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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 as well as average sized businesses has lately been associated with preparing for a merging with its rival Home Deport, which has influenced performance levels in departmentswith the senior manager associated with legal difficulties put forth by the federal Trade Payment. With the Advertising and marketing Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the function in the near future. With challenges in the type of a possible cultural modification as well as reduced employee morale, the organization needs a complete reengineering initiative at the advertising and marketing department.

Issue Statement
Porter's 5 Forces Analysis
The possible cultural modification at the advertising and marketing division of The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc is increasing unpredictability in the working environment resulting in different obstacles for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing calculated decisions considering that Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Profession Commission's treatment while doing so. Given the truth that the store has a global visibility with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these countries might be able to influence efficiency or calculated goals. Federal Profession Compensation's antitrust suit versus the merging occupied valuable time of the company's senior monitoring recommending that 'political' factors can have significant implications for a worldwide organisation.

Economic Factors: Financial factors such as the appearance of local business in the international situation recommend that The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc is prospering in a setting where there is prospective growth of organisations. Fact that store consumers are mostly looking for office supplies for residence offices recommends that the market has a climbing fad of business owners and house based companies.

Social factors: Social fads in the economy show that customers are searching for convenience along with attractive prices. Market research shows how the customer for The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc lacks recognition about finding services which can supply a combination of benefit and inexpensive.

Technological factors: Modern technology plays a crucial duty in The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc's business strategy specifically as the company is piloting Innovation facilities which would provide technology sales as well as assistance in the form of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues as well as Effects.

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

Concerns concerning social change: There is worry regarding a social modification that would certainly happen as soon as Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with a lot of the employee currently showing unhappiness over this possible action. This expected adjustment has developed tension in the work environment which has been coupled with the past stress and anxiety of preparing the company for a possible merging with Home Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is scarcity of workers that can match the stressful environment of a hectic company. Not just does this lead to difficulty in finding the best people, it puts tension on new hires as can not endure the rate as well as stress that the organization expects them to birth.

Dual Coverage Lines: Newbies discover this business society cumbersome and also difficult to manage especially as populated line connections are indicated to be weaker in general and objective setting and also performance analysis is still done by the strong line supervisor. This suggests that newbies could shed clearness concerning their corresponding roles and also purposes specifically as populated line coverage does not maintain them in straight interaction with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles although it had been speculated that the last would take Krasnow's placement came as an impact to her spirits. Lewis may have been qualified and suitable for the job but the reality that Kransnow's separation would make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Concern & Job Instability: Worry and instability can be recognized as 2 significant issues that Lewis would certainly be handling especially as the merging has currently be cancelled and 2 senior executives of the marketing division would certainly be leaving. The whole responsibility of the department would be dropping on Lewis's shoulders that would not simply be in charge of brining about a social adjustment however would additionally need to confirm herself in her brand-new function.

Inappropriate Management Design of Leader: Lewis's administration design as well as its incompatibility with the advertising and marketing division's duty can additionally be seen as an OB obstacle especially as she has actually been made use of to handling issues in the procedures department where employees are shown to focus on procedures and also obtain them. The marketing department on the other hand can be seen as a group of people who are made use of to being supported by Krasnow that concentrated much more on result than procedures.

Interdepartmental Disagreements: Interdepartmental disagreements between 3 divisions, marketing, merchandizing and also operations respectively over the appropriation of the advertising mix can be recognized as an additional OB issue. The advertising department does not share the very same vision as the other two divisions concerning the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and operations divisions do not concur over the advertising mix allowance amongst one an additional either.

Fragmentation in Advertising And Marketing Division: Fragmentation in between the advertising and marketing departments can be recognized as one more OB issue which can require additional attention. The truth that the advertising and marketing sections in the advertising division are disconnected is preventing both divisions from gaining from each various other's experience and also competence. Combination of advertising and marketing with retailing and also operations would end up being more difficult if the marketing department itself is degenerated which can be another possible OB concern.

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

Various concepts have actually been made use of to discuss the situations to obtain further quality about the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers believe that staffs are passive and careless, have little passion and also stand up to adjustment. The situation at The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc is not completely adhering to Concept X, it can be seen that new hires are discovering this atmosphere instead demanding which might at some point lead to a higher disposition of the management in the direction of Concept X. Also while examining Lewis's administration style, concept X might have been appropriate in the operations department to some degree yet the Advertising division would certainly need dependence on Theory Y in order to obtain the imagination and originality from the teams.

