Menu

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

CASE SOLUTION

Home >> Harvard >> The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions >>

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 an office supplies merchant for tiny and moderate sized organisations has just recently been associated with preparing for a merger with its competitor Home Deport, which has actually impacted performance levels in departmentswith the elderly supervisor associated with lawful difficulties presented by the federal Trade Commission. With the Marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the future. With obstacles in the form of a prospective social modification and also low employee morale, the company needs a full reengineering effort at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the marketing division of The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions is enhancing uncertainty in the workplace causing various obstacles for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting strategic decisions because Stapes Inc. needed to abandon its plans of combining with Office Deport after the Federal Profession Commission's intervention in the process. Provided the fact that the shop has a global visibility with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these countries may have the ability to affect performance or critical goals. Federal Trade Commission's antitrust match against the merger took up beneficial time of the company's senior administration recommending that 'political' factors can have severe implications for a worldwide organisation.

Economic Factors: Economic factors such as the development of local business in the global circumstance recommend that The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions is prospering in an atmosphere where there is possible growth of businesses. Reality that shop consumers are primarily looking for workplace materials for residence offices suggests that the market has a rising pattern of entrepreneurs as well as residence based companies.

Social factors: Social patterns in the economic climate show that consumers are searching for ease along with attractive costs. Marketing research shows how the customer for The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions does not have understanding about discovering options which can provide a mix of convenience and low costs.

Technological factors: Innovation plays an important role in The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions's company method specifically as the organization is piloting Technology centers which would provide technology sales and also support in the form of memory upgrades, peripheral setups. (Recap of PEST in appendix 2).

OB Issues as well as Manifestations.

Several underlying Business Actions problems 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 change: There is concern regarding a cultural modification that would certainly occur once Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with a lot of the personnel currently revealing unhappiness over this prospective move. This predicted modification has actually created stress and anxiety in the workplace which has been coupled with the past anxiety of preparing the company for a prospective merger with Home Deport.
Pest Analysis
Stressful Work Environment for Newcomers: There is scarcity of personnel that can match the stressful setting of a hectic company. Not just does this lead to trouble in discovering the appropriate individuals, it places anxiety on brand-new hires as can not hold up against the rate and also pressure that the company anticipates them to birth.

Twin Coverage Lines: Newbies locate this business society difficult as well as tough to cope with particularly as dotted line relationships are meant to be weak generally and also unbiased setup and also performance evaluation is still done by the strong line supervisor. This means that novices can lose clearness regarding their particular duties and purposes especially as dotted line reporting does not keep them in direct communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles despite the fact that it had actually been guessed that the latter would certainly take Krasnow's setting came as an impact to her morale. Lewis may have been qualified as well as ideal for the work however the reality that Kransnow's departure would make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Job Insecurity: Fear and insecurity can be determined as two significant concerns that Lewis would certainly be managing particularly as the merger has currently be terminated and also two senior executives of the advertising division would be leaving. The entire duty of the department would certainly be falling on Lewis's shoulders that would not simply be in charge of brining about a cultural adjustment but would certainly additionally need to prove herself in her new duty.

Incompatible Monitoring Style of Leader: Lewis's management style and its conflict with the advertising department's duty can also be viewed as an OB difficulty especially as she has actually been utilized to handling issues in the procedures department where employees are taught to focus on processes and also get them right. The marketing department on the other hand can be viewed as a group of individuals who are made use of to being nurtured by Krasnow that focused a lot more on result than procedures.

Interdepartmental Disagreements: Interdepartmental disagreements in between three divisions, advertising, merchandizing and also operations specifically over the allotment of the marketing mix can be identified as one more OB problem. Although the advertising and marketing division does not share the same vision as the various other 2 divisions regarding the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing and procedures departments do not agree over the advertising and marketing mix appropriation amongst one another either.

Fragmentation in Advertising Department: Fragmentation between the advertising and marketing departments can be determined as another OB concern which can require further interest. The reality that the advertising and marketing sections in the marketing department are disconnected is avoiding both divisions from acquiring from each various other's experience as well as competence. Combination of advertising with merchandising and also procedures would certainly come to be more difficult if the advertising department itself is broken down which can be one more potential OB concern.

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

Various concepts have actually been utilized to describe the situations to get further clarity about the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers believe that staffs are easy as well as careless, have little passion and withstand change. The scenario at The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions is not totally complying with Concept X, it can be seen that new hires are locating this atmosphere instead difficult which may eventually lead to a higher inclination of the monitoring towards Concept X. Even while analyzing Lewis's management design, concept X might have been suitable in the procedures division to some degree yet the Marketing division would need dependence on Theory Y in order to obtain the creativity and originality from the groups.

