Menu

The Steel War Mittal Vs Arcelor Case Study Help

CASE HELP

Home >> Harvard >> The Steel War Mittal Vs Arcelor >>

The Steel War Mittal Vs Arcelor Case Study Solution

Background and Facts

The Steel War Mittal Vs Arcelor an office products merchant for small as well as average sized businesses has actually lately been involved in planning for a merger with its competitor House Deport, which has actually affected efficiency degrees in departmentswith the senior supervisor associated with lawful issues put forth by the government Trade Commission. With the Advertising and marketing Head advancing the news of his departure from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the near future. With challenges in the kind of a possible social change and also reduced worker spirits, the organization is in need of a total reengineering effort at the marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The potential social change at the advertising and marketing department of The Steel War Mittal Vs Arcelor is increasing unpredictability in the working environment bring about various challenges 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 major function in impacting tactical choices since Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Profession Commission's treatment at the same time. Offered the truth that the shop has a worldwide visibility with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these nations may be able to impact performance or calculated goals. Federal Profession Commission's antitrust suit against the merging took up valuable time of the organization's senior monitoring suggesting that 'political' factors can have major effects for an international business.

Economic Factors: Economic factors such as the introduction of local business in the worldwide situation suggest that The Steel War Mittal Vs Arcelor is flourishing in an environment where there is potential development of organisations. In addition to this, fact that store clients are mainly looking for office products for home offices recommends that the marketplace has an increasing trend of entrepreneurs as well as home based companies.

Social factors: Social trends in the economic situation show that clients are looking for ease in addition to attractive prices. Market research demonstrates how the client for The Steel War Mittal Vs Arcelor lacks recognition about finding services which can offer a mix of ease and low costs.

Technical factors: Modern technology plays an essential duty in The Steel War Mittal Vs Arcelor's business approach especially as the organization is piloting Modern technology facilities which would use modern technology sales and support in the kind of memory upgrades, outer installations. (Recap of PEST in appendix 2).

OB Issues and Effects.

Numerous underlying Organizational Behavior problems can be seen in The Steel War Mittal Vs Arcelor's case as highlighted in this area.

Uneasiness concerning social adjustment: There is worry about a social change that would occur when Todd Krasnow leaves from his position as the Exec Vice President of Marketing with a lot of the team member currently revealing discontent over this prospective step. This expected change has actually developed stress and anxiety in the work environment which has been paired with the past stress and anxiety of preparing the company for a possible merger with Residence Deport.
Pest Analysis
Demanding Task Setting for Newcomers: There is lack of employees that can match the stressful environment of a fast-paced company. Not only does this lead to difficulty in discovering the appropriate individuals, it puts stress on brand-new hires as can not hold up against the pace as well as stress that the organization anticipates them to bear.

Dual Coverage Lines: Newbies discover this business culture difficult and hard to cope with particularly as dotted line partnerships are suggested to be weak in general and objective setting and efficiency assessment is still done by the strong line supervisor. This suggests that newbies might shed clarity regarding their corresponding roles as well as purposes especially as dotted line coverage does not maintain them in direct interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles although it had been speculated that the last would certainly take Krasnow's setting came as a blow to her morale. Lewis might have been qualified as well as appropriate for the work yet the reality that Kransnow's separation would make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Anxiety & Work Instability: Anxiety and also insecurity can be determined as two significant worries that Lewis would certainly be handling specifically as the merging has currently be terminated as well as two elderly execs of the advertising and marketing department would certainly be leaving. The whole obligation of the division would be falling on Lewis's shoulders that would certainly not simply be in charge of brining about a social change but would also have to show herself in her brand-new function.

Inappropriate Administration Design of Leader: Lewis's administration design and also its conflict with the advertising and marketing division's function can also be viewed as an OB obstacle especially as she has actually been used to handling issues in the procedures department where workers are instructed to focus on processes as well as get them right. The advertising and marketing division on the other hand can be viewed as a team of people that are made use of to being supported by Krasnow that focused extra on outcome than processes.

Interdepartmental Arguments: Interdepartmental disputes in between three departments, advertising, merchandizing and procedures specifically over the allowance of the advertising and marketing mix can be determined as one more OB worry. The advertising and marketing department does not share the very same vision as the other two divisions relating to the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing as well as procedures divisions do not agree over the advertising mix allocation amongst one an additional either.

Fragmentation in Marketing Department: Fragmentation between the marketing and advertising divisions can be identified as an additional OB concern which can need additional interest. The reality that the advertising and marketing sections in the advertising department are detached is avoiding both divisions from obtaining from each various other's experience as well as knowledge. Combination of advertising with merchandising as well as procedures would certainly come to be more difficult if the advertising division itself is broken down which can be an additional prospective OB issue.

