Menu

Sonaecom Takeover Of Portugal Telecom A Case Study Solution

CASE STUDY

Home >> Harvard >> Sonaecom Takeover Of Portugal Telecom A >>

Sonaecom Takeover Of Portugal Telecom A Case Study Analysis

Background and Facts

Sonaecom Takeover Of Portugal Telecom A an office products retailer for little as well as medium sized services has just recently been associated with preparing for a merger with its rival Home Deport, which has actually affected efficiency levels in departmentswith the elderly manager involved in legal issues presented by the government Trade Payment. With the Advertising Head advancing the information of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the duty in the near future. With difficulties in the form of a possible social modification and reduced staff member spirits, the company requires a total reengineering effort at the marketing department.

Issue Statement
Porter's 5 Forces Analysis
The possible social change at the advertising and marketing department of Sonaecom Takeover Of Portugal Telecom A is enhancing unpredictability in the working environment causing different obstacles for the Jeannie Lewis that would certainly 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 considering that Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Profession Commission's intervention in the process. Given the reality that the store has a global visibility with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries might have the ability to influence efficiency or critical objectives. Federal Trade Payment's antitrust fit versus the merger used up useful time of the organization's elderly administration recommending that 'political' factors can have severe implications for a global service.

Economic Factors: Financial factors such as the development of local business in the global circumstance suggest that Sonaecom Takeover Of Portugal Telecom A is flourishing in an atmosphere where there is prospective development of companies. Reality that shop consumers are mostly looking for workplace products for house offices suggests that the market has a rising trend of business owners and also house based companies.

Social factors: Social trends in the economic situation show that customers are searching for convenience along with attractive prices. Marketing research shows how the consumer for Sonaecom Takeover Of Portugal Telecom A does not have awareness about discovering remedies which can supply a combination of ease as well as inexpensive.

Technical factors: Technology plays an essential role in Sonaecom Takeover Of Portugal Telecom A's organisation approach specifically as the company is piloting Innovation centers which would provide modern technology sales and also assistance in the form of memory upgrades, outer setups. (Recap of INSECT in appendix 2).

OB Issues and Manifestations.

Numerous underlying Organizational Actions concerns can be seen in Sonaecom Takeover Of Portugal Telecom A's case as highlighted in this area.

Uneasiness about social change: There is concern regarding a cultural modification that would certainly occur as soon as Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with the majority of the team member currently showing discontent over this potential action. This anticipated change has actually developed anxiety in the workplace which has actually been combined with the past tension of preparing the company for a possible merger with Residence Deport.
Pest Analysis
Difficult Task Atmosphere for Newcomers: There is lack of personnel that can match the demanding environment of a busy organization. Not just does this cause difficulty in finding the best individuals, it puts tension on new hires as can not hold up against the rate and pressure that the organization anticipates them to birth.

Twin Reporting Lines: Novices find this business culture troublesome and hard to cope with specifically as populated line connections are meant to be weaker as a whole as well as objective setting as well as efficiency analysis is still done by the solid line supervisor. This suggests that beginners can shed clearness regarding their respective functions as well as purposes particularly as dotted line coverage does not keep them in direct communication with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had actually been guessed that the latter would take Krasnow's position came as a blow to her morale. Lewis may have been capable and appropriate for the work yet the fact that Kransnow's departure would make Coles a direct record to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Task Instability: Concern and also instability can be determined as 2 major problems that Lewis would be dealing with especially as the merger has currently be cancelled and also two senior execs of the advertising department would certainly be leaving. The entire responsibility of the division would be falling on Lewis's shoulders that would not just supervise of brining regarding a cultural change but would also need to show herself in her brand-new role.

Incompatible Monitoring Design of Leader: Lewis's management style as well as its conflict with the advertising department's role can additionally be seen as an OB obstacle specifically as she has actually been used to taking care of concerns in the operations division where workers are taught to concentrate on processes and also get them right. The advertising and marketing department on the various other hand can be viewed as a group of people who are used to being supported by Krasnow who focused a lot more on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental disagreements in between three divisions, advertising, merchandizing as well as procedures respectively over the appropriation of the marketing mix can be determined as one more OB concern. The advertising division does not share the same vision as the various other two departments regarding the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and procedures departments do not concur over the marketing mix allocation amongst one another either.

Fragmentation in Advertising And Marketing Department: Fragmentation between the marketing and advertising divisions can be recognized as another OB problem which might require further interest. The truth that the advertising and marketing sections in the marketing department are disconnected is preventing both divisions from getting from each other's experience and also competence. Assimilation of advertising and marketing with merchandising as well as operations would come to be harder if the advertising and marketing department itself is broken down which can be another potential OB issue.

Sonaecom Takeover Of Portugal Telecom A Analysis

Numerous concepts have actually been made use of to discuss the conditions to obtain additional quality concerning the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers think that subordinates are passive and careless, have little passion and stand up to change. The scenario at Sonaecom Takeover Of Portugal Telecom A is not completely following Concept X, it can be seen that brand-new hires are locating this environment instead stressful which may ultimately lead to a greater disposition of the monitoring in the direction of Theory X. Also while analyzing Lewis's monitoring design, concept X may have been suitable in the operations division to some degree but the Advertising and marketing division would certainly call for reliance on Concept Y in order to obtain the creativity as well as creativity from the groups.

