The Economics Of Gold Indias Challenge In 2013 Case Study Analysis


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The Economics Of Gold Indias Challenge In 2013 Case Study Solution

Background and Facts

The Economics Of Gold Indias Challenge In 2013 an office products seller for little and average sized services has actually just recently been associated with preparing for a merging with its competitor Residence Deport, which has affected effectiveness levels in departmentswith the elderly manager associated with lawful problems put forth by the government Trade Commission. With the Advertising Head advancing the news of his separation from the business in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the duty in the future. With challenges in the form of a potential social modification and also low staff member morale, the organization requires a total reengineering initiative at the advertising and marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The potential cultural change at the advertising division of The Economics Of Gold Indias Challenge In 2013 is boosting unpredictability in the working environment bring about numerous challenges for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting critical choices since Stapes Inc. had to abandon its strategies of merging with Workplace Deport after the Federal Trade Compensation's intervention at the same time. Provided the truth that the shop has a global presence with branches in UK, U.S.A., Canada and Germany, political factors in each of these countries might be able to influence efficiency or tactical goals. Federal Profession Payment's antitrust fit versus the merging used up valuable time of the company's senior monitoring suggesting that 'political' factors can have severe implications for an international service.

Economic Factors: Economic factors such as the development of small businesses in the international scenario recommend that The Economics Of Gold Indias Challenge In 2013 is growing in a setting where there is potential growth of companies. In addition to this, truth that store customers are mainly looking for office materials for home offices suggests that the market has a rising trend of entrepreneurs and also home companies.

Social factors: Social patterns in the economic climate reveal that clients are searching for benefit as well as eye-catching costs. Marketing research shows how the client for The Economics Of Gold Indias Challenge In 2013 lacks recognition about finding options which can use a mix of convenience and also affordable.

Technological factors: Innovation plays a crucial duty in The Economics Of Gold Indias Challenge In 2013's business method particularly as the organization is piloting Technology facilities which would certainly offer innovation sales as well as assistance in the type of memory upgrades, outer installments. (Summary of INSECT in appendix 2).

OB Issues and also Manifestations.

A number of underlying Organizational Habits issues can be seen in The Economics Of Gold Indias Challenge In 2013's case as highlighted in this section.

Worries about social adjustment: There is worry concerning a cultural change that would certainly happen when Todd Krasnow leaves from his setting as the Exec Vice President of Advertising with the majority of the personnel already showing discontent over this potential move. This anticipated adjustment has actually developed stress in the workplace which has been paired with the previous tension of preparing the firm for a prospective merger with Residence Deport.
Pest Analysis
Stressful Work Environment for Newcomers: There is lack of employees that can match the difficult setting of a busy organization. Not only does this cause difficulty in locating the ideal people, it places stress on new hires as can not hold up against the rate as well as pressure that the company expects them to bear.

Double Reporting Lines: Newcomers find this business culture difficult as well as challenging to manage especially as dotted line connections are implied to be weaker generally and also objective setting and performance evaluation is still done by the solid line supervisor. This indicates that newbies can shed clearness regarding their corresponding functions and also goals particularly as dotted line coverage does not maintain them in straight communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles even though it had been hypothesized that the last would take Krasnow's position came as an impact to her morale. Lewis may have been capable and ideal for the task but the truth that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Job Instability: Fear and also instability can be determined as 2 significant worries that Lewis would certainly be taking care of particularly as the merging has now be terminated and two elderly execs of the marketing division would be leaving. The whole obligation of the division would be dropping on Lewis's shoulders that would not just supervise of brining regarding a cultural change but would also need to show herself in her brand-new role.

Incompatible Management Style of Leader: Lewis's monitoring design as well as its incompatibility with the advertising division's role can additionally be viewed as an OB challenge particularly as she has been made use of to handling problems in the procedures division where personnel are shown to focus on procedures and get them right. The marketing department on the various other hand can be seen as a team of people that are utilized to being nurtured by Krasnow who concentrated much more on output than processes.

Interdepartmental Disputes: Interdepartmental arguments between 3 departments, advertising, merchandizing and also procedures respectively over the allotment of the advertising mix can be identified as another OB concern. Although the advertising department does not share the exact same vision as the various other 2 divisions relating to the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing and also procedures divisions do not concur over the marketing mix allotment amongst one another either.

Disintegration in Advertising Department: Fragmentation in between the advertising and marketing departments can be determined as another OB issue which could need further attention. The fact that the marketing and advertising areas in the advertising and marketing department are disconnected is preventing both departments from acquiring from each various other's experience as well as know-how. Assimilation of advertising with merchandising and also procedures would certainly end up being harder if the advertising department itself is broken down which can be another potential OB problem.

The Economics Of Gold Indias Challenge In 2013 Analysis

Numerous theories have been made use of to describe the conditions to obtain further clarity about the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors believe that staffs are passive and also careless, have little ambition as well as resist change. The circumstance at The Economics Of Gold Indias Challenge In 2013 is not completely complying with Concept X, it can be seen that brand-new hires are finding this environment instead demanding which may at some point lead to a better inclination of the monitoring in the direction of Concept X. Also while analyzing Lewis's administration design, theory X may have been ideal in the procedures division to some extent but the Marketing division would require reliance on Concept Y in order to get the creative thinking and also originality from the teams.

