Satelite Distribuidora De Petroleo Case Study Solution


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Satelite Distribuidora De Petroleo Case Study Solution

Background and Facts

Satelite Distribuidora De Petroleo an office materials retailer for small and medium sized businesses has recently been involved in preparing for a merger with its rival Home Deport, which has actually impacted effectiveness degrees in departmentswith the senior supervisor involved in legal problems presented by the government Profession Commission. With the Advertising Head putting forward the news of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the role in the near future. With challenges in the form of a possible cultural change and also low worker morale, the company needs a full reengineering effort at the marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural adjustment at the advertising division of Satelite Distribuidora De Petroleo is enhancing unpredictability in the working environment causing numerous difficulties 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 role in influencing strategic decisions because Stapes Inc. needed to desert its strategies of combining with Workplace Deport after the Federal Profession Commission's intervention while doing so. Offered the truth that the store has an international presence with branches in UK, U.S.A., Canada and Germany, political factors in each of these countries may be able to affect performance or critical goals. Federal Trade Payment's antitrust fit against the merger took up valuable time of the company's senior monitoring recommending that 'political' factors can have significant effects for an international business.

Economic Factors: Financial factors such as the appearance of small businesses in the international scenario recommend that Satelite Distribuidora De Petroleo is prospering in a setting where there is potential development of companies. Along with this, fact that shop consumers are mainly searching for office supplies for home offices suggests that the market has a rising trend of entrepreneurs as well as home companies.

Social factors: Social fads in the economic climate show that consumers are seeking benefit along with appealing rates. Market research shows how the customer for Satelite Distribuidora De Petroleo does not have understanding concerning finding options which can use a mix of convenience as well as inexpensive.

Technological factors: Modern technology plays an important role in Satelite Distribuidora De Petroleo's organisation strategy especially as the company is piloting Innovation facilities which would supply technology sales and also support in the type of memory upgrades, outer installations. (Summary of BUG in appendix 2).

OB Issues as well as Effects.

Numerous underlying Business Actions issues can be seen in Satelite Distribuidora De Petroleo's case as highlighted in this section.

Worries about cultural modification: There is worry regarding a cultural change that would certainly occur once Todd Krasnow leaves from his setting as the Exec Vice President of Advertising with a lot of the employee currently revealing discontent over this possible action. This predicted change has actually developed stress in the work environment which has been coupled with the previous stress of preparing the firm for a possible merger with House Deport.
Pest Analysis
Difficult Work Setting for Newcomers: There is lack of employees that can match the difficult atmosphere of a fast-paced organization. Not just does this bring about problem in discovering the right people, it puts tension on brand-new hires as can not withstand the rate as well as pressure that the organization anticipates them to birth.

Twin Coverage Lines: Newbies find this business society troublesome and difficult to manage especially as populated line connections are meant to be weak in general and also unbiased setting and also performance examination is still done by the strong line supervisor. This indicates that newbies might shed clarity concerning their corresponding roles as well as purposes particularly as populated line reporting does not keep them in direct interaction with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles even though it had actually been hypothesized that the last would certainly take Krasnow's setting came as an impact to her morale. Lewis may have been qualified and ideal for the work yet the truth that Kransnow's departure would make Coles a direct report to Lewis may have been the reason for Coles' resignation from solutions.

Concern & Job Instability: Anxiety as well as instability can be determined as 2 significant problems that Lewis would be taking care of especially as the merging has actually currently be terminated as well as 2 elderly execs of the advertising and marketing division would certainly be leaving. The whole duty of the department would be falling on Lewis's shoulders who would not simply supervise of brining concerning a social adjustment however would also need to confirm herself in her new role.

Inappropriate Monitoring Style of Leader: Lewis's management design and its incompatibility with the advertising and marketing division's role can additionally be seen as an OB challenge specifically as she has been utilized to managing problems in the operations department where employees are shown to concentrate on procedures and obtain them. The advertising and marketing department on the various other hand can be seen as a team of individuals who are made use of to being supported by Krasnow that focused more on result than processes.

Interdepartmental Arguments: Interdepartmental arguments in between 3 divisions, marketing, merchandizing and also operations specifically over the allocation of the marketing mix can be identified as another OB concern. Although the marketing department does not share the very same vision as the various other two divisions regarding the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing and also operations departments do not concur over the advertising mix allocation amongst one another either.

Fragmentation in Advertising Department: Fragmentation between the marketing and advertising departments can be identified as another OB problem which can need more focus. The reality that the advertising and marketing areas in the marketing department are detached is preventing both divisions from gaining from each various other's experience and competence. Assimilation of advertising with retailing and also procedures would certainly come to be harder if the advertising division itself is degenerated which can be another possible OB worry.

Satelite Distribuidora De Petroleo Analysis

Various theories have actually been used to discuss the scenarios to obtain further clarity concerning the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors believe that staffs are easy and lazy, have little aspiration and also resist change. The circumstance at Satelite Distribuidora De Petroleo is not completely adhering to Concept X, it can be seen that brand-new hires are finding this setting rather demanding which might ultimately lead to a greater inclination of the monitoring towards Concept X. Also while examining Lewis's monitoring style, theory X might have been appropriate in the procedures division to some level but the Advertising and marketing department would need dependence on Theory Y in order to obtain the imagination and originality from the groups.

