The Absheron Project Bps Production Sharing Agreement In Azerbaijan Case Study Help


Home >> Harvard >> The Absheron Project Bps Production Sharing Agreement In Azerbaijan >>

The Absheron Project Bps Production Sharing Agreement In Azerbaijan Case Study Help

Background and Facts

The Absheron Project Bps Production Sharing Agreement In Azerbaijan an office supplies retailer for small as well as medium sized organisations has just recently been involved in preparing for a merger with its competitor Home Deport, which has influenced effectiveness degrees in departmentswith the senior manager associated with legal difficulties put forth by the federal Profession Commission. With the Advertising Head putting forward the information of his separation from the firm in one year, Jeannie Lewis, the present head of operations has been asked to take the duty in the future. With challenges in the form of a possible social adjustment as well as low worker morale, the company is in need of a complete reengineering initiative at the advertising department.

Trouble Declaration
Porter's 5 Forces Analysis
The potential social change at the advertising department of The Absheron Project Bps Production Sharing Agreement In Azerbaijan is raising uncertainty in the workplace 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 significant role in influencing strategic decisions given that Stapes Inc. had to abandon its strategies of merging with Workplace Deport after the Federal Profession Commission's treatment at the same time. Offered the reality that the shop has a worldwide visibility with branches in UK, USA, Canada and Germany, political factors in each of these nations might be able to impact efficiency or tactical objectives. Federal Profession Commission's antitrust suit against the merging used up beneficial time of the company's senior administration recommending that 'political' factors can have significant ramifications for a worldwide business.

Economic Factors: Financial factors such as the appearance of small businesses in the international situation suggest that The Absheron Project Bps Production Sharing Agreement In Azerbaijan is flourishing in an atmosphere where there is potential development of businesses. Fact that shop clients are mainly looking for workplace supplies for home workplaces suggests that the market has an increasing trend of entrepreneurs and house based services.

Social factors: Social patterns in the economic climate reveal that clients are trying to find convenience along with appealing rates. Market research demonstrates how the client for The Absheron Project Bps Production Sharing Agreement In Azerbaijan does not have awareness regarding finding options which can offer a mix of benefit as well as low costs.

Technological factors: Modern technology plays a crucial duty in The Absheron Project Bps Production Sharing Agreement In Azerbaijan's business technique particularly as the company is piloting Technology centers which would offer modern technology sales and also support in the form of memory upgrades, peripheral setups. (Recap of BUG in appendix 2).

OB Issues and also Manifestations.

Several underlying Organizational Habits issues can be seen in The Absheron Project Bps Production Sharing Agreement In Azerbaijan's case as highlighted in this area.

Worries concerning cultural change: There is concern concerning a social change that would certainly happen when Todd Krasnow leaves from his placement as the Executive Vice President of Advertising with the majority of the team member currently revealing discontent over this prospective action. This predicted adjustment has actually produced stress and anxiety in the office which has actually been paired with the previous stress of preparing the firm for a possible merging with House Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is lack of employees that can match the demanding environment of a fast-paced company. Not just does this result in difficulty in discovering the right individuals, it puts stress on new hires as can not stand up to the rate and also pressure that the organization expects them to birth.

Double Reporting Lines: Novices locate this business culture difficult as well as hard to deal with particularly as populated line partnerships are implied to be weaker as a whole as well as objective setup and also efficiency assessment is still done by the solid line supervisor. This indicates that newbies could shed quality concerning their corresponding functions and goals specifically as populated line reporting does not maintain them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles even though it had actually been guessed that the last would certainly take Krasnow's setting came as an impact to her morale. Lewis may have been capable as well as appropriate for the work but the truth that Kransnow's departure would make Coles a direct report to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Task Insecurity: Anxiety as well as instability can be identified as two major worries that Lewis would certainly be managing specifically as the merging has currently be terminated and also 2 senior executives of the advertising and marketing division would be leaving. The whole duty of the department would certainly be falling on Lewis's shoulders who would not simply be in charge of brining regarding a cultural change but would certainly likewise need to confirm herself in her new function.

Incompatible Management Design of Leader: Lewis's administration design as well as its conflict with the advertising department's duty can also be seen as an OB obstacle particularly as she has been used to dealing with issues in the procedures department where employees are instructed to focus on processes as well as get them. The advertising department on the various other hand can be viewed as a group of individuals who are made use of to being supported by Krasnow who concentrated extra on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental arguments between three departments, advertising, merchandizing as well as procedures specifically over the allocation of the advertising and marketing mix can be identified as one more OB concern. The marketing division does not share the very same vision as the other two departments pertaining to the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and also operations divisions do not agree over the marketing mix allotment amongst one another either.

Fragmentation in Advertising Division: Disintegration in between the advertising and marketing departments can be determined as another OB problem which might need additional attention. The fact that the marketing and advertising sections in the advertising and marketing department are separated is protecting against both departments from gaining from each various other's experience and also proficiency. Assimilation of marketing with merchandising and also operations would certainly end up being harder if the advertising and marketing division itself is disintegrated which can be an additional potential OB issue.

