Suntech Power Holdings B The Post Ipo Years Case Study Solution


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Suntech Power Holdings B The Post Ipo Years Case Study Analysis

Background and Facts

Suntech Power Holdings B The Post Ipo Years a workplace supplies seller for little and medium sized companies has lately been involved in planning for a merging with its rival Residence Deport, which has actually influenced effectiveness levels in departmentswith the elderly manager associated with legal problems put forth by the government Trade Compensation. With the Advertising Head advancing the information of his separation from the company in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the future. With difficulties in the type of a prospective social change as well as reduced worker spirits, the company requires a full reengineering initiative at the marketing department.

Issue Statement
Porter's 5 Forces Analysis
The prospective social adjustment at the advertising department of Suntech Power Holdings B The Post Ipo Years is increasing uncertainty in the working environment leading to numerous 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 affecting calculated decisions given that Stapes Inc. needed to desert its plans of merging with Office Deport after the Federal Trade Payment's treatment while doing so. Given the fact that the shop has a global presence with branches in UK, USA, Canada as well as Germany, political factors in each of these nations may be able to affect efficiency or tactical goals. Federal Profession Compensation's antitrust match versus the merger took up important time of the organization's senior monitoring suggesting that 'political' factors can have significant implications for a worldwide business.

Economic Factors: Economic factors such as the development of local business in the international scenario suggest that Suntech Power Holdings B The Post Ipo Years is thriving in a setting where there is potential growth of organisations. Reality that shop clients are mostly looking for workplace products for residence offices recommends that the market has a climbing pattern of entrepreneurs as well as house based businesses.

Social factors: Social trends in the economic climate show that clients are searching for ease along with attractive rates. Marketing research demonstrates how the customer for Suntech Power Holdings B The Post Ipo Years does not have awareness regarding discovering options which can provide a combination of convenience and also affordable.

Technical factors: Innovation plays an essential duty in Suntech Power Holdings B The Post Ipo Years's business strategy specifically as the organization is piloting Technology facilities which would certainly supply modern technology sales and also support in the kind of memory upgrades, peripheral installations. (Recap of PARASITE in appendix 2).

OB Issues and Manifestations.

A number of underlying Organizational Behavior concerns can be seen in Suntech Power Holdings B The Post Ipo Years's case as highlighted in this section.

Concerns concerning cultural change: There is apprehension about a social modification that would take place as soon as Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising with most of the staff members already revealing discontent over this potential step. This anticipated change has actually produced anxiety in the office which has been combined with the previous stress of preparing the firm for a prospective merging with Residence Deport.
Pest Analysis
Difficult Task Atmosphere for Newcomers: There is scarcity of workers that can match the demanding setting of a fast-paced organization. Not only does this result in problem in finding the ideal people, it puts anxiety on new hires as can not stand up to the speed as well as pressure that the company expects them to bear.

Twin Coverage Lines: Beginners discover this organizational culture cumbersome and challenging to deal with particularly as populated line relationships are meant to be weak as a whole and unbiased setup as well as performance analysis is still done by the solid line manager. This means that novices can lose clearness about their respective roles and also purposes particularly as dotted line coverage does not maintain them in straight communication with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles even though it had been hypothesized that the latter would take Krasnow's placement came as a blow to her spirits. Lewis may have been qualified and appropriate for the task yet the reality that Kransnow's departure would make Coles a straight record to Lewis may have been the reason for Coles' resignation from services.

Fear & Task Insecurity: Worry as well as instability can be determined as 2 significant problems that Lewis would certainly be managing specifically as the merging has currently be terminated and 2 elderly executives of the marketing department would certainly be leaving. The entire responsibility of the division would certainly be dropping on Lewis's shoulders who would certainly not just be in charge of brining concerning a social adjustment however would also need to show herself in her new duty.

