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The Maggi Noodle Safety Crisis In India A Case Study Solution

CASE ANALYSIS

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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 an office materials merchant for small and also moderate sized organisations has recently been associated with planning for a merger with its competitor House Deport, which has actually influenced effectiveness levels in departmentswith the senior supervisor involved in legal complications presented by the government Trade Compensation. With the Advertising Head putting forward the information of his departure from the business in one year, Jeannie Lewis, the present head of operations has been asked to take the function in the future. With challenges in the type of a potential social adjustment as well as low staff member spirits, the organization requires a complete reengineering initiative at the marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising department of The Maggi Noodle Safety Crisis In India A is increasing uncertainty in the workplace 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 major duty in impacting critical choices because Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Trade Compensation's treatment at the same time. Given the fact that the shop has an international existence with branches in UK, USA, Canada and Germany, political factors in each of these countries may be able to affect efficiency or critical goals. Federal Profession Compensation's antitrust fit against the merger used up useful time of the company's senior monitoring recommending that 'political' factors can have significant effects for an international organisation.

Economic Factors: Financial factors such as the development of small companies in the global circumstance suggest that The Maggi Noodle Safety Crisis In India A is prospering in a setting where there is prospective growth of organisations. In addition to this, truth that store clients are mainly searching for workplace materials for home offices recommends that the marketplace has a climbing pattern of entrepreneurs and also home businesses.

Social factors: Social patterns in the economic climate reveal that clients are seeking convenience in addition to eye-catching costs. Market research shows how the customer for The Maggi Noodle Safety Crisis In India A does not have recognition concerning finding solutions which can use a mix of ease and also low costs.

Technical factors: Innovation plays an essential role in The Maggi Noodle Safety Crisis In India A's service strategy especially as the company is piloting Modern technology facilities which would use modern technology sales and also assistance in the form of memory upgrades, outer installments. (Recap of BUG in appendix 2).

OB Issues and Symptoms.

Numerous underlying Organizational Behavior problems can be seen in The Maggi Noodle Safety Crisis In India A's case as highlighted in this section.

Apprehensions concerning cultural change: There is concern concerning a cultural modification that would happen as soon as Todd Krasnow leaves from his placement as the Exec Vice President of Advertising And Marketing with the majority of the staff members already showing discontent over this potential action. This expected adjustment has developed stress and anxiety in the workplace which has actually been combined with the previous stress and anxiety of preparing the firm for a potential merging with Residence Deport.
Pest Analysis
Demanding Work Environment for Newcomers: There is shortage of personnel that can match the stressful environment of a fast-paced organization. Not only does this cause trouble in finding the ideal people, it puts tension on new hires as can not stand up to the pace and also stress that the company expects them to bear.

Double Reporting Lines: Newcomers locate this business society troublesome and also hard to manage particularly as dotted line partnerships are meant to be weak in general and objective setup and performance examination is still done by the strong line manager. This suggests that newcomers can lose quality regarding their particular functions and also objectives specifically as populated line reporting does not maintain them in straight interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been guessed that the last would take Krasnow's placement came as an impact to her spirits. Lewis may have been qualified as well as ideal for the task but the fact that Kransnow's departure would certainly make Coles a direct report to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Work Insecurity: Fear as well as instability can be determined as two major concerns that Lewis would be taking care of especially as the merger has now be terminated and 2 elderly executives of the advertising division would be leaving. The entire obligation of the division would certainly be falling on Lewis's shoulders who would certainly not just be in charge of brining concerning a cultural modification however would also need to prove herself in her brand-new function.

Incompatible Management Style of Leader: Lewis's monitoring style and its incompatibility with the advertising department's duty can likewise be seen as an OB challenge particularly as she has been used to taking care of concerns in the operations division where personnel are instructed to focus on procedures and get them right. The advertising division on the various other hand can be viewed as a group of people who are used to being nurtured by Krasnow who focused much more on output than processes.

Interdepartmental Disputes: Interdepartmental differences in between 3 departments, advertising, merchandizing as well as operations respectively over the appropriation of the marketing mix can be determined as one more OB issue. Although the marketing department does not share the very same vision as the other 2 departments concerning the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and procedures departments do not agree over the advertising mix allotment amongst each other either.

Fragmentation in Marketing Division: Disintegration in between the marketing and advertising divisions can be determined as another OB problem which can require further attention. The truth that the marketing and advertising sections in the advertising and marketing department are separated is avoiding both divisions from gaining from each various other's experience and also knowledge. Integration of advertising and marketing with retailing as well as procedures would end up being more difficult if the marketing division itself is disintegrated which can be an additional possible OB issue.

The Maggi Noodle Safety Crisis In India A Analysis

Different theories have been utilized to clarify the scenarios to get further clarity concerning the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of supervisors think that subordinates are easy as well as lazy, have little aspiration and also withstand change. The tough version of this concept highlighted browbeating, limited controls, risks and penalties. Gradually it generates reduced performance, subtle sabotage and also competition (Offer, 2003). The circumstance at The Maggi Noodle Safety Crisis In India A is not totally complying with Concept X, it can be seen that brand-new hires are locating this setting rather stressful which may ultimately lead to a better disposition of the monitoring towards Theory X. As per McGregor's promoted view, which he called Theory Y, the crucial job of the monitoring is to arrange business problems so that individuals can accomplish their own goals best by routing their efforts in the direction of business rewards. If individuals locate no complete satisfaction in their job, the administration would certainly have little option however to rely upon concept X and outside control (Offer, 2003). Even while analyzing Lewis's administration design, theory X may have appropriated in the operations division somewhat but the Advertising division would certainly require dependence on Theory Y to get the creative thinking and creativity from the teams.

