Standard Oil Co Combination Consolidation And Integration Abridged B Case Study Solution


Home >> Harvard >> Standard Oil Co Combination Consolidation And Integration Abridged B >>

Standard Oil Co Combination Consolidation And Integration Abridged B Case Study Analysis

Background and Facts

Standard Oil Co Combination Consolidation And Integration Abridged B an office materials seller for little and also average sized services has actually recently been associated with planning for a merging with its rival Home Deport, which has actually impacted effectiveness degrees in departmentswith the senior manager involved in lawful problems put forth by the federal Profession Payment. With the Marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the function in the near future. With challenges in the form of a prospective social change and also reduced worker morale, the company wants a full reengineering effort at the marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural adjustment at the marketing division of Standard Oil Co Combination Consolidation And Integration Abridged B is enhancing uncertainty in the workplace leading to different challenges for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting calculated choices considering that Stapes Inc. had to desert its plans of combining with Workplace Deport after the Federal Trade Compensation's intervention while doing so. Offered the fact that the store has an international existence with branches in UK, USA, Canada as well as Germany, political consider each of these countries may be able to influence efficiency or critical objectives. Federal Profession Compensation's antitrust fit versus the merger occupied important time of the organization's senior monitoring suggesting that 'political' factors can have significant implications for a worldwide organisation.

Economic Factors: Economic factors such as the development of small companies in the global situation recommend that Standard Oil Co Combination Consolidation And Integration Abridged B is flourishing in a setting where there is potential development of services. Fact that shop customers are mostly looking for office products for house offices recommends that the market has a climbing pattern of business owners and house based services.

Social factors: Social fads in the economic situation show that customers are searching for ease as well as appealing prices. Marketing research shows how the client for Standard Oil Co Combination Consolidation And Integration Abridged B lacks understanding regarding discovering options which can use a combination of benefit and inexpensive.

Technological factors: Technology plays an essential duty in Standard Oil Co Combination Consolidation And Integration Abridged B's business approach specifically as the company is piloting Modern technology facilities which would certainly offer modern technology sales and assistance in the type of memory upgrades, peripheral installations. (Summary of PEST in appendix 2).

OB Issues and also Effects.

Numerous underlying Business Actions problems can be seen in Standard Oil Co Combination Consolidation And Integration Abridged B's case as highlighted in this section.

Concerns regarding social modification: There is uneasiness concerning a cultural adjustment that would occur as soon as Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with most of the employee already showing discontent over this potential relocation. This anticipated modification has actually developed anxiety in the workplace which has been coupled with the previous anxiety of preparing the firm for a prospective merger with Home Deport.
Pest Analysis
Difficult Task Atmosphere for Newcomers: There is lack of personnel that can match the stressful atmosphere of a fast-paced company. Not just does this bring about trouble in discovering the right people, it puts stress on new hires as can not withstand the pace as well as pressure that the organization anticipates them to bear.

Twin Coverage Lines: Novices discover this business culture cumbersome as well as difficult to cope with specifically as dotted line relationships are indicated to be weak in general as well as objective setup as well as performance assessment is still done by the solid line supervisor. This means that newbies might lose clearness about their corresponding duties as well as goals particularly as populated line coverage does not maintain them in direct interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles despite the fact that it had actually been speculated that the last would certainly take Krasnow's setting came as a blow to her spirits. Lewis might have been capable and proper for the work but the truth that Kransnow's separation would make Coles a straight record to Lewis may have been the reason for Coles' resignation from solutions.

Concern & Task Instability: Anxiety as well as instability can be recognized as 2 major worries that Lewis would be taking care of especially as the merging has actually currently be cancelled and two elderly executives of the advertising and marketing division would certainly be leaving. The whole responsibility of the division would be dropping on Lewis's shoulders who would not simply be in charge of brining about a cultural adjustment yet would certainly also have to confirm herself in her new function.

Incompatible Management Design of Leader: Lewis's management style and also its incompatibility with the advertising and marketing division's function can additionally be seen as an OB difficulty especially as she has been used to handling issues in the procedures division where personnel are educated to focus on procedures and obtain them. The advertising division on the other hand can be viewed as a team of people who are made use of to being supported by Krasnow who focused more on output than processes.

Interdepartmental Disagreements: Interdepartmental differences in between 3 departments, advertising, merchandizing and procedures respectively over the allocation of the advertising mix can be identified as an additional OB problem. Although the advertising and marketing division does not share the very same vision as the various other two divisions regarding the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and also procedures departments do not concur over the advertising mix allowance amongst each other either.

Disintegration in Marketing Division: Fragmentation in between the marketing and advertising departments can be recognized as one more OB problem which might need further focus. The fact that the advertising and marketing areas in the advertising department are detached is stopping both divisions from gaining from each other's experience and also knowledge. Integration of advertising and marketing with retailing and operations would end up being more difficult if the advertising division itself is broken down which can be another potential OB worry.

Standard Oil Co Combination Consolidation And Integration Abridged B Analysis

Numerous concepts have actually been used to discuss the circumstances to get additional clearness concerning the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that juniors are passive and lazy, have little passion and also resist adjustment. The circumstance at Standard Oil Co Combination Consolidation And Integration Abridged B is not totally complying with Concept X, it can be seen that brand-new hires are discovering this atmosphere instead difficult which might eventually lead to a better disposition of the administration towards Theory X. Also while analyzing Lewis's management design, theory X may have been ideal in the procedures department to some degree yet the Advertising and marketing department would certainly call for reliance on Theory Y in order to obtain the imagination as well as originality from the groups.

