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Safety Regulation And The Rise Of Towngas In Hong Kong Case Study Analysis

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Safety Regulation And The Rise Of Towngas In Hong Kong Case Study Solution

Background and Facts

Safety Regulation And The Rise Of Towngas In Hong Kong an office products store for small and medium sized services has recently been involved in planning for a merging with its rival House Deport, which has actually influenced efficiency degrees in departmentswith the senior supervisor associated with lawful difficulties put forth by the government Profession Compensation. With the Advertising and marketing Head advancing the news of his departure from the company in one year, Jeannie Lewis, the current head of operations has actually been asked to take the function in the near future. With obstacles in the kind of a potential social modification as well as reduced staff member spirits, the organization wants a full reengineering initiative at the advertising and marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective social change at the marketing department of Safety Regulation And The Rise Of Towngas In Hong Kong is enhancing uncertainty in the working environment leading to 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 significant function in influencing critical choices since Stapes Inc. needed to abandon its strategies of combining with Workplace Deport after the Federal Trade Compensation's treatment at the same time. Given the fact that the store has an international presence with branches in UK, USA, Canada and Germany, political consider each of these countries may be able to affect performance or strategic objectives. Federal Trade Compensation's antitrust fit versus the merger took up valuable time of the organization's elderly management recommending that 'political' factors can have significant implications for a worldwide service.

Economic Factors: Economic factors such as the development of local business in the international circumstance recommend that Safety Regulation And The Rise Of Towngas In Hong Kong is flourishing in a setting where there is possible growth of organisations. Reality that store customers are primarily looking for office products for home offices recommends that the market has a climbing fad of entrepreneurs and also home based businesses.

Social factors: Social fads in the economic climate reveal that consumers are looking for ease along with attractive costs. Market research shows how the consumer for Safety Regulation And The Rise Of Towngas In Hong Kong does not have awareness concerning discovering services which can use a mix of comfort and inexpensive.

Technical factors: Technology plays an essential role in Safety Regulation And The Rise Of Towngas In Hong Kong's service technique specifically as the organization is piloting Innovation facilities which would certainly use technology sales and assistance in the type of memory upgrades, peripheral setups. (Recap of PEST in appendix 2).

OB Issues and also Effects.

Several underlying Organizational Habits concerns can be seen in Safety Regulation And The Rise Of Towngas In Hong Kong's case as highlighted in this section.

Concerns regarding social modification: There is worry concerning a cultural modification that would certainly occur once Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Marketing with a lot of the employee already showing unhappiness over this possible step. This expected adjustment has actually developed anxiety in the workplace which has actually been paired with the past tension of preparing the firm for a possible merging with House Deport.
Pest Analysis
Stressful Job Environment for Newcomers: There is lack of workers that can match the difficult environment of a hectic organization. Not only does this lead to problem in finding the best people, it puts stress and anxiety on brand-new hires as can not endure the speed and pressure that the company anticipates them to bear.

Twin Coverage Lines: Beginners locate this business culture cumbersome and also tough to cope with especially as dotted line partnerships are indicated to be weak generally as well as objective setting and performance examination is still done by the solid line supervisor. This indicates that newbies can lose clearness about their corresponding roles and also objectives particularly as populated line coverage does not keep them in straight interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles despite the fact that it had actually been speculated that the latter would certainly take Krasnow's placement came as a blow to her spirits. Lewis might have been qualified as well as proper for the work however the reality that Kransnow's separation would certainly make Coles a direct record to Lewis may have been the reason for Coles' resignation from services.

Anxiety & Work Instability: Concern as well as insecurity can be identified as two significant worries that Lewis would be dealing with specifically as the merging has currently be cancelled and also 2 elderly execs of the advertising and marketing department would be leaving. The whole duty of the department would certainly be dropping on Lewis's shoulders that would certainly not just be in charge of brining concerning a social adjustment but would certainly likewise need to confirm herself in her brand-new function.

Incompatible Administration Style of Leader: Lewis's administration style as well as its conflict with the marketing department's function can also be seen as an OB difficulty especially as she has actually been utilized to taking care of issues in the procedures department where employees are instructed to focus on procedures and obtain them right. The advertising and marketing division on the other hand can be viewed as a group of people that are used to being nurtured by Krasnow that concentrated extra on result than procedures.

Interdepartmental Arguments: Interdepartmental disputes between three divisions, marketing, merchandizing and procedures specifically over the allowance of the advertising mix can be recognized as another OB worry. Although the advertising and marketing department does not share the very same vision as the various other two divisions pertaining to the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and also procedures divisions do not concur over the marketing mix allocation amongst one another either.

Disintegration in Advertising And Marketing Department: Disintegration in between the advertising and marketing departments can be determined as an additional OB concern which could need further attention. The truth that the advertising and marketing areas in the advertising and marketing division are separated is avoiding both departments from getting from each various other's experience as well as expertise. Integration of advertising with retailing and also operations would end up being harder if the advertising division itself is degenerated which can be one more prospective OB issue.

Safety Regulation And The Rise Of Towngas In Hong Kong Analysis

Various theories have actually been made use of to describe the situations to obtain further clarity about the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of supervisors think that subordinates are passive and also lazy, have little passion as well as withstand change. The situation at Safety Regulation And The Rise Of Towngas In Hong Kong is not entirely following Theory X, it can be seen that new hires are locating this atmosphere rather difficult which may ultimately lead to a higher inclination of the administration in the direction of Theory X. Also while evaluating Lewis's administration design, theory X might have been appropriate in the procedures division to some extent however the Marketing department would call for dependence on Concept Y in order to get the imagination and creativity from the teams.

