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The Big Dry And Australias Water Markets Case Study Solution

CASE SOLUTION

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The Big Dry And Australias Water Markets Case Study Help

Background and Facts

The Big Dry And Australias Water Markets a workplace materials store for little and also moderate sized organisations has actually recently been involved in preparing for a merging with its rival Home Deport, which has actually affected performance levels in departmentswith the elderly supervisor associated with legal complications presented by the federal Profession Compensation. With the Advertising and marketing Head advancing the information of his departure from the business in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the role in the near future. With obstacles in the type of a prospective social adjustment and reduced employee morale, the organization is in need of a complete reengineering effort at the advertising division.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural modification at the marketing department of The Big Dry And Australias Water Markets is raising unpredictability in the working environment leading to various difficulties for the Jeannie Lewis that would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting critical choices considering that Stapes Inc. needed to desert its plans of combining with Workplace Deport after the Federal Profession Payment's treatment at the same time. Given the fact that the shop has a global existence with branches in UK, USA, Canada and Germany, political factors in each of these nations might have the ability to affect performance or strategic objectives. Federal Trade Payment's antitrust suit against the merger used up important time of the company's senior administration recommending that 'political' factors can have major effects for an international business.

Economic Factors: Financial factors such as the development of local business in the global circumstance suggest that The Big Dry And Australias Water Markets is prospering in an atmosphere where there is possible growth of businesses. Along with this, fact that shop consumers are mostly searching for office products for home offices recommends that the market has a climbing fad of business owners as well as home based organisations.

Social factors: Social fads in the economic climate show that consumers are trying to find convenience along with attractive prices. Marketing research demonstrates how the customer for The Big Dry And Australias Water Markets lacks recognition regarding finding services which can offer a mix of benefit and also inexpensive.

Technical factors: Technology plays an essential function in The Big Dry And Australias Water Markets's company technique specifically as the company is piloting Innovation facilities which would provide innovation sales as well as support in the type of memory upgrades, peripheral installments. (Summary of PEST in appendix 2).

OB Issues as well as Effects.

A number of underlying Organizational Actions concerns can be seen in The Big Dry And Australias Water Markets's case as highlighted in this section.

Apprehensions concerning social change: There is concern concerning a cultural adjustment that would certainly occur as soon as Todd Krasnow leaves from his placement as the Exec Vice President of Marketing with most of the employee already revealing unhappiness over this possible move. This expected modification has produced tension in the workplace which has been coupled with the previous tension of preparing the company for a prospective merger with Home Deport.
Pest Analysis
Stressful Job Atmosphere for Newcomers: There is lack of workers that can match the difficult setting of a hectic company. Not only does this result in problem in discovering the appropriate individuals, it places stress and anxiety on brand-new hires as can not endure the pace and also pressure that the organization anticipates them to bear.

Twin Coverage Lines: Newcomers discover this business culture troublesome as well as challenging to deal with particularly as dotted line connections are suggested to be weaker generally and objective setting and also efficiency examination is still done by the strong line supervisor. This means that newcomers could lose clarity regarding their corresponding duties and also purposes specifically as dotted line coverage does not maintain them in straight interaction with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles even though it had actually been hypothesized that the latter would certainly take Krasnow's setting came as a blow to her spirits. Lewis may have been capable and suitable for the work but the reality that Kransnow's departure would certainly make Coles a direct report to Lewis may have been the reason for Coles' resignation from solutions.

Anxiety & Work Instability: Worry and instability can be determined as 2 major worries that Lewis would certainly be dealing with especially as the merging has actually currently be cancelled and two elderly execs of the marketing division would certainly be leaving. The entire duty of the department would be dropping on Lewis's shoulders that would certainly not just supervise of brining regarding a social modification yet would additionally need to show herself in her new duty.

Incompatible Management Design of Leader: Lewis's administration style and also its conflict with the marketing department's duty can also be seen as an OB difficulty especially as she has actually been made use of to handling problems in the operations division where workers are taught to focus on procedures and also get them right. The advertising division on the other hand can be viewed as a team of people who are utilized to being supported by Krasnow that concentrated much more on outcome than processes.

Interdepartmental Differences: Interdepartmental differences in between three departments, advertising and marketing, merchandizing and procedures respectively over the appropriation of the marketing mix can be determined as an additional OB concern. Although the advertising department does not share the very same vision as the various other 2 departments concerning the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and operations divisions do not agree over the marketing mix allotment among each other either.

Fragmentation in Advertising And Marketing Department: Fragmentation in between the marketing and advertising divisions can be recognized as another OB concern which could require more focus. The fact that the marketing and advertising areas in the marketing department are disconnected is protecting against both departments from gaining from each other's experience as well as proficiency. Combination of marketing with retailing and also procedures would come to be harder if the advertising department itself is degenerated which can be one more prospective OB concern.

The Big Dry And Australias Water Markets Analysis

Numerous concepts have been utilized to clarify the situations to get more quality regarding the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that staffs are passive and also careless, have little ambition as well as stand up to adjustment. The difficult variation of this concept highlighted coercion, tight controls, hazards as well as penalties. With time it produces low productivity, subtle sabotage and competition (Offer, 2003). The situation at The Big Dry And Australias Water Markets is not totally complying with Theory X, it can be seen that brand-new hires are locating this environment instead difficult which may at some point lead to a greater disposition of the administration towards Concept X. According to McGregor's supported view, which he called Concept Y, the crucial job of the monitoring is to organize business problems to ensure that people can achieve their own objectives best by directing their efforts in the direction of organizational rewards. If people find no fulfillment in their job, the administration would certainly have little option however to depend on concept X as well as exterior control (Deal, 2003). Even while analyzing Lewis's monitoring design, concept X might have been suitable in the operations division somewhat yet the Marketing division would certainly require reliance on Concept Y so as to get the creativity as well as creativity from the teams.

