Menu

Sengupta Fibres Ltd Case Study Analysis

CASE SOLUTION

Home >> Harvard >> Sengupta Fibres Ltd >>

Sengupta Fibres Ltd Case Study Solution

Background and Facts

Sengupta Fibres Ltd an office supplies seller for tiny as well as average sized businesses has recently been associated with planning for a merging with its competitor Home Deport, which has actually influenced effectiveness degrees in departmentswith the elderly supervisor associated with lawful issues put forth by the federal Trade Payment. With the Advertising 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 role in the future. With difficulties in the type of a potential cultural modification and low staff member morale, the organization wants a complete reengineering initiative at the marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The potential cultural modification at the advertising and marketing division of Sengupta Fibres Ltd is enhancing unpredictability in the working environment leading to numerous obstacles for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting strategic decisions considering that Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Trade Compensation's intervention while doing so. Offered the reality that the store has a worldwide existence with branches in UK, USA, Canada and also Germany, political consider each of these countries may have the ability to affect efficiency or strategic objectives. Federal Trade Compensation's antitrust match against the merger used up important time of the organization's elderly management suggesting that 'political' factors can have severe ramifications for an international organisation.

Economic Factors: Financial factors such as the appearance of small companies in the global scenario recommend that Sengupta Fibres Ltd is growing in a setting where there is potential growth of businesses. In addition to this, fact that store consumers are mainly trying to find workplace materials for home offices recommends that the marketplace has a climbing fad of business owners and home based services.

Social factors: Social trends in the economic climate show that clients are searching for benefit along with eye-catching prices. Marketing research demonstrates how the consumer for Sengupta Fibres Ltd lacks recognition concerning finding options which can supply a combination of benefit as well as affordable.

Technological factors: Technology plays a vital function in Sengupta Fibres Ltd's organisation strategy specifically as the organization is piloting Technology facilities which would certainly offer innovation sales and also assistance in the kind of memory upgrades, outer installations. (Summary of PARASITE in appendix 2).

OB Issues and Effects.

Numerous underlying Business Actions concerns can be seen in Sengupta Fibres Ltd's case as highlighted in this section.

Worries concerning social modification: There is uneasiness concerning a cultural change that would certainly happen when Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Marketing with a lot of the personnel already showing discontent over this potential action. This expected change has actually created anxiety in the office which has been combined with the previous tension of preparing the firm for a prospective merger with Residence Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is shortage of personnel that can match the stressful environment of a fast-paced organization. Not just does this result in problem in locating the appropriate individuals, it puts tension on brand-new hires as can not hold up against the rate and pressure that the organization anticipates them to bear.

Dual Reporting Lines: Newcomers find this business culture troublesome and hard to manage especially as dotted line relationships are meant to be weak as a whole and also unbiased setting as well as performance assessment is still done by the solid line supervisor. This indicates that beginners might shed clearness concerning their corresponding roles as well as goals especially as populated line reporting does not maintain them in straight communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles although it had been guessed that the latter would certainly take Krasnow's setting came as an impact to her morale. Lewis might have been capable and suitable for the work but the truth that Kransnow's departure would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Task Insecurity: Concern as well as insecurity can be determined as 2 major issues that Lewis would be taking care of especially as the merging has actually now be cancelled and also 2 elderly executives of the advertising and marketing department would certainly be leaving. The whole obligation of the department would certainly be falling on Lewis's shoulders who would not simply supervise of brining regarding a social adjustment but would certainly also need to show herself in her brand-new role.

Inappropriate Administration Design of Leader: Lewis's management style and also its conflict with the advertising division's role can additionally be viewed as an OB difficulty especially as she has actually been utilized to dealing with issues in the operations division where employees are shown to concentrate on processes as well as get them right. The advertising division on the other hand can be seen as a group of individuals who are utilized to being nurtured by Krasnow that concentrated a lot more on outcome than processes.

Interdepartmental Disputes: Interdepartmental disputes in between 3 divisions, advertising and marketing, merchandizing as well as procedures respectively over the allocation of the advertising and marketing mix can be identified as another OB issue. The advertising department does not share the exact same vision as the various other 2 divisions regarding the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and operations divisions do not concur over the marketing mix allowance among one another either.

Disintegration in Marketing Division: Fragmentation between the advertising and marketing divisions can be determined as an additional OB issue which might need further interest. The truth that the marketing and advertising sections in the advertising and marketing division are separated is preventing both departments from getting from each various other's experience and know-how. Integration of marketing with retailing as well as procedures would certainly come to be harder if the marketing department itself is broken down which can be one more potential OB problem.