Tuckman's Teamwork Theory: As for Lewis's issue concerning bringing harmony between the marketing and advertising department is worried, this would originally cause clash as discussed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). As per Tuckman's theory received appendix 3, during the first phase of group growth, individuals may not bond, as they are busy finding their location in the group. By incorporating the advertising and marketing department's work, there might be the same preliminary separate which can lead to the second stage of 'storming' where the teams challenge each other. Nonetheless, it is just during the third phase or 'norming' when they would certainly come together to share concepts before the group can cause synergy in the fourth phase 'performing'.

Bridges' Change Model: As per William Bridge's concept (appendix 4), individuals are fairly unpleasant with adjustment, which is apparent by the circumstance at The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions The scenario can be viewed as a normal program of life if is researched based on Bridge's concept where he clarifies that people go through 3 phases of transition when they experience change. 'Closing, losing and also Releasing', The Neutral Area and also 'The New Beginning' (Bridges, 2004). When individuals are presented with change, they go into phase one and so there may be emotions like despair, uncertainty, stress, rage, anxiety, denial and disorientation.The scenario at the marketing department of The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions is similar so Lewis can obtain comfortable with the concept that it is not phenomenal actions. In the 2nd phase, there may be a requirement to connect the gap between the brand-new and old society so Lewis might have to face this ordeal once Krasnow leaves. There may be reduced morale and also low efficiency at this stage which ought to not be taken as a problem. It is during this stage that Lewis will need to give assistance to the department to ensure that they can locate an orientation. It can be seen just how Krasnow has actually already made this transition much easier by making Lewis get involved in the division a year prior to his real separation. Based on Bridges' Model, stage 3 will cause visibility to learning, High power and also dedication as people will welcome the modification (Bridges, 2004).
Vrio Analysis
Maslow's Demand hierarchy: The OB problem related to insecurity at the workplace has actually been caused firstly by the change in management as well as second of all by the truth that the merger will certainly no longer be launched. Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has talks about the value of 'safety and security needs as being a reduced degree requirement of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel secure and also out of danger' goes to the second level of needs. Before a worker can be made to establish mentally, he requires to have his 'Physical 'and also 'Safety and security' needs satisfied. This indicates that unless the personnel are made to feel safe and secure regarding their present work status in The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions they might not reach 'Self-Fulfillment'. (King, 2009).

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 taken a look at different concepts to comprehend exactly how to handle the existing scenario available. The following 3 choices have been proposed to assist Lewis handle the organizational obstacles in the marketing department. Each of these choices has been recommended for reducing the change required to bring the advertising department in line with the requirements of the marketplace and for making the cultural adjustment that would adhere to once the present leader leaves.

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

Analysis of Alternatives.

Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merger days has competence in business-to-business advertising and marketing along with company as well as retail advertising and marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing and also marketing functions.

The advantage of this strategy is that it will incorporate both functions while reducing the need for working with an extra resource for advertising. In addition to this, Lewis would certainly be heading the marketing division and regardless her replacement would certainly be required for the current role that she is executing. The downside of this alternative is that outside hiring might produce animosity from inner personnel that might be considering the position of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and Manufacturing: Provided the affordable pressures and also high quality work required from the advertising and marketing firm, it is advised that Lewis ought to enable the production device to be a separate function from the advertising and marketing unit. Given that many advertising and marketing companies had these two functions as separate devices, it makes more sense to follow the standard.

Combination of Advertising with Procedures: Considering that Lewis is currently taking treatment of the advertising and marketing and operations divisions at the same time; it makes feeling to incorporate the 2 functions because she has been effectively taking care of both ends. The fact that Lewis has to adjust her management style for the advertising division recommends that these 2 divisions would certainly be culturally varied.

Referral.



An evaluation of the 3 choices shows that assimilation of advertising and marketing and procedures would certainly not be a viable relocation as a result of the large differences in between the two departments although that presently Lewis is handling both. While splitting up of the production function might have been a positive step for the advertising department, the fact that it would certainly indicate putting a third function under Lewis's wing indicates this need to be prevented. The integration of the advertising and marketing division is the most effective alternative in terms of getting the optimal arise from the department. An action prepare for this option is talked about listed below.

Action Strategy.
Recommendation
Lewis will take control of the role of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

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

Lewis will divide herself from operations.

A democratic management style with worker empowerment will be utilized in advertising and marketing division.

Open door policy as well as emphasis on cross department interaction will be targeted at getting rid of discord.

Backup plan.

If the combination does not exercise as intended, a backup strategy would certainly comply with which would divide the production feature from the advertising feature to lower the load 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. In that case the production feature will certainly be separated by positioning it under an SVP production.