Menu

Medical Equipment Inc In Saudi Arabia Case Study Analysis

CASE SOLUTION

Home >> Ivey >> Medical Equipment Inc In Saudi Arabia >>

Medical Equipment Inc In Saudi Arabia Case Study Solution

Background and Facts

Medical Equipment Inc In Saudi Arabia a workplace materials merchant for tiny and also moderate sized organisations has recently been involved in preparing for a merging with its competitor House Deport, which has affected efficiency levels in departmentswith the elderly manager associated with lawful difficulties presented by the government Profession Commission. With the Advertising Head advancing the news of his separation from the company in one year, Jeannie Lewis, the current head of operations has been asked to take the role in the future. With challenges in the kind of a potential cultural change and also reduced employee spirits, the company wants a full reengineering effort at the advertising and marketing department.

Trouble Declaration

The prospective cultural modification at the advertising and marketing division of Medical Equipment Inc In Saudi Arabia is raising unpredictability in the working environment causing different obstacles for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting strategic choices considering that Stapes Inc. needed to desert its strategies of combining with Workplace Deport after the Federal Profession Commission's intervention at the same time. Given the truth that the store has an international existence with branches in UK, USA, Canada and also Germany, political factors in each of these countries may be able to impact performance or calculated goals. Federal Profession Payment's antitrust fit against the merger took up useful time of the organization's elderly management recommending that 'political' factors can have serious effects for a global business.

Economic Factors: Financial factors such as the appearance of small companies in the international scenario suggest that Medical Equipment Inc In Saudi Arabia is flourishing in an environment where there is potential development of companies. Truth that store consumers are mostly looking for workplace products for residence workplaces recommends that the market has a rising fad of entrepreneurs and house based businesses.

Social factors: Social patterns in the economic situation show that consumers are searching for benefit in addition to appealing prices. Market research shows how the client for Medical Equipment Inc In Saudi Arabia lacks awareness regarding discovering remedies which can supply a combination of ease and also affordable.

Technical factors: Innovation plays a vital duty in Medical Equipment Inc In Saudi Arabia's service strategy particularly as the company is piloting Modern technology centers which would certainly provide technology sales and also support in the form of memory upgrades, outer installments. (Recap of PARASITE in appendix 2).

OB Issues and Symptoms.

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

Uneasiness about cultural modification: There is concern concerning a social adjustment that would certainly take place when Todd Krasnow leaves from his position as the Executive Vice Head Of State of Marketing with a lot of the personnel currently revealing discontent over this prospective relocation. This predicted change has created stress in the workplace which has actually been coupled with the past tension of preparing the company for a possible merging with House Deport.

Difficult Work Atmosphere for Newcomers: There is lack of personnel that can match the difficult environment of a hectic company. Not only does this lead to difficulty in locating the ideal people, it puts stress and anxiety on new hires as can not hold up against the speed and pressure that the organization anticipates them to bear.

Dual Reporting Lines: Novices discover this organizational culture troublesome and hard to cope with particularly as populated line partnerships are suggested to be weak as a whole as well as objective setting and efficiency assessment is still done by the strong line manager. This implies that novices could lose quality concerning their respective functions and also goals especially as populated line coverage does not maintain them in straight interaction with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles although it had been guessed that the last would certainly take Krasnow's setting came as a blow to her spirits. Lewis may have been qualified and appropriate for the task however the truth that Kransnow's departure would certainly make Coles a direct record to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Task Insecurity: Anxiety as well as instability can be determined as 2 major issues that Lewis would be managing especially as the merger has actually currently be terminated as well as two senior execs of the advertising and marketing department would certainly be leaving. The whole duty of the division would certainly be falling on Lewis's shoulders who would not simply be in charge of brining regarding a cultural adjustment but would additionally have to verify herself in her new duty.

Incompatible Monitoring Design of Leader: Lewis's management style as well as its conflict with the marketing division's role can also be seen as an OB challenge especially as she has actually been utilized to handling problems in the operations department where personnel are taught to focus on procedures and also get them right. The advertising division on the various other hand can be seen as a group of people that are used to being nurtured by Krasnow who concentrated more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental disputes in between 3 divisions, marketing, merchandizing and also procedures respectively over the allotment of the marketing mix can be recognized as another OB concern. Although the advertising and marketing department does not share the very same vision as the various other 2 divisions relating to the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and procedures departments do not concur over the marketing mix allotment amongst each other either.

Disintegration in Advertising Division: Disintegration between the advertising and marketing departments can be determined as one more OB concern which could require more attention. The truth that the marketing and advertising areas in the marketing department are disconnected is avoiding both departments from acquiring from each other's experience as well as knowledge. Combination of advertising with retailing and also operations would certainly become more difficult if the marketing division itself is degenerated which can be one more potential OB issue.

