Unified Energy System Of Russia Case Study Analysis


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Background and Facts

Unified Energy System Of Russia an office products merchant for small and also medium sized organisations has actually just recently been involved in planning for a merging with its rival Home Deport, which has actually influenced performance levels in departmentswith the elderly supervisor associated with legal difficulties put forth by the federal Profession Commission. 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 role in the future. With obstacles in the kind of a possible cultural change as well as low staff member spirits, the company requires a total reengineering initiative at the marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible social modification at the advertising division of Unified Energy System Of Russia is raising uncertainty in the workplace causing numerous challenges for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing strategic decisions since Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Trade Payment's intervention while doing so. Given the reality that the store has an international visibility with branches in UK, U.S.A., Canada and also Germany, political consider each of these countries might be able to affect efficiency or strategic goals. Federal Trade Commission's antitrust suit against the merging occupied important time of the company's elderly administration recommending that 'political' factors can have major implications for a global company.

Economic Factors: Economic factors such as the appearance of small companies in the worldwide scenario suggest that Unified Energy System Of Russia is thriving in a setting where there is possible growth of businesses. In addition to this, fact that shop clients are primarily looking for workplace materials for office recommends that the marketplace has a rising trend of business owners as well as home based organisations.

Social factors: Social fads in the economic climate show that customers are searching for convenience as well as appealing rates. Market research shows how the customer for Unified Energy System Of Russia does not have awareness concerning discovering solutions which can offer a combination of ease and also low costs.

Technical factors: Modern technology plays an important role in Unified Energy System Of Russia's service approach particularly as the organization is piloting Innovation facilities which would certainly supply technology sales as well as assistance in the kind of memory upgrades, peripheral setups. (Recap of BUG in appendix 2).

OB Issues as well as Symptoms.

Several underlying Organizational Actions issues can be seen in Unified Energy System Of Russia's case as highlighted in this section.

Uneasiness about cultural modification: There is uneasiness about a cultural adjustment that would certainly happen when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with the majority of the personnel already showing unhappiness over this potential move. This expected adjustment has developed anxiety in the workplace which has been paired with the previous tension of preparing the company for a possible merger with Residence Deport.
Pest Analysis
Stressful Job Setting for Newcomers: There is scarcity of personnel that can match the demanding setting of a busy organization. Not just does this bring about problem in discovering the appropriate individuals, it places anxiety on brand-new hires as can not withstand the rate as well as pressure that the organization anticipates them to bear.

Dual Coverage Lines: Newbies find this business society cumbersome and challenging to manage particularly as populated line connections are meant to be weaker as a whole and also objective setting and also performance analysis is still done by the strong line manager. This means that newcomers might shed quality concerning their respective roles and objectives especially as populated line coverage does not maintain them in direct communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles even though it had actually been guessed that the latter would certainly take Krasnow's placement came as an impact to her morale. Lewis might have been qualified as well as suitable for the work but the fact that Kransnow's separation would make Coles a straight report to Lewis may have been the reason for Coles' resignation from solutions.

Concern & Task Insecurity: Worry as well as instability can be recognized as 2 significant concerns that Lewis would be managing especially as the merger has now be cancelled and also 2 senior executives of the advertising department would certainly be leaving. The entire responsibility of the department would certainly be falling on Lewis's shoulders that would not just supervise of brining concerning a social adjustment yet would certainly also have to show herself in her new function.

Inappropriate Management Design of Leader: Lewis's management design and also its incompatibility with the marketing division's duty can likewise be viewed as an OB obstacle specifically as she has been made use of to managing issues in the procedures department where personnel are taught to concentrate on procedures as well as get them right. The marketing division on the various other hand can be viewed as a team of individuals who are made use of to being nurtured by Krasnow that concentrated much more on output than procedures.

Interdepartmental Differences: Interdepartmental disputes between 3 departments, marketing, merchandizing and also operations specifically over the allocation of the marketing mix can be identified as another OB concern. The marketing department does not share the same vision as the various other two divisions regarding the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing and procedures departments do not concur over the advertising mix allocation amongst one an additional either.

Disintegration in Advertising And Marketing Department: Disintegration between the marketing and advertising departments can be determined as one more OB concern which could require more interest. The reality that the advertising and marketing sections in the advertising department are separated is protecting against both divisions from obtaining from each other's experience and also expertise. Combination of advertising with merchandising and also procedures would come to be harder if the advertising division itself is broken down which can be another prospective OB issue.

Unified Energy System Of Russia Analysis

Different concepts have actually been used to clarify the situations to get more quality about the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers think that staffs are passive and also careless, have little aspiration and withstand adjustment. The hard version of this concept stressed browbeating, limited controls, dangers and punishments. Gradually it creates reduced productivity, subtle sabotage and also rivalry (Deal, 2003). The circumstance at Unified Energy System Of Russia is not completely following Theory X, it can be seen that new hires are discovering this atmosphere instead demanding which might ultimately lead to a better inclination of the monitoring in the direction of Theory X. According to McGregor's promoted sight, which he called Theory Y, the vital job of the administration is to arrange business conditions to make sure that people can achieve their own goals best by routing their initiatives towards organizational benefits. If people locate no contentment in their job, the monitoring would certainly have little choice yet to rely on theory X and outside control (Deal, 2003). Also while analyzing Lewis's management style, concept X might have been suitable in the operations department somewhat yet the Advertising division would require dependence on Theory Y to get the creative thinking and also originality from the teams.

