The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions Case Study Help


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The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions Case Study Solution

Background and Facts

The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions a workplace supplies seller for little and also medium sized organisations has actually lately been involved in planning for a merger with its rival House Deport, which has actually influenced performance levels in departmentswith the elderly manager involved in legal difficulties presented by the federal Profession Payment. With the Advertising and marketing Head putting forward the information of his departure 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 difficulties in the form of a potential social change and also reduced staff member morale, the company needs a full reengineering effort at the advertising and marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The prospective social change at the advertising department of The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions is raising unpredictability in the working environment bring about different obstacles for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in affecting critical choices since Stapes Inc. had to abandon its plans of merging with Workplace Deport after the Federal Trade Compensation's intervention at the same time. Provided the reality that the store has a global existence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these countries may be able to influence efficiency or calculated goals. Federal Trade Commission's antitrust match versus the merger took up beneficial time of the company's senior monitoring recommending that 'political' factors can have significant implications for a worldwide business.

Economic Factors: Economic factors such as the emergence of local business in the worldwide scenario recommend that The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions is prospering in an environment where there is possible development of organisations. Truth that store consumers are mostly looking for office supplies for residence offices suggests that the market has a rising pattern of entrepreneurs and also home based businesses.

Social factors: Social trends in the economic climate show that consumers are seeking ease along with attractive prices. Market research demonstrates how the consumer for The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions lacks awareness about locating solutions which can use a combination of benefit and inexpensive.

Technological factors: Modern technology plays an important duty in The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions's organisation approach specifically as the organization is piloting Technology facilities which would certainly offer modern technology sales and also assistance in the type of memory upgrades, outer installations. (Summary of PARASITE in appendix 2).

OB Issues and Symptoms.

Numerous underlying Organizational Actions issues can be seen in The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions's case as highlighted in this section.

Apprehensions about social adjustment: There is apprehension regarding a cultural change that would happen once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising And Marketing with most of the team member currently revealing discontent over this possible relocation. This expected adjustment has actually created anxiety in the work environment which has been combined with the past stress of preparing the company for a possible merger with Residence Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is shortage of workers that can match the demanding setting of a busy company. Not just does this bring about trouble in locating the right people, it puts stress and anxiety on brand-new hires as can not withstand the speed and also stress that the company anticipates them to birth.

Double Reporting Lines: Newbies locate this business culture cumbersome as well as tough to handle especially as populated line partnerships are suggested to be weaker in general and objective setting as well as efficiency examination is still done by the strong line supervisor. This means that novices might lose clearness about their respective functions and also objectives specifically as populated line coverage does not keep them in direct communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had been hypothesized that the last would take Krasnow's setting came as a blow to her spirits. Lewis may have been capable as well as suitable for the work however the truth that Kransnow's separation would certainly make Coles a straight record to Lewis may have been the factor for Coles' resignation from services.

Concern & Job Instability: Anxiety and also insecurity can be recognized as 2 major concerns that Lewis would be taking care of particularly as the merger has currently be terminated and also 2 elderly execs of the marketing division would be leaving. The whole obligation of the department would be dropping on Lewis's shoulders who would not simply supervise of brining about a cultural modification however would certainly also need to confirm herself in her new function.

Inappropriate Monitoring Style of Leader: Lewis's monitoring style and its conflict with the marketing division's duty can also be seen as an OB difficulty especially as she has been made use of to handling concerns in the procedures division where employees are educated to focus on procedures as well as obtain them. The advertising department on the various other hand can be viewed as a group of people who are used to being supported by Krasnow who focused more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental differences between 3 departments, advertising, merchandizing and operations respectively over the allowance of the advertising and marketing mix can be identified as one more OB concern. Although the advertising and marketing department 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 procedures divisions do not concur over the advertising mix allowance amongst each other either.

Fragmentation in Marketing Department: Fragmentation between the advertising and marketing departments can be determined as another OB concern which could require additional interest. The fact that the marketing and advertising areas in the advertising division are disconnected is stopping both departments from acquiring from each various other's experience as well as proficiency. Combination of advertising with retailing and also procedures would certainly end up being more difficult if the advertising department itself is broken down which can be one more prospective OB concern.

