Satelite Distribuidora De Petroleo Case Study Analysis


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Satelite Distribuidora De Petroleo Case Study Analysis

Background and Facts

Satelite Distribuidora De Petroleo a workplace supplies store for small and average sized companies has actually just recently been associated with preparing for a merger with its rival Residence Deport, which has affected effectiveness degrees in departmentswith the senior supervisor associated with lawful problems put forth by the government Profession Payment. With the Advertising and marketing Head advancing the information of his departure from the business in one year, Jeannie Lewis, the present head of operations has actually been asked to take the duty in the near future. With obstacles in the kind of a potential social change as well as reduced worker morale, the organization is in need of a total reengineering initiative at the advertising division.

Trouble Declaration

The potential social change at the marketing division of Satelite Distribuidora De Petroleo is boosting uncertainty in the working environment leading to different difficulties for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in affecting tactical choices because Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Trade Compensation's treatment in the process. Given the truth that the store has a worldwide presence with branches in UK, USA, Canada and Germany, political factors in each of these nations may be able to affect performance or strategic objectives. Federal Profession Payment's antitrust match against the merging used up valuable time of the company's senior management suggesting that 'political' factors can have severe ramifications for an international business.

Economic Factors: Economic factors such as the introduction of small companies in the global circumstance recommend that Satelite Distribuidora De Petroleo is prospering in an atmosphere where there is prospective growth of organisations. Along with this, fact that shop customers are primarily trying to find office supplies for home offices suggests that the marketplace has a climbing fad of business owners and also home based services.

Social factors: Social trends in the economic climate show that customers are seeking convenience along with attractive costs. Market research shows how the consumer for Satelite Distribuidora De Petroleo lacks understanding regarding discovering remedies which can supply a combination of convenience as well as affordable.

Technological factors: Innovation plays a vital function in Satelite Distribuidora De Petroleo's business technique specifically as the company is piloting Technology centers which would certainly offer modern technology sales and also support in the form of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).

OB Issues as well as Manifestations.

Numerous underlying Organizational Behavior concerns can be seen in Satelite Distribuidora De Petroleo's case as highlighted in this section.

Worries concerning cultural adjustment: There is apprehension concerning a social modification that would certainly happen when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Marketing with the majority of the staff members already revealing unhappiness over this possible relocation. This expected change has actually developed stress and anxiety in the work environment which has actually been paired with the previous anxiety of preparing the company for a possible merger with Home Deport.

Difficult Work Environment for Newcomers: There is scarcity of employees that can match the demanding environment of a fast-paced company. Not just does this bring about problem in finding the ideal individuals, it puts stress on new hires as can not endure the rate as well as stress that the organization anticipates them to birth.

Twin Reporting Lines: Newcomers discover this organizational society cumbersome and also tough to manage specifically as dotted line connections are implied to be weak generally and also objective setup and also efficiency evaluation is still done by the solid line supervisor. This implies that beginners might lose quality about their corresponding duties and purposes especially as dotted line reporting does not keep them in straight interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles even though it had actually been speculated that the last would certainly take Krasnow's position came as a blow to her spirits. Lewis may have been capable and also suitable for the task yet the reality that Kransnow's separation would certainly make Coles a straight report to Lewis may have been the reason for Coles' resignation from solutions.

Concern & Work Instability: Concern and also instability can be recognized as 2 significant issues that Lewis would be handling particularly as the merger has currently be cancelled and 2 senior executives of the advertising division would certainly be leaving. The entire responsibility of the department would be dropping on Lewis's shoulders who would certainly not simply supervise of brining about a social modification yet would likewise need to confirm herself in her brand-new function.

Incompatible Monitoring Design of Leader: Lewis's management style and also its incompatibility with the marketing department's function can also be seen as an OB obstacle especially as she has actually been used to managing concerns in the operations division where workers are shown to concentrate on procedures and also obtain them right. The marketing department on the various other hand can be seen as a team of individuals that are made use of to being nurtured by Krasnow who focused much more on result than procedures.

Interdepartmental Differences: Interdepartmental disagreements in between three divisions, advertising and marketing, merchandizing as well as operations respectively over the allowance of the marketing mix can be recognized as another OB issue. The advertising division does not share the same vision as the various other 2 departments pertaining to the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and procedures divisions do not concur over the advertising mix allowance among one an additional either.

Disintegration in Advertising And Marketing Department: Fragmentation in between the marketing and advertising departments can be determined as one more OB concern which can need more attention. The fact that the advertising and marketing sections in the advertising and marketing division are separated is protecting against both divisions from gaining from each other's experience and also expertise. Assimilation of advertising with retailing as well as operations would certainly end up being harder if the advertising and marketing division itself is broken down which can be one more prospective OB worry.

Satelite Distribuidora De Petroleo Analysis

Numerous theories have actually been used to describe the scenarios to obtain more clearness about the situation handy.

McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers believe that juniors are easy and careless, have little ambition as well as resist change. The scenario at Satelite Distribuidora De Petroleo is not entirely adhering to Concept X, it can be seen that new hires are locating this setting rather difficult which may eventually lead to a better disposition of the administration towards Concept X. Even while assessing Lewis's administration design, concept X may have been ideal in the operations department to some degree but the Marketing division would need dependence on Concept Y in order to get the imagination and also creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's concern concerning bringing harmony between the marketing and also advertising department is concerned, this would at first lead to conflict as discussed by Bruce Tuckman in his 'Teamwork Theory'. By incorporating the marketing and also marketing division's work, there may be the very same first separate which can lead to the 2nd stage of 'storming' where the groups challenge one an additional.

When people are presented with modification, they get in phase one as well as so there may be feelings like sadness, uncertainty, disappointment, temper, anxiety, denial and disorientation.The circumstance at the marketing division of Satelite Distribuidora De Petroleo is comparable so Lewis can get comfy with the concept that it is not phenomenal habits. It is throughout this stage that Lewis will have to offer assistance to the division so that they can locate a feeling of instructions. It can be seen exactly how Krasnow has currently made this change easier by making Lewis obtain entailed in the department a year prior to his actual departure.

Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has discusses the importance of 'safety needs as being a reduced level demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel protected as well as out of danger' is at the 2nd degree of demands. Before a worker can be made to establish psychologically, he requires to have his 'Physiological 'and also 'Safety' needs fulfilled.

SWOT Analysis for Satelite Distribuidora De Petroleo Case Study

Implication of Analysis.

The OB analysis has checked out numerous theories to understand just how to manage the current circumstance at hand. The following 3 alternatives have actually been suggested to help Lewis take care of the organizational difficulties in the advertising and marketing division. Each of these choices has actually been suggested for reducing the change required to bring the advertising and marketing department according to the demands of the market and also for making the cultural change that would certainly comply with once the existing leader leaves.

Combination of advertising and marketing functions. Dividing Adverting and also Production functions. Integration of Advertising with Procedures.

Examination of Alternatives.

Assimilation of Advertising & Advertising And Marketing Functions: The in-house marketing firm of Satelite Distribuidora De Petroleo is already toughness for the organization in terms of conserving up on overheads related to advertising and marketing and promotion. Considering that no new employment has been done after Bridget Cole's separation with the reporting line being straight appointed to Krasnow for the advertising and marketing function, this is a desirable chance 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 marketing in addition to firm and retail advertising and marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to manage both marketing and advertising features.

The benefit of this technique is that it will incorporate both functions while reducing the demand for working with an extra source for marketing. Along with this, Lewis would be heading the advertising department and regardless her substitute would be needed for the present role that she is performing. The disadvantage of this option is that external hiring may produce animosity from internal employees that might be eying the placement of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and also Production: Offered the competitive pressures as well as high quality work needed from the advertising agency, it is suggested that Lewis ought to allow the manufacturing device to be a different feature from the marketing system. Given that most advertising agencies had these 2 functions as separate units, it makes even more feeling to adhere to the standard.

Combination of Advertising with Workflows: Given that Lewis is already looking after the marketing and procedures departments concurrently; it makes sense to incorporate both functions because she has been efficiently looking after both ends. The fact that both departments already have major distinctions over appropriation of resources recommends that this integration may have the ability to produce harmony specifically as Lewis would be heading both ends.However there are different negative aspects of this action especially as it would place too much worry over Lewis's shoulders. The fact that Lewis needs to adjust her monitoring design for the advertising and marketing division recommends that these 2 departments would certainly be culturally diverse. Lewis may not be able to use one type of leadership design to both departments which might result in inadequacy in either one of the two features.


An assessment of the 3 alternatives shows that integration of marketing and also operations would not be a viable move because of the large distinctions between the two departments although that presently Lewis is taking care of both. While separation of the production function might have been a positive move for the marketing department, the truth that it would suggest placing a 3rd function under Lewis's wing indicates this should be prevented. The assimilation of the marketing division is the best alternative in terms of getting the optimal arise from the department. An activity prepare for this alternative is gone over below.

Action Strategy.

Lewis will certainly take control of the role of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be merged.

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

Manufacturing feature will certainly remain component of advertising and marketing under marketing function.

Lewis will separate herself from operations.

An autonomous leadership design with worker empowerment will certainly be made use of in advertising department.

Open door plan and focus on cross department communication will certainly be focused on getting rid of disharmony.

Contingency plan.

If the assimilation does not work out as intended, a contingency plan would adhere to which would separate the production function from the advertising and marketing feature to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the marketing department without an SVP. In that case the production function will most definitely be separated by putting it under an SVP production.