Suntech Power Holdings A The Pre Ipo Years Case Study Analysis


Home >> Harvard >> Suntech Power Holdings A The Pre Ipo Years >>

Suntech Power Holdings A The Pre Ipo Years Case Study Analysis

Background and Facts

Suntech Power Holdings A The Pre Ipo Years a workplace supplies seller for small and also medium sized companies has actually just recently been associated with planning for a merger with its competitor House Deport, which has impacted efficiency degrees in departmentswith the elderly supervisor involved in lawful issues put forth by the federal Profession Payment. With the Advertising Head putting forward the news of his departure from the firm in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the future. With challenges in the kind of a possible social change and also reduced staff member spirits, the organization needs a complete reengineering initiative at the advertising department.

Issue Declaration
Porter's 5 Forces Analysis
The possible cultural modification at the advertising and marketing division of Suntech Power Holdings A The Pre Ipo Years is boosting unpredictability in the workplace causing different challenges for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing critical decisions considering that Stapes Inc. needed to abandon its plans of combining with Workplace Deport after the Federal Profession Payment's intervention at the same time. Offered the truth that the store has a global existence with branches in UK, UNITED STATES, Canada and also Germany, political consider each of these countries might be able to impact performance or tactical goals. Federal Trade Payment's antitrust suit against the merging occupied valuable time of the company's senior administration recommending that 'political' factors can have major implications for a worldwide organisation.

Economic Factors: Financial factors such as the development of local business in the international circumstance recommend that Suntech Power Holdings A The Pre Ipo Years is thriving in an atmosphere where there is potential growth of services. In addition to this, fact that store customers are mostly trying to find workplace supplies for office recommends that the market has a climbing fad of business owners and also home companies.

Social factors: Social trends in the economic situation reveal that clients are trying to find comfort as well as attractive rates. Market research shows how the consumer for Suntech Power Holdings A The Pre Ipo Years does not have recognition about finding services which can supply a mix of ease and inexpensive.

Technological factors: Modern technology plays an important duty in Suntech Power Holdings A The Pre Ipo Years's business technique specifically as the organization is piloting Modern technology facilities which would use modern technology sales and also support in the type of memory upgrades, peripheral setups. (Summary of BUG in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Business Habits problems can be seen in Suntech Power Holdings A The Pre Ipo Years's case as highlighted in this section.

Worries regarding social modification: There is concern about a cultural modification that would certainly happen as soon as Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Marketing with the majority of the employee currently revealing discontent over this potential relocation. This predicted modification has actually produced tension in the office which has actually been paired with the past tension of preparing the company for a possible merger with Home Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is lack of personnel that can match the difficult setting of a busy organization. Not just does this result in difficulty in finding the appropriate individuals, it places tension on brand-new hires as can not hold up against the speed as well as stress that the company anticipates them to bear.

Double Reporting Lines: Beginners find this business culture cumbersome and also hard to deal with specifically as populated line relationships are suggested to be weaker generally and unbiased setup and also performance examination is still done by the solid line supervisor. This implies that beginners could shed quality about their respective roles and also goals especially as populated line coverage does not maintain them in straight interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles even though it had been guessed that the last would certainly take Krasnow's position came as a blow to her morale. Lewis might have been capable and also ideal for the job but the truth that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Job Insecurity: Fear as well as insecurity can be determined as two significant concerns that Lewis would be handling specifically as the merging has now be cancelled and two elderly execs of the marketing division would be leaving. The entire obligation of the department would be falling on Lewis's shoulders who would not just supervise of brining regarding a social modification yet would certainly also have to show herself in her brand-new function.

Inappropriate Administration Design of Leader: Lewis's administration style as well as its incompatibility with the advertising division's duty can also be seen as an OB difficulty particularly as she has been utilized to handling concerns in the operations division where personnel are shown to focus on processes and obtain them right. The marketing division on the other hand can be seen as a team of individuals that are utilized to being nurtured by Krasnow who concentrated much more on output than procedures.

Interdepartmental Differences: Interdepartmental arguments in between three divisions, advertising and marketing, merchandizing as well as procedures respectively over the allocation of the advertising mix can be determined as another OB problem. Although the advertising division does not share the very same vision as the other two divisions regarding the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing as well as 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 departments can be recognized as an additional OB issue which could need more interest. The truth that the advertising and marketing sections in the advertising and marketing department are disconnected is stopping both divisions from obtaining from each other's experience and expertise. Assimilation of advertising and marketing with retailing and also operations would certainly end up being harder if the advertising department itself is degenerated which can be another possible OB issue.

Suntech Power Holdings A The Pre Ipo Years Analysis

Numerous theories have been made use of to describe the situations to get further clearness concerning the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of supervisors believe that juniors are passive and lazy, have little passion and withstand change. The circumstance at Suntech Power Holdings A The Pre Ipo Years is not entirely following Concept X, it can be seen that brand-new hires are finding this atmosphere instead demanding which might eventually lead to a greater inclination of the management towards Concept X. Even while examining Lewis's monitoring style, concept X may have been suitable in the operations division to some extent however the Marketing division would require reliance on Theory Y in order to obtain the creative thinking as well as originality from the teams.

