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Sonaecom Takeover Of Portugal Telecom B Case Study Help

CASE ANALYSIS

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Sonaecom Takeover Of Portugal Telecom B Case Study Solution

Background and Facts

Sonaecom Takeover Of Portugal Telecom B a workplace products store for small and average sized services has actually just recently been involved in preparing for a merger with its rival Residence Deport, which has impacted efficiency levels in departmentswith the senior manager involved in lawful issues put forth by the federal Profession Payment. With the Advertising Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the current head of procedures has been asked to take the duty in the future. With difficulties in the type of a prospective social change as well as low staff member spirits, the organization requires a complete reengineering effort at the advertising and marketing department.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural modification at the advertising division of Sonaecom Takeover Of Portugal Telecom B is boosting uncertainty in the working environment leading to various obstacles for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting strategic choices considering that Stapes Inc. needed to desert its strategies of combining with Workplace Deport after the Federal Profession Commission's intervention while doing so. Given the truth that the shop has a global presence with branches in UK, USA, Canada and Germany, political consider each of these nations might have the ability to affect performance or strategic goals. Federal Profession Compensation's antitrust fit against the merging used up useful time of the organization's elderly monitoring suggesting that 'political' factors can have severe effects for an international service.

Economic Factors: Economic factors such as the emergence of small businesses in the global circumstance suggest that Sonaecom Takeover Of Portugal Telecom B is thriving in an atmosphere where there is prospective growth of services. Along with this, truth that shop consumers are mostly trying to find workplace supplies for home offices recommends that the marketplace has an increasing pattern of entrepreneurs and online services.

Social factors: Social fads in the economic situation show that consumers are searching for convenience as well as attractive costs. Marketing research demonstrates how the customer for Sonaecom Takeover Of Portugal Telecom B lacks understanding about locating remedies which can provide a combination of ease and also inexpensive.

Technological factors: Innovation plays a vital duty in Sonaecom Takeover Of Portugal Telecom B's business strategy specifically as the company is piloting Innovation facilities which would certainly use technology sales as well as assistance in the form of memory upgrades, outer setups. (Summary of PEST in appendix 2).

OB Issues and also Manifestations.

Several underlying Organizational Actions problems can be seen in Sonaecom Takeover Of Portugal Telecom B's case as highlighted in this area.

Worries regarding social adjustment: There is worry concerning a cultural change that would certainly take place as soon as Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising with the majority of the team member already showing unhappiness over this potential relocation. This predicted change has actually produced stress in the workplace which has been paired with the past anxiety of preparing the firm for a possible merging with Home Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is scarcity of employees that can match the difficult environment of a fast-paced company. Not only does this cause difficulty in finding the appropriate individuals, it places anxiety on brand-new hires as can not withstand the rate and also pressure that the organization expects them to birth.

Double Reporting Lines: Beginners locate this business culture cumbersome and also difficult to manage especially as populated line relationships are indicated to be weaker generally and unbiased setting as well as performance assessment is still done by the solid line manager. This suggests that beginners might shed clearness regarding their corresponding roles and objectives especially as populated line reporting 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 as opposed to Bridget Coles despite the fact that it had actually been speculated that the latter would certainly take Krasnow's position came as a strike to her morale. Lewis may have been capable and also suitable for the task yet the fact that Kransnow's departure would make Coles a straight record to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Task Insecurity: Concern as well as insecurity can be identified as two significant worries that Lewis would be taking care of particularly as the merging has actually now be terminated as well as 2 senior executives of the advertising and marketing department would certainly be leaving. The entire obligation of the department would certainly be falling on Lewis's shoulders that would not simply supervise of brining concerning a cultural modification however would likewise have to confirm herself in her brand-new duty.

Inappropriate Administration Design of Leader: Lewis's administration style as well as its conflict with the advertising department's duty can additionally be seen as an OB obstacle especially as she has been utilized to taking care of concerns in the procedures division where personnel are instructed to focus on procedures and get them. The advertising and marketing department on the other hand can be viewed as a group of people who are used to being supported by Krasnow who concentrated extra on output than procedures.

Interdepartmental Arguments: Interdepartmental disagreements in between three departments, advertising, merchandizing and operations specifically over the allocation of the advertising mix can be recognized as one more OB concern. The advertising and marketing department does not share the exact same vision as the other 2 departments pertaining to the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and operations departments do not concur over the advertising mix appropriation among one an additional either.

Fragmentation in Marketing Department: Fragmentation in between the advertising and marketing departments can be recognized as one more OB problem which could need further interest. The reality that the marketing and advertising areas in the advertising department are separated is avoiding both divisions from gaining from each various other's experience and also expertise. Assimilation of advertising with merchandising and also operations would come to be harder if the advertising and marketing department itself is broken down which can be one more potential OB issue.

Sonaecom Takeover Of Portugal Telecom B Analysis

Different concepts have been used to clarify the circumstances to get further clearness about the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers think that staffs are easy and careless, have little passion and withstand adjustment. The tough variation of this theory stressed threat, limited controls, hazards and punishments. In time it produces reduced efficiency, subtle sabotage and rivalry (Deal, 2003). Although the situation at Sonaecom Takeover Of Portugal Telecom B is not totally complying with Theory X, it can be seen that brand-new hires are discovering this setting rather demanding which might eventually bring about a higher disposition of the management towards Concept X. According to McGregor's advocated sight, which he called Concept Y, the crucial task of the administration is to organize organizational conditions to ensure that people can achieve their own goals best by routing their efforts in the direction of organizational incentives. If people discover no complete satisfaction in their job, the monitoring would certainly have little selection however to rely upon theory X and also outside control (Bargain, 2003). Also while examining Lewis's monitoring style, concept X may have been suitable in the procedures department somewhat but the Marketing division would call for reliance on Concept Y so as to get the creativity and originality from the groups.

