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Mistral Energy A Tale Of Two Power Markets Case Study Analysis

Background and Facts

Mistral Energy A Tale Of Two Power Markets a workplace materials retailer for tiny and also moderate sized businesses has actually recently been involved in planning for a merger with its competitor House Deport, which has impacted performance levels in departmentswith the elderly manager involved in legal problems presented by the federal Trade Payment. With the Marketing Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the role in the future. With challenges in the type of a prospective cultural adjustment and also reduced employee spirits, the organization needs a full reengineering initiative at the advertising division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective social change at the advertising department of Mistral Energy A Tale Of Two Power Markets is increasing uncertainty in the workplace leading to different challenges for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting calculated decisions since Stapes Inc. had to desert its plans of combining with Workplace Deport after the Federal Trade Compensation's treatment at the same time. Offered the fact that the store has an international visibility with branches in UK, UNITED STATES, Canada and Germany, political consider each of these countries might be able to affect performance or tactical goals. Federal Profession Compensation's antitrust fit versus the merger occupied valuable time of the organization's senior management recommending that 'political' factors can have major ramifications for an international organisation.

Economic Factors: Economic factors such as the appearance of small companies in the worldwide circumstance suggest that Mistral Energy A Tale Of Two Power Markets is thriving in an atmosphere where there is possible development of businesses. Truth that shop consumers are mainly looking for workplace supplies for residence offices recommends that the market has an increasing trend of entrepreneurs as well as residence based businesses.

Social factors: Social fads in the economy show that customers are looking for benefit along with appealing prices. Marketing research demonstrates how the consumer for Mistral Energy A Tale Of Two Power Markets does not have understanding concerning locating remedies which can supply a combination of convenience and also affordable.

Technological factors: Modern technology plays an important role in Mistral Energy A Tale Of Two Power Markets's business technique especially as the company is piloting Technology facilities which would certainly use modern technology sales and support in the type of memory upgrades, outer setups. (Recap of BUG in appendix 2).

OB Issues as well as Manifestations.

Several underlying Business Actions concerns can be seen in Mistral Energy A Tale Of Two Power Markets's case as highlighted in this area.

Worries about cultural adjustment: There is apprehension regarding a cultural adjustment that would occur as soon as Todd Krasnow leaves from his placement as the Executive Vice President of Advertising with the majority of the personnel already revealing discontent over this potential action. This expected adjustment has actually produced stress in the office which has been paired with the past stress and anxiety of preparing the company for a prospective merger with House Deport.
Pest Analysis
Stressful Work Environment for Newcomers: There is lack of personnel that can match the stressful setting of a fast-paced organization. Not only does this cause difficulty in discovering the right people, it puts stress and anxiety on new hires as can not endure the pace and also pressure that the company expects them to birth.

Twin Coverage Lines: Newbies discover this organizational culture difficult and hard to cope with especially as dotted line connections are meant to be weak as a whole and unbiased setting as well as efficiency evaluation is still done by the strong line manager. This implies that newcomers could lose quality about their particular functions as well as goals especially as populated line reporting does not maintain them in direct interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had actually been guessed that the last would take Krasnow's setting came as a strike to her morale. Lewis might have been capable as well as appropriate for the task however the reality that Kransnow's departure would certainly make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Work Instability: Anxiety and also insecurity can be recognized as 2 major issues that Lewis would be dealing with especially as the merging has actually now be cancelled and also two elderly executives of the advertising and marketing division would be leaving. The entire obligation of the division would certainly be dropping on Lewis's shoulders who would not just supervise of brining regarding a cultural change but would likewise need to confirm herself in her new role.

Incompatible Management Style of Leader: Lewis's monitoring style and also its incompatibility with the marketing department's duty can likewise be seen as an OB challenge especially as she has actually been utilized to taking care of issues in the operations division where personnel are taught to concentrate on procedures as well as obtain them. The advertising and marketing division on the various other hand can be viewed as a group of people who are used to being supported by Krasnow that focused more on outcome than processes.

Interdepartmental Arguments: Interdepartmental disputes between three divisions, advertising and marketing, merchandizing and operations respectively over the appropriation of the advertising and marketing mix can be identified as an additional OB problem. Although the marketing department does not share the same vision as the other 2 divisions relating to the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and also procedures divisions do not concur over the advertising and marketing mix appropriation among one another either.

Disintegration in Marketing Division: Fragmentation between the advertising and marketing divisions can be determined as one more OB concern which could need additional focus. The reality that the marketing and advertising sections in the advertising and marketing division are disconnected is protecting against both divisions from getting from each other's experience as well as competence. Combination of advertising and marketing with merchandising as well as procedures would become more difficult if the marketing division itself is disintegrated which can be an additional potential OB concern.