Incompatible Administration Design of Leader: Lewis's management design as well as its incompatibility with the advertising division's role can additionally be seen as an OB difficulty specifically as she has actually been made use of to managing concerns in the operations department where workers are educated to focus on procedures as well as get them. The advertising department on the various other hand can be viewed as a group of people that are utilized to being nurtured by Krasnow that focused much more on output than procedures.

Interdepartmental Differences: Interdepartmental differences in between 3 divisions, advertising and marketing, merchandizing and procedures specifically over the appropriation of the advertising mix can be determined as one more OB issue. The advertising and marketing division does not share the exact same vision as the other two divisions pertaining to the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing as well as operations divisions do not agree over the marketing mix appropriation amongst one an additional either.

Fragmentation in Marketing Department: Disintegration in between the marketing and advertising divisions can be identified as an additional OB issue which could need further attention. The fact that the advertising and marketing areas in the marketing division are separated is avoiding both departments from acquiring from each other's experience as well as expertise. Combination of advertising and marketing with retailing and procedures would certainly come to be harder if the advertising and marketing department itself is disintegrated which can be another potential OB concern.

Suntech Power Holdings B The Post Ipo Years Analysis

Different theories have been used to clarify the circumstances to get additional clearness about the situation available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of managers think that subordinates are passive and careless, have little ambition as well as stand up to adjustment. The hard variation of this concept emphasized browbeating, tight controls, hazards and penalties. Over time it produces low efficiency, subtle sabotage and also competition (Deal, 2003). The situation at Suntech Power Holdings B The Post Ipo Years is not completely adhering to Theory X, it can be seen that new hires are finding this environment instead difficult which may at some point lead to a better inclination of the administration in the direction of Concept X. As per McGregor's advocated sight, which he called Theory Y, the important task of the administration is to prepare organizational problems to ensure that individuals can accomplish their very own goals best by routing their efforts towards organizational benefits. If individuals locate no complete satisfaction in their work, the monitoring would have little option however to count on concept X as well as external control (Offer, 2003). Also while assessing Lewis's monitoring style, concept X might have appropriated in the procedures department somewhat yet the Advertising department would certainly need reliance on Concept Y to get the creativity and creativity from the groups.

Tuckman's Teamwork Concept: As for Lewis's worry regarding bringing consistency in between the marketing and advertising division is worried, this would at first result in clash as talked about by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). According to Tuckman's theory shown in appendix 3, throughout the first phase of team development, individuals might not bond, as they are active locating their place in the team. By incorporating the advertising and marketing division's job, there may be the same preliminary separate which might result in the second stage of 'storming' where the groups test each other. Nevertheless, it is just throughout the 3rd stage or 'norming' when they would integrate to share suggestions before the group can bring about harmony in the 4th stage 'executing'.

Bridges' Change Model: As per William Bridge's concept (appendix 4), individuals are rather uneasy with modification, which is apparent by the situation at Suntech Power Holdings B The Post Ipo Years The circumstance can be viewed as a normal program of life if is examined as per Bridge's theory where he discusses that people experience three phases of change when they experience adjustment. 'Ending, losing and Letting go', The Neutral Area and 'The New Beginning' (Bridges, 2004). When people are presented with change, they enter phase one and so there might be feelings like unhappiness, uncertainty, stress, anger, worry, rejection as well as disorientation.The scenario at the advertising and marketing division of Suntech Power Holdings B The Post Ipo Years is comparable so Lewis can obtain comfy with the idea that it is not amazing behavior. In the 2nd stage, there might be a need to connect the void between the new and also old culture so Lewis might need to face this challenge as soon as Krasnow leaves. There might be low morale and also low productivity at this stage which ought to not be taken as a trouble. It is during this stage that Lewis will have to offer advice to the department to make sure that they can find a sense of direction. It can be seen exactly how Krasnow has currently made this change less complicated by making Lewis get involved in the division a year prior to his actual departure. According to Bridges' Version, phase three will cause visibility to knowing, High power and also commitment as individuals will embrace the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Need pecking order: The OB problem pertaining to insecurity at the work environment has been triggered firstly by the change in administration and also second of all by the reality that the merger will certainly no more be launched. Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has reviews the significance of 'protection requires as being a reduced degree demand of a human for setting off inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the demand to feel safe and out of danger' goes to the second level of needs. Prior to a staff member can be made to develop mentally, he requires to have his 'Physical 'as well as 'Security' needs fulfilled. This suggests that unless the employees are made to feel safe and secure regarding their current employment status in Suntech Power Holdings B The Post Ipo Years they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Suntech Power Holdings B The Post Ipo Years Case Study

