Medical Equipment Inc In Saudi Arabia Case Study Solution


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Medical Equipment Inc In Saudi Arabia Case Study Solution

Background and Facts

Medical Equipment Inc In Saudi Arabia an office products seller for small as well as medium sized services has just recently been involved in preparing for a merging with its competitor House Deport, which has influenced effectiveness levels in departmentswith the senior manager associated with legal difficulties presented by the government Profession Payment. With the Marketing Head advancing the news of his departure from the business in one year, Jeannie Lewis, the existing head of procedures has been asked to take the duty in the future. With difficulties in the type of a possible social modification and low staff member morale, the organization requires a complete reengineering effort at the advertising division.

Problem Statement
Porter's 5 Forces Analysis
The potential social change at the marketing department of Medical Equipment Inc In Saudi Arabia is enhancing unpredictability in the working environment causing various obstacles for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting calculated decisions because Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Trade Commission's treatment while doing so. Given the fact that the store has a global existence with branches in UK, U.S.A., Canada and Germany, political consider each of these nations may be able to influence performance or critical objectives. Federal Trade Commission's antitrust suit versus the merging occupied beneficial time of the organization's elderly administration recommending that 'political' factors can have significant effects for a global business.

Economic Factors: Financial factors such as the emergence of local business in the worldwide situation suggest that Medical Equipment Inc In Saudi Arabia is growing in an atmosphere where there is prospective growth of organisations. Along with this, reality that shop customers are mainly searching for workplace products for home offices recommends that the market has an increasing fad of entrepreneurs and also home based services.

Social factors: Social trends in the economy show that clients are seeking comfort along with eye-catching prices. Market research demonstrates how the client for Medical Equipment Inc In Saudi Arabia does not have awareness about discovering services which can supply a mix of benefit and also inexpensive.

Technical factors: Innovation plays a crucial role in Medical Equipment Inc In Saudi Arabia's organisation strategy specifically as the organization is piloting Technology facilities which would supply technology sales and support in the form of memory upgrades, outer installations. (Summary of BUG in appendix 2).

OB Issues as well as Effects.

A number of underlying Business Behavior problems can be seen in Medical Equipment Inc In Saudi Arabia's case as highlighted in this area.

Apprehensions regarding cultural modification: There is apprehension regarding a social change that would take place once Todd Krasnow leaves from his position as the Exec Vice Head Of State of Marketing with the majority of the staff members already showing unhappiness over this potential move. This anticipated change has actually developed stress in the work environment which has been paired with the previous anxiety of preparing the company for a prospective merging with House Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is scarcity of workers that can match the difficult setting of a hectic organization. Not just does this result in problem in discovering the right individuals, it puts stress on brand-new hires as can not withstand the speed and also stress that the company anticipates them to birth.

Twin Reporting Lines: Newbies find this organizational culture cumbersome and also difficult to deal with especially as dotted line relationships are suggested to be weaker generally and unbiased setting and also efficiency assessment is still done by the solid line supervisor. This indicates that novices might lose clarity concerning their particular roles and purposes particularly as populated line reporting does not maintain them in straight interaction with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles although it had actually been hypothesized that the last would take Krasnow's setting came as a blow to her spirits. Lewis might have been qualified and appropriate for the job yet the fact that Kransnow's separation would certainly make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Anxiety & Job Instability: Concern as well as instability can be identified as two significant concerns that Lewis would certainly be handling particularly as the merging has actually now be terminated and two senior execs of the advertising and marketing division would certainly be leaving. The whole obligation of the department would certainly be dropping on Lewis's shoulders who would not just be in charge of brining regarding a social modification however would certainly likewise need to confirm herself in her new role.

Incompatible Management Design of Leader: Lewis's administration style and its conflict with the advertising department's duty can additionally be seen as an OB difficulty especially as she has actually been utilized to handling problems in the procedures department where employees are educated to concentrate on procedures and also get them. The advertising division on the other hand can be seen as a group of individuals that are utilized to being nurtured by Krasnow that focused more on result than processes.

Interdepartmental Disagreements: Interdepartmental differences in between three divisions, advertising, merchandizing and operations specifically over the allotment of the advertising mix can be identified as one more OB concern. The advertising and marketing department does not share the exact same vision as the other 2 departments concerning the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and also operations departments do not concur over the advertising mix appropriation amongst one another either.

Fragmentation in Advertising Department: Fragmentation in between the marketing and advertising divisions can be determined as one more OB concern which could need additional interest. The reality that the marketing and advertising areas in the advertising division are disconnected is stopping both divisions from obtaining from each other's experience as well as knowledge. Assimilation of advertising with merchandising and also operations would come to be harder if the marketing department itself is degenerated which can be an additional prospective OB issue.

