The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Case Study Analysis


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The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Case Study Analysis

Background and Facts

The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc a workplace products store for little and also medium sized services has actually just recently been associated with planning for a merging with its rival Home Deport, which has affected effectiveness degrees in departmentswith the elderly supervisor associated with legal difficulties presented by the federal Trade Payment. With the Marketing Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the near future. With difficulties in the kind of a possible cultural adjustment and also reduced staff member morale, the organization is in need of a full reengineering effort at the marketing department.

Issue Statement
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising and marketing department of The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc is boosting uncertainty in the workplace bring about different obstacles for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting critical choices given that Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Profession Payment's treatment at the same time. Provided the reality that the store has a global presence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these countries might have the ability to affect performance or strategic goals. Federal Trade Payment's antitrust suit versus the merger occupied valuable time of the organization's elderly management suggesting that 'political' factors can have serious effects for a global company.

Economic Factors: Economic factors such as the appearance of small businesses in the worldwide scenario recommend that The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc is growing in an environment where there is possible growth of organisations. Along with this, reality that shop customers are primarily trying to find office materials for office suggests that the market has an increasing pattern of entrepreneurs as well as online businesses.

Social factors: Social trends in the economic climate show that customers are searching for comfort along with eye-catching prices. Market research demonstrates how the customer for The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc does not have understanding about locating services which can provide a combination of convenience and also affordable.

Technological factors: Innovation plays a vital role in The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc's company technique specifically as the organization is piloting Modern technology centers which would provide technology sales as well as assistance in the kind of memory upgrades, peripheral installments. (Recap of BUG in appendix 2).

OB Issues as well as Effects.

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

Apprehensions regarding cultural modification: There is apprehension concerning a social adjustment that would occur as soon as Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Marketing with the majority of the employee currently revealing unhappiness over this possible relocation. This expected change has produced stress and anxiety in the workplace which has actually been paired with the previous stress and anxiety of preparing the firm for a possible merger with Residence Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is lack of personnel that can match the stressful setting of a fast-paced company. Not only does this result in problem in discovering the ideal people, it places stress and anxiety on new hires as can not endure the speed and also pressure that the organization anticipates them to bear.

Twin Coverage Lines: Newcomers find this business culture troublesome and also tough to cope with particularly as dotted line relationships are implied to be weak generally and unbiased setup and also efficiency assessment is still done by the strong line supervisor. This means that beginners might lose quality regarding their respective duties and objectives especially as populated line coverage does not keep them in straight interaction with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles even though it had been speculated that the latter would certainly take Krasnow's position came as an impact to her spirits. Lewis might have been capable as well as proper for the work yet the fact that Kransnow's separation would make Coles a direct report to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Job Insecurity: Concern as well as instability can be recognized as 2 significant problems that Lewis would be managing particularly as the merger has now be terminated as well as 2 elderly execs of the advertising and marketing division would certainly be leaving. The whole obligation of the division would be dropping on Lewis's shoulders that would certainly not simply supervise of brining concerning a cultural modification however would additionally need to prove herself in her brand-new function.

Incompatible Administration Style of Leader: Lewis's monitoring design as well as its incompatibility with the marketing division's function can additionally be seen as an OB difficulty particularly as she has been made use of to taking care of concerns in the procedures division where workers are taught to focus on processes and obtain them. The advertising division on the various other hand can be viewed as a team of people that are utilized to being nurtured by Krasnow that focused extra on outcome than processes.

Interdepartmental Arguments: Interdepartmental disputes between 3 divisions, advertising and marketing, merchandizing as well as operations respectively over the allotment of the advertising mix can be identified as another OB concern. Although the advertising and marketing division does not share the exact same vision as the various other 2 departments regarding the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing as well as operations divisions do not concur over the advertising mix appropriation amongst each other either.

Disintegration in Marketing Department: Disintegration between the advertising and marketing divisions can be determined as an additional OB concern which can require additional focus. The fact that the marketing and advertising sections in the advertising and marketing division are separated is protecting against both departments from obtaining from each other's experience as well as proficiency. Combination of marketing with merchandising as well as procedures would certainly become harder if the advertising division itself is degenerated which can be one more prospective OB issue.

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

Various concepts have been used to clarify the scenarios to get more clearness regarding the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors believe that juniors are easy and careless, have little ambition as well as resist adjustment. The scenario at The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc is not entirely adhering to Concept X, it can be seen that new hires are locating this environment instead difficult which might eventually lead to a better disposition of the monitoring in the direction of Theory X. Also while assessing Lewis's administration style, concept X may have been ideal in the procedures department to some degree yet the Advertising department would certainly require dependence on Theory Y in order to get the imagination and creativity from the teams.

Tuckman's Team effort Theory: As far as Lewis's issue about bringing harmony in between the marketing as well as marketing department is worried, this would initially lead to clash as gone over by Bruce Tuckman in his 'Synergy Theory'. By integrating the marketing as well as advertising and marketing division's work, there may be the very same initial detach which can lead to the second stage of 'storming' where the teams test one another.

