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

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Background and Facts

Standard Oil Co Combination Consolidation And Integration Abridged B an office products store for little and average sized services has actually just recently been involved in preparing for a merger with its rival Residence Deport, which has impacted efficiency degrees in departmentswith the elderly supervisor associated with legal complications put forth by the government Profession Payment. With the Advertising and marketing Head putting forward 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 duty in the future. With challenges in the kind of a potential cultural modification and reduced employee morale, the company requires a total reengineering effort at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising department of Standard Oil Co Combination Consolidation And Integration Abridged B is increasing unpredictability in the working environment causing different obstacles 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 affecting tactical choices considering that Stapes Inc. needed to abandon its plans of combining with Office Deport after the Federal Profession Payment's intervention in the process. Given the truth that the shop has an international visibility with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these countries might be able to affect performance or critical objectives. Federal Profession Compensation's antitrust match versus the merger occupied valuable time of the organization's senior monitoring recommending that 'political' factors can have severe effects for a global business.

Economic Factors: Financial factors such as the emergence of small companies in the worldwide situation suggest that Standard Oil Co Combination Consolidation And Integration Abridged B is prospering in a setting where there is potential development of organisations. Truth that shop consumers are mostly looking for workplace products for home offices suggests that the market has an increasing pattern of business owners and residence based businesses.

Social factors: Social trends in the economic situation show that clients are looking for ease in addition to attractive costs. Market research shows how the customer for Standard Oil Co Combination Consolidation And Integration Abridged B lacks understanding concerning finding remedies which can offer a mix of benefit and low costs.

Technical factors: Innovation plays an essential duty in Standard Oil Co Combination Consolidation And Integration Abridged B's business technique especially as the organization is piloting Technology centers which would certainly provide technology sales and also assistance in the kind of memory upgrades, outer setups. (Recap of BUG in appendix 2).

OB Issues and also Effects.

Numerous underlying Organizational Habits issues can be seen in Standard Oil Co Combination Consolidation And Integration Abridged B's case as highlighted in this area.

Worries concerning cultural adjustment: There is apprehension regarding a cultural adjustment that would occur when Todd Krasnow leaves from his placement as the Executive Vice President of Marketing with the majority of the staff members already revealing discontent over this prospective action. This anticipated adjustment has actually produced anxiety in the office which has actually been combined with the past stress and anxiety of preparing the firm for a prospective merging with House Deport.
Pest Analysis
Stressful Job Setting for Newcomers: There is scarcity of personnel that can match the stressful environment of a fast-paced company. Not just does this result in difficulty in finding the ideal people, it places stress and anxiety on new hires as can not stand up to the speed and also stress that the company expects them to birth.

Double Reporting Lines: Beginners find this business society cumbersome and tough to manage specifically as dotted line connections are implied to be weak in general and unbiased setup as well as efficiency analysis is still done by the solid line supervisor. This suggests that newbies might shed clarity about their corresponding roles and also objectives especially as dotted line coverage does not keep them in straight interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles despite the fact that it had actually been guessed that the latter would certainly take Krasnow's placement came as a strike to her spirits. Lewis might have been capable and also ideal for the task however the truth that Kransnow's separation would make Coles a straight record to Lewis might have been the reason for Coles' resignation from services.

Anxiety & Work Instability: Fear as well as insecurity can be determined as two significant concerns that Lewis would certainly be managing especially as the merger has actually currently be cancelled as well as two senior execs of the marketing division would certainly be leaving. The whole duty of the department would be dropping on Lewis's shoulders who would not simply be in charge of brining about a cultural adjustment however would certainly likewise need to verify herself in her brand-new role.

Inappropriate Monitoring Design of Leader: Lewis's management design as well as its incompatibility with the advertising and marketing division's duty can additionally be seen as an OB difficulty especially as she has been used to taking care of problems in the procedures division where personnel are instructed to concentrate on processes and also obtain them. The marketing department on the various other hand can be viewed as a team of individuals that are made use of to being nurtured by Krasnow that concentrated much more on result than procedures.

Interdepartmental Disagreements: Interdepartmental disagreements in between 3 divisions, marketing, merchandizing and operations respectively over the allocation of the advertising and marketing mix can be recognized as an additional OB concern. Although the advertising department does not share the very same vision as the other 2 departments regarding the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing as well as procedures divisions do not agree over the marketing mix appropriation amongst each other either.

Disintegration in Advertising And Marketing Department: Fragmentation between the advertising and marketing departments can be determined as one more OB issue which can need additional interest. The reality that the advertising and marketing areas in the marketing division are disconnected is avoiding both divisions from obtaining from each various other's experience as well as experience. Combination of advertising and marketing with merchandising and also procedures would certainly end up being harder if the advertising division itself is disintegrated which can be another possible OB concern.

