Sonaecom Takeover Of Portugal Telecom B Case Study Solution


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Sonaecom Takeover Of Portugal Telecom B Case Study Help

Background and Facts

Sonaecom Takeover Of Portugal Telecom B a workplace products merchant for small as well as medium sized companies has lately been associated with preparing for a merger with its competitor Residence Deport, which has actually impacted effectiveness degrees in departmentswith the senior supervisor associated with legal complications put forth by the government Profession Compensation. With the Advertising and marketing Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the current head of operations has actually been asked to take the function in the near future. With difficulties in the kind of a potential cultural adjustment and also low employee spirits, the organization is in need of a total reengineering initiative at the advertising and marketing department.

Issue Statement
Porter's 5 Forces Analysis
The possible cultural change at the marketing division of Sonaecom Takeover Of Portugal Telecom B is boosting unpredictability in the workplace causing various difficulties for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting tactical choices because Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Profession Commission's treatment in the process. Provided the truth that the shop has an international presence with branches in UK, USA, Canada as well as Germany, political factors in each of these nations might be able to affect performance or tactical objectives. Federal Trade Commission's antitrust suit against the merging occupied valuable time of the organization's elderly administration suggesting that 'political' factors can have serious implications for a global service.

Economic Factors: Economic factors such as the emergence of small businesses in the global situation recommend that Sonaecom Takeover Of Portugal Telecom B is growing in an atmosphere where there is potential growth of services. Along with this, reality that store clients are primarily seeking workplace products for home offices recommends that the marketplace has a climbing trend of entrepreneurs as well as home businesses.

Social factors: Social trends in the economy show that consumers are looking for ease in addition to appealing rates. Marketing research demonstrates how the customer for Sonaecom Takeover Of Portugal Telecom B does not have awareness about finding solutions which can use a mix of comfort as well as inexpensive.

Technological factors: Technology plays an essential role in Sonaecom Takeover Of Portugal Telecom B's organisation technique particularly as the company is piloting Innovation facilities which would certainly provide innovation sales and also support in the type of memory upgrades, peripheral installations. (Recap of PARASITE in appendix 2).

OB Issues and also Symptoms.

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

Uneasiness about cultural adjustment: There is worry concerning a cultural adjustment that would certainly take place when Todd Krasnow leaves from his position as the Exec Vice Head Of State of Marketing with the majority of the personnel currently revealing unhappiness over this prospective move. This predicted change has created anxiety in the work environment which has actually been coupled with the previous anxiety of preparing the firm for a potential merging with House Deport.
Pest Analysis
Demanding Work Setting for Newcomers: There is shortage of employees that can match the difficult atmosphere of a busy organization. Not just does this result in trouble in finding the ideal individuals, it places stress and anxiety on new hires as can not withstand the pace as well as stress that the organization expects them to bear.

Twin Coverage Lines: Newbies find this organizational society cumbersome as well as tough to handle particularly as populated line connections are implied to be weak in general as well as unbiased setup and performance assessment is still done by the solid line manager. This indicates that novices can lose clarity about their corresponding roles and also goals especially as populated line reporting does not maintain them in direct interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles even though it had actually been hypothesized that the latter would certainly take Krasnow's position came as a blow to her spirits. Lewis may have been capable and appropriate for the task however the reality that Kransnow's departure would make Coles a direct record to Lewis may have been the reason for Coles' resignation from services.

Concern & Job Insecurity: Fear and instability can be recognized as 2 significant worries that Lewis would certainly be taking care of specifically as the merger has currently be cancelled and also two senior execs of the advertising and marketing division would certainly be leaving. The whole responsibility of the department would be falling on Lewis's shoulders who would certainly not just be in charge of brining about a social modification but would certainly likewise have to prove herself in her brand-new role.

Incompatible Monitoring Style of Leader: Lewis's administration design and also its incompatibility with the marketing division's role can also be seen as an OB obstacle especially as she has actually been utilized to taking care of problems in the procedures department where workers are instructed to focus on processes as well as get them right. The marketing division on the other hand can be seen as a team of individuals who are utilized to being nurtured by Krasnow who focused more on output than procedures.

Interdepartmental Disputes: Interdepartmental differences in between three departments, marketing, merchandizing as well as procedures respectively over the allocation of the advertising mix can be determined as another OB problem. Although the marketing department does not share the exact same vision as the other two divisions pertaining to the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing and also procedures divisions do not concur over the advertising mix allocation among one another either.

Fragmentation in Advertising Department: Fragmentation in between the advertising and marketing divisions can be determined as an additional OB issue which can require further attention. The reality that the marketing and advertising sections in the advertising division are detached is avoiding both departments from getting from each other's experience and know-how. Combination of advertising with retailing and also operations would become harder if the marketing division itself is broken down which can be one more possible OB issue.