Mistral Energy A Tale Of Two Power Markets Analysis

Different concepts have been used to explain the situations to get more quality concerning the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers think that subordinates are easy and also lazy, have little aspiration as well as resist adjustment. The situation at Mistral Energy A Tale Of Two Power Markets is not completely adhering to Concept X, it can be seen that brand-new hires are discovering this atmosphere instead demanding which might eventually lead to a greater inclination of the monitoring in the direction of Theory X. Also while examining Lewis's administration design, concept X may have been suitable in the operations department to some degree but the Marketing department would certainly call for dependence on Theory Y in order to get the creativity and creativity from the teams.

Tuckman's Team effort Theory: As for Lewis's worry concerning bringing harmony in between the advertising and marketing division is concerned, this would at first cause conflict as reviewed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). As per Tuckman's theory displayed in appendix 3, during the preliminary stage of group growth, people might not bond, as they are hectic finding their area in the group. By incorporating the advertising and marketing division's job, there may be the same preliminary separate which can lead to the 2nd phase of 'storming' where the teams challenge one another. It is only during the third phase or 'norming' when they would come together to share concepts before the team can bring about harmony in the 4th phase 'doing'.

When individuals are provided with adjustment, they get in stage one and so there may be feelings like despair, uncertainty, aggravation, rage, anxiety, rejection as well as disorientation.The situation at the advertising and marketing division of Mistral Energy A Tale Of Two Power Markets is comparable so Lewis can obtain comfy with the suggestion that it is not extraordinary habits. It is throughout this phase that Lewis will certainly have to offer assistance to the division so that they can find a sense of instructions. It can be seen exactly how Krasnow has actually already made this change easier by making Lewis get entailed in the division a year before his real separation.
Vrio Analysis
Maslow's Need hierarchy: The OB issue related to insecurity at the workplace has actually been activated first of all by the change in management and also secondly by the fact that the merging will no more be launched. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has goes over the value of 'safety and security requires as being a lower degree requirement of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the demand to feel safe and also out of danger' is at the second degree of demands. Prior to a staff member can be made to create psychologically, he requires to have his 'Physiological 'and also 'Safety' needs satisfied. This indicates that unless the personnel are made to really feel secure concerning their present work status in Mistral Energy A Tale Of Two Power Markets they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Mistral Energy A Tale Of Two Power Markets Case Study

Ramification of Analysis.

The OB analysis has taken a look at numerous concepts to comprehend just how to manage the current situation handy. The following 3 options have been recommended to help Lewis manage the organizational difficulties in the advertising department. Each of these choices has been suggested for alleviating the transition required to bring the advertising and marketing division in accordance with the demands of the marketplace as well as for making the cultural change that would adhere to as soon as the existing leader leaves.

Combination of marketing and advertising functions. Dividing Adverting and also Manufacturing functions. Integration of Marketing with Workflow.

Analysis of Alternatives.

Assimilation of Advertising & Advertising And Marketing Functions: The internal advertising and marketing agency of Mistral Energy A Tale Of Two Power Markets is currently stamina for the organization in regards to conserving up on expenses related to advertising and marketing and promotion. Considering that no new recruitment has been done after Bridget Cole's separation with the coverage line being straight appointed to Krasnow for the advertising and marketing feature, this is a desirable opportunity for incorporating the marketing and advertising functions. Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merger days has knowledge in business-to-business marketing together with agency and retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to manage both marketing and advertising functions.

The advantage of this strategy is that it will certainly integrate both features while minimizing the need for employing an extra resource for advertising. Lewis would be heading the advertising and marketing department as well as in any case her replacement would be required for the existing function that she is carrying out. The drawback of this alternative is that outside hiring may cause animosity from interior personnel that might be looking at the placement of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and Production: Provided the competitive stress and also premium quality work called for from the advertising agency, it is advised that Lewis needs to enable the manufacturing unit to be a different feature from the advertising device. Given that many ad agency had these 2 functions as separate systems, it makes even more feeling to comply with the norm. In addition to this, both functions might be able to concentrate on their core activates a lot more effectively. The drawback of this method would be that extra prices would have to be birthed for establishing up different production features. A production head may have to be hired which could increase overheads for the company.

Combination of Marketing with Operations: Because Lewis is already taking care of the advertising and marketing and procedures departments concurrently; it makes sense to integrate the 2 functions given that she has actually been effectively taking care of both ends. The fact that Lewis has to adjust her monitoring design for the marketing division recommends that these two departments would certainly be culturally diverse.


An evaluation of the three alternatives shows that assimilation of advertising and also procedures would certainly not be a viable step because of the large differences in between the two divisions although that currently Lewis is handling both. While separation of the production function may have been a positive relocation for the advertising and marketing division, the truth that it would certainly imply positioning a 3rd feature under Lewis's wing implies this need to be avoided as well. The integration of the advertising and marketing division is the most effective option in terms of obtaining the optimum results from the department. An activity prepare for this alternative is discussed below.

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

Marketing and advertising functions would certainly be combined.

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

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

Lewis will certainly separate herself from procedures.

An autonomous management design with worker empowerment will be utilized in advertising department.

Open door policy as well as focus on cross department communication will be focused on getting rid of disharmony.

Backup strategy.

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