Water Markets From An Economic Point Of View Case Study Analysis


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Water Markets From An Economic Point Of View Case Study Solution

Background and Facts

Water Markets From An Economic Point Of View a workplace supplies retailer for little and also moderate sized businesses has lately been associated with planning for a merging with its competitor Residence Deport, which has affected efficiency degrees in departmentswith the elderly supervisor involved in lawful difficulties presented by the government Profession Commission. With the Marketing Head advancing the information of his separation from the business in one year, Jeannie Lewis, the current head of operations has been asked to take the function in the near future. With obstacles in the kind of a possible cultural modification and low employee spirits, the company wants a total reengineering effort at the advertising department.

Issue Statement
Porter's 5 Forces Analysis
The potential cultural change at the advertising and marketing division of Water Markets From An Economic Point Of View is increasing unpredictability in the workplace bring about numerous 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 major role in impacting tactical decisions considering that Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Profession Compensation's intervention at the same time. Provided the truth that the shop has an international existence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries may have the ability to influence efficiency or critical goals. Federal Trade Payment's antitrust fit against the merging took up important time of the organization's elderly administration recommending that 'political' factors can have major effects for an international service.

Economic Factors: Financial factors such as the appearance of local business in the global situation suggest that Water Markets From An Economic Point Of View is thriving in an environment where there is potential growth of businesses. Along with this, truth that store clients are mainly searching for workplace products for office suggests that the marketplace has an increasing fad of entrepreneurs and home businesses.

Social factors: Social patterns in the economic climate show that consumers are trying to find benefit in addition to eye-catching prices. Market research demonstrates how the customer for Water Markets From An Economic Point Of View lacks recognition about discovering options which can offer a mix of convenience and also low costs.

Technical factors: Modern technology plays an important duty in Water Markets From An Economic Point Of View's business technique particularly as the organization is piloting Innovation facilities which would certainly offer innovation sales and also support in the kind of memory upgrades, peripheral installations. (Summary of PEST in appendix 2).

OB Issues and Effects.

A number of underlying Business Behavior issues can be seen in Water Markets From An Economic Point Of View's case as highlighted in this area.

Concerns about cultural modification: There is worry regarding a cultural modification that would certainly take place when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising with most of the personnel already revealing unhappiness over this prospective relocation. This predicted modification has created stress in the workplace which has been combined with the past anxiety of preparing the firm for a potential merging with House Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is scarcity of employees that can match the difficult atmosphere of a busy company. Not only does this lead to trouble in locating the right individuals, it places anxiety on brand-new hires as can not withstand the rate and also pressure that the organization anticipates them to bear.

Dual Coverage Lines: Beginners locate this business culture troublesome as well as difficult to cope with particularly as dotted line connections are suggested to be weak as a whole and also objective setup and efficiency assessment is still done by the solid line manager. This suggests that beginners could shed clarity regarding their respective functions and also goals especially as dotted line coverage does not maintain them in straight interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles despite the fact that it had actually been guessed that the latter would take Krasnow's position came as a strike to her spirits. Lewis might have been qualified and also suitable for the job however the reality that Kransnow's separation would make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Worry & Task Insecurity: Concern as well as instability can be recognized as 2 major issues that Lewis would be managing especially as the merging has actually currently be cancelled and two senior execs of the advertising division would certainly be leaving. The entire duty of the division would be falling on Lewis's shoulders that would certainly not just be in charge of brining about a social adjustment however would certainly also have to prove herself in her brand-new role.

Inappropriate Monitoring Design of Leader: Lewis's monitoring design and its incompatibility with the marketing department's function can likewise be seen as an OB obstacle especially as she has been made use of to taking care of concerns in the operations division where workers are instructed to focus on procedures and also get them. The advertising division on the other hand can be viewed as a team of individuals who are made use of to being nurtured by Krasnow who concentrated much more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental disagreements between three departments, advertising, merchandizing as well as operations respectively over the appropriation of the advertising mix can be identified as an additional OB problem. The advertising and marketing department does not share the exact same vision as the other two divisions pertaining to the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and also procedures divisions do not concur over the advertising and marketing mix appropriation among one another either.

Disintegration in Advertising And Marketing Division: Disintegration in between the marketing and advertising departments can be identified as one more OB concern which might require additional focus. The reality that the marketing and advertising sections in the advertising and marketing department are detached is protecting against both departments from acquiring from each various other's experience and experience. Combination of advertising and marketing with retailing as well as procedures would certainly come to be harder if the advertising and marketing division itself is degenerated which can be one more possible OB concern.

