Background and Facts
Talisman Energy Inc The Decision To Enter Iraq an office supplies retailer for small and also average sized companies has actually lately been associated with planning for a merging with its competitor House Deport, which has influenced performance degrees in departmentswith the senior supervisor associated with legal problems presented by the government Trade Commission. With the Advertising and marketing 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 difficulties in the type of a possible cultural adjustment and reduced employee spirits, the company requires a complete reengineering effort at the advertising division.Issue Statement
The potential social change at the advertising division of Talisman Energy Inc The Decision To Enter Iraq is boosting uncertainty in the working environment leading to different obstacles for the Jeannie Lewis that would be changing the head of the department in one year. nalysis
PEST analysis
Political Factors: Political factors play a significant role in influencing critical choices because Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Trade Compensation's treatment while doing so. Provided the reality that the shop has a worldwide visibility with branches in UK, USA, Canada and Germany, political factors in each of these countries might have the ability to influence efficiency or calculated objectives. Federal Profession Payment's antitrust match against the merging used up useful time of the company's elderly administration suggesting that 'political' factors can have severe effects for a worldwide service.
Economic Factors: Financial factors such as the development of local business in the worldwide scenario suggest that Talisman Energy Inc The Decision To Enter Iraq is flourishing in an environment where there is possible growth of businesses. Truth that shop customers are mostly looking for office materials for home workplaces suggests that the market has an increasing fad of business owners and residence based services.
Social factors: Social fads in the economic situation show that consumers are trying to find benefit along with appealing costs. Market research shows how the consumer for Talisman Energy Inc The Decision To Enter Iraq lacks recognition about discovering solutions which can use a combination of convenience as well as low costs.
Technical factors: Innovation plays a crucial role in Talisman Energy Inc The Decision To Enter Iraq's business method specifically as the organization is piloting Technology centers which would certainly supply technology sales and support in the form of memory upgrades, peripheral setups. (Summary of BUG in appendix 2).
OB Issues and also Effects.
A number of underlying Organizational Actions problems can be seen in Talisman Energy Inc The Decision To Enter Iraq's case as highlighted in this area.
Worries concerning social adjustment: There is concern concerning a social modification that would take place as soon as Todd Krasnow leaves from his position as the Exec Vice President of Marketing with most of the team member already showing discontent over this potential relocation. This predicted modification has developed stress in the work environment which has actually been paired with the previous anxiety of preparing the company for a possible merger with House Deport.
Demanding Task Environment for Newcomers: There is scarcity of workers that can match the demanding environment of a hectic company. Not only does this cause difficulty in locating the appropriate individuals, it puts stress on brand-new hires as can not withstand the speed and stress that the organization anticipates them to bear.
Double Reporting Lines: Newcomers discover this business society troublesome and challenging to handle especially as populated line connections are implied to be weak as a whole and unbiased setup as well as performance examination is still done by the strong line supervisor. This indicates that novices might lose clarity concerning their particular functions and also purposes specifically as dotted line coverage does not keep them in straight communication with the solid line supervisors.
Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles despite the fact that it had been speculated that the last would take Krasnow's setting came as a strike to her morale. Lewis may have been capable and appropriate for the task but the reality that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the factor for Coles' resignation from services.
Concern & Job Insecurity: Anxiety as well as insecurity can be identified as 2 significant issues that Lewis would be handling specifically as the merger has now be cancelled and also two senior execs of the advertising department would be leaving. The whole responsibility of the division would certainly be dropping on Lewis's shoulders that would certainly not simply be in charge of brining concerning a cultural change however would certainly also have to confirm herself in her brand-new function.
Incompatible Administration Design of Leader: Lewis's management style and also its incompatibility with the advertising and marketing department's function can likewise be viewed as an OB obstacle particularly as she has been used to managing issues in the procedures division where personnel are taught to concentrate on processes as well as obtain them right. The marketing department on the various other hand can be viewed as a group of individuals who are made use of to being supported by Krasnow that concentrated more on output than processes.
Interdepartmental Disputes: Interdepartmental disagreements in between three divisions, marketing, merchandizing and also operations respectively over the appropriation of the marketing mix can be identified as one more OB concern. The marketing department does not share the exact same vision as the other two departments concerning the aloocation of the marketing mix twoards promos and advertsing, the merchandizing and also operations divisions do not concur over the marketing mix appropriation among one another either.
Fragmentation in Advertising And Marketing Department: Fragmentation in between the advertising and marketing divisions can be determined as another OB concern which could need further focus. The fact that the marketing and advertising sections in the advertising and marketing department are detached is protecting against both departments from gaining from each various other's experience and also knowledge. Integration of advertising with merchandising and operations would end up being more difficult if the advertising and marketing department itself is degenerated which can be one more prospective OB concern.
Talisman Energy Inc The Decision To Enter Iraq Analysis
Numerous concepts have been utilized to describe the circumstances to obtain more clarity regarding the scenario handy.
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of managers believe that staffs are passive and also lazy, have little ambition and stand up to change. The situation at Talisman Energy Inc The Decision To Enter Iraq is not totally following Theory X, it can be seen that new hires are locating this setting rather demanding which might eventually lead to a better disposition of the management towards Theory X. Even while assessing Lewis's administration design, theory X might have been ideal in the procedures division to some level however the Marketing division would certainly need dependence on Concept Y in order to obtain the imagination as well as originality from the groups.