When people are presented with adjustment, they get in stage one and also so there might be feelings like unhappiness, unpredictability, frustration, rage, fear, denial as well as disorientation.The circumstance at the marketing department of The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc is similar so Lewis can obtain comfortable with the suggestion that it is not amazing actions. It is throughout this phase that Lewis will certainly have to provide guidance to the department so that they can find a sense of instructions. It can be seen exactly how Krasnow has already made this transition much easier by making Lewis obtain entailed in the department a year prior to his real departure.
Vrio Analysis
Maslow's Need pecking order: The OB issue related to instability at the work environment has been caused firstly by the adjustment in monitoring and also secondly by the reality that the merging will certainly no more be initiated. Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has talks about the importance of 'safety and security requires as being a lower degree demand of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel protected and untouched' is at the second level of demands. Prior to a worker can be made to develop psychologically, he needs to have his 'Physical 'and also 'Safety and security' requires met. This shows that unless the employees are made to really feel safe and secure regarding their present employment condition in The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc they may not get to 'Self-Fulfillment'. (King, 2009).

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

Effects of Analysis.

The OB analysis has actually taken a look at numerous theories to comprehend exactly how to handle the existing situation at hand. The complying with three choices have actually been proposed to assist Lewis deal with the business challenges in the advertising and marketing division. Each of these options has actually been suggested for easing the change needed to bring the advertising department in line with the demands of the market as well as for making the social adjustment that would certainly comply with as soon as the present leader leaves.

Integration of marketing and advertising functions. Dividing Adverting and also Production functions. Assimilation of Advertising with Workflow.

Evaluation of Alternatives.

Combination of Advertising & Advertising And Marketing Functions: The in-house advertising and marketing agency of The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc is already strength for the company in terms of saving up on expenses associated with advertising and marketing as well as promo. Considering that no new recruitment has been done after Bridget Cole's departure with the reporting line being directly appointed to Krasnow for the marketing function, this is a positive opportunity for incorporating the marketing and advertising functions. Judith Shapiro who has actually earlier been spoken with by Lewis throughout the earlier merging days has know-how in business-to-business advertising and marketing along with firm as well as retail advertising experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing functions.

The advantage of this strategy is that it will certainly integrate both features while lowering the requirement for working with an added source for advertising and marketing. In addition to this, Lewis would certainly be heading the advertising department as well as in any case her replacement would certainly be needed for the current duty that she is executing. The downside of this choice is that exterior hiring may produce bitterness from interior employees who may be considering the position of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting as well as Production: Offered the competitive pressures and also top quality work needed from the advertising agency, it is suggested that Lewis ought to enable the production device to be a separate function from the marketing system. Considering that most advertising agencies had these two features as separate devices, it makes even more sense to adhere to the norm. Along with this, both features may be able to concentrate on their core activates much more successfully. Nevertheless, the downside of this method would be that extra expenses would have to be borne for establishing different production features. Along with this, a production head may have to be hired which might raise expenses for the company.

Assimilation of Marketing with Procedures: Given that Lewis is currently looking after the advertising and marketing as well as procedures departments concurrently; it makes good sense to integrate both features because she has been effectively caring for both ends. The truth that the two departments currently have significant distinctions over allowance of resources recommends that this integration may have the ability to bring about consistency specifically as Lewis would be heading both ends.However there are numerous drawbacks of this step specifically as it would certainly put excessive concern over Lewis's shoulders. The truth that Lewis needs to adapt her monitoring design for the marketing division recommends that these two departments would be culturally diverse. In addition to this, Lewis may not have the ability to use one sort of leadership style to both divisions which could result in inefficiency in either one of both features.


An analysis of the three options shows that combination of advertising and marketing as well as operations would certainly not be a practical step because of the huge differences between the two departments despite the fact that currently Lewis is dealing with both. While splitting up of the manufacturing feature may have been a favorable action for the advertising division, the truth that it would certainly imply positioning a third function under Lewis's wing means this must be stayed clear of. The combination of the marketing division is the best option in regards to obtaining the optimum arise from the division. An action prepare for this alternative is gone over below.

Action Strategy.
Lewis will take over the role of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

Manufacturing feature will certainly remain component of advertising and marketing under advertising and marketing feature.

Lewis will certainly divide herself from operations.

A democratic leadership style with employee empowerment will be used in advertising department.

Open up door plan as well as emphasis on cross departmental interaction will be targeted at getting rid of dissonance.

Backup plan.

If the integration does not exercise as planned, a contingency strategy would certainly comply with which would divide the manufacturing feature from the advertising and marketing feature to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will be heading the marketing division without an SVP. In that case the production feature will definitely be separated by placing it under an SVP manufacturing.