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Soluciones Mexicanas Sa De Cv Case Study Analysis

Background and Facts

Soluciones Mexicanas Sa De Cv a workplace products merchant for little and also moderate sized organisations has lately been associated with planning for a merger with its rival House Deport, which has impacted effectiveness levels in departmentswith the elderly manager involved in legal difficulties put forth by the government Trade Compensation. With the Advertising Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the duty in the near future. With difficulties in the kind of a possible cultural modification as well as reduced worker morale, the company wants a full reengineering initiative at the advertising and marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The possible cultural modification at the advertising and marketing division of Soluciones Mexicanas Sa De Cv is enhancing uncertainty in the working environment leading to various difficulties 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 major role in influencing tactical choices considering that Stapes Inc. had to abandon its strategies of merging with Office Deport after the Federal Trade Compensation's intervention at the same time. Given the fact that the store has an international presence with branches in UK, USA, Canada and Germany, political factors in each of these nations may be able to influence performance or critical objectives. Federal Trade Compensation's antitrust match versus the merging used up beneficial time of the company's senior management recommending that 'political' factors can have significant ramifications for an international business.

Economic Factors: Financial factors such as the appearance of local business in the international scenario recommend that Soluciones Mexicanas Sa De Cv is growing in a setting where there is potential growth of businesses. Fact that store consumers are mainly looking for office materials for residence workplaces suggests that the market has an increasing trend of entrepreneurs as well as home based organisations.

Social factors: Social trends in the economy show that clients are looking for comfort along with appealing prices. Market research demonstrates how the consumer for Soluciones Mexicanas Sa De Cv does not have recognition about finding remedies which can use a combination of convenience and affordable.

Technological factors: Innovation plays an essential function in Soluciones Mexicanas Sa De Cv's company strategy particularly as the organization is piloting Innovation facilities which would supply technology sales and support in the type of memory upgrades, peripheral setups. (Summary of PARASITE in appendix 2).

OB Issues and also Effects.

A number of underlying Organizational Behavior concerns can be seen in Soluciones Mexicanas Sa De Cv's case as highlighted in this area.

Apprehensions concerning cultural modification: There is concern about a cultural change that would take place once Todd Krasnow leaves from his position as the Exec Vice President of Marketing with a lot of the personnel already showing discontent over this potential step. This anticipated modification has created anxiety in the work environment which has actually been coupled with the previous stress of preparing the firm for a potential merger with Home Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is lack of personnel that can match the demanding setting of a fast-paced organization. Not just does this bring about trouble in discovering the appropriate individuals, it puts stress on new hires as can not endure the rate and pressure that the company anticipates them to birth.

Twin Reporting Lines: Beginners locate this business culture difficult and also tough to cope with specifically as populated line connections are meant to be weak as a whole and unbiased setup and efficiency evaluation is still done by the solid line manager. This indicates that newbies might lose clearness concerning their respective functions and goals especially as populated line coverage does not keep them in straight communication with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles despite the fact that it had been hypothesized that the last would take Krasnow's position came as a blow to her spirits. Lewis may have been capable and ideal for the work yet the fact that Kransnow's separation would make Coles a straight record to Lewis might have been the reason for Coles' resignation from services.

Anxiety & Job Insecurity: Worry and also instability can be recognized as two significant issues that Lewis would certainly be dealing with particularly as the merger has actually now be terminated and also 2 senior execs of the marketing division would certainly be leaving. The whole obligation of the department would certainly be dropping on Lewis's shoulders that would certainly not simply be in charge of brining concerning a social adjustment but would also have to prove herself in her brand-new duty.

Inappropriate Monitoring Style of Leader: Lewis's management design and also its conflict with the advertising division's function can additionally be viewed as an OB difficulty particularly as she has been made use of to handling problems in the operations division where employees are educated to focus on processes and also get them right. The marketing division on the other hand can be viewed as a team of people who are utilized to being nurtured by Krasnow that concentrated extra on result than processes.

Interdepartmental Disagreements: Interdepartmental arguments between 3 divisions, advertising, merchandizing as well as operations respectively over the allowance of the marketing mix can be recognized as one more OB problem. The marketing department does not share the very same vision as the various other 2 divisions relating to the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and also operations departments do not agree over the advertising and marketing mix allotment amongst one an additional either.

Disintegration in Marketing Department: Fragmentation in between the marketing and advertising departments can be determined as one more OB concern which might need further attention. The fact that the marketing and advertising areas in the marketing department are separated is preventing both divisions from getting from each other's experience and also expertise. Integration of marketing with merchandising as well as operations would certainly end up being more difficult if the advertising division itself is broken down which can be one more potential OB issue.