Tuckman's Synergy Concept: As far as Lewis's concern regarding bringing harmony in between the advertising and marketing and also marketing department is concerned, this would at first lead to conflict as reviewed by Bruce Tuckman in his 'Team effort Theory'. By integrating the marketing as well as marketing department's job, there may be the same first separate which can lead to the second phase of 'storming' where the groups challenge one another.
Bridges' Change Design: According To William Bridge's theory (appendix 4), people are rather uneasy with modification, which is obvious by the situation at Talisman Energy Inc The Decision To Enter Iraq The scenario can be viewed as a regular course of life if is studied according to Bridge's concept where he describes that people experience 3 stages of change when they experience modification. 'Ending, shedding and also Letting go', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When individuals are presented with change, they enter phase one therefore there may be emotions like despair, unpredictability, stress, rage, anxiety, denial and disorientation.The scenario at the marketing department of Talisman Energy Inc The Decision To Enter Iraq is comparable so Lewis can obtain comfortable with the concept that it is not remarkable behavior. In the 2nd phase, there may be a need to bridge the space in between the new and old culture so Lewis may need to encounter this challenge once Krasnow leaves. There may be reduced morale and also low performance at this phase which should not be taken as a problem. It is during this stage that Lewis will need to give support to the department to make sure that they can discover an orientation. It can be seen just how Krasnow has actually currently made this change easier by making Lewis obtain associated with the division a year before his real departure. According to Bridges' Design, stage 3 will cause openness to discovering, High power as well as commitment as individuals will accept the change (Bridges, 2004).
Maslow's Demand hierarchy: The OB concern pertaining to instability at the workplace has been caused firstly by the modification in monitoring and also secondly by the truth that the merging will certainly no more be started. Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has discusses the value of 'safety and security requires as being a reduced degree requirement of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel protected and untouched' goes to the second level of needs. Prior to an employee can be made to establish psychologically, he requires to have his 'Physiological 'as well as 'Security' requires fulfilled. This indicates that unless the workers are made to really feel secure about their present work standing in Talisman Energy Inc The Decision To Enter Iraq they might not reach 'Self-Fulfillment'. (King, 2009).
SWOT Analysis for Talisman Energy Inc The Decision To Enter Iraq Case Study
Implication of Analysis.
The OB analysis has looked at numerous concepts to comprehend exactly how to manage the current circumstance at hand. The complying with 3 options have been proposed to assist Lewis manage the business challenges in the advertising department. Each of these options has been suggested for alleviating the change needed to bring the marketing division according to the demands of the market as well as for making the social adjustment that would follow as soon as the existing leader leaves.
Combination of marketing and advertising functions. Dividing Adverting and Production features. Integration of Advertising And Marketing with Operations.
Assessment of Alternatives.
Integration of Advertising & Marketing Functions: The internal advertising and marketing agency of Talisman Energy Inc The Decision To Enter Iraq is currently strength for the company in regards to saving up on overheads associated with advertising and marketing and promotion. Since no new recruitment has actually been done after Bridget Cole's departure with the reporting line being directly designated to Krasnow for the marketing feature, this is a desirable opportunity for integrating the advertising and marketing functions. Judith Shapiro that has earlier been talked to by Lewis during the earlier merger days has expertise in business-to-business advertising and marketing in addition to agency and also retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with 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 features while decreasing the requirement for working with an additional source for marketing. Lewis would certainly be heading the advertising and marketing department and also in any type of case her substitute would certainly be required for the current role that she is executing. The disadvantage of this choice is that outside hiring may produce resentment from internal personnel who may be eying the placement of EVP after Lewis takes control of Krasnow's setting.
Dividing Adverting and also Production: Provided the affordable pressures and premium quality job required from the advertising agency, it is suggested that Lewis must permit the production unit to be a different feature from the marketing system. Considering that most ad agency had these two features as separate units, it makes even more sense to follow the standard. In addition to this, both functions may be able to focus on their core activates more efficiently. The drawback of this method would certainly be that added expenses would have to be birthed for setting up different production features. A manufacturing head might have to be hired which might enhance expenses for the organization.
Integration of Advertising And Marketing with Operations: Considering that Lewis is currently taking care of the advertising and marketing and also procedures departments at the same time; it makes sense to integrate the two features since she has been efficiently taking treatment of both ends. The truth that Lewis has to adjust her management style for the advertising and marketing division suggests that these 2 divisions would be culturally varied.
Referral.
An analysis of the three alternatives indicates that assimilation of marketing and operations would not be a feasible action due to the huge distinctions in between the two departments despite the reality that presently Lewis is managing both. While separation of the manufacturing function may have been a beneficial relocation for the advertising and marketing department, the fact that it would suggest placing a third function under Lewis's wing means this must be avoided.
Activity Strategy.
Lewis will take over the role of EVP Advertising and marketing after Krasnow leaves.
Marketing and advertising features would be combined.
Judith Shapiro will be employed to take Lewis's location as SVP of marketing and advertising.
Production feature will certainly continue to be part of advertising under advertising feature.
Lewis will certainly divide herself from procedures.
An autonomous management design with staff member empowerment will be utilized in advertising department.
Open door policy as well as emphasis on cross department communication will certainly be focused on eliminating dissonance.
Backup plan.
If the combination does not exercise as planned, a contingency plan would certainly follow which would certainly divide the manufacturing function from the advertising feature to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising and marketing department without an SVP. In that case the production function will definitely be separated by putting it under an SVP manufacturing.