Western Chemical Corp Divisional Performance Measurement B Case Study Help


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Western Chemical Corp Divisional Performance Measurement B Case Study Solution

Background and Facts

Western Chemical Corp Divisional Performance Measurement B an office products seller for small and moderate sized services has actually recently been associated with planning for a merging with its rival Home Deport, which has actually influenced performance degrees in departmentswith the senior manager associated with lawful complications presented by the government Profession Commission. With the Marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the function in the future. With obstacles in the type of a prospective cultural change as well as reduced staff member spirits, the company wants a full reengineering initiative at the advertising division.

Issue Statement
Porter's 5 Forces Analysis
The prospective social change at the advertising department of Western Chemical Corp Divisional Performance Measurement B is increasing uncertainty in the working environment resulting in different challenges for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing tactical choices given that Stapes Inc. had to desert its plans of combining with Workplace Deport after the Federal Trade Compensation's treatment in the process. Given the reality that the shop has a global visibility with branches in UK, UNITED STATES, Canada and Germany, political consider each of these countries may have the ability to influence efficiency or calculated objectives. Federal Profession Compensation's antitrust fit versus the merger occupied valuable time of the company's senior monitoring recommending that 'political' factors can have serious ramifications for a global business.

Economic Factors: Financial factors such as the introduction of small companies in the global circumstance recommend that Western Chemical Corp Divisional Performance Measurement B is flourishing in an atmosphere where there is prospective development of companies. Along with this, truth that store clients are mostly seeking office products for office suggests that the marketplace has a climbing trend of business owners and home companies.

Social factors: Social fads in the economic situation reveal that consumers are searching for comfort as well as attractive costs. Marketing research shows how the client for Western Chemical Corp Divisional Performance Measurement B lacks awareness concerning finding options which can supply a mix of comfort as well as affordable.

Technological factors: Innovation plays a vital duty in Western Chemical Corp Divisional Performance Measurement B's organisation technique specifically as the company is piloting Technology facilities which would offer modern technology sales as well as support in the type of memory upgrades, peripheral setups. (Summary of PARASITE in appendix 2).

OB Issues as well as Symptoms.

Numerous underlying Organizational Habits problems can be seen in Western Chemical Corp Divisional Performance Measurement B's case as highlighted in this section.

Concerns concerning social modification: There is uneasiness about a social change that would certainly take place as soon as Todd Krasnow leaves from his placement as the Executive Vice President of Marketing with a lot of the team member already showing unhappiness over this potential step. This predicted modification has actually produced stress in the work environment which has been paired with the past tension of preparing the company for a prospective merger with Residence Deport.
Pest Analysis
Difficult Work Setting for Newcomers: There is lack of employees that can match the difficult atmosphere of a fast-paced organization. Not just does this lead to difficulty in finding the best people, it puts tension on brand-new hires as can not endure the rate and stress that the company anticipates them to bear.

Double Reporting Lines: Beginners find this business culture difficult as well as hard to manage specifically as populated line partnerships are meant to be weak as a whole and unbiased setup and also efficiency assessment is still done by the strong line manager. This implies that beginners might shed clearness about their particular roles and purposes particularly as populated line coverage does not keep them in straight communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles even though it had been guessed that the latter would certainly take Krasnow's placement came as a strike to her spirits. Lewis might have been capable and ideal for the work but the fact that Kransnow's departure would make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Anxiety & Work Instability: Concern and also insecurity can be identified as 2 major worries that Lewis would be taking care of especially as the merging has currently be cancelled and 2 senior executives of the advertising and marketing department would certainly be leaving. The entire obligation of the department would be dropping on Lewis's shoulders who would certainly not simply be in charge of brining concerning a social modification however would certainly additionally have to show herself in her brand-new duty.

Inappropriate Administration Design of Leader: Lewis's monitoring style and its conflict with the advertising division's function can likewise be seen as an OB challenge specifically as she has actually been used to taking care of concerns in the procedures department where personnel are instructed to concentrate on processes as well as get them. The advertising division on the various other hand can be seen as a group of people that are made use of to being supported by Krasnow that focused extra on result than processes.

Interdepartmental Disputes: Interdepartmental differences in between 3 departments, advertising, merchandizing as well as procedures specifically over the allotment of the advertising mix can be determined as one more OB problem. The advertising and marketing division does not share the very same vision as the other two departments pertaining to the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing as well as operations departments do not agree over the marketing mix allotment amongst one an additional either.

Fragmentation in Advertising Department: Disintegration between the advertising and marketing departments can be determined as an additional OB problem which might need additional focus. The truth that the marketing and advertising sections in the advertising department are separated is avoiding both departments from gaining from each other's experience and proficiency. Integration of advertising and marketing with merchandising and also procedures would become harder if the advertising and marketing department itself is degenerated which can be another prospective OB problem.