Tuckman's Synergy Theory: Regarding Lewis's concern regarding bringing consistency between the advertising and marketing division is concerned, this would originally cause conflict as gone over by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). According to Tuckman's theory received appendix 3, throughout the first stage of team advancement, individuals may not bond, as they are busy finding their location in the team. By incorporating the marketing and advertising division's job, there may coincide preliminary disconnect which can bring about the second stage of 'storming' where the teams test one another. However, it is only throughout the third phase or 'norming' when they would integrate to share suggestions before the group can produce harmony in the 4th phase 'performing'.

When people are presented with modification, they go into phase one and also so there might be feelings like unhappiness, uncertainty, frustration, temper, anxiety, denial and also disorientation.The circumstance at the advertising division of Satelite Distribuidora De Petroleo is comparable so Lewis can get comfy with the suggestion that it is not extraordinary behavior. It is during this phase that Lewis will have to give advice to the division so that they can find a feeling of direction. It can be seen just how Krasnow has already made this change much easier by making Lewis get involved in the department a year prior to his actual departure.
Vrio Analysis
Maslow's Requirement hierarchy: The OB issue pertaining to insecurity at the workplace has actually been triggered firstly by the modification in monitoring and secondly by the reality that the merger will certainly no more be launched. Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has goes over the value of 'security requires as being a reduced degree need 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 safe and secure and also unharmed' goes to the second level of requirements. Before a staff member can be made to establish emotionally, he needs to have his 'Physical 'and also 'Safety and security' requires satisfied. This suggests that unless the employees are made to feel secure regarding their existing work condition in Satelite Distribuidora De Petroleo they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Satelite Distribuidora De Petroleo Case Study

Effects of Analysis.

The OB analysis has actually looked at various concepts to comprehend just how to cope with the current scenario handy. The following three alternatives have been recommended to assist Lewis take care of the organizational challenges in the marketing division. Each of these choices has been recommended for alleviating the transition needed to bring the advertising and marketing division in line with the needs of the marketplace as well as for making the social adjustment that would comply with when the existing leader leaves.

Integration of advertising and marketing functions. Separating Adverting and also Production functions. Combination of Advertising And Marketing with Workflow.

Assessment of Alternatives.

Integration of Marketing & Marketing Functions: The in-house marketing company of Satelite Distribuidora De Petroleo is currently strength for the organization in regards to conserving up on overheads associated with advertising and also promotion. Since no new recruitment has been done after Bridget Cole's departure with the coverage line being directly assigned to Krasnow for the advertising and marketing feature, this is a favorable possibility for incorporating the advertising and marketing functions. Judith Shapiro that has earlier been interviewed by Lewis during the earlier merging days has experience in business-to-business advertising along with company and also retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to deal with both advertising and marketing features.

The advantage of this method is that it will certainly incorporate the two features while minimizing the need for hiring an extra resource for marketing. Along with this, Lewis would certainly be heading the advertising and marketing department and all the same her substitute would certainly be required for the current duty that she is carrying out. The drawback of this choice is that exterior hiring might bring about animosity from internal workers that may be eying the placement of EVP after Lewis takes control of Krasnow's position.

Separating Adverting as well as Manufacturing: Provided the affordable pressures as well as high top quality work called for from the marketing agency, it is advised that Lewis should allow the production unit to be a different feature from the advertising device. Considering that many marketing companies had these 2 features as different devices, it makes even more feeling to comply with the norm.

Combination of Advertising with Procedures: Since Lewis is currently taking care of the marketing and procedures departments all at once; it makes sense to incorporate the two features since she has been effectively taking care of both ends. The truth that Lewis has to adjust her management design for the advertising and marketing division recommends that these two departments would certainly be culturally diverse.


An analysis of the 3 options indicates that integration of advertising and operations would not be a possible relocation because of the substantial distinctions between both departments although that presently Lewis is handling both. While separation of the manufacturing function may have been a desirable relocation for the advertising and marketing department, the truth that it would certainly imply positioning a 3rd feature under Lewis's wing suggests this must be stayed clear of. The integration of the advertising division is the best alternative in regards to getting the ideal results from the division. An action plan for this option is talked about listed below.

Action Strategy.
Lewis will certainly take control of the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Manufacturing function will certainly stay part of marketing under advertising and marketing function.

Lewis will separate herself from operations.

A democratic leadership style with worker empowerment will certainly be used in marketing department.

Open up door plan and focus on cross department communication will certainly be targeted at eliminating disharmony.

Backup plan.

If the combination does not work out as intended, a backup plan would certainly follow which would certainly divide the manufacturing function from the marketing feature to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the advertising and marketing department without an SVP. Because case the manufacturing feature will most definitely be separated by putting it under an SVP manufacturing.