The Absheron Project Bps Production Sharing Agreement In Azerbaijan Analysis

Various concepts have actually been utilized to discuss the conditions to get further clarity regarding the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers think that juniors are easy and lazy, have little ambition and stand up to modification. The hard variation of this theory emphasized coercion, limited controls, risks and also punishments. With time it generates low productivity, subtle sabotage and also competition (Deal, 2003). The situation at The Absheron Project Bps Production Sharing Agreement In Azerbaijan is not completely adhering to Theory X, it can be seen that new hires are discovering this environment rather stressful which may at some point lead to a higher inclination of the monitoring in the direction of Theory X. Based on McGregor's promoted sight, which he called Concept Y, the important job of the management is to arrange organizational conditions so that individuals can attain their very own goals best by directing their efforts in the direction of organizational incentives. If individuals locate no satisfaction in their job, the management would certainly have little choice yet to depend on theory X as well as exterior control (Offer, 2003). Even while assessing Lewis's monitoring design, concept X might have been suitable in the procedures division somewhat however the Advertising and marketing division would certainly require reliance on Concept Y in order to get the creative thinking and originality from the groups.

Tuckman's Team effort Concept: As much as Lewis's concern concerning bringing consistency between the advertising and marketing and advertising and marketing department is worried, this would at first lead to clash as reviewed by Bruce Tuckman in his 'Team effort Theory'. By integrating the marketing as well as advertising division's job, there may be the very same preliminary separate which can lead to the second stage of 'storming' where the teams challenge one an additional.

Bridges' Change Design: According To William Bridge's theory (appendix 4), people are quite uneasy with adjustment, which is noticeable by the scenario at The Absheron Project Bps Production Sharing Agreement In Azerbaijan The situation can be seen as a normal training course of life if is examined based on Bridge's theory where he discusses that people experience 3 stages of shift when they experience change. 'Closing, losing and also Letting go', The Neutral Area and also 'The New Starting' (Bridges, 2004). When people exist with adjustment, they go into stage one and so there might be feelings like despair, uncertainty, aggravation, anger, concern, rejection and disorientation.The scenario at the advertising and marketing department of The Absheron Project Bps Production Sharing Agreement In Azerbaijan is similar so Lewis can obtain comfy with the concept that it is not phenomenal habits. In the second phase, there might be a requirement to bridge the gap between the new and old society so Lewis might have to face this experience once Krasnow leaves. There might be low morale and reduced efficiency at this phase which need to not be taken as a problem. It is during this phase that Lewis will certainly need to offer support to the division to ensure that they can find an orientation. It can be seen just how Krasnow has currently made this transition easier by making Lewis get involved in the department a year before his real separation. According to Bridges' Design, stage 3 will bring about openness to knowing, High energy as well as dedication as individuals will embrace the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Demand power structure: The OB problem related to instability at the office has actually been activated to start with by the adjustment in administration as well as second of all by the truth that the merger will no more be started. Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has goes over the relevance of 'safety and security requires as being a lower level requirement of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel protected and out of danger' goes to the 2nd level of needs. Prior to a worker can be made to develop emotionally, he requires to have his 'Physiological 'as well as 'Safety' requires fulfilled. This indicates that unless the personnel are made to really feel protected concerning their current employment standing in The Absheron Project Bps Production Sharing Agreement In Azerbaijan they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for The Absheron Project Bps Production Sharing Agreement In Azerbaijan Case Study

Implication of Analysis.

The OB analysis has considered various theories to understand exactly how to deal with the present situation handy. The following three options have actually been suggested to aid Lewis handle the organizational obstacles in the advertising and marketing department. Each of these alternatives has been recommended for reducing the shift needed to bring the advertising and marketing division according to the demands of the marketplace as well as for making the social adjustment that would certainly comply with as soon as the current leader leaves.

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

Examination of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis during the earlier merging days has expertise in business-to-business marketing along with agency as well as retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to deal with both marketing and also advertising functions.

The advantage of this technique is that it will incorporate the two functions while decreasing the need for working with an added source for marketing. Lewis would certainly be heading the advertising and marketing division and also in any case her substitute would be required for the current function that she is doing. The downside of this alternative is that outside hiring might bring about bitterness from internal workers who may be looking at the placement of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and Manufacturing: Given the affordable stress and high quality work required from the advertising company, it is recommended that Lewis should allow the manufacturing unit to be a separate feature from the advertising and marketing unit. Considering that the majority of advertising companies had these two functions as different units, it makes even more sense to follow the norm.

Integration of Advertising with Operations: Given that Lewis is currently taking treatment of the marketing and also operations divisions at the same time; it makes sense to incorporate the two features since she has been efficiently taking care of both ends. The fact that Lewis has to adjust her administration design for the advertising and marketing department suggests that these 2 divisions would be culturally varied.


An evaluation of the 3 options suggests that integration of marketing and procedures would certainly not be a practical move due to the vast differences between the two departments although that presently Lewis is dealing with both. While separation of the production function might have been a favorable relocation for the marketing department, the reality that it would certainly indicate putting a 3rd function under Lewis's wing indicates this must be prevented too. The integration of the advertising and marketing department is the best option in terms of getting the ideal arise from the division. An activity plan for this choice is reviewed below.

Activity Strategy.
Lewis will certainly take over the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would be combined.

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

Manufacturing function will stay component of marketing under marketing function.

Lewis will certainly divide herself from procedures.

A democratic management style with staff member empowerment will certainly be utilized in advertising and marketing division.

Open door plan and also emphasis on cross department communication will certainly be focused on eliminating dissonance.

Contingency strategy.

If the integration does not work out as prepared, a contingency strategy would follow which would divide the manufacturing feature from the advertising feature to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising division without an SVP. In that case the production feature will most definitely be separated by positioning it under an SVP manufacturing.