The Steel War Mittal Vs Arcelor Analysis

Different theories have been used to explain the situations to get more clarity concerning the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most supervisors think that staffs are passive and also careless, have little passion and also resist modification. The circumstance at The Steel War Mittal Vs Arcelor is not entirely adhering to Theory X, it can be seen that new hires are locating this atmosphere rather difficult which might eventually lead to a better inclination of the management towards Concept X. Also while assessing Lewis's monitoring style, theory X may have been appropriate in the procedures division to some extent however the Advertising and marketing department would certainly call for dependence on Concept Y in order to get the creative thinking as well as originality from the groups.

Tuckman's Teamwork Concept: As much as Lewis's worry regarding bringing harmony in between the marketing and advertising and marketing division is worried, this would at first lead to clash as gone over by Bruce Tuckman in his 'Synergy Theory'. By integrating the advertising and advertising and marketing division's job, there may be the very same first detach which might lead to the 2nd stage of 'storming' where the groups challenge one another.

When people are offered with change, they get in phase one as well as so there may be feelings like despair, unpredictability, irritation, rage, anxiety, denial as well as disorientation.The situation at the advertising and marketing division of The Steel War Mittal Vs Arcelor is similar so Lewis can obtain comfy with the idea that it is not remarkable actions. It is throughout this stage that Lewis will certainly have to offer guidance to the division so that they can discover a feeling of instructions. It can be seen exactly how Krasnow has actually currently made this shift less complicated by making Lewis get included in the division a year prior to his real departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has talks about the value of 'safety and security requires as being a lower level demand of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel secure as well as out of risk' is at the 2nd level of needs. Before an employee can be made to develop mentally, he requires to have his 'Physiological 'as well as 'Security' requires satisfied.

SWOT Analysis for The Steel War Mittal Vs Arcelor Case Study



Effects of Analysis.

The OB analysis has actually looked at numerous theories to recognize exactly how to handle the existing situation available. The complying with 3 alternatives have been suggested to assist Lewis deal with the organizational challenges in the advertising and marketing department. Each of these alternatives has been proposed for relieving the transition required to bring the marketing division in accordance with the requirements of the marketplace and also for making the social change that would certainly comply with once the current leader leaves.

Combination of advertising and marketing features. Separating Adverting as well as Manufacturing features. Combination of Marketing with Workflow.

Analysis of Alternatives.

Assimilation of Advertising & Advertising And Marketing Functions: The in-house marketing agency of The Steel War Mittal Vs Arcelor is currently toughness for the company in terms of saving up on expenses connected to advertising and also promo. Given that no brand-new recruitment has actually been done after Bridget Cole's separation with the coverage line being directly appointed to Krasnow for the advertising and marketing function, this is a desirable chance for integrating the advertising and marketing functions. Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merging days has know-how in business-to-business advertising in addition to agency and also retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to manage both marketing and advertising features.

The benefit of this strategy is that it will certainly incorporate both features while lowering the demand for hiring an extra source for advertising and marketing. Lewis would be heading the advertising division as well as in any type of case her substitute would certainly be required for the present function that she is executing. The downside of this option is that exterior hiring might bring about animosity from internal personnel that might be considering the setting of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Production: Offered the competitive pressures as well as high quality work called for from the marketing company, it is recommended that Lewis needs to allow the manufacturing device to be a separate feature from the marketing device. Given that most advertising firms had these 2 functions as different units, it makes more sense to comply with the standard.

Combination of Marketing with Operations: Given that Lewis is currently taking treatment of the marketing and also procedures departments all at once; it makes feeling to incorporate the two functions because she has actually been efficiently taking treatment of both ends. The reality that Lewis has to adjust her monitoring design for the marketing division recommends that these two departments would be culturally diverse.

Recommendation.



An assessment of the 3 options indicates that assimilation of advertising and also operations would not be a practical relocation due to the substantial differences in between the two divisions regardless of the fact that presently Lewis is handling both. While separation of the manufacturing feature may have been a favorable step for the advertising division, the reality that it would certainly mean putting a 3rd function under Lewis's wing suggests this must be avoided.

Activity Plan.
Recommendation
Lewis will take over the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be merged.

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

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

Lewis will certainly separate herself from procedures.

A democratic leadership design with worker empowerment will certainly be used in advertising department.

Open door plan and also focus on cross departmental interaction will be targeted at removing dissonance.

Backup plan.

If the assimilation does not exercise as intended, a backup plan would comply with which would separate the production function from the advertising and marketing feature to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising division without an SVP. In that case the manufacturing function will definitely be separated by putting it under an SVP manufacturing.