Tuckman's Synergy Concept: As for Lewis's problem concerning bringing harmony in between the advertising and marketing division is concerned, this would initially result in conflict as gone over by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). Based on Tuckman's concept displayed in appendix 3, throughout the preliminary stage of team development, individuals may not bond, as they are busy locating their area in the group. By combining the marketing and advertising division's job, there may coincide initial detach which might bring about the second stage of 'storming' where the groups test each other. It is just throughout the third phase or 'norming' when they would certainly come together to share concepts before the team can bring around harmony in the 4th phase 'performing'.

Bridges' Transition Model: Based On William Bridge's concept (appendix 4), people are fairly uneasy with change, which is evident by the circumstance at Sonaecom Takeover Of Portugal Telecom B The circumstance can be seen as a typical course of life if is studied as per Bridge's theory where he describes that people go through 3 phases of change when they experience change. 'Ending, losing and also Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When individuals exist with change, they go into stage one and so there may be emotions like sadness, uncertainty, stress, rage, concern, denial and disorientation.The circumstance at the advertising division of Sonaecom Takeover Of Portugal Telecom B is similar so Lewis can get comfortable with the idea that it is not phenomenal habits. In the second stage, there may be a requirement to connect the void in between the new as well as old culture so Lewis might need to face this ordeal once Krasnow leaves. There may be reduced morale as well as reduced efficiency at this stage which should not be taken as a trouble. It is during this stage that Lewis will need to give advice to the department to make sure that they can locate a sense of direction. It can be seen how Krasnow has actually currently made this transition simpler by making Lewis get associated with the department a year before his actual departure. As per Bridges' Design, phase 3 will bring about visibility to understanding, High energy as well as commitment as individuals will embrace the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has discusses the importance of 'safety and security requires as being a reduced level demand of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel protected and out of risk' is at the second level of requirements. Prior to an employee can be made to create psychologically, he needs to have his 'Physiological 'and also 'Safety' requires satisfied.

SWOT Analysis for Sonaecom Takeover Of Portugal Telecom B Case Study



Implication of Analysis.

The OB analysis has actually checked out different concepts to recognize exactly how to deal with the current scenario at hand. The following three options have been recommended to help Lewis handle the business obstacles in the advertising and marketing department. Each of these alternatives has actually been recommended for reducing the shift required to bring the advertising department in accordance with the demands of the market and also for making the social modification that would certainly follow once the present leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting and also Manufacturing functions. Integration of Marketing with Workflow.

Analysis of Alternatives.

Combination of Marketing & Advertising Functions: The internal advertising company of Sonaecom Takeover Of Portugal Telecom B is currently strength for the company in terms of saving up on overheads associated with advertising and marketing and also promotion. Considering that no new employment has been done after Bridget Cole's separation with the coverage line being directly appointed to Krasnow for the advertising function, this is a beneficial chance for integrating the marketing and advertising features. Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merging days has proficiency in business-to-business advertising and marketing along with firm and retail advertising experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to take care of both advertising and marketing functions.

The benefit of this method is that it will certainly integrate the two functions while reducing the demand for working with an additional resource for advertising. Along with this, Lewis would be heading the advertising and marketing department and regardless her substitute would be needed for the existing role that she is doing. The negative aspect of this alternative is that external hiring may cause resentment from interior employees who may be looking at the setting of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting as well as Manufacturing: Provided the competitive pressures as well as high quality work called for from the advertising agency, it is advised that Lewis needs to permit the manufacturing system to be a different feature from the advertising and marketing system. Since a lot of advertising agencies had these two features as separate devices, it makes more feeling to adhere to the norm. Both functions may be able to focus on their core triggers a lot more efficiently. Nevertheless, the negative aspect of this method would certainly be that additional prices would need to be borne for establishing separate manufacturing functions. Along with this, a production head may need to be worked with which might raise expenses for the company.

Combination of Marketing with Operations: Since Lewis is already dealing with the marketing and also procedures departments concurrently; it makes good sense to integrate both features because she has actually been successfully dealing with both ends. The fact that the two divisions already have major distinctions over appropriation of sources suggests that this combination might be able to bring about consistency specifically as Lewis would be heading both ends.However there are different drawbacks of this move particularly as it would certainly place way too much worry over Lewis's shoulders. The reality that Lewis needs to adapt her management style for the advertising and marketing department suggests that these two divisions would certainly be culturally varied. In addition to this, Lewis might not have the ability to apply one sort of leadership style to both departments which might cause inefficiency in either one of the two functions.

Suggestion.



An analysis of the 3 options shows that integration of advertising and marketing and also operations would certainly not be a practical move due to the substantial differences in between the 2 divisions despite the truth that currently Lewis is dealing with both. While splitting up of the manufacturing function may have been a beneficial relocation for the advertising division, the fact that it would imply placing a third feature under Lewis's wing means this should be prevented.

Action Strategy.
Recommendation
Lewis will take over the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would be merged.

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

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

Lewis will certainly separate herself from procedures.

An autonomous management design with employee empowerment will be used in advertising division.

Open up door policy as well as focus on cross department interaction will certainly be aimed at removing dissonance.

Contingency plan.

If the assimilation does not exercise as intended, a contingency strategy would certainly adhere to which would divide the production function from the marketing function to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising department without an SVP. Because case the production function will most definitely be separated by positioning it under an SVP manufacturing.