Rj Reynolds Tobacco Co Case Study Analysis


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Rj Reynolds Tobacco Co Case Study Analysis

Background and Facts

Rj Reynolds Tobacco Co a workplace supplies store for small as well as average sized services has actually just recently been involved in planning for a merger with its competitor House Deport, which has actually affected efficiency levels in departmentswith the elderly supervisor associated with legal complications put forth by the government Profession Commission. With the Marketing Head putting forward the information of his departure from the business in one year, Jeannie Lewis, the existing head of procedures has been asked to take the function in the near future. With challenges in the type of a potential social adjustment and reduced staff member spirits, the company is in need of a full reengineering initiative at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The prospective social change at the marketing department of Rj Reynolds Tobacco Co is increasing unpredictability in the workplace resulting in numerous obstacles 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 role in impacting strategic choices considering that Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Profession Commission's intervention in the process. Offered the truth that the shop has an international visibility with branches in UK, UNITED STATES, Canada and Germany, political consider each of these countries may be able to impact efficiency or strategic objectives. Federal Trade Commission's antitrust suit against the merging occupied important time of the organization's senior management recommending that 'political' factors can have significant ramifications for an international company.

Economic Factors: Economic factors such as the development of small businesses in the international circumstance suggest that Rj Reynolds Tobacco Co is thriving in an atmosphere where there is potential development of businesses. In addition to this, truth that store consumers are mostly looking for workplace supplies for home offices recommends that the market has a climbing pattern of entrepreneurs and also home based businesses.

Social factors: Social trends in the economic climate reveal that consumers are searching for comfort in addition to eye-catching rates. Marketing research demonstrates how the consumer for Rj Reynolds Tobacco Co does not have awareness about locating solutions which can provide a combination of convenience and also inexpensive.

Technological factors: Technology plays a crucial role in Rj Reynolds Tobacco Co's company strategy especially as the organization is piloting Modern technology centers which would certainly use technology sales and also support in the form of memory upgrades, peripheral installations. (Summary of INSECT in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Organizational Behavior problems can be seen in Rj Reynolds Tobacco Co's case as highlighted in this section.

Apprehensions about social change: There is apprehension concerning a cultural adjustment that would certainly occur as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising And Marketing with most of the personnel already revealing discontent over this prospective action. This anticipated change has developed anxiety in the work environment which has actually been coupled with the past anxiety of preparing the company for a prospective merging with Residence Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is lack of personnel that can match the demanding setting of a busy company. Not just does this lead to trouble in locating the appropriate individuals, it puts stress on brand-new hires as can not stand up to the pace and also stress that the organization anticipates them to birth.

Dual Reporting Lines: Beginners find this organizational society difficult and also challenging to deal with particularly as populated line connections are meant to be weaker as a whole and also objective setup and efficiency analysis is still done by the strong line supervisor. This indicates that newcomers could shed quality regarding their corresponding functions and goals specifically as populated line reporting does not maintain them in straight interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles although it had been speculated that the latter would take Krasnow's position came as an impact to her spirits. Lewis might have been capable and proper for the work but the fact that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Work Insecurity: Fear and also insecurity can be determined as 2 major worries that Lewis would certainly be dealing with particularly as the merging has now be terminated and also two senior execs of the marketing department would be leaving. The whole obligation of the division would certainly be dropping on Lewis's shoulders that would certainly not just supervise of brining about a social modification but would also need to confirm herself in her new duty.

Incompatible Administration Design of Leader: Lewis's monitoring design and its incompatibility with the advertising department's duty can also be viewed as an OB obstacle specifically as she has been made use of to dealing with problems in the operations division where employees are educated to concentrate on procedures as well as obtain them right. The advertising division on the other hand can be seen as a team of individuals who are made use of to being supported by Krasnow that focused a lot more on output than procedures.

Interdepartmental Arguments: Interdepartmental disagreements between three departments, advertising and marketing, merchandizing as well as operations specifically over the allotment of the advertising mix can be determined as an additional OB issue. Although the advertising and marketing department does not share the same vision as the various other 2 departments pertaining to the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and operations divisions do not agree over the advertising and marketing mix allocation among one another either.

Fragmentation in Advertising And Marketing Department: Disintegration in between the marketing and advertising divisions can be determined as another OB issue which could require additional attention. The fact that the advertising and marketing sections in the advertising division are detached is protecting against both departments from obtaining from each other's experience and expertise. Combination of marketing with retailing as well as operations would come to be harder if the marketing division itself is degenerated which can be one more potential OB issue.

Rj Reynolds Tobacco Co Analysis

Various concepts have actually been utilized to discuss the circumstances to get more quality concerning the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most supervisors think that subordinates are passive and also careless, have little ambition as well as stand up to adjustment. The situation at Rj Reynolds Tobacco Co is not entirely adhering to Theory X, it can be seen that new hires are locating this environment rather demanding which might ultimately lead to a better inclination of the monitoring in the direction of Theory X. Even while analyzing Lewis's administration style, concept X might have been appropriate in the operations division to some extent however the Advertising division would call for reliance on Theory Y in order to obtain the creativity as well as creativity from the teams.