Water Markets From An Economic Point Of View Analysis

Various theories have been made use of to explain the scenarios to obtain additional quality about the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers believe that subordinates are passive as well as careless, have little passion and withstand change. The situation at Water Markets From An Economic Point Of View 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 higher inclination of the monitoring in the direction of Theory X. Also while assessing Lewis's management style, theory X may have been appropriate in the procedures department to some degree however the Marketing division would call for reliance on Concept Y in order to obtain the creativity and creativity from the teams.

Tuckman's Teamwork Concept: As much as Lewis's worry about bringing consistency in between the advertising and marketing and marketing department is worried, this would originally lead to contrast as gone over by Bruce Tuckman in his 'Teamwork Concept'. By integrating the marketing and advertising and marketing division's job, there may be the same preliminary disconnect which can lead to the second stage of 'storming' where the groups test one another.

When individuals are offered with adjustment, they enter phase one as well as so there may be emotions like unhappiness, unpredictability, irritation, temper, anxiety, rejection as well as disorientation.The circumstance at the advertising division of Water Markets From An Economic Point Of View is similar so Lewis can obtain comfy with the suggestion that it is not remarkable behavior. It is throughout this stage that Lewis will certainly have to provide advice to the department so that they can discover a feeling of instructions. It can be seen just how Krasnow has currently made this transition easier by making Lewis get entailed in the department a year prior to his actual separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has talks about the value of 'safety needs as being a reduced degree need of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel secure and also out of danger' is at the second level of needs. Prior to an employee can be made to create psychologically, he requires to have his 'Physical 'and 'Security' requires met.

SWOT Analysis for Water Markets From An Economic Point Of View Case Study

Ramification of Analysis.

The OB analysis has taken a look at various concepts to recognize exactly how to deal with the current situation available. The complying with three choices have been recommended to aid Lewis manage the organizational challenges in the marketing division. Each of these alternatives has actually been suggested for alleviating the change needed to bring the advertising and marketing division in accordance with the needs of the market and for making the social modification that would certainly comply with as soon as the existing leader leaves.

Combination of marketing and advertising features. Dividing Adverting as well as Manufacturing functions. Integration of Advertising And Marketing with Operations.

Examination of Alternatives.

Combination of Marketing & Marketing Functions: The in-house advertising agency of Water Markets From An Economic Point Of View is already strength for the company in terms of saving up on expenses associated with marketing and promotion. Because no brand-new recruitment has been done after Bridget Cole's departure with the coverage line being straight designated to Krasnow for the advertising and marketing feature, this is a positive opportunity for integrating the advertising and marketing features. Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merger days has knowledge in business-to-business marketing in addition to agency and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to deal with both marketing and advertising features.

The advantage of this approach is that it will integrate both functions while decreasing the requirement for hiring an extra resource for advertising. Lewis would be heading the marketing division and in any kind of case her substitute would certainly be needed for the present function that she is executing. The downside of this option is that exterior hiring may cause animosity from inner employees who might be looking at the position of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and Manufacturing: Offered the competitive pressures and also high quality job called for from the advertising agency, it is advised that Lewis needs to allow the manufacturing device to be a different function from the advertising and marketing unit. Considering that most ad agency had these two functions as separate devices, it makes even more feeling to comply with the standard. Along with this, both features may be able to focus on their core triggers a lot more efficiently. Nevertheless, the drawback of this technique would be that extra prices would need to be borne for setting up separate production functions. A production head may have to be employed which might enhance overheads for the organization.

Assimilation of Advertising And Marketing with Workflows: Since Lewis is currently taking treatment of the marketing and also operations departments simultaneously; it makes feeling to integrate the two functions given that she has been efficiently taking treatment of both ends. The reality that Lewis has to adapt her monitoring style for the advertising department recommends that these two departments would certainly be culturally diverse.


An evaluation of the three options suggests that integration of advertising and marketing and procedures would certainly not be a practical action because of the vast distinctions in between the two departments despite the fact that presently Lewis is managing both. While splitting up of the production function might have been a positive action for the advertising division, the fact that it would imply putting a third feature under Lewis's wing suggests this should be avoided too. The assimilation of the marketing division is the most effective choice in regards to obtaining the optimum arise from the department. An activity prepare for this alternative is reviewed below.

Activity Plan.
Lewis will certainly take control of the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

Manufacturing feature will certainly stay component of marketing under advertising function.

Lewis will certainly separate herself from procedures.

A democratic leadership design with staff member empowerment will certainly be used in advertising and marketing division.

Open door plan and focus on cross department communication will certainly be aimed at getting rid of dissonance.

Contingency plan.

If the integration does not exercise as prepared, a contingency strategy would adhere to which would certainly separate the production feature from the advertising function to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the marketing department without an SVP. In that case the manufacturing function will absolutely be divided by putting it under an SVP manufacturing.