The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions Analysis

Different theories have been used to discuss the conditions to get further clarity about the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers believe that staffs are passive as well as careless, have little passion and also resist change. The hard version of this concept emphasized threat, tight controls, hazards and also punishments. In time it produces reduced productivity, refined sabotage and competition (Deal, 2003). Although the circumstance at The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions is not completely following Theory X, it can be seen that new hires are locating this atmosphere instead difficult which might ultimately lead to a better inclination of the management towards Theory X. According to McGregor's advocated view, which he called Theory Y, the necessary job of the administration is to arrange organizational problems to make sure that people can attain their very own goals best by routing their efforts in the direction of business incentives. If individuals find no fulfillment in their work, the administration would certainly have little option but to rely on concept X as well as exterior control (Deal, 2003). Even while evaluating Lewis's monitoring style, concept X may have been suitable in the procedures division to some extent but the Advertising and marketing division would certainly call for reliance on Concept Y so as to get the imagination as well as originality from the teams.

Tuckman's Synergy Concept: Regarding Lewis's problem about bringing consistency between the advertising and marketing division is worried, this would originally result in clash as discussed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). According to Tuckman's concept displayed in appendix 3, throughout the preliminary phase of group advancement, people might not bond, as they are active finding their area in the team. By incorporating the marketing and advertising division's job, there may coincide preliminary detach which could bring about the second stage of 'storming' where the teams test each other. Nevertheless, it is just during the 3rd stage or 'norming' when they would certainly integrate to share suggestions before the group can bring about synergy in the 4th phase 'carrying out'.

When people are offered with change, they enter stage one and also so there might be emotions like despair, uncertainty, frustration, anger, fear, rejection as well as disorientation.The scenario at the marketing division of The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions is similar so Lewis can obtain comfortable with the suggestion that it is not amazing behavior. It is throughout this phase that Lewis will have to provide advice to the division so that they can find a feeling of direction. It can be seen exactly how Krasnow has actually currently made this transition less complicated by making Lewis get included in the division a year before his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has reviews the importance of 'safety needs as being a lower degree need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to really feel safe and out of threat' is at the second degree of requirements. Before a worker can be made to establish emotionally, he needs to have his 'Physiological 'and 'Safety and security' requires fulfilled.

SWOT Analysis for The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions Case Study

Effects of Analysis.

The OB analysis has actually taken a look at numerous theories to recognize how to manage the existing situation at hand. The complying with 3 options have actually been proposed to aid Lewis deal with the organizational challenges in the advertising department. Each of these choices has been suggested for alleviating the shift required to bring the marketing department in accordance with the needs of the marketplace as well as for making the cultural modification that would comply with as soon as the current leader leaves.

Integration of marketing and advertising functions. Dividing Adverting and also Manufacturing features. Integration of Marketing with Workflow.

Evaluation of Alternatives.

Judith Shapiro that has earlier been talked to by Lewis during the earlier merging days has competence in business-to-business advertising along with company and also retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to manage both marketing as well as advertising functions.

The benefit of this approach is that it will certainly integrate both functions while decreasing the need for employing an added resource for marketing. Lewis would be heading the advertising division as well as in any kind of case her replacement would be needed for the existing function that she is executing. The negative aspect of this option is that exterior hiring might bring about bitterness from interior workers who may be looking at the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Production: Provided the competitive pressures and also high quality work required from the marketing firm, it is suggested that Lewis must permit the manufacturing system to be a different function from the advertising system. Given that many advertising firms had these 2 features as separate units, it makes more feeling to adhere to the standard.

Combination of Marketing with Workflows: Considering that Lewis is currently taking care of the advertising and procedures divisions all at once; it makes sense to integrate the two features because she has actually been effectively taking treatment of both ends. The reality that Lewis has to adjust her monitoring style for the marketing department suggests that these two divisions would certainly be culturally diverse.


An evaluation of the 3 choices suggests that combination of advertising and marketing as well as operations would not be a practical action because of the substantial distinctions in between both departments although that presently Lewis is dealing with both. While separation of the production function might have been a positive move for the advertising and marketing division, the truth that it would certainly indicate positioning a 3rd function under Lewis's wing means this need to be prevented. The integration of the advertising division is the best option in regards to obtaining the optimal results from the division. An activity plan for this choice is talked about below.

Activity Plan.
Lewis will certainly take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

Manufacturing feature will certainly continue to be component of advertising and marketing under advertising feature.

Lewis will certainly separate herself from operations.

A democratic leadership design with employee empowerment will certainly be made use of in marketing division.

Open door plan and focus on cross departmental interaction will certainly be focused on getting rid of dissonance.

Contingency strategy.

If the combination does not exercise as intended, a backup plan would follow which would divide the production feature from the advertising and marketing function to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the advertising division without an SVP. In that case the manufacturing feature will most definitely be separated by placing it under an SVP manufacturing.