Soluciones Mexicanas Sa De Cv Analysis

Various concepts have actually been used to discuss the situations to obtain further quality regarding the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of managers think that staffs are easy as well as lazy, have little ambition and also resist change. The situation at Soluciones Mexicanas Sa De Cv is not totally complying with Concept X, it can be seen that brand-new hires are locating this atmosphere instead difficult which may at some point lead to a greater disposition of the management towards Concept X. Also while analyzing Lewis's administration style, concept X might have been ideal in the procedures division to some level but the Advertising and marketing division would certainly require dependence on Concept Y in order to get the creativity and also creativity from the teams.

Tuckman's Team effort Theory: As much as Lewis's issue about bringing harmony between the advertising and marketing department is concerned, this would at first lead to conflict as gone over by Bruce Tuckman in his 'Synergy Theory'. By combining the marketing and marketing department's work, there might be the same initial separate which could lead to the 2nd stage of 'storming' where the teams test one another.

Bridges' Change Model: According To William Bridge's concept (appendix 4), people are quite uncomfortable with modification, which is apparent by the situation at Soluciones Mexicanas Sa De Cv The scenario can be viewed as a normal training course of life if is examined based on Bridge's theory where he describes that individuals experience 3 phases of shift when they experience adjustment. 'Closing, losing as well as Letting go', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When people are presented with modification, they get in stage one therefore there might be feelings like unhappiness, unpredictability, stress, temper, worry, denial and disorientation.The situation at the marketing department of Soluciones Mexicanas Sa De Cv is similar so Lewis can get comfy with the concept that it is not remarkable actions. In the second stage, there might be a need to connect the space between the brand-new and also old society so Lewis may have to face this ordeal when Krasnow leaves. There might be low morale and reduced efficiency at this phase which should not be taken as a problem. It is during this phase that Lewis will certainly need to provide advice to the department to make sure that they can discover a sense of direction. It can be seen just how Krasnow has already made this change much easier by making Lewis get associated with the division a year before his actual separation. As per Bridges' Design, stage three will produce visibility to understanding, High power as well as commitment as people will certainly embrace the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Requirement power structure: The OB problem pertaining to insecurity at the workplace has actually been activated first of all by the modification in administration and secondly by the truth that the merging will no more be started. Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has discusses the relevance of 'security needs as being a reduced level need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel safe and also safe' is at the second degree of requirements. Before an employee can be made to create mentally, he requires to have his 'Physiological 'and also 'Security' requires satisfied. This indicates that unless the workers are made to feel safe and secure concerning their existing work condition in Soluciones Mexicanas Sa De Cv they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Soluciones Mexicanas Sa De Cv Case Study

Effects of Analysis.

The OB analysis has checked out numerous theories to recognize just how to cope with the current circumstance handy. The adhering to 3 alternatives have actually been recommended to aid Lewis take care of the organizational obstacles in the advertising and marketing division. Each of these options has actually been proposed for easing the shift needed to bring the marketing division in accordance with the demands of the market as well as for making the cultural change that would certainly follow when the current leader leaves.

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

Examination of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merger days has expertise in business-to-business advertising along with firm and also retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to manage both advertising and marketing as well as advertising functions.

The benefit of this strategy is that it will certainly integrate the two features while reducing the requirement for hiring an added source for advertising. Lewis would certainly be heading the advertising and marketing division as well as in any kind of case her replacement would be required for the present function that she is carrying out. The drawback of this alternative is that exterior hiring might bring about animosity from internal employees that may be considering the position of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting as well as Manufacturing: Provided the competitive pressures and also high quality work needed from the advertising and marketing firm, it is advised that Lewis needs to permit the manufacturing system to be a separate feature from the advertising system. Considering that a lot of advertising and marketing agencies had these two functions as different units, it makes even more feeling to adhere to the norm.

Integration of Advertising And Marketing with Procedures: Because Lewis is currently taking care of the advertising and marketing and procedures divisions concurrently; it makes sense to integrate the 2 functions since she has been efficiently taking care of both ends. The fact that Lewis has to adapt her monitoring design for the advertising and marketing division suggests that these 2 departments would certainly be culturally diverse.


An assessment of the three alternatives suggests that assimilation of marketing as well as procedures would certainly not be a possible action due to the huge differences in between the 2 departments regardless of the reality that currently Lewis is managing both. While splitting up of the manufacturing function may have been a beneficial relocation for the marketing department, the truth that it would certainly imply putting a third feature under Lewis's wing suggests this should be prevented.

Activity Strategy.
Lewis will certainly take over the function of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be combined.

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

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

Lewis will certainly divide herself from operations.

An autonomous management style with staff member empowerment will certainly be utilized in advertising department.

Open door plan as well as focus on cross departmental communication will be focused on removing discord.

Contingency strategy.

If the integration does not work out as planned, a backup strategy would certainly comply with which would certainly divide the manufacturing function from the advertising function to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising department without an SVP. In that case the manufacturing feature will definitely be separated by placing it under an SVP production.