Tuckman's Team effort Concept: As far as Lewis's concern concerning bringing consistency in between the advertising and marketing as well as advertising division is worried, this would originally lead to clash as talked about by Bruce Tuckman in his 'Team effort Concept'. By incorporating the advertising and marketing and also advertising and marketing department's job, there might be the very same initial disconnect which can lead to the second phase of 'storming' where the teams test one another.

Bridges' Change Version: According To William Bridge's concept (appendix 4), people are fairly unpleasant with change, which is evident by the scenario at Suntech Power Holdings A The Pre Ipo Years The scenario can be viewed as a typical training course of life if is researched as per Bridge's theory where he describes that people go through 3 phases of transition when they experience adjustment. 'Closing, losing and Letting go', The Neutral Zone and 'The New Starting' (Bridges, 2004). When people exist with adjustment, they enter phase one and so there may be emotions like despair, unpredictability, stress, temper, fear, rejection and disorientation.The situation at the advertising and marketing division of Suntech Power Holdings A The Pre Ipo Years is comparable so Lewis can get comfy with the suggestion that it is not amazing behavior. In the 2nd phase, there might be a demand to link the gap in between the brand-new and also old society so Lewis may need to encounter this ordeal once Krasnow leaves. There may be reduced spirits as well as low productivity at this phase which need to not be taken as a problem. It is during this phase that Lewis will have to give support to the division so that they can find a sense of direction. It can be seen how Krasnow has currently made this change simpler by making Lewis get associated with the division a year prior to his actual separation. Based on Bridges' Version, stage three will certainly bring about openness to understanding, High energy and also dedication as people will embrace the modification (Bridges, 2004).
Vrio Analysis
Maslow's Requirement hierarchy: The OB concern related to insecurity at the workplace has actually been set off firstly by the adjustment in monitoring and also secondly by the reality that the merger will no longer be initiated. Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has goes over the importance of 'safety and security requires as being a reduced level need of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel secure and also untouched' goes to the 2nd degree of demands. Prior to a worker can be made to develop mentally, he needs to have his 'Physical 'as well as 'Safety and security' needs met. This suggests that unless the employees are made to feel protected about their current employment condition in Suntech Power Holdings A The Pre Ipo Years they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Suntech Power Holdings A The Pre Ipo Years Case Study

Implication of Analysis.

The OB analysis has looked at numerous concepts to comprehend how to cope with the present situation available. The adhering to 3 options have been suggested to aid Lewis manage the organizational challenges in the advertising department. Each of these choices has actually been recommended for alleviating the shift required to bring the advertising and marketing division according to the demands of the market and also for making the social change that would follow once the present leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting as well as Manufacturing functions. Integration of Advertising And Marketing with Workflow.

Examination of Alternatives.

Assimilation of Advertising & Advertising Functions: The internal marketing company of Suntech Power Holdings A The Pre Ipo Years is already strength for the organization in regards to conserving up on overheads associated with marketing and promo. Since no brand-new employment has been done after Bridget Cole's departure with the reporting line being directly assigned to Krasnow for the marketing function, this is a favorable possibility for integrating the advertising and marketing functions. Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merger days has expertise in business-to-business marketing along with company as well as retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to deal with both marketing and advertising functions.

The advantage of this approach is that it will certainly integrate both features while decreasing the demand for employing an additional resource for advertising and marketing. Lewis would be heading the advertising and marketing division as well as in any case her substitute would be needed for the current role that she is carrying out. The downside of this alternative is that outside hiring might produce bitterness from internal personnel who may be looking at the position of EVP after Lewis takes control of Krasnow's position.

Separating Adverting as well as Production: Provided the competitive pressures as well as high top quality work required from the advertising agency, it is suggested that Lewis must allow the production system to be a separate feature from the advertising and marketing device. Because most advertising companies had these two features as separate systems, it makes even more sense to comply with the standard.

Assimilation of Advertising And Marketing with Operations: Considering that Lewis is already dealing with the advertising and also operations divisions all at once; it makes sense to incorporate the two functions given that she has actually been effectively looking after both ends. The truth that the two divisions already have significant differences over allocation of resources recommends that this combination might have the ability to bring about harmony especially as Lewis would be heading both ends.However there are various downsides of this action specifically as it would certainly put excessive worry over Lewis's shoulders. The reality that Lewis needs to adjust her management style for the advertising department suggests that these two departments would certainly be culturally varied. In addition to this, Lewis might not be able to apply one kind of management style to both departments which might cause inadequacy in either one of the two functions.


An evaluation of the 3 options indicates that combination of advertising and marketing and operations would certainly not be a possible relocation due to the large differences between the 2 divisions regardless of the fact that presently Lewis is dealing with both. While splitting up of the manufacturing function may have been a positive step for the advertising and marketing department, the fact that it would certainly mean positioning a 3rd feature under Lewis's wing means this should be avoided.

Action Plan.
Lewis will take over the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

Production feature will certainly continue to be component of advertising under advertising feature.

Lewis will certainly divide herself from operations.

An autonomous leadership design with employee empowerment will be made use of in advertising division.

Open up door plan and focus on cross departmental interaction will certainly be targeted at removing dissonance.

Backup strategy.

If the assimilation does not exercise as prepared, a backup plan would certainly follow which would divide the manufacturing function from the advertising and marketing function to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising department without an SVP. Because case the production feature will most definitely be divided by placing it under an SVP manufacturing.