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Temaseks Offer To Buy Olam International Case Study Analysis

CASE SOLUTION

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Temaseks Offer To Buy Olam International Case Study Help

Background and Facts

Temaseks Offer To Buy Olam International an office materials merchant for tiny and also medium sized organisations has actually just recently been associated with preparing for a merging with its rival Residence Deport, which has actually affected efficiency degrees in departmentswith the elderly supervisor involved in lawful complications put forth by the government Trade Payment. With the Marketing Head putting forward the news of his separation from the company in one year, Jeannie Lewis, the present head of operations has been asked to take the function in the near future. With challenges in the kind of a potential cultural change as well as reduced employee spirits, the company requires a full reengineering effort at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The possible social modification at the advertising and marketing division of Temaseks Offer To Buy Olam International is raising uncertainty in the working environment causing 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 major function in affecting strategic decisions considering that Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Trade Commission's treatment in the process. Offered the truth that the store has a global existence with branches in UK, U.S.A., Canada and also Germany, political consider each of these countries might have the ability to affect performance or calculated goals. Federal Trade Compensation's antitrust suit versus the merger occupied important time of the organization's elderly management recommending that 'political' factors can have severe ramifications for a global service.

Economic Factors: Economic factors such as the appearance of small businesses in the global situation recommend that Temaseks Offer To Buy Olam International is thriving in an atmosphere where there is possible growth of services. Truth that store clients are primarily looking for office supplies for residence workplaces recommends that the market has a rising fad of business owners and house based companies.

Social factors: Social patterns in the economic situation reveal that customers are looking for ease along with attractive prices. Marketing research demonstrates how the consumer for Temaseks Offer To Buy Olam International does not have recognition about discovering options which can supply a mix of convenience as well as inexpensive.

Technological factors: Modern technology plays an essential function in Temaseks Offer To Buy Olam International's organisation method especially as the organization is piloting Technology centers which would offer modern technology sales and support in the form of memory upgrades, peripheral installments. (Recap of INSECT in appendix 2).

OB Issues as well as Symptoms.

Several underlying Organizational Habits problems can be seen in Temaseks Offer To Buy Olam International's case as highlighted in this area.

Uneasiness concerning social adjustment: There is worry about a cultural change that would certainly happen when Todd Krasnow leaves from his position as the Executive Vice Head Of State of Marketing with most of the personnel currently revealing discontent over this possible relocation. This predicted modification has actually developed anxiety in the work environment which has been coupled with the past tension of preparing the firm for a possible merging with Residence Deport.
Pest Analysis
Stressful Job Setting for Newcomers: There is shortage of personnel that can match the stressful setting of a busy company. Not just does this cause trouble in discovering the ideal individuals, it places anxiety on brand-new hires as can not withstand the rate as well as stress that the organization expects them to birth.

Double Coverage Lines: Newbies discover this organizational society difficult as well as difficult to deal with particularly as dotted line relationships are implied to be weaker as a whole and also unbiased setup and also efficiency analysis is still done by the strong line manager. This indicates that beginners might lose quality concerning their corresponding functions and purposes specifically as populated line coverage does not maintain them in direct communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles even though it had actually been speculated that the last would certainly take Krasnow's placement came as an impact to her spirits. Lewis may have been capable and also suitable for the work 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.

Worry & Work Insecurity: Concern and also instability can be identified as 2 major concerns that Lewis would certainly be taking care of especially as the merging has now be terminated and two senior execs of the advertising and marketing department would certainly be leaving. The entire duty of the department would be dropping on Lewis's shoulders that would certainly not simply be in charge of brining about a social change however would also have to show herself in her new role.

Inappropriate Management Style of Leader: Lewis's management style and also its incompatibility with the advertising department's duty can also be viewed as an OB challenge particularly as she has actually been used to handling concerns in the procedures division where workers are shown to concentrate on processes and get them right. The marketing department on the other hand can be viewed as a team of people that are made use of to being supported by Krasnow that focused more on result than processes.

Interdepartmental Arguments: Interdepartmental differences in between 3 departments, marketing, merchandizing as well as procedures specifically over the allotment of the marketing mix can be recognized as an additional OB problem. The advertising and marketing division does not share the very same vision as the various other 2 departments pertaining to the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing as well as procedures divisions do not concur over the advertising and marketing mix allocation among one another either.

Disintegration in Marketing Department: Disintegration in between the marketing and advertising divisions can be recognized as an additional OB issue which could require more focus. The reality that the marketing and advertising areas in the advertising division are separated is stopping both divisions from gaining from each various other's experience as well as proficiency. Combination of marketing with merchandising and procedures would certainly become more difficult if the advertising department itself is degenerated which can be an additional potential OB issue.

Temaseks Offer To Buy Olam International Analysis

Different concepts have actually been made use of to discuss the scenarios to obtain more quality about the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers believe that staffs are passive as well as lazy, have little ambition as well as withstand modification. The scenario at Temaseks Offer To Buy Olam International is not totally complying with Theory X, it can be seen that brand-new hires are discovering this environment rather difficult which might at some point lead to a greater disposition of the management towards Theory X. Also while examining Lewis's administration design, concept X may have been appropriate in the procedures department to some degree yet the Advertising division would certainly need reliance on Theory Y in order to get the creativity as well as creativity from the teams.