Tuckman's Team effort Concept: Regarding Lewis's problem concerning bringing consistency in between the advertising and marketing division is worried, this would at first lead to contrast as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's concept displayed in appendix 3, throughout the preliminary stage of group advancement, people might not bond, as they are hectic discovering their location in the team. By incorporating the advertising and marketing division's job, there may be the same preliminary detach which might cause the 2nd stage of 'storming' where the teams test each other. However, it is only throughout the third stage or 'norming' when they would integrate to share concepts before the team can cause harmony in the 4th stage 'executing'.

Bridges' Transition Model: According To William Bridge's concept (appendix 4), individuals are quite uncomfortable with modification, which is noticeable by the situation at Safety Regulation And The Rise Of Towngas In Hong Kong The scenario can be seen as a normal program of life if is researched according to Bridge's concept where he describes that people go through 3 phases of shift when they experience adjustment. 'Closing, losing and also Releasing', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When people are presented with change, they enter phase one and so there might be feelings like despair, uncertainty, aggravation, rage, worry, denial and also disorientation.The scenario at the marketing division of Safety Regulation And The Rise Of Towngas In Hong Kong is similar so Lewis can get comfortable with the concept that it is not phenomenal actions. In the 2nd phase, there may be a requirement to connect the gap in between the brand-new and old culture so Lewis might have to encounter this ordeal when Krasnow leaves. There might be low spirits and reduced performance at this stage which should not be taken as a trouble. It is during this phase that Lewis will need to offer guidance to the division to make sure that they can find an orientation. It can be seen exactly how Krasnow has already made this change much easier by making Lewis get involved in the division a year prior to his actual departure. Based on Bridges' Model, stage 3 will certainly bring about visibility to knowing, High energy and dedication as people will welcome the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has reviews the value of 'protection requires as being a lower level demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel safe and secure as well as out of risk' is at the 2nd level of needs. Prior to a staff member can be made to establish mentally, he requires to have his 'Physical 'and also 'Safety' needs met.

SWOT Analysis for Safety Regulation And The Rise Of Towngas In Hong Kong Case Study



Ramification of Analysis.

The OB analysis has actually considered numerous theories to recognize how to deal with the present circumstance at hand. The complying with 3 options have been recommended to aid Lewis manage the organizational difficulties in the marketing division. Each of these alternatives has been suggested for reducing the shift required to bring the advertising department in accordance with the demands of the market as well as for making the social change that would certainly adhere to as soon as the current leader leaves.

Integration of marketing and advertising features. Separating Adverting as well as Production functions. Integration of Advertising with Operations.

Analysis of Alternatives.

Integration of Advertising & Marketing Functions: The in-house marketing agency of Safety Regulation And The Rise Of Towngas In Hong Kong is currently toughness for the company in terms of saving up on overheads connected to marketing and also promo. Given that no brand-new employment has actually been done after Bridget Cole's separation with the coverage line being straight appointed to Krasnow for the advertising function, this is a favorable opportunity for incorporating the marketing and advertising features. Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merging days has proficiency in business-to-business advertising and marketing along with company as well as retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing functions.

The benefit of this strategy is that it will certainly incorporate both functions while reducing the demand for employing an additional source for marketing. Lewis would certainly be heading the advertising division as well as in any kind of case her replacement would certainly be required for the present role that she is executing. The drawback of this alternative is that outside hiring may bring about resentment from interior personnel that might be eying the position of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting as well as Manufacturing: Offered the affordable pressures as well as 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 device. Because the majority of advertising agencies had these two features as separate systems, it makes more sense to follow the standard. Along with this, both functions might be able to concentrate on their core activates extra effectively. The downside of this approach would be that added costs would have to be borne for setting up different manufacturing functions. A manufacturing head might have to be employed which can increase overheads for the company.

Combination of Advertising And Marketing with Workflows: Because Lewis is already taking care of the marketing as well as operations divisions at the same time; it makes sense to incorporate the 2 functions since she has been effectively taking care of both ends. The reality that Lewis has to adapt her monitoring style for the advertising division recommends that these two departments would certainly be culturally varied.

Suggestion.



An analysis of the 3 alternatives shows that integration of advertising and marketing and procedures would certainly not be a viable action due to the substantial differences between the two departments regardless of the truth that currently Lewis is taking care of both. While separation of the production feature might have been a beneficial relocation for the advertising and marketing department, the truth that it would mean putting a 3rd feature under Lewis's wing implies this must be avoided.

Action Strategy.
Recommendation
Lewis will certainly take over the duty of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

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

Manufacturing feature will stay part of advertising under advertising function.

Lewis will divide herself from procedures.

An autonomous management design with staff member empowerment will be used in marketing department.

Open up door policy and emphasis on cross departmental interaction will certainly be aimed at eliminating dissonance.

Contingency plan.

If the integration does not work out as prepared, a contingency plan would certainly comply with which would certainly separate the production function from the advertising and marketing feature to decrease the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the marketing department without an SVP. In that case the manufacturing function will definitely be separated by placing it under an SVP production.