Tuckman's Synergy Theory: As far as Lewis's concern concerning bringing consistency between the advertising and marketing division is concerned, this would originally bring about clash as reviewed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, throughout the first phase of team development, individuals might not bond, as they are hectic finding their area in the team. By incorporating the marketing and advertising department's work, there might be the same first separate which can bring about the 2nd stage of 'storming' where the groups test one another. It is just throughout the 3rd stage or 'norming' when they would come together to share concepts prior to the group can bring around harmony in the fourth stage 'carrying out'.

Bridges' Change Model: According To William Bridge's theory (appendix 4), people are quite uncomfortable with change, which is evident by the scenario at Rj Reynolds Tobacco Co The circumstance can be viewed as a regular program of life if is studied as per Bridge's theory where he clarifies that individuals experience three stages of transition when they experience modification. 'Ending, shedding and Letting go', The Neutral Area and also 'The New Starting' (Bridges, 2004). When people are presented with modification, they enter stage one therefore there might be feelings like unhappiness, uncertainty, frustration, temper, fear, rejection and disorientation.The scenario at the advertising and marketing department of Rj Reynolds Tobacco Co is similar so Lewis can obtain comfortable with the suggestion that it is not phenomenal behavior. In the 2nd stage, there may be a requirement to link the space between the new and also old society so Lewis may need to encounter this challenge when Krasnow leaves. There may be reduced spirits and reduced productivity at this stage which need to not be taken as an obstacle. It is throughout this stage that Lewis will need to provide advice to the division so that they can discover a sense of direction. It can be seen how Krasnow has actually already made this change much easier by making Lewis get associated with the division a year before his real departure. As per Bridges' Design, stage three will certainly cause openness to learning, High energy and also dedication as people will embrace the change (Bridges, 2004).
Vrio Analysis
Maslow's Demand pecking order: The OB problem pertaining to insecurity at the office has been activated to start with by the modification in management as well as second of all by the reality that the merger will no longer be launched. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has reviews the relevance of 'safety and security needs as being a reduced degree requirement of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel protected as well as out of danger' is at the 2nd degree of needs. Before a worker can be made to establish mentally, he needs to have his 'Physiological 'as well as 'Safety and security' requires fulfilled. This indicates that unless the personnel are made to really feel safe and secure about their present employment standing in Rj Reynolds Tobacco Co they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Rj Reynolds Tobacco Co Case Study

Ramification of Analysis.

The OB analysis has actually looked at various concepts to comprehend just how to manage the current situation handy. The complying with three choices have been suggested to assist Lewis take care of the business difficulties in the advertising department. Each of these alternatives has actually been recommended for reducing the transition required to bring the advertising department according to the requirements of the marketplace and for making the social adjustment that would certainly comply with as soon as the current leader leaves.

Integration of marketing and advertising functions. Dividing Adverting as well as Manufacturing features. Assimilation of Advertising with Operations.

Assessment of Alternatives.

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

The advantage of this approach is that it will integrate the two functions while decreasing the need for employing an added source for advertising. In addition to this, Lewis would certainly be heading the advertising and marketing department as well as in any case her substitute would certainly be required for the present function that she is carrying out. The drawback of this option is that outside hiring might cause animosity from interior employees who may be considering the position of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Manufacturing: Provided the affordable stress and also excellent quality work needed from the advertising agency, it is advised that Lewis should permit the manufacturing system to be a different function from the advertising unit. Because most advertising agencies had these two features as separate units, it makes even more sense to adhere to the standard. Along with this, both features may be able to focus on their core triggers a lot more successfully. The drawback of this approach would certainly be that extra prices would certainly have to be birthed for setting up different production features. A production head might have to be employed which could boost overheads for the company.

Assimilation of Marketing with Operations: Because Lewis is currently taking care of the marketing and also operations divisions concurrently; it makes sense to integrate the 2 features given that she has been successfully taking treatment of both ends. The fact that Lewis has to adapt her monitoring design for the marketing department suggests that these 2 departments would be culturally varied.


An analysis of the three options indicates that assimilation of marketing as well as procedures would certainly not be a feasible action due to the substantial distinctions in between the two divisions despite the reality that currently Lewis is taking care of both. While splitting up of the production feature may have been a desirable action for the marketing division, the fact that it would imply positioning a third function under Lewis's wing implies this ought to be stayed clear of.

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

Advertising and Marketing features would certainly be combined.

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

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

Lewis will divide herself from procedures.

An autonomous leadership style with worker empowerment will be utilized in marketing division.

Open door plan and emphasis on cross department interaction will be focused on getting rid of disharmony.

Contingency strategy.

If the integration does not exercise as prepared, a contingency plan would certainly follow which would separate the production function from the marketing feature to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising and marketing division without an SVP. In that case the production function will most definitely be divided by putting it under an SVP manufacturing.