Sengupta Fibres Ltd Analysis

Various concepts have actually been made use of to explain the scenarios to get more quality about the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of supervisors believe that juniors are passive as well as careless, have little passion and withstand modification. The situation at Sengupta Fibres Ltd is not totally adhering to Theory X, it can be seen that brand-new hires are locating this environment rather stressful which might eventually lead to a higher inclination of the administration towards Concept X. Even while analyzing Lewis's monitoring design, theory X might have been ideal in the procedures department to some level however the Advertising division would certainly need dependence on Theory Y in order to obtain the creativity and also creativity from the teams.

Tuckman's Synergy Concept: As much as Lewis's worry concerning bringing consistency in between the advertising and marketing as well as advertising and marketing department is worried, this would initially lead to conflict as discussed by Bruce Tuckman in his 'Synergy Theory'. By combining the advertising and marketing and also advertising department's work, there may be the very same first separate which could lead to the 2nd phase of 'storming' where the groups challenge one another.

When individuals are offered with modification, they get in stage one and so there may be emotions like sadness, uncertainty, irritation, temper, worry, rejection and disorientation.The circumstance at the advertising division of Sengupta Fibres Ltd is similar so Lewis can obtain comfortable with the idea that it is not extraordinary habits. It is throughout this stage that Lewis will certainly have to offer guidance to the division so that they can discover a sense of direction. It can be seen exactly how Krasnow has currently made this transition less complicated by making Lewis get included in the department a year before his real separation.
Vrio Analysis
Maslow's Need hierarchy: The OB issue related to insecurity at the work environment has been caused firstly by the adjustment in management as well as second of all by the fact that the merging will no more be started. Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has reviews the value of 'protection needs as being a lower degree requirement of a human for triggering inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the demand to really feel protected and also safe' is at the second level of demands. Prior to a worker can be made to establish mentally, he needs to have his 'Physical 'and also 'Safety' requires met. This shows that unless the personnel are made to really feel secure concerning their current work status in Sengupta Fibres Ltd they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Sengupta Fibres Ltd Case Study



Ramification of Analysis.

The OB analysis has actually taken a look at various concepts to comprehend how to handle the current circumstance handy. The adhering to 3 options have been recommended to aid Lewis deal with the business obstacles in the advertising and marketing division. Each of these options has been recommended for easing the shift required to bring the advertising and marketing department in accordance with the requirements of the market and for making the cultural change that would certainly adhere to as soon as the existing leader leaves.

Integration of marketing and advertising functions. Separating Adverting and Manufacturing features. Combination of Advertising with Operations.

Assessment of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis during the earlier merger days has knowledge in business-to-business advertising and marketing along with company and retail advertising experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to take care of both marketing and marketing functions.

The advantage of this technique is that it will integrate both features while minimizing the requirement for employing an additional resource for marketing. Lewis would certainly be heading the advertising and marketing department and also in any kind of case her substitute would certainly be needed for the existing function that she is performing. The drawback of this alternative is that external hiring may cause resentment from interior employees that may be looking at the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting as well as Production: Provided the competitive pressures and high quality job required from the ad agency, it is recommended that Lewis should allow the production unit to be a separate function from the advertising unit. Considering that many ad agency had these two features as separate devices, it makes more sense to follow the norm. Along with this, both functions might be able to concentrate on their core turns on more effectively. However, the negative aspect of this approach would certainly be that added prices would have to be borne for setting up different production functions. In addition to this, a production head may need to be hired which can increase expenses for the company.

Combination of Marketing with Operations: Since Lewis is already taking care of the advertising and operations divisions at the same time; it makes feeling to incorporate the two functions because she has actually been successfully taking treatment of both ends. The fact that Lewis has to adapt her management design for the advertising and marketing division suggests that these 2 divisions would certainly be culturally varied.

Referral.



An examination of the 3 alternatives indicates that integration of advertising as well as operations would not be a practical move due to the vast differences in between the 2 departments in spite of the truth that currently Lewis is handling both. While separation of the production feature may have been a positive relocation for the advertising and marketing department, the reality that it would indicate positioning a 3rd function under Lewis's wing means this ought to be prevented.

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

Advertising and Marketing features would be combined.

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

Production feature will remain part of advertising and marketing under advertising feature.

Lewis will separate herself from operations.

An autonomous leadership design with staff member empowerment will certainly be made use of in marketing division.

Open up door plan and also focus on cross department communication will certainly be targeted at getting rid of discord.

Backup plan.

If the combination does not work out as planned, a backup plan would adhere to which would divide the manufacturing feature from the marketing feature to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising division without an SVP. In that case the manufacturing feature will definitely be separated by putting it under an SVP manufacturing.