The Maggi Noodle Safety Crisis In India C Case Study Analysis


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The Maggi Noodle Safety Crisis In India C Case Study Analysis

Background and Facts

The Maggi Noodle Safety Crisis In India C an office products store for little and average sized businesses has actually recently been associated with preparing for a merger with its rival Residence Deport, which has actually affected efficiency levels in departmentswith the elderly manager associated with lawful difficulties put forth by the government Profession Payment. With the Marketing Head putting forward the information of his separation from the firm in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the near future. With obstacles in the type of a potential cultural modification 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 social change at the advertising and marketing division of The Maggi Noodle Safety Crisis In India C is boosting unpredictability in the workplace causing numerous 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 major function in affecting calculated decisions given that Stapes Inc. needed to abandon its plans of combining with Office Deport after the Federal Trade Compensation's intervention while doing so. Provided the reality that the shop has a global presence with branches in UK, USA, Canada as well as Germany, political consider each of these countries might have the ability to influence performance or critical goals. Federal Profession Compensation's antitrust suit versus the merger occupied important time of the organization's elderly administration suggesting that 'political' factors can have serious ramifications for a worldwide service.

Economic Factors: Economic factors such as the development of small companies in the international situation suggest that The Maggi Noodle Safety Crisis In India C is flourishing in an environment where there is possible development of companies. Reality that store customers are mostly looking for office materials for home workplaces recommends that the market has an increasing trend of business owners as well as home based companies.

Social factors: Social fads in the economic situation show that customers are searching for benefit in addition to eye-catching costs. Market research demonstrates how the consumer for The Maggi Noodle Safety Crisis In India C lacks understanding concerning finding remedies which can provide a combination of ease and also low costs.

Technical factors: Technology plays a vital role in The Maggi Noodle Safety Crisis In India C's business method particularly as the organization is piloting Technology centers which would certainly offer innovation sales as well as assistance in the type of memory upgrades, outer setups. (Summary of PARASITE in appendix 2).

OB Issues and also Effects.

Several underlying Business Habits concerns can be seen in The Maggi Noodle Safety Crisis In India C's case as highlighted in this section.

Worries concerning social change: There is apprehension about a cultural change that would certainly take place as soon as Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with the majority of the personnel currently showing discontent over this prospective relocation. This predicted modification has actually produced stress and anxiety in the work environment which has been paired with the past stress and anxiety of preparing the company for a prospective merging with Residence Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is scarcity of personnel that can match the stressful environment of a hectic organization. Not just does this bring about difficulty in discovering the appropriate people, it places anxiety on brand-new hires as can not stand up to the speed and also stress that the organization anticipates them to bear.

Double Coverage Lines: Novices locate this business society troublesome as well as difficult to cope with specifically as populated line partnerships are indicated to be weak generally and objective setup as well as efficiency assessment is still done by the strong line manager. This suggests that newbies might shed clarity regarding their particular functions as well as purposes especially as dotted line reporting does not maintain them in direct interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles even though it had been hypothesized that the latter would certainly take Krasnow's setting came as a blow to her morale. Lewis may have been capable and also appropriate for the task yet the reality that Kransnow's departure would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from services.

Fear & Work Insecurity: Concern and insecurity can be identified as 2 major issues that Lewis would certainly be taking care of specifically as the merging has now be terminated and also two elderly executives of the marketing division would be leaving. The entire obligation of the department would be dropping on Lewis's shoulders that would certainly not just be in charge of brining about a social adjustment yet would certainly likewise need to show herself in her new role.

Incompatible Administration Design of Leader: Lewis's administration design and also its incompatibility with the marketing department's duty can additionally be seen as an OB difficulty particularly as she has actually been utilized to managing concerns in the operations department where employees are taught to focus on processes and get them. The advertising and marketing division on the other hand can be viewed as a group of people that are used to being supported by Krasnow who focused much more on result than procedures.

Interdepartmental Differences: Interdepartmental differences between 3 departments, advertising, merchandizing and operations respectively over the allocation of the marketing mix can be determined as an additional OB worry. The advertising and marketing division does not share the exact same vision as the other 2 departments concerning the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and also procedures departments do not concur over the marketing mix allotment amongst one an additional either.

Disintegration in Advertising Department: Disintegration between the marketing and advertising divisions can be identified as an additional OB problem which might require more interest. The truth that the marketing and advertising areas in the advertising and marketing department are separated is protecting against both divisions from getting from each various other's experience and also expertise. Assimilation of advertising and marketing with merchandising and operations would certainly end up being harder if the advertising and marketing division itself is broken down which can be one more potential OB problem.

The Maggi Noodle Safety Crisis In India C Analysis

Numerous theories have been utilized to explain the conditions to obtain additional quality about the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many supervisors think that juniors are easy and lazy, have little passion and resist adjustment. The tough version of this theory highlighted threat, limited controls, risks and also penalties. Gradually it produces reduced productivity, subtle sabotage and rivalry (Bargain, 2003). The circumstance at The Maggi Noodle Safety Crisis In India C is not totally complying with Theory X, it can be seen that brand-new hires are discovering this atmosphere instead stressful which might at some point lead to a higher inclination of the monitoring in the direction of Theory X. As per McGregor's supported view, which he called Theory Y, the essential job of the monitoring is to prepare organizational problems so that people can achieve their own goals best by directing their efforts in the direction of business incentives. If individuals find no contentment in their work, the management would certainly have little option yet to rely on concept X and also outside control (Deal, 2003). Also while examining Lewis's administration design, concept X might have been suitable in the procedures department somewhat but the Advertising and marketing division would require dependence on Theory Y in order to get the creative thinking as well as originality from the teams.