Sonaecom Takeover Of Portugal Telecom B Analysis

Different concepts have actually been made use of to discuss the circumstances to get further clarity regarding the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of supervisors think that subordinates are passive and also lazy, have little aspiration and stand up to adjustment. The difficult version of this concept stressed coercion, limited controls, hazards and also punishments. With time it creates low productivity, subtle sabotage and also competition (Bargain, 2003). Although the situation at Sonaecom Takeover Of Portugal Telecom B is not completely adhering to Theory X, it can be seen that brand-new hires are locating this setting instead difficult which may ultimately lead to a higher disposition of the management towards Theory X. According to McGregor's supported view, which he called Concept Y, the important job of the management is to set up business conditions to ensure that individuals can accomplish their own objectives best by directing their initiatives towards organizational benefits. If people locate no fulfillment in their work, the administration would certainly have little option yet to depend on theory X and also exterior control (Offer, 2003). Even while analyzing Lewis's administration design, theory X might have appropriated in the procedures department to some extent however the Advertising department would certainly need reliance on Concept Y to get the creative thinking and also creativity from the teams.

Tuckman's Teamwork Concept: As much as Lewis's concern about bringing harmony between the advertising and advertising division is concerned, this would at first lead to conflict as talked about by Bruce Tuckman in his 'Synergy Concept'. By integrating the advertising and marketing and also advertising division's work, there might be the very same preliminary separate which might lead to the 2nd phase of 'storming' where the groups challenge one an additional.

When individuals are provided with modification, they get in phase one and so there may be emotions like unhappiness, unpredictability, disappointment, anger, concern, rejection and also disorientation.The scenario at the advertising and marketing department of Sonaecom Takeover Of Portugal Telecom B is similar so Lewis can get comfy with the suggestion that it is not extraordinary actions. It is throughout this stage that Lewis will certainly have to offer guidance to the division so that they can discover a feeling of direction. 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 separation.
Vrio Analysis
Maslow's Requirement power structure: The OB problem pertaining to instability at the workplace has been caused first of all by the modification in administration as well as second of all by the fact that the merging will no longer be initiated. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has reviews the relevance of 'protection requires as being a reduced degree requirement of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the demand to feel protected as well as out of danger' goes to the 2nd degree of needs. Prior to a worker can be made to establish emotionally, he needs to have his 'Physical 'as well as 'Safety and security' needs met. This indicates that unless the personnel are made to really feel protected regarding their existing work condition in Sonaecom Takeover Of Portugal Telecom B they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Sonaecom Takeover Of Portugal Telecom B Case Study

Ramification of Analysis.

The OB analysis has taken a look at various theories to comprehend just how to cope with the present situation available. The adhering to three choices have been suggested to assist Lewis manage the organizational challenges in the advertising department. Each of these options has been recommended for relieving the transition required to bring the advertising and marketing division in line with the requirements of the market and for making the social adjustment that would certainly adhere to as soon as the present leader leaves.

Assimilation of advertising and marketing functions. Dividing Adverting and Production functions. Integration of Marketing with Procedures.

Evaluation of Alternatives.

Assimilation of Advertising And Marketing & Marketing Functions: The internal marketing company of Sonaecom Takeover Of Portugal Telecom B is already toughness for the organization in terms of conserving up on overheads related to marketing as well as promotion. Considering that no new employment has been done after Bridget Cole's separation with the coverage line being straight designated to Krasnow for the advertising and marketing function, this is a desirable possibility for incorporating the advertising and marketing functions. Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merger days has knowledge in business-to-business advertising together with company and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to take care of both advertising and marketing functions.

The benefit of this strategy is that it will incorporate the two functions while decreasing the need for employing an additional resource for marketing. Along with this, Lewis would certainly be heading the advertising department and also in any case her substitute would be needed for the existing function that she is performing. The disadvantage of this alternative is that outside hiring might cause resentment from inner personnel who might be looking at the placement of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Production: Given the competitive pressures as well as high quality job required from the advertising agency, it is advised that Lewis ought to allow the manufacturing device to be a separate feature from the advertising device. Given that many advertising agencies had these two functions as different units, it makes more sense to comply with the standard. Both features may be able to focus on their core turns on extra effectively. The drawback of this technique would be that extra expenses would certainly have to be birthed for establishing up separate manufacturing features. Along with this, a production head might need to be worked with which can boost overheads for the company.

Integration of Marketing with Operations: Since Lewis is currently taking treatment of the advertising as well as operations divisions concurrently; it makes sense to integrate the 2 functions considering that she has been successfully taking care of both ends. The reality that Lewis has to adapt her administration style for the advertising and marketing division recommends that these two divisions would certainly be culturally diverse.


An evaluation of the three options indicates that integration of advertising and also operations would certainly not be a feasible step due to the huge distinctions between the two divisions regardless of the fact that currently Lewis is taking care of both. While splitting up of the manufacturing feature may have been a beneficial relocation for the advertising department, the fact that it would certainly mean placing a 3rd function under Lewis's wing implies this must be prevented.

Action Strategy.
Lewis will certainly take control of the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would be merged.

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

Production function will stay part of advertising and marketing under advertising and marketing function.

Lewis will certainly divide herself from operations.

An autonomous leadership design with worker empowerment will certainly be used in advertising department.

Open door policy and also emphasis on cross departmental communication will be targeted at getting rid of discord.

Contingency plan.

If the integration does not exercise as prepared, a contingency strategy would certainly adhere to which would certainly separate the production feature from the advertising and marketing feature to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing department without an SVP. Because case the manufacturing feature will absolutely be separated by placing it under an SVP manufacturing.