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


Home >> Harvard >> Safety Regulation And The Rise Of Towngas In Hong Kong >>

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

Background and Facts

Safety Regulation And The Rise Of Towngas In Hong Kong a workplace materials seller for small as well as average sized businesses has actually recently been associated with preparing for a merging with its competitor Home Deport, which has affected performance levels in departmentswith the senior supervisor associated with legal issues put forth by the federal Profession Payment. With the Advertising Head advancing the news of his separation from the company in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the near future. With obstacles in the type of a prospective cultural adjustment and also reduced worker spirits, the company wants a total reengineering initiative at the marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The prospective cultural change at the advertising department of Safety Regulation And The Rise Of Towngas In Hong Kong is boosting uncertainty in the working environment resulting in numerous 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 impacting tactical decisions because Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Profession Compensation's intervention in the process. Offered the fact that the store has an international existence with branches in UK, USA, Canada and also Germany, political consider each of these nations might have the ability to impact efficiency or critical objectives. Federal Profession Compensation's antitrust fit against the merging occupied valuable time of the organization's elderly management recommending that 'political' factors can have significant effects for a worldwide service.

Economic Factors: Economic factors such as the emergence of small companies in the global scenario suggest that Safety Regulation And The Rise Of Towngas In Hong Kong is prospering in an atmosphere where there is possible growth of organisations. Reality that store clients are primarily looking for office products for house workplaces recommends that the market has a rising pattern of entrepreneurs and home based businesses.

Social factors: Social fads in the economic situation show that clients are trying to find convenience as well as attractive costs. Marketing research demonstrates how the consumer for Safety Regulation And The Rise Of Towngas In Hong Kong lacks understanding regarding discovering remedies which can use a combination of comfort and also inexpensive.

Technical factors: Innovation plays a vital duty in Safety Regulation And The Rise Of Towngas In Hong Kong's business method specifically as the organization is piloting Innovation facilities which would offer technology sales and also support in the form of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).

OB Issues as well as Effects.

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

Uneasiness regarding social change: There is concern concerning a social adjustment that would certainly happen as soon as Todd Krasnow leaves from his position as the Executive Vice President of Advertising And Marketing with most of the team member currently showing discontent over this prospective action. This expected change has produced stress and anxiety in the office which has been coupled with the past stress and anxiety of preparing the firm for a prospective merger with Residence Deport.
Pest Analysis
Difficult Task Environment for Newcomers: There is shortage of employees that can match the difficult atmosphere of a fast-paced organization. Not only does this lead to difficulty in finding the appropriate people, it places anxiety on brand-new hires as can not stand up to the rate as well as pressure that the company anticipates them to bear.

Dual Reporting Lines: Novices discover this business culture cumbersome and hard to handle specifically as populated line relationships are indicated to be weaker generally and also objective setup and also performance analysis is still done by the solid line supervisor. This suggests that newbies can lose clarity about their corresponding duties and also purposes specifically as dotted line reporting does not keep them in direct communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles even though it had been speculated that the latter would certainly take Krasnow's position came as an impact to her morale. Lewis may have been qualified and also ideal for the work however the truth that Kransnow's departure would make Coles a direct report to Lewis might have been the factor for Coles' resignation from solutions.

Anxiety & Work Insecurity: Fear and instability can be identified as two significant problems that Lewis would be taking care of specifically as the merging has currently be terminated and also 2 elderly execs of the advertising and marketing division would be leaving. The entire responsibility of the department would certainly be dropping on Lewis's shoulders who would not just be in charge of brining concerning a social change but would certainly likewise have to verify herself in her brand-new function.

Inappropriate Management Style of Leader: Lewis's management style as well as its conflict with the advertising division's duty can likewise be viewed as an OB obstacle specifically as she has been used to handling problems in the operations division where workers are taught to focus on processes and obtain them right. The marketing division on the various other hand can be seen as a group of individuals who are used to being nurtured by Krasnow who concentrated a lot more on result than procedures.

Interdepartmental Differences: Interdepartmental disputes in between 3 departments, advertising and marketing, merchandizing and operations respectively over the allocation of the marketing mix can be determined as another OB concern. The advertising and marketing division does not share the exact same vision as the various other 2 departments concerning the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing and also operations divisions do not agree over the marketing mix allowance among one an additional either.

Fragmentation in Marketing Division: Disintegration between the marketing and advertising divisions can be identified as another OB concern which can need further focus. The reality that the advertising and marketing sections in the advertising and marketing department are separated is avoiding both divisions from acquiring from each other's experience and proficiency. Assimilation of advertising and marketing with merchandising as well as procedures would certainly end up being harder if the marketing department itself is disintegrated which can be another possible OB worry.

