The Chongqing Model And The Future Of China Case Study Solution


Home >> Harvard >> The Chongqing Model And The Future Of China >>

The Chongqing Model And The Future Of China Case Study Solution

Background and Facts

The Chongqing Model And The Future Of China a workplace products seller for little and also average sized services has lately been involved in planning for a merging with its rival House Deport, which has actually affected performance levels in departmentswith the senior supervisor associated with lawful complications presented by the federal Trade Commission. With the Advertising Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the current head of operations has actually been asked to take the function in the future. With difficulties in the kind of a possible cultural modification as well as reduced employee spirits, the organization wants a complete reengineering effort at the advertising and marketing department.

Issue Statement
Porter's 5 Forces Analysis
The prospective social modification at the marketing department of The Chongqing Model And The Future Of China is raising uncertainty in the workplace causing numerous challenges for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in affecting calculated choices given that Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Trade Payment's treatment while doing so. Given the fact that the shop has a worldwide visibility with branches in UK, USA, Canada and also Germany, political consider each of these countries might be able to affect performance or calculated goals. Federal Profession Commission's antitrust suit versus the merging took up valuable time of the company's elderly administration suggesting that 'political' factors can have serious ramifications for a global company.

Economic Factors: Economic factors such as the emergence of local business in the worldwide situation recommend that The Chongqing Model And The Future Of China is flourishing in a setting where there is prospective development of services. Along with this, truth that shop customers are mostly searching for office products for home offices recommends that the marketplace has a climbing pattern of business owners and also home companies.

Social factors: Social trends in the economy reveal that clients are looking for comfort as well as appealing costs. Market research shows how the client for The Chongqing Model And The Future Of China does not have understanding regarding locating services which can supply a combination of benefit as well as low costs.

Technological factors: Modern technology plays a vital role in The Chongqing Model And The Future Of China's business method specifically as the company is piloting Innovation facilities which would certainly provide innovation sales and support in the type of memory upgrades, outer installations. (Recap of PARASITE in appendix 2).

OB Issues and Symptoms.

Numerous underlying Business Behavior issues can be seen in The Chongqing Model And The Future Of China's case as highlighted in this area.

Uneasiness about social modification: There is apprehension regarding a social adjustment that would take place when Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising And Marketing with most of the staff members currently revealing discontent over this possible move. This predicted change has actually produced stress and anxiety in the workplace which has actually been combined with the past anxiety of preparing the company for a prospective merging with House Deport.
Pest Analysis
Stressful Job Atmosphere for Newcomers: There is shortage of personnel that can match the stressful setting of a busy organization. Not only does this lead to trouble in finding the appropriate people, it puts stress on brand-new hires as can not withstand the speed and pressure that the company anticipates them to bear.

Twin Reporting Lines: Newbies locate this business society difficult as well as difficult to deal with particularly as populated line relationships are suggested to be weaker as a whole and also objective setting as well as efficiency evaluation is still done by the strong line manager. This means that newcomers can lose clarity regarding their corresponding functions and purposes particularly as dotted line coverage does not maintain them in direct communication with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles despite the fact that it had actually been guessed that the last would certainly take Krasnow's placement came as a blow to her spirits. Lewis may have been qualified and also suitable for the job but the truth that Kransnow's separation would certainly make Coles a straight record to Lewis may have been the reason for Coles' resignation from solutions.

Fear & Job Instability: Worry as well as insecurity can be determined as two significant problems that Lewis would certainly be taking care of particularly as the merger has actually currently be cancelled and 2 elderly executives of the advertising department would be leaving. The whole obligation of the division would be dropping on Lewis's shoulders who would certainly not simply supervise of brining concerning a cultural adjustment however would likewise need to prove herself in her brand-new role.

Incompatible Monitoring Style of Leader: Lewis's management style and its incompatibility with the advertising division's duty can likewise be seen as an OB obstacle particularly as she has actually been used to dealing with problems in the operations department where workers are educated to concentrate on processes as well as get them right. The advertising and marketing division on the various other hand can be seen as a group of people who are utilized to being nurtured by Krasnow that concentrated extra on result than procedures.

Interdepartmental Arguments: Interdepartmental disagreements in between 3 divisions, advertising and marketing, merchandizing as well as procedures specifically over the allocation of the advertising and marketing mix can be determined as an additional OB problem. Although the marketing division does not share the very same vision as the other 2 divisions pertaining to the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and operations divisions do not agree over the advertising and marketing mix allocation amongst one another either.

Fragmentation in Marketing Division: Fragmentation between the marketing and advertising divisions can be determined as one more OB concern which might require additional focus. The fact that the marketing and advertising areas in the advertising department are detached is avoiding both divisions from getting from each various other's experience and also proficiency. Combination of advertising and marketing with retailing as well as procedures would certainly become harder if the marketing department itself is disintegrated which can be an additional possible OB issue.

The Chongqing Model And The Future Of China Analysis

Various theories have actually been made use of to discuss the situations to obtain further clarity concerning the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers believe that subordinates are easy and also lazy, have little aspiration and resist change. The hard variation of this concept emphasized browbeating, tight controls, risks as well as penalties. Over time it produces low efficiency, refined sabotage and also rivalry (Deal, 2003). Although the circumstance at The Chongqing Model And The Future Of China is not completely following Concept X, it can be seen that new hires are discovering this setting rather stressful which might ultimately bring about a better disposition of the management in the direction of Concept X. As per McGregor's promoted view, which he called Concept Y, the necessary job of the monitoring is to arrange business conditions to make sure that individuals can attain their own goals best by directing their initiatives towards organizational incentives. If individuals find no complete satisfaction in their work, the administration would certainly have little choice yet to count on theory X as well as external control (Deal, 2003). Also while examining Lewis's administration design, concept X may have appropriated in the operations department somewhat yet the Advertising and marketing division would certainly need reliance on Concept Y in order to get the creative thinking as well as creativity from the groups.