Tuckman's Synergy Theory: As for Lewis's concern regarding bringing harmony between the marketing and advertising division is concerned, this would initially bring about conflict as talked about by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). According to Tuckman's concept received appendix 3, throughout the initial phase of team development, individuals might not bond, as they are hectic discovering their place in the team. By combining the marketing and advertising department's job, there might coincide preliminary detach which can result in the 2nd phase of 'storming' where the groups test one another. However, it is only throughout the third phase or 'norming' when they would certainly integrate to share concepts prior to the team can bring about harmony in the 4th stage 'executing'.

Bridges' Shift Design: Based On William Bridge's concept (appendix 4), people are rather uneasy with adjustment, which is obvious by the scenario at Sonaecom Takeover Of Portugal Telecom A The situation can be seen as a regular course of life if is studied based on Bridge's theory where he describes that people experience three phases of change when they experience adjustment. 'Closing, shedding and Releasing', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When people are presented with modification, they get in stage one therefore there might be feelings like unhappiness, uncertainty, aggravation, rage, concern, denial as well as disorientation.The situation at the advertising and marketing division of Sonaecom Takeover Of Portugal Telecom A is similar so Lewis can obtain comfortable with the idea that it is not phenomenal actions. In the second stage, there might be a demand to connect the void between the new and old culture so Lewis might have to face this challenge when Krasnow leaves. There may be low spirits and also reduced efficiency at this stage which should not be taken as a trouble. It is throughout this stage that Lewis will need to provide guidance to the department so that they can locate an orientation. It can be seen exactly how Krasnow has currently made this transition less complicated by making Lewis get involved in the division a year before his real departure. As per Bridges' Model, stage three will certainly produce visibility to knowing, High energy and commitment as people will welcome the modification (Bridges, 2004).
Vrio Analysis
Maslow's Demand pecking order: The OB concern pertaining to insecurity at the work environment has actually been set off to start with by the change in management and second of all by the reality that the merger will no longer be started. Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has discusses the value of 'security requires as being a lower level demand of a human for causing motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the requirement to really feel protected and also safe' is at the second level of demands. Prior to an employee can be made to create mentally, he needs to have his 'Physical 'and 'Safety' requires fulfilled. This suggests that unless the personnel are made to feel safe about their present employment condition in Sonaecom Takeover Of Portugal Telecom A they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Sonaecom Takeover Of Portugal Telecom A Case Study



Ramification of Analysis.

The OB analysis has actually checked out different concepts to understand how to cope with the current situation at hand. The adhering to three choices have actually been proposed to assist Lewis deal with the business difficulties in the advertising and marketing division. Each of these alternatives has actually been suggested for alleviating the shift required to bring the advertising division according to the demands of the market and also for making the cultural change that would follow when the present leader leaves.

Assimilation of advertising and marketing features. Dividing Adverting and also Production features. Assimilation of Marketing with Operations.

Analysis of Alternatives.

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

The advantage of this strategy is that it will certainly integrate both functions while lowering the demand for employing an added source for marketing. Along with this, Lewis would be heading the marketing division and all the same her replacement would certainly be needed for the existing role that she is executing. The drawback of this alternative is that outside hiring might cause bitterness from inner workers that might be eying the setting of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and also Manufacturing: Offered the affordable pressures and high quality work needed from the advertising agency, it is recommended that Lewis should allow the manufacturing system to be a separate function from the advertising unit. Since the majority of ad agency had these 2 features as separate devices, it makes even more sense to adhere to the standard. In addition to this, both functions may be able to focus on their core activates more successfully. Nevertheless, the disadvantage of this method would certainly be that added costs would need to be birthed for establishing different production features. A production head may have to be worked with which could raise overheads for the organization.

Assimilation of Advertising with Procedures: Given that Lewis is already caring for the advertising and operations departments concurrently; it makes good sense to integrate the two features since she has been successfully looking after both ends. The truth that both divisions currently have major distinctions over allotment of resources suggests that this integration may be able to cause consistency specifically as Lewis would certainly be heading both ends.However there are various disadvantages of this step especially as it would put way too much worry over Lewis's shoulders. The fact that Lewis has to adapt her administration style for the advertising department recommends that these two departments would certainly be culturally diverse. Lewis may not be able to use one type of leadership design to both departments which could result in ineffectiveness in either one of the two functions.

Suggestion.



An assessment of the 3 options shows that integration of advertising and procedures would certainly not be a feasible relocation due to the huge distinctions between the two departments in spite of the truth that currently Lewis is dealing with both. While separation of the manufacturing function may have been a positive action for the advertising and marketing division, the truth that it would mean positioning a 3rd function under Lewis's wing implies this should be stayed clear of.

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

Marketing and advertising functions would be merged.

Judith Shapiro will be employed to take Lewis's area as SVP of advertising and marketing.

Production function will continue to be part of advertising under advertising and marketing function.

Lewis will certainly separate herself from procedures.

An autonomous management design with staff member empowerment will be made use of in advertising department.

Open door plan as well as focus on cross departmental communication will be focused on eliminating disharmony.

Contingency plan.

If the combination does not work out as planned, a contingency plan would certainly follow which would certainly divide the manufacturing feature from the marketing feature to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising department without an SVP. Because case the manufacturing feature will most definitely be separated by positioning it under an SVP manufacturing.