Tuckman's Synergy Theory: Regarding Lewis's worry about bringing harmony in between the marketing and advertising division is worried, this would at first bring about conflict as talked about by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). As per Tuckman's concept received appendix 3, during the preliminary phase of team advancement, individuals might not bond, as they are hectic finding their location in the group. By combining the advertising and marketing department's job, there may be the same first disconnect which could result in the second stage of 'storming' where the teams test each other. However, it is just throughout the 3rd phase or 'norming' when they would integrate to share ideas prior to the group can bring about synergy in the 4th stage 'carrying out'.

When people are offered with change, they enter phase one and also so there might be feelings like despair, unpredictability, stress, temper, concern, rejection and disorientation.The scenario at the marketing department of Standard Oil Co Combination Consolidation And Integration Abridged B is comparable so Lewis can get comfy with the concept that it is not amazing actions. It is during this stage that Lewis will have to give assistance to the department so that they can locate a feeling of instructions. It can be seen just how Krasnow has currently made this shift much easier by making Lewis obtain involved in the division a year prior to his real departure.
Vrio Analysis
Maslow's Demand hierarchy: The OB issue pertaining to instability at the workplace has actually been set off to start with by the adjustment in administration and also second of all by the fact that the merging will no longer be started. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has talks about the relevance of 'safety and security requires as being a reduced degree requirement of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to really feel protected as well as unharmed' goes to the 2nd level of demands. Before a worker can be made to create emotionally, he needs to have his 'Physical 'and 'Security' needs satisfied. This shows that unless the personnel are made to feel safe concerning their present work condition in Standard Oil Co Combination Consolidation And Integration Abridged B they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Standard Oil Co Combination Consolidation And Integration Abridged B Case Study

Implication of Analysis.

The OB analysis has taken a look at numerous theories to understand just how to handle the current situation handy. The following 3 options have been suggested to help Lewis manage the organizational obstacles in the marketing division. Each of these options has been suggested for relieving the change needed to bring the advertising and marketing division in line with the requirements of the marketplace and for making the social adjustment that would adhere to when the present leader leaves.

Integration of marketing and advertising features. Dividing Adverting as well as Manufacturing features. Assimilation of Marketing with Procedures.

Evaluation of Alternatives.

Assimilation of Marketing & Advertising Functions: The internal advertising company of Standard Oil Co Combination Consolidation And Integration Abridged B is already strength for the organization in terms of saving up on expenses related to advertising and marketing and promotion. Given that no new employment has actually been done after Bridget Cole's separation with the coverage line being directly appointed to Krasnow for the marketing function, this is a favorable opportunity for integrating the advertising and marketing features. Judith Shapiro that has earlier been talked to by Lewis throughout the earlier merging days has knowledge in business-to-business advertising and marketing along with firm and also retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to handle both marketing and advertising functions.

The advantage of this strategy is that it will certainly incorporate both functions while decreasing the requirement for employing an added resource for advertising and marketing. In addition to this, Lewis would be heading the marketing division and also in any case her substitute would certainly be required for the current role that she is executing. The negative aspect of this option is that outside hiring may cause bitterness from inner workers that may be considering the position of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting as well as Production: Offered the affordable pressures as well as premium quality job called for from the ad agency, it is recommended that Lewis needs to enable the production system to be a separate function from the marketing unit. Because a lot of ad agency had these 2 functions as separate systems, it makes even more feeling to comply with the standard. Both features may be able to focus on their core triggers a lot more successfully. The negative aspect of this approach would be that extra costs would have to be birthed for setting up different manufacturing functions. A production head may have to be hired which might enhance expenses for the organization.

Integration of Advertising with Procedures: Since Lewis is already looking after the marketing and also procedures divisions at the same time; it makes sense to integrate the two functions given that she has been effectively dealing with both ends. The fact that both divisions already have major differences over appropriation of resources suggests that this integration might be able to bring about consistency specifically as Lewis would be heading both ends.However there are numerous disadvantages of this relocation especially as it would certainly put excessive worry over Lewis's shoulders. The fact that Lewis needs to adjust her monitoring design for the marketing division recommends that these 2 departments would certainly be culturally varied. Along with this, Lewis might not be able to use one kind of management design to both departments which can result in inefficiency in either one of both functions.


An assessment of the 3 options suggests that combination of marketing and also operations would certainly not be a viable move due to the huge distinctions in between the 2 divisions in spite of the fact that presently Lewis is dealing with both. While separation of the production feature might have been a positive move for the marketing division, the fact that it would certainly mean positioning a 3rd function under Lewis's wing suggests this should be stayed clear of.

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

Advertising and Marketing functions would be combined.

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

Production function will certainly stay component of marketing under advertising and marketing feature.

Lewis will separate herself from procedures.

A democratic management style with worker empowerment will certainly be made use of in advertising department.

Open door policy and also focus on cross departmental communication will be aimed at getting rid of disharmony.

Contingency strategy.

If the assimilation does not exercise as intended, a contingency plan would comply with which would separate the manufacturing function from the marketing function to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will certainly be heading the marketing department without an SVP. In that case the manufacturing function will certainly be separated by placing it under an SVP manufacturing.