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The Maggi Noodle Safety Crisis In India A Case Study Analysis

Background and Facts

The Maggi Noodle Safety Crisis In India A a workplace supplies merchant for small as well as medium sized organisations has actually recently been involved in planning for a merging with its competitor Home Deport, which has affected efficiency levels in departmentswith the senior supervisor involved in legal problems put forth by the government Trade Compensation. With the Marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the function in the near future. With challenges in the kind of a possible cultural change and also reduced employee spirits, the company requires a total reengineering effort at the marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective social change at the advertising department of The Maggi Noodle Safety Crisis In India A is boosting unpredictability in the workplace leading to numerous difficulties for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting strategic choices since Stapes Inc. needed to desert its plans of combining with Workplace Deport after the Federal Trade Compensation's intervention while doing so. Provided the reality that the shop has a worldwide presence with branches in UK, UNITED STATES, Canada and also Germany, political consider each of these nations may be able to impact efficiency or calculated goals. Federal Trade Payment's antitrust match against the merger used up valuable time of the organization's senior monitoring recommending that 'political' factors can have major implications for an international organisation.

Economic Factors: Economic factors such as the appearance of local business in the global circumstance recommend that The Maggi Noodle Safety Crisis In India A is thriving in a setting where there is prospective growth of services. Along with this, fact that shop clients are mostly searching for office materials for office suggests that the market has a climbing trend of business owners and home based companies.

Social factors: Social trends in the economic climate show that consumers are trying to find convenience as well as eye-catching prices. Marketing research shows how the client for The Maggi Noodle Safety Crisis In India A lacks understanding about finding solutions which can use a combination of comfort and also low costs.

Technological factors: Modern technology plays an important duty in The Maggi Noodle Safety Crisis In India A's business strategy particularly as the company is piloting Innovation facilities which would certainly use modern technology sales as well as support in the type of memory upgrades, peripheral installations. (Recap of INSECT in appendix 2).

OB Issues and also Manifestations.

A number of underlying Organizational Behavior issues can be seen in The Maggi Noodle Safety Crisis In India A's case as highlighted in this area.

Uneasiness concerning social modification: There is worry about a social adjustment that would certainly happen as soon as Todd Krasnow leaves from his position as the Executive Vice Head Of State of Marketing with a lot of the staff members already revealing discontent over this possible step. This anticipated modification has actually developed tension in the office which has been paired with the past tension of preparing the company for a prospective merging with Residence Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is scarcity of workers that can match the difficult environment of a busy organization. Not only does this cause problem in locating the appropriate people, it places stress and anxiety on new hires as can not hold up against the rate and pressure that the organization expects them to birth.

Twin Coverage Lines: Novices locate this organizational society difficult and also difficult to cope with particularly as populated line connections are indicated to be weak in general and unbiased setting and also efficiency examination is still done by the strong line manager. This suggests that newbies can lose clearness about their particular duties and also goals specifically as populated line reporting does not keep them in direct communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of 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 might have been qualified as well as proper for the job however the fact that Kransnow's separation would make Coles a straight record to Lewis may have been the factor for Coles' resignation from services.

Worry & Work Insecurity: Fear as well as instability can be identified as two major issues that Lewis would be dealing with specifically as the merging has currently be terminated as well as two senior executives of the advertising department would be leaving. The entire duty of the division would be dropping on Lewis's shoulders who would not just be in charge of brining regarding a social change but would likewise need to show herself in her brand-new function.

Inappropriate Management Design of Leader: Lewis's management style as well as its conflict with the advertising and marketing division's function can additionally be seen as an OB challenge particularly as she has been used to taking care of concerns in the procedures department where employees are shown to concentrate on procedures and obtain them right. The marketing division on the various other hand can be seen as a team of people that are made use of to being supported by Krasnow who focused much more on outcome than procedures.

Interdepartmental Disputes: Interdepartmental differences between three divisions, advertising and marketing, merchandizing as well as operations specifically over the allotment of the marketing mix can be determined as another OB concern. Although the marketing division does not share the exact same vision as the various other 2 divisions pertaining to the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and procedures divisions do not agree over the marketing mix allotment amongst each other either.

Fragmentation in Marketing Department: Fragmentation between the advertising and marketing departments can be determined as one more OB concern which can need additional interest. The reality that the marketing and advertising sections in the advertising division are separated is preventing both departments from acquiring from each other's experience and also expertise. Integration of advertising and marketing with merchandising as well as procedures would certainly come to be harder if the marketing department itself is broken down which can be one more possible OB problem.

The Maggi Noodle Safety Crisis In India A Analysis

Different theories have been utilized to describe the situations to obtain further clearness about the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many supervisors think that staffs are easy as well as careless, have little passion as well as stand up to modification. The tough variation of this concept stressed coercion, tight controls, dangers as well as punishments. Gradually it generates low productivity, refined sabotage and competition (Deal, 2003). The situation at The Maggi Noodle Safety Crisis In India A is not totally following Theory X, it can be seen that new hires are finding this atmosphere rather demanding which may eventually lead to a greater inclination of the management towards Theory X. Based on McGregor's supported view, which he called Concept Y, the necessary task of the administration is to organize organizational conditions to ensure that individuals can attain their own objectives best by guiding their efforts in the direction of business rewards. If people discover no contentment in their job, the management would have little option however to rely on theory X as well as external control (Offer, 2003). Even while evaluating Lewis's administration design, concept X might have appropriated in the operations department somewhat but the Advertising department would certainly need dependence on Theory Y so as to get the creativity and also originality from the groups.