Tuckman's Teamwork Theory: Regarding Lewis's concern about bringing harmony between the marketing and advertising department is concerned, this would at first cause conflict as talked about by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). According to Tuckman's concept shown in appendix 3, throughout the preliminary phase of team advancement, individuals may not bond, as they are active discovering their area in the group. By combining the advertising and marketing department's job, there might be the same first separate which could cause the second stage of 'storming' where the groups test each other. It is only throughout the 3rd stage or 'norming' when they would certainly come with each other to share ideas before the team can bring around harmony in the fourth phase 'doing'.

Bridges' Transition Version: According To William Bridge's theory (appendix 4), individuals are quite unpleasant with modification, which is noticeable by the situation at Temaseks Offer To Buy Olam International The scenario can be seen as a regular program of life if is researched as per Bridge's concept where he discusses that individuals experience three phases of transition when they experience adjustment. 'Ending, losing as well as Letting go', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When people are presented with modification, they get in phase one therefore there may be feelings like unhappiness, unpredictability, aggravation, anger, concern, rejection and also disorientation.The scenario at the marketing department of Temaseks Offer To Buy Olam International is comparable so Lewis can obtain comfy with the concept that it is not remarkable habits. In the 2nd phase, there might be a need to bridge the space in between the new as well as old society so Lewis might need to face this experience once Krasnow leaves. There might be low morale and also low efficiency at this phase which must not be taken as a problem. It is throughout this stage that Lewis will certainly have to provide assistance to the division to make sure that they can discover a sense of direction. It can be seen just how Krasnow has already made this change much easier by making Lewis get involved in the department a year before his real departure. As per Bridges' Design, stage 3 will produce visibility to knowing, High power and also commitment as individuals will certainly accept the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has talks about the relevance of 'safety requires as being a reduced level demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel safe as well as out of threat' is at the 2nd degree of demands. Before an employee can be made to establish emotionally, he requires to have his 'Physical 'and also 'Security' needs met.

SWOT Analysis for Temaseks Offer To Buy Olam International Case Study



Implication of Analysis.

The OB analysis has actually taken a look at numerous concepts to comprehend how to deal with the current situation at hand. The adhering to three alternatives have been recommended to help Lewis handle the organizational difficulties in the marketing division. Each of these options has been suggested for reducing the transition required to bring the marketing department in accordance with the needs of the marketplace and for making the social modification that would certainly comply with as soon as the present leader leaves.

Integration of marketing and advertising features. Dividing Adverting and also Production features. Combination of Advertising And Marketing with Operations.

Examination of Alternatives.

Assimilation of Marketing & Advertising And Marketing Functions: The in-house advertising company of Temaseks Offer To Buy Olam International is already strength for the organization in regards to saving up on overheads connected to advertising as well as promotion. Since no new recruitment has been done after Bridget Cole's departure with the coverage line being directly designated to Krasnow for the advertising and marketing function, this is a desirable possibility for incorporating the marketing and advertising features. Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merger days has proficiency in business-to-business marketing in addition to agency and retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to take care of both marketing and advertising features.

The benefit of this approach is that it will certainly incorporate both features while reducing the requirement for employing an additional resource for advertising and marketing. Lewis would certainly be heading the advertising department and also in any type of case her substitute would certainly be needed for the existing role that she is performing. The drawback of this choice is that outside hiring might produce bitterness from internal workers who might be eying the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Production: Offered the affordable stress as well as high top quality work required from the advertising and marketing company, it is recommended that Lewis ought to enable the manufacturing system to be a separate feature from the marketing device. Considering that the majority of advertising companies had these 2 functions as different devices, it makes even more feeling to adhere to the standard.

Assimilation of Advertising with Procedures: Because Lewis is currently caring for the advertising and marketing and operations divisions concurrently; it makes sense to integrate the two features because she has been successfully caring for both ends. The truth that both divisions already have significant differences over allocation of sources suggests that this assimilation may be able to produce harmony especially as Lewis would certainly be heading both ends.However there are various negative aspects of this step particularly as it would put too much concern over Lewis's shoulders. The reality that Lewis has to adapt her administration style for the advertising and marketing division recommends that these 2 divisions would certainly be culturally diverse. In addition to this, Lewis might not be able to use one type of management design to both departments which can cause inadequacy in either among the two features.

Suggestion.



An analysis of the three choices suggests that combination of marketing as well as procedures would not be a viable step due to the huge differences in between the 2 departments despite the reality that presently Lewis is dealing with both. While splitting up of the manufacturing feature may have been a desirable move for the advertising division, the truth that it would suggest positioning a 3rd function under Lewis's wing indicates this ought to be avoided.

Activity Strategy.
Recommendation
Lewis will certainly take control of the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would be combined.

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

Manufacturing feature will stay part of advertising under advertising function.

Lewis will separate herself from operations.

A democratic leadership design with staff member empowerment will be made use of in marketing division.

Open up door policy as well as emphasis on cross department interaction will be targeted at removing disharmony.

Contingency strategy.

If the combination does not work out as prepared, a backup strategy would certainly comply with which would divide the production function from the advertising function to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the marketing department without an SVP. Because case the production feature will definitely be divided by positioning it under an SVP production.