Tuckman's Teamwork Concept: As far as Lewis's worry about bringing harmony in between the marketing and marketing division is worried, this would at first lead to clash as reviewed by Bruce Tuckman in his 'Teamwork Concept'. By incorporating the marketing and advertising division's work, there might be the very same preliminary disconnect which might lead to the second phase of 'storming' where the groups challenge one an additional.

Bridges' Change Version: Based On William Bridge's concept (appendix 4), individuals are quite uneasy with modification, which is obvious by the circumstance at The Maggi Noodle Safety Crisis In India A The circumstance can be viewed as a typical training course of life if is researched according to Bridge's theory where he explains that people experience 3 stages of change when they experience change. 'Ending, shedding and Releasing', The Neutral Zone and 'The New Starting' (Bridges, 2004). When individuals are presented with change, they get in stage one therefore there may be emotions like despair, unpredictability, aggravation, anger, fear, rejection as well as disorientation.The circumstance at the marketing division of The Maggi Noodle Safety Crisis In India A is similar so Lewis can get comfortable with the suggestion that it is not remarkable habits. In the 2nd phase, there may be a demand to bridge the void in between the new and old culture so Lewis may have to face this challenge once Krasnow leaves. There might be low spirits as well as low performance at this phase which must not be taken as an obstacle. It is during this stage that Lewis will certainly need to give guidance to the department so that they can find a sense of direction. It can be seen how Krasnow has currently made this shift easier by making Lewis obtain involved in the department a year before his actual separation. As per Bridges' Design, phase 3 will produce visibility to learning, High power and also dedication as people will certainly accept the modification (Bridges, 2004).
Vrio Analysis
Maslow's Demand power structure: The OB issue related to instability at the work environment has actually been set off first of all by the modification in monitoring as well as second of all by the reality that the merging will no longer be started. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has talks about the relevance of 'protection needs as being a lower level demand of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the need to feel protected as well as unharmed' goes to the second degree of needs. Prior to a staff member can be made to develop mentally, he requires to have his 'Physiological 'and 'Safety' requires satisfied. This suggests that unless the personnel are made to really feel secure concerning their current work standing in The Maggi Noodle Safety Crisis In India A they may not get to 'Self-Fulfillment'. (King, 2009).

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



Effects of Analysis.

The OB analysis has taken a look at numerous concepts to understand exactly how to cope with the existing circumstance at hand. The following three options have been recommended to assist Lewis handle the business obstacles in the marketing division. Each of these choices has actually been suggested for easing the shift required to bring the advertising department in accordance with the requirements of the market as well as for making the cultural adjustment that would certainly adhere to when the existing leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting and also Production features. Combination of Advertising with Operations.

Examination of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merger days has expertise in business-to-business advertising along with agency as well as retail advertising and marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to take care of both advertising as well as marketing features.

The benefit of this strategy is that it will certainly incorporate the two functions while reducing the demand for working with an added source for marketing. Along with this, Lewis would be heading the marketing department and in any case her replacement would be required for the existing duty that she is carrying out. The negative aspect of this choice is that exterior hiring might bring about resentment from internal personnel who might be eying the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and also Production: Offered the affordable stress as well as top quality work required from the ad agency, it is advised that Lewis should allow the manufacturing unit to be a different feature from the advertising and marketing unit. Considering that the majority of ad agency had these two features as different units, it makes more feeling to adhere to the norm. Both functions might be able to focus on their core triggers a lot more efficiently. The downside of this strategy would be that added costs would have to be birthed for setting up different manufacturing features. In addition to this, a manufacturing head may have to be hired which can raise expenses for the company.

Combination of Advertising with Procedures: Given that Lewis is already taking care of the marketing and procedures departments at the same time; it makes feeling to integrate the 2 features since she has been effectively taking care of both ends. The fact that Lewis has to adjust her monitoring design for the advertising department recommends that these 2 divisions would certainly be culturally varied.

Suggestion.



An evaluation of the 3 alternatives indicates that combination of marketing and also procedures would certainly not be a viable action due to the large differences between the two divisions in spite of the fact that currently Lewis is managing both. While separation of the manufacturing feature may have been a favorable relocation for the marketing division, the fact that it would certainly suggest placing a third feature under Lewis's wing suggests this ought to be stayed clear of.

Action Plan.
Recommendation
Lewis will take control of the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would be combined.

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

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

Lewis will certainly separate herself from operations.

A democratic management style with worker empowerment will certainly be used in advertising division.

Open up door policy and emphasis on cross department communication will be focused on getting rid of discord.

Backup plan.

If the combination does not work out as intended, a backup plan would certainly comply with which would certainly separate the manufacturing feature from the marketing feature to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising department without an SVP. Because case the production feature will certainly be separated by placing it under an SVP manufacturing.