Tuckman's Teamwork Concept: As far as Lewis's concern concerning bringing consistency between the advertising and advertising and marketing division is worried, this would at first lead to contrast as gone over by Bruce Tuckman in his 'Synergy Theory'. By combining the advertising as well as advertising and marketing department's job, there might be the very same first disconnect which could lead to the 2nd phase of 'storming' where the groups test one another.

When people are offered with modification, they get in phase one and also so there may be feelings like sadness, uncertainty, disappointment, temper, anxiety, denial and disorientation.The situation at the marketing division of The Maggi Noodle Safety Crisis In India A is similar so Lewis can obtain comfy with the concept that it is not extraordinary habits. It is throughout this stage that Lewis will have to provide guidance to the division so that they can find a feeling of direction. It can be seen how Krasnow has already made this change simpler by making Lewis obtain included in the department a year prior to his real departure.
Vrio Analysis
Maslow's Demand power structure: The OB problem related to insecurity at the workplace has been activated first of all by the modification in monitoring and also secondly by the reality that the merger will no more be initiated. Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has discusses the value of 'security needs as being a lower degree requirement of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel safe as well as out of danger' goes to the second level of requirements. Before an employee can be made to create emotionally, he needs to have his 'Physiological 'as well as 'Security' needs fulfilled. This shows that unless the employees are made to feel protected concerning their existing work standing in The Maggi Noodle Safety Crisis In India A they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for The Maggi Noodle Safety Crisis In India A Case Study

Implication of Analysis.

The OB analysis has actually looked at numerous concepts to understand how to cope with the existing scenario available. The following 3 options have been recommended to aid Lewis deal with the organizational obstacles in the marketing department. Each of these options has actually been proposed for easing the transition needed to bring the marketing department according to the demands of the market and also for making the social change that would follow once the current leader leaves.

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

Examination of Alternatives.

Assimilation of Advertising & Advertising And Marketing Functions: The internal marketing agency of The Maggi Noodle Safety Crisis In India A is already strength for the company in regards to saving up on overheads connected to advertising and marketing as well as promo. Because no brand-new recruitment has actually been done after Bridget Cole's separation with the reporting line being directly assigned to Krasnow for the advertising and marketing feature, this is a positive chance for integrating the advertising and marketing features. Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merger days has knowledge in business-to-business advertising together with company and retail advertising and marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to take care of both advertising and marketing functions.

The benefit of this technique is that it will certainly incorporate the two functions while reducing the need for working with an extra source for advertising. In addition to this, Lewis would be heading the marketing department and also all the same her replacement would certainly be needed for the existing duty that she is carrying out. The downside of this alternative is that outside hiring might produce bitterness from interior personnel that may be considering the setting of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting as well as Production: Provided the affordable pressures and high quality work called for from the advertising and marketing agency, it is advised that Lewis ought to allow the production device to be a different function from the advertising device. Since the majority of advertising firms had these 2 features as separate devices, it makes even more sense to comply with the norm.

Assimilation of Marketing with Procedures: Considering that Lewis is currently caring for the advertising and marketing as well as procedures departments concurrently; it makes good sense to incorporate the two functions since she has actually been efficiently caring for both ends. The truth that both divisions currently have significant differences over allowance of sources suggests that this assimilation may have the ability to cause harmony especially as Lewis would be heading both ends.However there are various disadvantages of this action specifically as it would certainly put excessive burden over Lewis's shoulders. The truth that Lewis has to adjust her administration design for the marketing division recommends that these 2 departments would certainly be culturally varied. Lewis may not be able to use one type of leadership style to both divisions which can result in inadequacy in either one of the 2 functions.


An examination of the 3 alternatives shows that assimilation of advertising and marketing as well as procedures would certainly not be a practical move as a result of the vast distinctions in between the two departments although that currently Lewis is taking care of both. While splitting up of the manufacturing feature may have been a favorable step for the advertising department, the fact that it would certainly indicate placing a third feature under Lewis's wing indicates this ought to be prevented also. The assimilation of the advertising and marketing division is the very best choice in terms of obtaining the ideal arise from the division. An action plan for this option is reviewed listed below.

Action Strategy.
Lewis will take over the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

Manufacturing function will remain part of advertising under marketing function.

Lewis will separate herself from operations.

An autonomous leadership design with staff member empowerment will be made use of in advertising department.

Open up door policy and emphasis on cross department communication will be targeted at eliminating discord.

Backup plan.

If the integration does not exercise as intended, a backup plan would follow which would divide the manufacturing function from the advertising and marketing feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising and marketing division without an SVP. In that case the manufacturing feature will absolutely be divided by putting it under an SVP manufacturing.