Tuckman's Synergy Theory: As far as Lewis's problem regarding bringing consistency between the marketing as well as marketing department is worried, this would originally lead to conflict as gone over by Bruce Tuckman in his 'Team effort Concept'. By combining the advertising and marketing as well as marketing department's work, there might be the very same first detach which might lead to the 2nd phase of 'storming' where the groups test one another.

Bridges' Change Model: Based On William Bridge's concept (appendix 4), individuals are fairly unpleasant with adjustment, which is apparent by the circumstance at Unified Energy System Of Russia The circumstance can be seen as a typical course of life if is studied as per Bridge's theory where he explains that people go through three stages of change when they experience change. 'Ending, shedding and also Letting go', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When people are presented with modification, they get in stage one and so there may be feelings like despair, unpredictability, stress, anger, fear, rejection as well as disorientation.The scenario at the marketing division of Unified Energy System Of Russia is similar so Lewis can obtain comfortable with the suggestion that it is not remarkable habits. In the second stage, there might be a demand to bridge the void in between the new and also old culture so Lewis might have to face this ordeal as soon as Krasnow leaves. There might be reduced morale and also reduced performance at this phase which should not be taken as a setback. It is throughout this phase that Lewis will certainly have to provide assistance to the division so that they can discover an orientation. It can be seen how Krasnow has actually already made this change easier by making Lewis obtain associated with the department a year prior to his actual separation. As per Bridges' Version, phase three will certainly produce openness to discovering, High energy and dedication as individuals will welcome the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has reviews the importance of 'safety and security requires as being a reduced level demand of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel safe and secure and out of risk' is at the 2nd degree of demands. Prior to a staff member can be made to create psychologically, he requires to have his 'Physical 'and also 'Safety and security' needs fulfilled.

SWOT Analysis for Unified Energy System Of Russia Case Study

Ramification of Analysis.

The OB analysis has actually looked at numerous theories to understand how to deal with the current scenario at hand. The following 3 choices have been proposed to assist Lewis take care of the business challenges in the advertising division. Each of these choices has actually been suggested for alleviating the shift required to bring the advertising and marketing division in line with the requirements of the market as well as for making the social change that would certainly comply with when the current leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting and Production features. Integration of Marketing with Procedures.

Assessment of Alternatives.

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

The benefit of this approach is that it will incorporate the two features while decreasing the need for working with an extra resource for advertising. In addition to this, Lewis would be heading the advertising and marketing department and also in any case her substitute would be required for the present duty that she is carrying out. The downside of this alternative is that exterior hiring might bring about bitterness from internal workers who might be considering the position of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and Production: Given the affordable pressures and also high top quality job called for from the advertising and marketing firm, it is suggested that Lewis must enable the production unit to be a different feature from the marketing unit. Since the majority of advertising agencies had these two functions as different devices, it makes even more feeling to follow the standard.

Combination of Advertising And Marketing with Operations: Since Lewis is currently caring for the advertising and marketing as well as operations divisions all at once; it makes sense to incorporate both features given that she has actually been successfully dealing with both ends. The truth that both divisions currently have significant differences over allotment of sources suggests that this assimilation might be able to bring about consistency particularly as Lewis would be heading both ends.However there are different disadvantages of this relocation specifically as it would place excessive concern over Lewis's shoulders. The fact that Lewis has to adjust her management style for the advertising and marketing division suggests that these two departments would certainly be culturally varied. Along with this, Lewis may not have the ability to use one sort of management style to both divisions which could cause ineffectiveness in either among the two functions.


An assessment of the 3 options indicates that assimilation of advertising and operations would not be a feasible action as a result of the substantial distinctions in between both divisions although that presently Lewis is managing both. While splitting up of the production function might have been a favorable step for the advertising and marketing department, the reality that it would mean positioning a 3rd function under Lewis's wing implies this ought to be stayed clear of. The combination of the advertising division is the very best option in terms of getting the optimum results from the division. An action prepare for this option is reviewed below.

Action Strategy.
Lewis will take control of the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

Manufacturing feature will continue to be part of marketing under marketing feature.

Lewis will certainly divide herself from procedures.

An autonomous leadership style with staff member empowerment will certainly be made use of in marketing department.

Open door policy as well as emphasis on cross department communication will certainly be aimed at eliminating dissonance.

Backup strategy.

If the integration does not work out as intended, a contingency plan would adhere to which would divide the manufacturing function from the marketing feature to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will be heading the advertising department without an SVP. In that case the production function will most definitely be separated by placing it under an SVP production.