Tuckman's Synergy Concept: As far as Lewis's concern about bringing consistency in between the advertising and marketing department is worried, this would initially lead to clash as gone over by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). As per Tuckman's theory displayed in appendix 3, throughout the initial phase of team development, people might not bond, as they are busy discovering their location in the group. By incorporating the marketing and advertising department's work, there might coincide first separate which might cause the 2nd phase of 'storming' where the teams challenge one another. Nevertheless, it is only during the third phase or 'norming' when they would certainly come together to share ideas prior to the group can cause synergy in the fourth stage 'executing'.

When people are provided with change, they go into stage one and so there might be feelings like sadness, uncertainty, stress, rage, concern, rejection and also disorientation.The scenario at the advertising and marketing division of The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc is comparable so Lewis can obtain comfy with the suggestion that it is not amazing actions. It is throughout this phase that Lewis will certainly have to provide support to the department so that they can discover a feeling of instructions. It can be seen exactly how Krasnow has currently made this shift simpler by making Lewis obtain involved in the division a year before his real separation.
Vrio Analysis
Maslow's Requirement hierarchy: The OB issue related to insecurity at the workplace has been set off firstly by the adjustment in administration as well as second of all by the truth that the merging will no more be initiated. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has reviews the relevance of 'security requires as being a reduced degree demand of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel secure and also safe' is at the 2nd level of requirements. Before a staff member can be made to develop emotionally, he needs to have his 'Physical 'as well as 'Security' requires satisfied. This indicates that unless the workers are made to really feel protected about their existing work condition in The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc they may not reach 'Self-Fulfillment'. (King, 2009).

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

Implication of Analysis.

The OB analysis has looked at different theories to understand how to handle the present situation handy. The complying with 3 options have actually been recommended to help Lewis manage the organizational challenges in the advertising division. Each of these alternatives has been suggested for easing the transition required to bring the marketing department in line with the requirements of the marketplace and also for making the social change that would follow once the existing leader leaves.

Combination of advertising and marketing features. Separating Adverting and also Manufacturing functions. Assimilation of Advertising And Marketing with Workflow.

Analysis of Alternatives.

Assimilation of Marketing & Advertising And Marketing Functions: The in-house advertising agency of The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc is already toughness for the organization in regards to saving up on overheads connected to advertising and marketing as well as promo. Since no brand-new employment has actually been done after Bridget Cole's departure with the reporting line being directly designated to Krasnow for the advertising feature, this is a favorable opportunity for integrating the advertising and marketing functions. Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merging days has expertise in business-to-business marketing together with agency as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to deal with both advertising and marketing functions.

The advantage of this approach is that it will incorporate both features while reducing the requirement for employing an additional resource for advertising. Lewis would certainly be heading the marketing department and also in any case her substitute would be required for the current role that she is executing. The drawback of this choice is that exterior hiring may bring about bitterness from inner personnel that may be looking at the placement of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and Production: Provided the affordable pressures and also high quality job required from the marketing firm, it is suggested that Lewis should enable the manufacturing unit to be a different feature from the advertising and marketing unit. Given that most advertising firms had these 2 functions as different systems, it makes more feeling to follow the standard.

Combination of Marketing with Procedures: Because Lewis is currently taking care of the advertising and also procedures departments simultaneously; it makes sense to incorporate the 2 features since she has actually been effectively taking care of both ends. The fact that Lewis has to adjust her management design for the marketing division suggests that these 2 departments would certainly be culturally varied.


An assessment of the 3 choices indicates that assimilation of advertising and marketing as well as operations would not be a viable move because of the substantial differences between the two departments despite the fact that presently Lewis is taking care of both. While separation of the manufacturing function might have been a beneficial move for the marketing department, the fact that it would mean placing a 3rd feature under Lewis's wing implies this ought to be stayed clear of too. The assimilation of the marketing department is the very best choice in regards to getting the optimum results from the department. An activity prepare for this choice is discussed below.

Activity Strategy.
Lewis will take over the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Production function will continue to be component of marketing under marketing function.

Lewis will divide herself from operations.

An autonomous management style with worker empowerment will certainly be used in advertising department.

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

Contingency plan.

If the integration does not work out as prepared, a contingency strategy would certainly follow which would divide the production feature from the advertising and marketing function to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the manufacturing function will absolutely be divided by putting it under an SVP manufacturing.