Medical Equipment Inc In Saudi Arabia Analysis

Numerous theories have been utilized to describe the circumstances to get more quality concerning the circumstance handy.

McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most supervisors think that staffs are easy as well as lazy, have little ambition as well as withstand adjustment. The tough version of this theory emphasized threat, tight controls, risks as well as punishments. In time it generates low performance, refined sabotage as well as rivalry (Deal, 2003). The situation at Medical Equipment Inc In Saudi Arabia is not totally adhering to Theory X, it can be seen that new hires are discovering this setting rather demanding which might ultimately lead to a better disposition of the management towards Concept X. Based on McGregor's advocated view, which he called Theory Y, the vital task of the administration is to arrange business conditions to make sure that people can achieve their very own objectives best by routing their initiatives towards business rewards. If individuals locate no complete satisfaction in their job, the administration would have little choice yet to count on theory X as well as external control (Bargain, 2003). Also while assessing Lewis's monitoring style, concept X may have appropriated in the procedures department to some extent but the Advertising and marketing division would call for reliance on Theory Y so as to get the imagination as well as creativity from the groups.

Tuckman's Synergy Theory: As far as Lewis's problem concerning bringing consistency between the advertising and marketing division is concerned, this would initially lead to clash as talked about by Bruce Tuckman in his 'Team effort Theory'. By combining the marketing and also advertising and marketing department's work, there might be the very same preliminary separate which could lead to the 2nd phase of 'storming' where the teams test one another.

When individuals are provided with adjustment, they enter phase one and so there may be emotions like despair, unpredictability, frustration, anger, worry, rejection and also disorientation.The circumstance at the advertising division of Medical Equipment Inc In Saudi Arabia is comparable so Lewis can get comfy with the suggestion that it is not remarkable habits. It is throughout this stage that Lewis will have to provide support to the department so that they can find a sense of instructions. It can be seen just how Krasnow has actually currently made this transition easier by making Lewis get entailed in the division a year before his actual departure.

Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has reviews the importance of 'safety and security needs as being a reduced degree requirement of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel secure as well as out of risk' is at the second level of needs. Before an employee can be made to develop mentally, he needs to have his 'Physical 'and also 'Security' needs fulfilled.

SWOT Analysis for Medical Equipment Inc In Saudi Arabia Case Study



Ramification of Analysis.

The OB analysis has looked at numerous concepts to recognize exactly how to cope with the existing situation handy. The complying with three alternatives have been recommended to aid Lewis take care of the organizational difficulties in the advertising and marketing division. Each of these choices has been proposed for easing the shift required to bring the advertising and marketing division in line with the demands of the marketplace and also for making the social modification that would adhere to once the existing leader leaves.

Combination of advertising and marketing functions. Separating Adverting and Production features. Integration of Advertising And Marketing with Procedures.

Evaluation of Alternatives.

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

The advantage of this method is that it will incorporate both features while reducing the need for employing an extra source for marketing. In addition to this, Lewis would be heading the advertising department and in any case her substitute would be needed for the current duty that she is carrying out. The drawback of this option is that outside hiring might produce animosity from internal employees that might be eying the setting of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and also Production: Given the affordable pressures as well as high top quality work needed from the advertising and marketing company, it is advised that Lewis should enable the manufacturing device to be a separate function from the advertising and marketing system. Because most marketing firms had these two functions as separate systems, it makes more feeling to adhere to the norm.

Integration of Marketing with Operations: Because Lewis is already taking care of the advertising and also procedures divisions at the same time; it makes feeling to incorporate the 2 functions given that she has been successfully taking care of both ends. The truth that Lewis has to adjust her administration design for the advertising and marketing department recommends that these 2 departments would certainly be culturally diverse.

Recommendation.



An analysis of the 3 alternatives shows that assimilation of marketing and operations would certainly not be a practical relocation due to the substantial differences between the two divisions despite the truth that currently Lewis is taking care of both. While splitting up of the manufacturing feature may have been a desirable action for the advertising division, the reality that it would certainly suggest putting a third feature under Lewis's wing implies this need to be prevented.

Activity Plan.

Lewis will certainly take over the duty of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would be combined.

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

Production feature will stay part of advertising and marketing under advertising function.

Lewis will separate herself from operations.

An autonomous leadership style with employee empowerment will be utilized in advertising department.

Open door plan and focus on cross department interaction will certainly be focused on eliminating dissonance.

Contingency plan.

If the assimilation does not exercise as prepared, a backup strategy would follow which would separate the production feature from the marketing function to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising department without an SVP. In that case the production function will most definitely be divided by placing it under an SVP production.