Implication of Analysis.

The OB analysis has considered various concepts to understand exactly how to manage the present scenario available. The following three options have actually been suggested to help Lewis deal with the organizational obstacles in the advertising division. Each of these options has actually been suggested for reducing the change needed to bring the advertising and marketing department in line with the needs of the marketplace and for making the social modification that would adhere to once the current leader leaves.

Assimilation of marketing and advertising features. Separating Adverting and also Production features. Combination of Advertising with Procedures.

Examination of Alternatives.

Integration of Advertising And Marketing & Marketing Functions: The internal advertising and marketing company of Suntech Power Holdings B The Post Ipo Years is already stamina for the company in terms of saving up on overheads related to marketing and promo. Since no new recruitment has been done after Bridget Cole's departure with the coverage line being directly appointed to Krasnow for the marketing feature, this is a positive possibility for integrating the marketing and advertising features. Judith Shapiro who has earlier been interviewed by Lewis during the earlier merging days has know-how in business-to-business advertising together with firm and also retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing functions.

The benefit of this strategy is that it will certainly incorporate the two functions while reducing the demand for employing an additional source for marketing. Lewis would be heading the advertising department and also in any kind of case her substitute would be required for the existing role that she is executing. The negative aspect of this alternative is that external hiring may cause resentment from internal personnel who may be looking at the setting of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Production: Given the affordable pressures and high quality work required from the marketing firm, it is advised that Lewis ought to permit the manufacturing system to be a different feature from the advertising device. Given that the majority of advertising and marketing firms had these two functions as separate devices, it makes even more sense to comply with the standard.

Integration of Marketing with Workflows: Since Lewis is already looking after the advertising and also operations departments simultaneously; it makes sense to integrate both features considering that she has actually been effectively caring for both ends. The reality that the two divisions already have major differences over allocation of resources suggests that this integration might be able to bring about harmony especially as Lewis would certainly be heading both ends.However there are various drawbacks of this relocation especially as it would certainly put too much worry over Lewis's shoulders. The reality that Lewis has to adjust her monitoring style for the advertising division suggests that these two departments would be culturally varied. In addition to this, Lewis may not be able to apply one kind of management style to both departments which could cause ineffectiveness in either one of both functions.


An evaluation of the three alternatives suggests that assimilation of marketing as well as procedures would not be a viable relocation as a result of the huge distinctions in between the two divisions although that presently Lewis is managing both. While separation of the manufacturing function may have been a beneficial action for the advertising department, the reality that it would certainly imply positioning a third function under Lewis's wing suggests this must be avoided. The combination of the advertising department is the best option in regards to obtaining the optimal results from the department. An activity prepare for this alternative is talked about listed below.

Activity Plan.
Lewis will certainly take control of the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be merged.

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

Production function will certainly remain component of marketing under marketing feature.

Lewis will certainly separate herself from operations.

An autonomous management design with worker empowerment will certainly be utilized in marketing department.

Open up door plan and also emphasis on cross department interaction will be focused on getting rid of disharmony.

Contingency plan.

If the combination does not work out as prepared, a backup strategy would certainly follow which would divide the production feature from the advertising and marketing feature to decrease the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the marketing department without an SVP. Because case the manufacturing feature will most definitely be separated by placing it under an SVP manufacturing.