Standard Oil Co Combination Consolidation And Integration Abridged B Analysis

Various theories have been made use of to discuss the conditions to obtain more clearness about the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most supervisors think that staffs are easy and also lazy, have little ambition as well as resist modification. The circumstance at Standard Oil Co Combination Consolidation And Integration Abridged B is not completely following Theory X, it can be seen that new hires are discovering this setting rather demanding which might eventually lead to a higher disposition of the management in the direction of Concept X. Also while assessing Lewis's monitoring design, concept X might have been appropriate in the operations department to some extent yet the Marketing department would call for dependence on Theory Y in order to get the imagination as well as creativity from the groups.

Tuckman's Team effort Theory: As far as Lewis's problem about bringing consistency between the marketing and advertising division is concerned, this would originally lead to contrast as reviewed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, during the initial phase of team advancement, individuals may not bond, as they are busy discovering their location in the team. By incorporating the marketing and advertising division's job, there might be the same initial detach which can bring about the 2nd phase of 'storming' where the groups challenge each other. Nevertheless, it is only during the 3rd stage or 'norming' when they would certainly collaborate to share suggestions before the group can bring about synergy in the fourth phase 'performing'.

When people are presented with change, they enter stage one as well as so there might be emotions like despair, unpredictability, aggravation, rage, fear, denial and disorientation.The scenario at the marketing division of Standard Oil Co Combination Consolidation And Integration Abridged B is comparable so Lewis can get comfortable with the concept that it is not remarkable behavior. It is during this stage that Lewis will certainly have to give advice to the department so that they can discover a sense of instructions. It can be seen just how Krasnow has actually currently made this shift much easier by making Lewis obtain involved in the department a year prior to his real departure.
Vrio Analysis
Maslow's Demand hierarchy: The OB issue pertaining to instability at the office has actually been set off first of all by the modification in monitoring and secondly by the truth that the merging will certainly no longer be launched. Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has talks about the significance of 'security requires as being a reduced level requirement of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel safe and secure and safe' is at the second level of demands. Prior to a staff member can be made to establish mentally, he needs to have his 'Physical 'as well as 'Safety and security' needs met. This shows that unless the personnel are made to feel protected concerning their present employment standing in Standard Oil Co Combination Consolidation And Integration Abridged B they may not reach 'Self-Fulfillment'. (King, 2009).

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



Ramification of Analysis.

The OB analysis has looked at numerous theories to understand how to handle the current scenario available. The following 3 options have been suggested to help Lewis manage the business obstacles in the marketing division. Each of these choices has been suggested for reducing the transition required to bring the advertising and marketing division according to the requirements of the market and also for making the social adjustment that would comply with as soon as the existing leader leaves.

Assimilation of advertising and marketing features. Separating Adverting and also Production functions. Assimilation of Marketing with Procedures.

Assessment of Alternatives.

Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merging days has proficiency in business-to-business marketing along with company and retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing and advertising features.

The advantage of this technique is that it will certainly incorporate both features while decreasing the need for employing an extra source for advertising. Lewis would be heading the advertising and marketing department and in any type of case her replacement would be required for the current function that she is carrying out. The negative aspect of this choice is that outside hiring might cause animosity from internal personnel that might be eying the setting of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and also Manufacturing: Offered the competitive pressures and high top quality work called for from the advertising and marketing company, it is advised that Lewis ought to enable the manufacturing device to be a different feature from the advertising and marketing device. Since many marketing firms had these two functions as different systems, it makes more sense to adhere to the standard.

Integration of Marketing with Workflows: Since Lewis is currently taking care of the marketing as well as procedures divisions simultaneously; it makes sense to integrate the 2 functions considering that she has actually been efficiently taking treatment of both ends. The fact that Lewis has to adapt her management design for the advertising division recommends that these 2 divisions would be culturally diverse.

Suggestion.



An analysis of the 3 alternatives shows that integration of marketing and procedures would certainly not be a practical action due to the substantial differences between the 2 divisions regardless of the truth that presently Lewis is handling both. While separation of the manufacturing function may have been a favorable action for the advertising and marketing division, the fact that it would certainly indicate positioning a 3rd feature under Lewis's wing indicates this need to be prevented.

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

Marketing and advertising functions would certainly be merged.

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

Manufacturing feature will stay component of advertising and marketing under marketing function.

Lewis will divide herself from operations.

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

Open up door policy and focus on cross department communication will certainly be targeted at eliminating discord.

Contingency strategy.

If the integration does not exercise as planned, a backup strategy would adhere to which would certainly separate the production feature from the advertising feature to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the marketing division without an SVP. In that case the manufacturing function will certainly be divided by placing it under an SVP production.