Western Chemical Corp Divisional Performance Measurement B Analysis

Different concepts have actually been made use of to explain the circumstances to get further quality concerning the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that juniors are passive and lazy, have little ambition and stand up to modification. The scenario at Western Chemical Corp Divisional Performance Measurement B is not totally complying with Concept X, it can be seen that brand-new hires are locating this setting rather difficult which might at some point lead to a better disposition of the management towards Theory X. Even while analyzing Lewis's administration style, theory X may have been ideal in the procedures department to some level yet the Advertising and marketing division would require dependence on Concept Y in order to get the imagination and also originality from the teams.

Tuckman's Team effort Concept: As much as Lewis's worry regarding bringing consistency between the advertising and marketing as well as marketing department is concerned, this would originally lead to contrast as gone over by Bruce Tuckman in his 'Teamwork Concept'. By combining the advertising as well as marketing department's work, there might be the same first separate which might lead to the 2nd phase of 'storming' where the groups challenge one another.

When people are offered with adjustment, they go into stage one and also so there may be emotions like unhappiness, unpredictability, irritation, temper, anxiety, rejection as well as disorientation.The circumstance at the advertising department of Western Chemical Corp Divisional Performance Measurement B is similar so Lewis can obtain comfortable with the suggestion that it is not amazing actions. It is during this phase that Lewis will have to give support to the division so that they can locate a feeling of direction. It can be seen exactly how Krasnow has already made this change much easier by making Lewis get involved in the department a year before his actual departure.
Vrio Analysis
Maslow's Demand hierarchy: The OB issue related to insecurity at the work environment has been set off firstly by the adjustment in monitoring and secondly by the reality that the merger will certainly no longer be launched. Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has goes over the importance of 'safety and security needs as being a lower level need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel secure and safe' is at the 2nd level of needs. Prior to a worker can be made to create emotionally, he needs to have his 'Physiological 'and 'Safety' needs met. This suggests that unless the employees are made to really feel secure concerning their existing employment condition in Western Chemical Corp Divisional Performance Measurement B they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Western Chemical Corp Divisional Performance Measurement B Case Study

Effects of Analysis.

The OB analysis has considered various concepts to recognize exactly how to deal with the current situation handy. The following three alternatives have actually been recommended to aid Lewis manage the organizational difficulties in the marketing division. Each of these alternatives has actually been proposed for easing the transition needed to bring the advertising division in accordance with the demands of the market and for making the social modification that would comply with when the current leader leaves.

Integration of marketing and advertising functions. Separating Adverting as well as Manufacturing functions. Integration of Advertising And Marketing with Procedures.

Assessment of Alternatives.

Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merging days has know-how in business-to-business marketing along with agency and also retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to take care of both advertising and marketing as well as advertising functions.

The benefit of this method is that it will integrate both features while minimizing the requirement for hiring an added source for advertising. Lewis would certainly be heading the marketing department as well as in any case her replacement would certainly be needed for the present role that she is carrying out. The drawback of this alternative is that external hiring may produce resentment from internal personnel that might be considering the position of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and also Production: Given the competitive pressures as well as high quality job needed from the advertising agency, it is advised that Lewis ought to allow the production device to be a different feature from the advertising and marketing system. Given that the majority of marketing agencies had these two functions as separate systems, it makes even more feeling to follow the norm.

Combination of Advertising And Marketing with Operations: Because Lewis is already looking after the advertising and also procedures departments at the same time; it makes good sense to incorporate both features because she has actually been effectively dealing with both ends. The reality that both departments already have significant distinctions over allotment of resources recommends that this assimilation might be able to bring about harmony particularly as Lewis would certainly be heading both ends.However there are various drawbacks of this relocation specifically as it would place way too much burden over Lewis's shoulders. The reality that Lewis needs to adapt her monitoring design for the marketing department recommends that these two departments would be culturally varied. Along with this, Lewis might not be able to use one type of leadership style to both departments which might lead to ineffectiveness in either one of the two features.


An assessment of the three choices indicates that integration of advertising and marketing and operations would certainly not be a possible move due to the substantial distinctions between the 2 departments in spite of the fact that presently Lewis is dealing with both. While separation of the production function may have been a positive step for the advertising division, the reality that it would suggest positioning a third feature under Lewis's wing means this should be prevented.

Activity Plan.
Lewis will take over the role of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would be merged.

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

Manufacturing feature will certainly stay part of advertising under advertising and marketing feature.

Lewis will separate herself from procedures.

An autonomous leadership design with staff member empowerment will certainly be utilized in advertising division.

Open door policy and emphasis on cross department interaction will certainly be targeted at eliminating disharmony.

Backup strategy.

If the assimilation does not work out as planned, a contingency plan would follow which would divide the production function from the marketing feature to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising and marketing department without an SVP. Because case the manufacturing feature will definitely be separated by placing it under an SVP production.