Medical Equipment Inc In Saudi Arabia Case Study Solution


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Medical Equipment Inc In Saudi Arabia Case Study Help

Background and Facts

Medical Equipment Inc In Saudi Arabia a workplace materials store for little and also medium sized companies has lately been involved in preparing for a merger with its competitor Home Deport, which has actually influenced performance degrees in departmentswith the senior manager involved in lawful complications presented by the federal Trade Commission. With the Advertising Head putting forward the news of his departure from the firm in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the future. With obstacles in the type of a prospective cultural modification as well as reduced staff member morale, the company requires a complete reengineering effort at the advertising and marketing department.

Issue Statement
Porter's 5 Forces Analysis
The possible social change at the marketing department of Medical Equipment Inc In Saudi Arabia is boosting unpredictability in the workplace resulting in different difficulties 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 duty in affecting calculated decisions given that Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Profession Payment's treatment at the same time. Given the reality that the shop has an international visibility with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations may have the ability to impact performance or strategic goals. Federal Profession Commission's antitrust fit versus the merging occupied beneficial time of the company's elderly monitoring suggesting that 'political' factors can have major effects for a global business.

Economic Factors: Economic factors such as the appearance of local business in the international scenario recommend that Medical Equipment Inc In Saudi Arabia is flourishing in an atmosphere where there is potential development of companies. In addition to this, fact that shop clients are mainly looking for workplace materials for home offices suggests that the market has an increasing trend of business owners as well as online companies.

Social factors: Social patterns in the economic situation show that customers are seeking comfort in addition to appealing prices. Marketing research demonstrates how the client for Medical Equipment Inc In Saudi Arabia does not have understanding regarding locating remedies which can use a combination of comfort and inexpensive.

Technological factors: Modern technology plays an important role in Medical Equipment Inc In Saudi Arabia's business approach especially as the organization is piloting Innovation centers which would offer technology sales and assistance in the kind of memory upgrades, outer installments. (Recap of PARASITE in appendix 2).

OB Issues and also Effects.

Numerous underlying Business Habits problems can be seen in Medical Equipment Inc In Saudi Arabia's case as highlighted in this section.

Worries concerning cultural change: There is apprehension about a social change that would occur as soon as Todd Krasnow leaves from his placement as the Executive Vice President of Marketing with most of the employee already showing discontent over this potential move. This expected change has actually developed stress in the work environment which has actually been paired with the past stress of preparing the company for a prospective merger with House Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is lack of workers that can match the demanding environment of a fast-paced company. Not just does this result in problem in locating the best people, it places stress on new hires as can not endure the speed and pressure that the organization anticipates them to birth.

Double Coverage Lines: Beginners discover this business society troublesome and also tough to deal with particularly as dotted line partnerships are suggested to be weaker in general and also objective setting and also performance analysis is still done by the strong line supervisor. This implies that beginners can lose clearness regarding their corresponding functions and objectives specifically as populated line coverage does not maintain them in direct communication with the strong line managers.

Resentment 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 take Krasnow's setting came as an impact to her spirits. Lewis might have been capable as well as suitable for the work yet 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 & Work Instability: Worry and instability can be recognized as two significant issues that Lewis would be taking care of particularly as the merger has actually now be cancelled and also 2 elderly executives of the advertising department would certainly be leaving. The entire obligation of the division would certainly be dropping on Lewis's shoulders who would certainly not just be in charge of brining about a social adjustment yet would certainly also need to verify herself in her brand-new role.

Incompatible Monitoring Style of Leader: Lewis's administration design and also its incompatibility with the advertising division's function can additionally be viewed as an OB difficulty particularly as she has been utilized to dealing with issues in the operations department where workers are taught to focus on procedures as well as get them right. The advertising department on the various other hand can be seen as a group of individuals that are used to being supported by Krasnow who focused a lot more on result than procedures.

Interdepartmental Disagreements: Interdepartmental arguments in between three departments, advertising, merchandizing as well as procedures specifically over the appropriation of the advertising mix can be determined as an additional OB problem. Although the marketing department does not share the very same vision as the various other two divisions concerning the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and also procedures divisions do not concur over the marketing mix allotment among each other either.

Disintegration in Advertising And Marketing Department: Disintegration in between the advertising and marketing departments can be recognized as an additional OB issue which could require additional focus. The fact that the marketing and advertising sections in the advertising and marketing department are separated is protecting against both divisions from acquiring from each various other's experience and also experience. Assimilation of marketing with retailing as well as operations would come to be more difficult if the marketing department itself is degenerated which can be an additional prospective OB worry.