Medical Equipment Inc In Saudi Arabia Analysis

Different theories have been made use of to describe the circumstances to obtain more quality concerning the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers think that juniors are easy and lazy, have little passion and withstand adjustment. The difficult version of this theory stressed coercion, limited controls, threats and also penalties. In time it produces reduced performance, subtle sabotage and competition (Bargain, 2003). Although the circumstance at Medical Equipment Inc In Saudi Arabia is not completely following Concept X, it can be seen that new hires are locating this setting rather demanding which might eventually cause a better disposition of the administration in the direction of Concept X. Based on McGregor's supported view, which he called Theory Y, the necessary job of the monitoring is to prepare organizational conditions to make sure that people can attain their very own objectives best by routing their initiatives towards organizational incentives. If individuals find no satisfaction in their work, the monitoring would have little selection however to depend on concept X and also outside control (Bargain, 2003). Also while analyzing Lewis's administration style, theory X may have been suitable in the operations division to some extent yet the Advertising division would certainly require reliance on Concept Y to get the imagination as well as originality from the teams.

Tuckman's Team effort Theory: Regarding Lewis's problem concerning bringing consistency between the marketing and advertising department is concerned, this would originally bring about clash as talked about by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's concept displayed in appendix 3, throughout the initial stage of team advancement, individuals may not bond, as they are busy finding their area in the group. By incorporating the advertising and marketing division's job, there might coincide first detach which can bring about the second phase of 'storming' where the groups challenge one another. Nevertheless, it is just throughout the 3rd phase or 'norming' when they would collaborate to share ideas prior to the group can produce synergy in the 4th phase 'performing'.

When individuals are offered with change, they go into phase one and also so there might be feelings like despair, uncertainty, disappointment, temper, concern, rejection and disorientation.The scenario at the advertising and marketing department of Medical Equipment Inc In Saudi Arabia is similar so Lewis can get comfortable with the suggestion that it is not phenomenal actions. It is throughout this phase that Lewis will certainly have to offer support to the department so that they can find a sense of instructions. It can be seen how Krasnow has already made this shift easier by making Lewis get involved in the division a year before his actual departure.
Vrio Analysis
Maslow's Demand hierarchy: The OB concern pertaining to insecurity at the workplace has actually been triggered first of all by the adjustment in management and also second of all by the reality that the merger will no more be started. Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has goes over the importance of 'security requires as being a reduced level requirement of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel protected and out of danger' is at the second degree of needs. Prior to a staff member can be made to create mentally, he requires to have his 'Physiological 'and 'Safety' requires met. This suggests that unless the employees are made to feel protected concerning their current work status in Medical Equipment Inc In Saudi Arabia they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Medical Equipment Inc In Saudi Arabia Case Study

Effects of Analysis.

The OB analysis has considered numerous theories to comprehend how to handle the existing circumstance handy. The adhering to three options have actually been proposed to aid Lewis take care of the business challenges in the advertising department. Each of these options has been proposed for easing the transition needed to bring the marketing department in line with the demands of the market and also for making the social adjustment that would follow when the present leader leaves.

Combination of marketing and advertising functions. Dividing Adverting and Production functions. Assimilation of Advertising with Procedures.

Examination of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merger days has proficiency in business-to-business advertising and marketing along with agency and retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to handle both marketing and also advertising functions.

The advantage of this approach is that it will incorporate both features while lowering the demand for employing an extra resource for marketing. Lewis would certainly be heading the advertising division as well as in any case her substitute would be needed for the current function that she is carrying out. The negative aspect of this alternative is that exterior hiring may bring about resentment from internal personnel who might be eying the setting of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting as well as Manufacturing: Given the competitive pressures and high quality job required from the advertising and marketing company, it is suggested that Lewis needs to enable the manufacturing unit to be a different feature from the advertising device. Considering that many advertising and marketing agencies had these two features as separate units, it makes even more sense to adhere to the standard.

Integration of Advertising with Operations: Because Lewis is currently taking care of the advertising and marketing and operations divisions concurrently; it makes feeling to incorporate the two features given that she has been effectively taking care of both ends. The reality that Lewis has to adjust her administration style for the advertising division suggests that these two divisions would be culturally diverse.


An examination of the three choices indicates that integration of marketing and operations would certainly not be a feasible relocation due to the large differences between the two departments in spite of the truth that presently Lewis is taking care of both. While splitting up of the production function may have been a favorable action for the advertising and marketing department, the truth that it would suggest putting a third function under Lewis's wing means this should be prevented.

Activity Strategy.
Lewis will certainly take over the function of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

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

Manufacturing function will remain part of advertising and marketing under advertising and marketing function.

Lewis will divide herself from operations.

A democratic management design with employee empowerment will be made use of in marketing department.

Open door plan and also emphasis on cross departmental communication will be aimed at getting rid of dissonance.

Backup strategy.

If the assimilation does not exercise as prepared, a contingency plan would certainly follow which would separate the manufacturing feature from the advertising and marketing feature to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the production function will most definitely be divided by placing it under an SVP production.