Tuckman's Synergy Concept: Regarding Lewis's concern concerning bringing harmony in between the marketing and advertising division is worried, this would initially lead to contrast as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). According to Tuckman's theory received appendix 3, throughout the first stage of team growth, people might not bond, as they are active finding their location in the team. By integrating the marketing and advertising division's job, there may be the same preliminary detach which could result in the 2nd phase of 'storming' where the groups test each other. It is only during the 3rd phase or 'norming' when they would certainly come together to share concepts before the group can bring about harmony in the fourth stage 'executing'.

Bridges' Shift Model: Based On William Bridge's concept (appendix 4), people are rather unpleasant with modification, which is evident by the scenario at The Chongqing Model And The Future Of China The circumstance can be viewed as a normal training course of life if is studied according to Bridge's theory where he explains that people experience 3 stages of shift when they experience change. 'Ending, shedding and Releasing', The Neutral Area and also 'The New Beginning' (Bridges, 2004). When people are presented with adjustment, they go into phase one and so there might be feelings like unhappiness, unpredictability, irritation, anger, anxiety, rejection as well as disorientation.The circumstance at the advertising division of The Chongqing Model And The Future Of China is comparable so Lewis can obtain comfortable with the idea that it is not phenomenal behavior. In the second phase, there might be a requirement to link the space in between the new and also old society so Lewis might need to encounter this experience as soon as Krasnow leaves. There might be reduced morale and low performance at this stage which must not be taken as a problem. It is during this stage that Lewis will certainly have to offer assistance to the division to make sure that they can find a sense of direction. It can be seen just how Krasnow has actually already made this change simpler by making Lewis get involved in the department a year prior to his real departure. As per Bridges' Model, stage three will bring about openness to understanding, High energy and also commitment as individuals will certainly embrace the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has goes over the importance of 'security needs as being a lower level requirement of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to really feel secure and out of danger' is at the second degree of needs. Before an employee can be made to create mentally, he needs to have his 'Physical 'and 'Safety' needs satisfied.

SWOT Analysis for The Chongqing Model And The Future Of China Case Study

Ramification of Analysis.

The OB analysis has taken a look at different concepts to understand exactly how to handle the current situation handy. The adhering to 3 choices have been suggested to assist Lewis handle the organizational challenges in the advertising division. Each of these choices has actually been proposed for easing the change required to bring the advertising and marketing department in accordance with the needs of the marketplace and also for making the cultural change that would follow when the current leader leaves.

Integration of marketing and advertising functions. Dividing Adverting and also Manufacturing features. Assimilation of Advertising with Operations.

Examination of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis throughout the earlier merger days has knowledge in business-to-business advertising along with agency and retail advertising experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to manage both marketing as well as marketing functions.

The advantage of this method is that it will integrate the two features while lowering the demand for hiring an added resource for marketing. Lewis would certainly be heading the advertising department as well as in any case her replacement would certainly be required for the current role that she is carrying out. The drawback of this option is that exterior hiring might produce animosity from internal employees who might be eying the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting as well as Manufacturing: Offered the competitive stress and high quality work called for from the ad agency, it is recommended that Lewis must allow the manufacturing system to be a different feature from the advertising system. Because a lot of ad agency had these two features as different units, it makes more feeling to adhere to the standard. Along with this, both functions may be able to concentrate on their core triggers extra effectively. The negative aspect of this approach would certainly be that added costs would certainly have to be borne for establishing up different manufacturing functions. Along with this, a manufacturing head may need to be worked with which can raise overheads for the organization.

Assimilation of Marketing with Procedures: Because Lewis is currently caring for the advertising as well as procedures divisions concurrently; it makes sense to integrate both functions because she has been successfully taking care of both ends. The reality that the two departments currently have major distinctions over allotment of resources recommends that this assimilation may have the ability to bring about consistency specifically as Lewis would certainly be heading both ends.However there are different negative aspects of this relocation particularly as it would place excessive problem over Lewis's shoulders. The reality that Lewis has to adapt her monitoring style for the advertising department suggests that these two divisions would certainly be culturally diverse. Lewis might not be able to use one type of management design to both departments which might result in ineffectiveness in either one of the 2 functions.


An evaluation of the three alternatives suggests that integration of marketing and also operations would certainly not be a feasible step due to the huge differences between the 2 departments despite the fact that presently Lewis is managing both. While splitting up of the manufacturing function might have been a desirable action for the marketing department, the reality that it would certainly suggest positioning a 3rd feature under Lewis's wing suggests this ought to be avoided.

Action Plan.
Lewis will take over the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would be merged.

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

Manufacturing feature will certainly remain part of advertising under advertising function.

Lewis will divide herself from procedures.

An autonomous leadership design with worker empowerment will certainly be made use of in marketing department.

Open door plan as well as emphasis on cross departmental communication will certainly be targeted at getting rid of disharmony.

Contingency strategy.

If the combination does not work out as prepared, a backup strategy would comply with which would certainly divide the production function from the marketing function to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will be heading the advertising division without an SVP. In that case the production function will definitely be separated by placing it under an SVP manufacturing.