Siemens Electric Motor Works B Pricing Interdivisional Sales Case Study Solution


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Siemens Electric Motor Works B Pricing Interdivisional Sales Case Study Solution

Background and Facts

Siemens Electric Motor Works B Pricing Interdivisional Sales a workplace materials seller for tiny as well as moderate sized companies has lately been involved in preparing for a merging with its rival Residence Deport, which has impacted efficiency levels in departmentswith the elderly supervisor associated with lawful difficulties presented by the federal Trade Commission. With the Advertising and marketing Head putting forward the information of his separation from the company 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 kind of a possible social change and also reduced staff member morale, the company wants a total reengineering effort at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising department of Siemens Electric Motor Works B Pricing Interdivisional Sales is raising unpredictability in the working environment resulting in numerous 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 duty in influencing tactical decisions since Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Trade Compensation's intervention at the same time. Offered the truth that the shop has an international presence with branches in UK, USA, Canada and Germany, political factors in each of these nations might have the ability to affect efficiency or calculated goals. Federal Profession Compensation's antitrust suit versus the merging occupied important time of the company's senior administration suggesting that 'political' factors can have major ramifications for a global company.

Economic Factors: Economic factors such as the development of small businesses in the international circumstance suggest that Siemens Electric Motor Works B Pricing Interdivisional Sales is flourishing in an environment where there is possible growth of businesses. Reality that store customers are primarily looking for office materials for house workplaces suggests that the market has a rising trend of business owners as well as home based businesses.

Social factors: Social fads in the economy reveal that clients are seeking comfort as well as appealing rates. Market research shows how the customer for Siemens Electric Motor Works B Pricing Interdivisional Sales does not have understanding regarding finding services which can use a combination of convenience and low costs.

Technological factors: Technology plays a vital function in Siemens Electric Motor Works B Pricing Interdivisional Sales's service technique especially as the company is piloting Modern technology facilities which would certainly use modern technology sales and support in the type of memory upgrades, outer installations. (Summary of BUG in appendix 2).

OB Issues and also Effects.

A number of underlying Business Actions issues can be seen in Siemens Electric Motor Works B Pricing Interdivisional Sales's case as highlighted in this section.

Concerns regarding cultural change: There is concern regarding a social adjustment that would take place when Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising with most of the employee already revealing discontent over this prospective step. This predicted change has created tension in the office which has actually been coupled with the previous tension of preparing the company for a possible merger with House Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is shortage of workers that can match the demanding setting of a busy company. Not only does this result in problem in finding the right individuals, it puts stress on new hires as can not hold up against the rate as well as pressure that the organization anticipates them to birth.

Double Coverage Lines: Newbies find this organizational culture cumbersome and hard to handle especially as populated line connections are implied to be weak as a whole and objective setup and also performance examination is still done by the solid line supervisor. This suggests that novices could shed quality about their corresponding functions and also objectives specifically as dotted line coverage does not maintain them in direct communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles despite the fact that it had actually been guessed that the latter would certainly take Krasnow's setting came as an impact to her spirits. Lewis might have been capable and also suitable for the task but the truth that Kransnow's departure would make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Worry & Job Insecurity: Worry and also insecurity can be identified as two major problems that Lewis would certainly be managing particularly as the merger has actually currently be terminated and 2 senior executives of the advertising department would certainly be leaving. The whole responsibility of the division would certainly be falling on Lewis's shoulders who would not simply be in charge of brining concerning a social change yet would certainly additionally need to prove herself in her brand-new function.

Incompatible Administration Design of Leader: Lewis's administration design and also its conflict with the advertising division's function can likewise be viewed as an OB difficulty particularly as she has been made use of to dealing with issues in the procedures department where workers are shown to concentrate on procedures as well as get them right. The marketing department on the various other hand can be viewed as a team of individuals who are used to being nurtured by Krasnow who concentrated more on output than procedures.

Interdepartmental Differences: Interdepartmental differences in between three departments, advertising and marketing, merchandizing as well as operations respectively over the allocation of the advertising and marketing mix can be recognized as one more OB problem. The advertising department does not share the exact same vision as the various other two divisions concerning the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and procedures departments do not agree over the marketing mix appropriation among one another either.

Fragmentation in Advertising And Marketing Department: Fragmentation in between the marketing and advertising divisions can be identified as one more OB concern which might require additional attention. The fact that the marketing and advertising sections in the advertising division are separated is preventing both divisions from obtaining from each various other's experience as well as competence. Integration of marketing with retailing and also operations would certainly come to be harder if the advertising department itself is disintegrated which can be another possible OB worry.

Siemens Electric Motor Works B Pricing Interdivisional Sales Analysis

Numerous concepts have actually been used to describe the scenarios to get further clarity concerning the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most supervisors think that subordinates are passive and also careless, have little passion and resist adjustment. The difficult version of this concept stressed browbeating, limited controls, threats and also punishments. In time it generates low efficiency, subtle sabotage as well as competition (Offer, 2003). Although the scenario at Siemens Electric Motor Works B Pricing Interdivisional Sales is not totally following Concept X, it can be seen that new hires are finding this environment instead demanding which might at some point result in a higher disposition of the administration in the direction of Concept X. According to McGregor's advocated sight, which he called Concept Y, the vital job of the monitoring is to organize business problems to make sure that people can accomplish their own goals best by guiding their efforts towards organizational incentives. If individuals locate no contentment in their work, the monitoring would certainly have little choice however to depend on theory X and outside control (Deal, 2003). Also while analyzing Lewis's management style, theory X may have appropriated in the operations department to some extent but the Advertising division would certainly require reliance on Concept Y to get the creative thinking and creativity from the groups.