Tuckman's Teamwork Concept: Regarding Lewis's concern regarding bringing harmony between the advertising and marketing division is worried, this would originally lead to contrast as talked about by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). As per Tuckman's theory received appendix 3, throughout the initial stage of group growth, people might not bond, as they are busy discovering their location in the team. By integrating the marketing and advertising department's work, there might coincide initial detach which can bring about the 2nd stage of 'storming' where the groups challenge one another. It is only throughout the 3rd stage or 'norming' when they would come together to share ideas prior to the team can bring around harmony in the fourth phase 'carrying out'.

Bridges' Transition Design: Based On William Bridge's concept (appendix 4), individuals are quite uncomfortable with adjustment, which is apparent by the scenario at The Economics Of Gold Indias Challenge In 2013 The scenario can be seen as a regular program of life if is researched as per Bridge's theory where he clarifies that people experience 3 phases of transition when they experience adjustment. 'End, losing and Releasing', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When people exist with change, they enter stage one therefore there may be emotions like sadness, unpredictability, frustration, temper, concern, rejection as well as disorientation.The situation at the marketing division of The Economics Of Gold Indias Challenge In 2013 is comparable so Lewis can obtain comfy with the suggestion that it is not amazing actions. In the 2nd stage, there may be a need to bridge the gap in between the brand-new as well as old society so Lewis may need to face this challenge when Krasnow leaves. There may be reduced morale as well as reduced productivity at this phase which should not be taken as a trouble. It is throughout this stage that Lewis will need to offer assistance to the division to make sure that they can discover a sense of direction. It can be seen exactly how Krasnow has actually already made this shift much easier by making Lewis get associated with the department a year prior to his real separation. Based on Bridges' Model, stage three will bring about visibility to learning, High power and commitment as people will certainly welcome the change (Bridges, 2004).
Vrio Analysis
Maslow's Requirement pecking order: The OB concern pertaining to instability at the office has been caused firstly by the modification in administration as well as second of all by the truth that the merging will certainly no more be initiated. Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has talks about the relevance of 'security requires as being a lower degree demand of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel safe and secure and out of danger' is at the second level of demands. Prior to an employee can be made to establish mentally, he needs to have his 'Physical 'and 'Safety and security' needs met. This shows that unless the personnel are made to really feel protected about their present work condition in The Economics Of Gold Indias Challenge In 2013 they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for The Economics Of Gold Indias Challenge In 2013 Case Study

Ramification of Analysis.

The OB analysis has actually taken a look at different theories to comprehend exactly how to handle the current scenario available. The following 3 alternatives have been proposed to assist Lewis handle the business obstacles in the advertising department. Each of these choices has been recommended for relieving the shift required to bring the advertising department in accordance with the requirements of the market and also for making the cultural adjustment that would adhere to once the current leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting and Production functions. Integration of Marketing with Workflow.

Analysis of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis during the earlier merging days has experience in business-to-business marketing along with firm as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to handle both marketing as well as marketing features.

The advantage of this strategy is that it will integrate both functions while minimizing the demand for working with an extra source for marketing. In addition to this, Lewis would be heading the marketing division and also regardless her replacement would certainly be needed for the present role that she is performing. The negative aspect of this alternative is that external hiring may produce resentment from internal personnel that might be considering the position of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting as well as Production: Provided the competitive pressures and also top quality job needed from the ad agency, it is advised that Lewis must permit the manufacturing system to be a different function from the advertising unit. Because a lot of ad agency had these 2 functions as different systems, it makes more feeling to comply with the standard. Both features may be able to concentrate on their core triggers extra efficiently. The negative aspect of this method would be that extra prices would certainly have to be borne for setting up different production functions. A manufacturing head may have to be employed which can enhance overheads for the company.

Integration of Advertising And Marketing with Operations: Because Lewis is currently taking care of the marketing and procedures departments at the same time; it makes sense to integrate the 2 features given that she has been efficiently taking treatment of both ends. The truth that Lewis has to adjust her administration design for the marketing department suggests that these 2 departments would certainly be culturally diverse.


An analysis of the three options shows that combination of advertising and marketing and also procedures would not be a feasible move as a result of the huge distinctions in between the two departments although that currently Lewis is handling both. While separation of the manufacturing feature might have been a favorable action for the advertising department, the reality that it would certainly imply placing a 3rd function under Lewis's wing suggests this must be prevented also. The integration of the advertising department is the very best alternative in regards to getting the optimum arise from the department. An action prepare for this alternative is discussed below.

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

Advertising and Marketing features would certainly be merged.

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

Manufacturing function will remain part of marketing under marketing feature.

Lewis will divide herself from procedures.

A democratic leadership style with staff member empowerment will certainly be used in marketing division.

Open up door plan and also emphasis on cross department interaction will certainly be aimed at eliminating discord.

Contingency strategy.

If the integration does not work out as intended, a contingency strategy would follow which would divide the manufacturing function from the advertising feature to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising division without an SVP. Because case the production function will absolutely be separated by placing it under an SVP production.