Tuckman's Teamwork Theory: Regarding Lewis's concern about bringing consistency in between the marketing and advertising department is concerned, this would initially bring about conflict as talked about by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). As per Tuckman's theory shown in appendix 3, during the initial stage of team development, individuals might not bond, as they are busy locating their location in the team. By integrating the marketing and advertising department's work, there might coincide first detach which might cause the second phase of 'storming' where the groups challenge each other. It is only during the third stage or 'norming' when they would come together to share ideas before the group can bring about harmony in the 4th stage 'performing'.

Bridges' Shift Version: According To William Bridge's concept (appendix 4), people are quite awkward with modification, which is obvious by the circumstance at The Maggi Noodle Safety Crisis In India C The scenario can be viewed as a normal training course of life if is studied based on Bridge's concept where he describes that people experience three stages of change when they experience adjustment. 'End, losing as well as Releasing', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When people are presented with adjustment, they go into phase one therefore there may be feelings like sadness, unpredictability, stress, temper, concern, denial and also disorientation.The circumstance at the marketing department of The Maggi Noodle Safety Crisis In India C is comparable so Lewis can obtain comfy with the concept that it is not extraordinary actions. In the second stage, there might be a need to link the gap between the brand-new as well as old society so Lewis might have to face this ordeal once Krasnow leaves. There might be reduced spirits as well as reduced performance at this stage which ought to not be taken as a problem. It is during this stage that Lewis will certainly have to give guidance to the division to ensure that they can locate a sense of direction. It can be seen just how Krasnow has currently made this change much easier by making Lewis get involved in the department a year before his actual departure. According to Bridges' Model, phase 3 will cause visibility to learning, High energy as well as commitment as individuals will certainly welcome the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has talks about the value of 'security requires as being a lower level requirement of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel safe as well as out of threat' is at the 2nd level of requirements. Prior to a staff member can be made to develop mentally, he requires to have his 'Physical 'and also 'Safety' needs met.

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

Effects of Analysis.

The OB analysis has actually considered various theories to recognize how to manage the current scenario available. The adhering to three options have actually been suggested to help Lewis take care of the organizational challenges in the advertising and marketing division. Each of these choices has actually been proposed for relieving the shift needed to bring the marketing department according to the demands of the marketplace and also for making the cultural change that would comply with when the present leader leaves.

Combination of marketing and advertising features. Separating Adverting and Manufacturing features. Assimilation of Advertising And Marketing with Operations.

Examination of Alternatives.

Assimilation of Advertising & Advertising And Marketing Functions: The internal marketing company of The Maggi Noodle Safety Crisis In India C is already stamina for the company in regards to conserving up on expenses connected to advertising and also promo. Considering that no new employment has been done after Bridget Cole's departure with the coverage line being directly appointed to Krasnow for the marketing function, this is a positive chance for incorporating the marketing and advertising features. Judith Shapiro that has earlier been interviewed by Lewis during the earlier merger days has competence in business-to-business marketing in addition to company as well as retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to handle both advertising and marketing features.

The advantage of this strategy is that it will incorporate both features while reducing the requirement for hiring an additional resource for advertising and marketing. Along with this, Lewis would be heading the advertising department and also in any case her replacement would be needed for the current role that she is executing. The disadvantage of this choice is that external hiring may bring about animosity from internal workers who might be looking at the placement of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and also Production: Given the competitive pressures as well as high top quality job needed from the advertising agency, it is suggested that Lewis must allow the production system to be a separate function from the advertising and marketing unit. Because a lot of advertising and marketing companies had these 2 functions as different devices, it makes even more sense to follow the norm.

Assimilation of Marketing with Procedures: Given that Lewis is currently taking care of the advertising and marketing and also operations divisions concurrently; it makes sense to integrate the two features since she has actually been successfully taking care of both ends. The fact that both divisions already have significant distinctions over appropriation of resources suggests that this integration may be able to cause consistency particularly as Lewis would certainly be heading both ends.However there are various drawbacks of this relocation specifically as it would certainly place excessive problem over Lewis's shoulders. The truth that Lewis needs to adjust her monitoring style for the marketing division suggests that these two divisions would be culturally varied. Lewis may not be able to use one type of management design to both departments which could result in inefficiency in either one of the two features.


An evaluation of the three options suggests that combination of advertising and also operations would not be a viable relocation due to the huge distinctions in between the two divisions although that presently Lewis is handling both. While separation of the production feature may have been a desirable move for the marketing division, the reality that it would indicate placing a 3rd feature under Lewis's wing indicates this must be avoided. The combination of the advertising and marketing department is the most effective alternative in terms of obtaining the optimum arise from the department. An activity plan for this option is discussed listed below.

Activity Plan.
Lewis will take over the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

Manufacturing feature will remain part of marketing under advertising feature.

Lewis will divide herself from operations.

A democratic management style with worker empowerment will be utilized in advertising department.

Open door policy as well as focus on cross departmental communication will certainly be focused on getting rid of discord.

Backup strategy.

If the assimilation does not exercise as planned, a contingency plan would comply with which would divide the production function from the advertising feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the advertising and marketing department without an SVP. Because case the production feature will absolutely be separated by positioning it under an SVP manufacturing.