Tuckman's Team effort Concept: As for Lewis's problem about bringing consistency between the marketing and advertising division is concerned, this would initially result in conflict as gone over by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). As per Tuckman's concept received appendix 3, during the first stage of team advancement, individuals might not bond, as they are busy finding their location in the group. By integrating the marketing and advertising department's job, there might be the same first separate which can result in the 2nd phase of 'storming' where the groups test each other. However, it is only during the 3rd phase or 'norming' when they would come together to share suggestions prior to the group can bring about synergy in the 4th phase 'executing'.

When individuals are presented with adjustment, they get in stage one and so there may be emotions like unhappiness, unpredictability, stress, temper, worry, rejection as well as disorientation.The situation at the marketing department of Siemens Electric Motor Works B Pricing Interdivisional Sales is comparable so Lewis can obtain comfy with the suggestion that it is not extraordinary actions. It is during this stage that Lewis will have to give advice to the department so that they can locate a feeling of instructions. It can be seen exactly how Krasnow has already made this shift simpler by making Lewis obtain included in the department a year prior to his actual separation.
Vrio Analysis
Maslow's Requirement pecking order: The OB concern related to insecurity at the office has actually been set off first of all by the adjustment in management and second of all by the fact that the merger will no longer be started. Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has reviews the importance of 'safety and security needs as being a lower level requirement of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the requirement to really feel safe and secure and also unharmed' goes to the second degree of requirements. Prior to a staff member can be made to establish psychologically, he requires to have his 'Physical 'as well as 'Safety and security' needs satisfied. This shows that unless the personnel are made to really feel secure concerning their current work status in Siemens Electric Motor Works B Pricing Interdivisional Sales they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Siemens Electric Motor Works B Pricing Interdivisional Sales Case Study

Effects of Analysis.

The OB analysis has considered different concepts to understand just how to deal with the present situation available. The complying with three choices have actually been suggested to aid Lewis take care of the organizational obstacles in the advertising and marketing department. Each of these choices has actually been recommended for reducing the shift needed to bring the marketing department in accordance with the demands of the market and also for making the social change that would certainly adhere to once the present leader leaves.

Integration of marketing and advertising features. Separating Adverting and also Manufacturing features. Assimilation of Advertising with Operations.

Examination of Alternatives.

Judith Shapiro who has earlier been interviewed by Lewis during the earlier merger days has proficiency in business-to-business advertising and marketing along with firm and retail advertising experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to deal with both advertising as well as advertising and marketing functions.

The advantage of this technique is that it will incorporate both functions while decreasing the demand for hiring an added resource for advertising. In addition to this, Lewis would certainly be heading the advertising and marketing department as well as in any case her replacement would be needed for the present duty that she is doing. The downside of this choice is that external hiring might bring about resentment from inner workers who might be eying the setting of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and Manufacturing: Given the affordable stress and also high quality work called for from the marketing agency, it is recommended that Lewis must enable the manufacturing system to be a different function from the marketing device. Because a lot of advertising firms had these two functions as different units, it makes even more sense to follow the standard.

Integration of Marketing with Workflows: Given that Lewis is currently looking after the advertising and marketing and also operations departments all at once; it makes good sense to incorporate both features because she has been successfully dealing with both ends. The truth that both divisions currently have major differences over allowance of resources recommends that this integration may be able to cause consistency specifically as Lewis would certainly be heading both ends.However there are different drawbacks of this action specifically as it would certainly place too much worry over Lewis's shoulders. The fact that Lewis has to adjust her monitoring design for the advertising division suggests that these 2 divisions would be culturally varied. Lewis may not be able to apply one type of leadership design to both departments which can result in inadequacy in either one of the two functions.


An analysis of the three alternatives suggests that assimilation of advertising and also procedures would not be a feasible move as a result of the vast differences in between the two departments although that currently Lewis is handling both. While separation of the manufacturing feature might have been a desirable relocation for the advertising and marketing department, the truth that it would mean putting a third feature under Lewis's wing means this ought to be prevented too. The combination of the marketing division is the best option in terms of getting the optimum results from the department. An activity plan for this choice is reviewed listed below.

Action Plan.
Lewis will certainly take over the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Manufacturing function will certainly remain part of marketing under advertising function.

Lewis will certainly divide herself from operations.

A democratic management design with staff member empowerment will certainly be utilized in marketing division.

Open up door policy and also focus on cross departmental interaction will certainly be targeted at removing dissonance.

Contingency plan.

If the combination does not exercise as prepared, a contingency plan would certainly follow which would certainly separate the production function from the marketing function to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the marketing division without an SVP. Because case the manufacturing function will certainly be separated by positioning it under an SVP manufacturing.