Tuckman's Teamwork Concept: Regarding Lewis's issue regarding bringing harmony between the marketing and advertising department is concerned, this would initially cause conflict as discussed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). Based on Tuckman's theory displayed in appendix 3, throughout the first stage of group development, people might not bond, as they are active discovering their place in the group. By incorporating the advertising and marketing division's job, there might be the same initial separate which could cause the 2nd phase of 'storming' where the teams challenge each other. It is only throughout the 3rd phase or 'norming' when they would come with each other to share concepts before the team can bring around harmony in the 4th phase 'executing'.

Bridges' Change Model: According To William Bridge's concept (appendix 4), individuals are quite uncomfortable with change, which is evident by the situation at The Big Dry And Australias Water Markets The situation can be seen as a typical course of life if is researched based on Bridge's theory where he describes that people go through three phases of transition when they experience adjustment. 'Closing, losing as well as Releasing', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When individuals are presented with adjustment, they enter stage one therefore there might be feelings like sadness, unpredictability, irritation, rage, fear, rejection and also disorientation.The scenario at the marketing division of The Big Dry And Australias Water Markets is similar so Lewis can get comfy with the concept that it is not phenomenal actions. In the second stage, there may be a demand to bridge the space in between the brand-new and old society so Lewis may need to face this challenge once Krasnow leaves. There might be low morale and low efficiency at this phase which should not be taken as a problem. It is throughout this phase that Lewis will certainly need to give support to the department so that they can locate a sense of direction. It can be seen exactly how Krasnow has actually already made this shift much easier by making Lewis get involved in the division a year prior to his real separation. As per Bridges' Design, stage 3 will certainly produce visibility to knowing, High power as well as commitment as individuals will certainly accept the change (Bridges, 2004).
Vrio Analysis
Maslow's Requirement hierarchy: The OB problem pertaining to insecurity at the office has actually been triggered firstly by the adjustment in monitoring and also secondly by the fact that the merging will certainly no longer be initiated. Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has goes over the importance of 'security requires as being a reduced level need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel secure as well as unharmed' goes to the 2nd level of demands. Prior to a worker can be made to create psychologically, he needs to have his 'Physical 'and 'Security' needs met. This indicates that unless the workers are made to feel safe and secure regarding their current work standing in The Big Dry And Australias Water Markets they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for The Big Dry And Australias Water Markets Case Study



Ramification of Analysis.

The OB analysis has looked at numerous theories to recognize exactly how to manage the existing circumstance at hand. The complying with 3 alternatives have been suggested to assist Lewis handle the business challenges in the marketing division. Each of these choices has actually been recommended for alleviating the change required to bring the advertising and marketing department in line with the needs of the market and also for making the cultural change that would certainly adhere to when the existing leader leaves.

Combination of marketing and advertising features. Dividing Adverting as well as Manufacturing features. Integration of Advertising with Workflow.

Examination of Alternatives.

Combination of Advertising & Marketing Functions: The in-house marketing agency of The Big Dry And Australias Water Markets is already toughness for the company in regards to saving up on overheads connected to marketing and also promotion. Because no brand-new employment has actually been done after Bridget Cole's separation with the reporting line being straight assigned to Krasnow for the advertising feature, this is a positive possibility for incorporating the advertising and marketing functions. Judith Shapiro that has actually earlier been spoken with by Lewis throughout the earlier merger days has competence in business-to-business advertising and marketing along with company and retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to manage both advertising and marketing functions.

The benefit of this method is that it will certainly integrate the two functions while decreasing the demand for working with an added source for marketing. In addition to this, Lewis would certainly be heading the marketing division and all the same her substitute would certainly be required for the existing function that she is carrying out. The negative aspect of this option is that external hiring may bring about animosity from interior employees who may be looking at the placement of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Production: Given the affordable stress and also high quality work needed from the advertising agency, it is advised that Lewis ought to enable the production device to be a separate feature from the marketing system. Since many ad agency had these two functions as separate units, it makes more sense to follow the norm. Both functions may be able to concentrate on their core turns on extra effectively. Nonetheless, the disadvantage of this approach would be that extra expenses would have to be borne for establishing different manufacturing features. A production head might have to be hired which can raise expenses for the company.

Integration of Advertising And Marketing with Workflows: Considering that Lewis is currently taking treatment of the advertising and marketing and also operations divisions simultaneously; it makes sense to incorporate the 2 functions because she has been efficiently taking treatment of both ends. The fact that Lewis has to adjust her administration design for the advertising and marketing division suggests that these 2 divisions would certainly be culturally diverse.

Suggestion.



An assessment of the 3 choices suggests that assimilation of marketing as well as procedures would certainly not be a practical step as a result of the large distinctions in between both divisions despite the fact that currently Lewis is handling both. While separation of the manufacturing function might have been a desirable relocation for the advertising and marketing department, the reality that it would certainly imply placing a third feature under Lewis's wing suggests this need to be stayed clear of too. The integration of the marketing department is the very best choice in terms of obtaining the ideal arise from the division. An action plan for this choice is discussed below.

Activity Strategy.
Recommendation
Lewis will certainly take over the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

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

Production feature will certainly continue to be part of advertising and marketing under advertising and marketing function.

Lewis will separate herself from procedures.

An autonomous management style with employee empowerment will be used in advertising department.

Open door policy and also focus on cross departmental interaction will certainly be focused on getting rid of disharmony.

Contingency strategy.

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