would certainly be culturally diverse.

Suggestion.



An examination of the 3 options shows that assimilation of marketing and procedures would not be a possible move as a result of the huge differences between the two departments although that currently Lewis is managing both. While splitting up of the production function might have been a favorable move for the marketing department, the fact that it would certainly indicate putting a third feature under Lewis's wing implies this must be prevented too. The assimilation of the marketing department is the most effective alternative in regards to obtaining the optimal arise from the department. An action prepare for this option is reviewed below.

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

Advertising and Marketing features would be combined.

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

Manufacturing feature will remain component of advertising under advertising feature.

Lewis will separate herself from procedures.

A democratic management design with staff member empowerment will certainly be made use of in advertising division.

Open door plan as well as emphasis on cross departmental communication will be focused on getting rid of discord.

Backup strategy.

If the combination does not exercise as intended, a backup strategy would follow which would certainly separate 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 worked with, Lewis will be heading the advertising division without an SVP. In that case the manufacturing function will definitely be separated by positioning it under an SVP manufacturing.