Medical Equipment Inc In Saudi Arabia Analysis

Different concepts have actually been utilized to describe the scenarios to get more clearness regarding the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers think that subordinates are passive as well as careless, have little ambition as well as resist change. The scenario at Medical Equipment Inc In Saudi Arabia is not totally complying with Concept X, it can be seen that brand-new hires are discovering this setting instead difficult which might eventually lead to a better disposition of the administration in the direction of Theory X. Even while evaluating Lewis's monitoring design, theory X may have been appropriate in the procedures department to some degree however the Advertising and marketing division would require dependence on Theory Y in order to get the imagination and creativity from the groups.

Tuckman's Synergy Theory: As far as Lewis's concern regarding bringing harmony in between the advertising and marketing department is concerned, this would at first lead to contrast as gone over by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, during the preliminary phase of team development, people might not bond, as they are busy finding their location in the group. By integrating the advertising and marketing division's work, there might coincide first disconnect which can bring about the 2nd phase of 'storming' where the groups test each other. It is only during the 3rd phase or 'norming' when they would certainly come with each other to share suggestions prior to the team can bring around harmony in the 4th stage 'carrying out'.

When individuals are provided with change, they enter phase one as well as so there may be feelings like despair, unpredictability, disappointment, temper, fear, denial and also disorientation.The situation at the advertising and marketing division of Medical Equipment Inc In Saudi Arabia is similar so Lewis can get comfortable with the concept that it is not amazing behavior. It is throughout this stage that Lewis will certainly have to provide advice to the department so that they can find a sense of direction. It can be seen just how Krasnow has actually currently made this shift less complicated by making Lewis get involved in the department a year before his actual departure.
Vrio Analysis
Maslow's Requirement hierarchy: The OB issue related to instability at the workplace has been activated firstly by the modification in management and also second of all by the fact that the merging will certainly no longer be initiated. Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has talks about the importance of 'safety needs as being a reduced level requirement of a human for causing inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the demand to feel secure and also untouched' goes to the 2nd level of needs. Before a worker can be made to create psychologically, he needs to have his 'Physiological 'and also 'Safety and security' needs fulfilled. This suggests that unless the employees are made to feel protected about their current employment status in Medical Equipment Inc In Saudi Arabia they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Medical Equipment Inc In Saudi Arabia Case Study

Effects of Analysis.

The OB analysis has actually checked out different concepts to comprehend just how to handle the present situation at hand. The adhering to three options have actually been suggested to aid Lewis manage the organizational challenges in the marketing department. Each of these choices has been recommended for alleviating the transition required to bring the advertising department in line with the needs of the marketplace and also for making the social modification that would follow as soon as the current leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting and also Manufacturing functions. Integration of Advertising And Marketing with Workflow.

Analysis of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merging days has competence in business-to-business advertising and marketing along with agency and also retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to deal with both advertising and marketing and also advertising features.

The benefit of this strategy is that it will certainly integrate both features while reducing the requirement for employing an added resource for advertising and marketing. Lewis would be heading the marketing division as well as in any kind of case her replacement would certainly be needed for the current function that she is performing. The drawback of this option is that exterior hiring might produce resentment from inner personnel who may be considering the setting of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting as well as Production: Provided the affordable stress and also high quality job needed from the advertising and marketing agency, it is advised that Lewis needs to permit the production device to be a separate feature from the advertising and marketing unit. Considering that the majority of marketing firms had these 2 functions as separate units, it makes more sense to follow the norm.

Combination of Marketing with Operations: Since Lewis is currently looking after the marketing as well as procedures departments concurrently; it makes sense to incorporate both functions because she has been successfully looking after both ends. The truth that both divisions currently have significant distinctions over allowance of resources suggests that this integration might have the ability to cause consistency especially as Lewis would certainly be heading both ends.However there are various downsides of this action particularly as it would certainly place excessive problem over Lewis's shoulders. The fact that Lewis needs to adapt her monitoring design for the marketing department recommends that these 2 departments would certainly be culturally varied. Lewis may not be able to apply one type of management style to both divisions which could result in inadequacy in either one of the two functions.


An evaluation of the three options shows that combination of advertising and marketing as well as procedures would certainly not be a possible move due to the substantial distinctions in between the two divisions despite the fact that currently Lewis is taking care of both. While separation of the manufacturing function might have been a positive relocation for the advertising and marketing division, the reality that it would certainly indicate positioning a third feature under Lewis's wing suggests this must be stayed clear of too. The integration of the advertising department is the best option in terms of getting the optimum results from the division. An activity plan for this choice is discussed below.

Action Plan.
Lewis will certainly take control of the function of EVP Advertising after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Production feature will certainly remain part of marketing under advertising function.

Lewis will divide herself from procedures.

An autonomous leadership style with employee empowerment will certainly be used in advertising and marketing department.

Open up door policy and focus on cross department interaction will be aimed at removing disharmony.

Contingency strategy.

If the assimilation does not exercise as prepared, a contingency plan would adhere to which would certainly divide the production function from the advertising function to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing department without an SVP. In that case the production feature will definitely be separated by placing it under an SVP manufacturing.