Safety Regulation And The Rise Of Towngas In Hong Kong Analysis

Various theories have been utilized to describe the conditions to obtain additional clarity about the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers think that juniors are easy and also lazy, have little passion as well as stand up to modification. The scenario at Safety Regulation And The Rise Of Towngas In Hong Kong is not completely following Concept X, it can be seen that new hires are locating this setting instead demanding which might at some point lead to a better inclination of the administration towards Concept X. Also while evaluating Lewis's monitoring design, theory X might have been appropriate in the procedures division to some level but the Advertising department would certainly need dependence on Concept Y in order to obtain the creativity and also originality from the teams.

Tuckman's Teamwork Theory: As far as Lewis's concern regarding bringing consistency between the marketing and advertising department is worried, this would at first cause clash as talked about by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). Based on Tuckman's theory displayed in appendix 3, during the preliminary stage of team advancement, individuals might not bond, as they are hectic finding their area in the group. By integrating the marketing and advertising department's job, there may coincide preliminary separate which could result in the 2nd stage of 'storming' where the teams challenge one another. It is just during the third stage or 'norming' when they would come with each other to share ideas prior to the team can bring around harmony in the fourth phase 'executing'.

When people are provided with adjustment, they get in phase one and so there may be emotions like unhappiness, uncertainty, disappointment, rage, anxiety, denial and also disorientation.The circumstance at the advertising and marketing department of Safety Regulation And The Rise Of Towngas In Hong Kong is similar so Lewis can get comfy with the idea that it is not amazing actions. It is during this stage that Lewis will certainly have to give assistance to the division so that they can find a sense of direction. It can be seen exactly how Krasnow has currently made this shift simpler by making Lewis obtain included in the department a year prior to his actual departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has goes over the value of 'safety 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 how 'the requirement to really feel secure and out of danger' is at the 2nd level of needs. Prior to a worker can be made to create psychologically, he needs to have his 'Physical 'and also 'Safety' requires satisfied.

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

Effects of Analysis.

The OB analysis has considered various theories to understand exactly how to cope with the existing situation at hand. The following three alternatives have been suggested to aid Lewis handle the organizational obstacles in the marketing division. Each of these alternatives has actually been suggested for easing the transition required to bring the advertising and marketing department in line with the requirements of the marketplace and for making the cultural modification that would comply with once the current leader leaves.

Combination of advertising and marketing features. Separating Adverting and also Production features. Assimilation of Advertising with Procedures.

Analysis of Alternatives.

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

The benefit of this method is that it will certainly integrate both features while reducing the demand for hiring an added resource for marketing. Along with this, Lewis would be heading the advertising division and also in any case her replacement would certainly be required for the existing function that she is performing. The downside of this choice is that exterior hiring may cause resentment from interior employees who may be considering the position of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting as well as Production: Given the affordable pressures and also high top quality work called for from the marketing firm, it is advised that Lewis needs to allow the manufacturing device to be a different feature from the advertising system. Since most advertising firms had these 2 functions as separate devices, it makes more sense to comply with the standard.

Combination of Advertising with Procedures: Since Lewis is already taking care of the marketing and also procedures departments all at once; it makes good sense to integrate the two functions considering that she has actually been successfully caring for both ends. The fact that the two divisions already have major distinctions over allocation of sources recommends that this combination may be able to produce consistency particularly as Lewis would certainly be heading both ends.However there are different disadvantages of this action especially as it would certainly put way too much concern over Lewis's shoulders. The fact that Lewis has to adapt her administration style for the marketing division recommends that these two divisions would be culturally diverse. Along with this, Lewis may not have the ability to use one sort of management style to both divisions which might lead to inadequacy in either among the two functions.


An assessment of the three alternatives shows that assimilation of advertising and marketing and procedures would not be a possible move due to the vast distinctions in between the two departments despite the fact that currently Lewis is handling both. While splitting up of the production function may have been a favorable action for the advertising department, the fact that it would certainly suggest placing a third feature under Lewis's wing implies this should be stayed clear of. The assimilation of the advertising and marketing department is the best option in regards to obtaining the optimum arise from the division. An action prepare for this choice is talked about below.

Activity Plan.
Lewis will certainly take over the role of EVP Advertising after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Manufacturing function will remain part of marketing under advertising feature.

Lewis will certainly divide herself from procedures.

An autonomous management style with employee empowerment will certainly be used in advertising and marketing department.

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

Backup plan.

If the combination does not exercise as planned, a backup strategy would certainly follow which would divide the manufacturing feature from the advertising and marketing function to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising division without an SVP. In that case the production function will most definitely be divided by putting it under an SVP manufacturing.