Mistral Energy A Tale Of Two Power Markets Case Study Analysis


Home >> Ivey >> Mistral Energy A Tale Of Two Power Markets >>

Mistral Energy A Tale Of Two Power Markets Case Study Analysis

Background and Facts

Mistral Energy A Tale Of Two Power Markets an office materials retailer for tiny as well as moderate sized businesses has lately been associated with preparing for a merging with its rival Residence Deport, which has actually impacted performance levels in departmentswith the senior manager involved in lawful difficulties presented by the federal Profession Payment. With the Advertising Head advancing the information of his departure from the business in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the function in the near future. With difficulties in the kind of a potential cultural change as well as reduced staff member morale, the company wants a full reengineering initiative at the advertising division.

Issue Declaration

The prospective cultural change at the advertising division of Mistral Energy A Tale Of Two Power Markets is boosting uncertainty in the workplace leading to various challenges for the Jeannie Lewis that would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting tactical decisions since Stapes Inc. had to abandon its strategies of combining with Office Deport after the Federal Trade Payment's treatment while doing so. Offered the truth that the store has an international visibility with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these nations may have the ability to influence performance or tactical goals. Federal Trade Commission's antitrust fit versus the merging took up important time of the company's senior management suggesting that 'political' factors can have severe implications for a global business.

Economic Factors: Financial factors such as the emergence of small companies in the international scenario suggest that Mistral Energy A Tale Of Two Power Markets is growing in an atmosphere where there is potential growth of companies. Reality that store consumers are primarily looking for workplace materials for residence offices suggests that the market has a climbing pattern of entrepreneurs and also residence based organisations.

Social factors: Social fads in the economic situation reveal that consumers are looking for comfort along with appealing costs. Market research shows how the client for Mistral Energy A Tale Of Two Power Markets does not have recognition regarding locating solutions which can provide a mix of convenience as well as affordable.

Technical factors: Innovation plays an essential function in Mistral Energy A Tale Of Two Power Markets's business approach particularly as the company is piloting Modern technology facilities which would provide innovation sales as well as assistance in the type of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).

OB Issues and Symptoms.

Numerous underlying Business Behavior issues can be seen in Mistral Energy A Tale Of Two Power Markets's case as highlighted in this section.

Concerns about cultural change: There is uneasiness concerning a social adjustment that would certainly take place when Todd Krasnow leaves from his position as the Exec Vice President of Advertising with a lot of the team member currently revealing unhappiness over this prospective step. This anticipated modification has actually created tension in the workplace which has been coupled with the previous tension of preparing the company for a prospective merger with House Deport.

Demanding Task Atmosphere for Newcomers: There is shortage of workers that can match the demanding environment of a fast-paced company. Not just does this cause difficulty in discovering the ideal individuals, it places tension on brand-new hires as can not withstand the speed as well as pressure that the company anticipates them to bear.

Twin Coverage Lines: Novices locate this business culture troublesome and also difficult to deal with especially as populated line relationships are implied to be weak as a whole as well as objective setting as well as performance analysis is still done by the strong line supervisor. This suggests that newcomers can shed quality about their particular duties as well as purposes specifically as dotted line coverage does not keep them in straight interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles although it had been guessed that the latter would take Krasnow's position came as an impact to her morale. Lewis may have been capable as well as suitable for the task however the reality that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the factor for Coles' resignation from services.

Fear & Work Insecurity: Concern as well as instability can be identified as two significant worries that Lewis would be taking care of especially as the merging has actually now be cancelled and also two elderly executives of the advertising department would certainly be leaving. The entire obligation of the division would certainly be falling on Lewis's shoulders that would not just supervise of brining regarding a cultural change yet would also need to show herself in her new duty.

Inappropriate Administration Style of Leader: Lewis's administration design and also its conflict with the advertising department's duty can likewise be seen as an OB obstacle specifically as she has been used to dealing with issues in the operations division where workers are instructed to focus on procedures and also get them right. The advertising and marketing division on the various other hand can be viewed as a team of individuals that are used to being nurtured by Krasnow that concentrated a lot more on result than procedures.

Interdepartmental Disagreements: Interdepartmental arguments between 3 divisions, advertising, merchandizing as well as operations specifically over the appropriation of the advertising and marketing mix can be determined as one more OB concern. Although the marketing division does not share the exact same vision as the other 2 departments relating to the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and also procedures divisions do not concur over the marketing mix allocation amongst each other either.

Disintegration in Advertising And Marketing Department: Disintegration in between the marketing and advertising divisions can be identified as another OB concern which might require additional attention. The reality that the marketing and advertising areas in the marketing division are separated is protecting against both departments from obtaining from each various other's experience and also experience. Assimilation of advertising with merchandising and operations would certainly end up being harder if the advertising department itself is disintegrated which can be another potential OB concern.

Mistral Energy A Tale Of Two Power Markets Analysis

Various theories have been utilized to explain the circumstances to obtain more clarity concerning the circumstance handy.

McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers believe that subordinates are easy as well as careless, have little ambition and also resist modification. The difficult variation of this theory stressed threat, limited controls, dangers as well as penalties. Over time it creates reduced performance, refined sabotage as well as rivalry (Deal, 2003). Although the scenario at Mistral Energy A Tale Of Two Power Markets is not completely following Theory X, it can be seen that new hires are finding this environment rather stressful which may at some point lead to a greater inclination of the monitoring in the direction of Theory X. According to McGregor's advocated sight, which he called Concept Y, the essential task of the administration is to set up business conditions to ensure that people can attain their very own objectives best by routing their initiatives towards organizational incentives. If people find no satisfaction in their work, the monitoring would certainly have little selection but to rely on concept X as well as external control (Bargain, 2003). Even while assessing Lewis's administration style, theory X might have been suitable in the operations department to some extent however the Advertising and marketing division would certainly require reliance on Theory Y in order to get the imagination and creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's problem regarding bringing consistency between the marketing and advertising division is worried, this would at first bring about contrast as talked about by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, during the preliminary stage of team development, people may not bond, as they are hectic discovering their place in the team. By incorporating the marketing and advertising division's job, there might coincide first disconnect which can cause the 2nd phase of 'storming' where the groups test each other. Nonetheless, it is only during the 3rd phase or 'norming' when they would integrate to share ideas prior to the group can bring about synergy in the fourth stage 'executing'.

Bridges' Shift Model: Based On William Bridge's theory (appendix 4), people are fairly uncomfortable with change, which is apparent by the scenario at Mistral Energy A Tale Of Two Power Markets The circumstance can be viewed as a typical course of life if is studied according to Bridge's concept where he discusses that people experience three phases of shift when they experience change. 'Closing, shedding as well as Releasing', The Neutral Area and also 'The New Starting' (Bridges, 2004). When people exist with adjustment, they enter stage one therefore there might be feelings like despair, unpredictability, irritation, anger, fear, rejection and also disorientation.The situation at the advertising and marketing department of Mistral Energy A Tale Of Two Power Markets is similar so Lewis can get comfortable with the concept that it is not amazing behavior. In the second stage, there might be a requirement to link the void in between the new and also old culture so Lewis may have to face this challenge as soon as Krasnow leaves. There might be reduced morale and low efficiency at this stage which must not be taken as a setback. It is during this stage that Lewis will certainly have to offer assistance to the department to make sure that they can locate an orientation. It can be seen how Krasnow has already made this shift easier by making Lewis obtain involved in the department a year before his real separation. According to Bridges' Design, stage three will certainly cause visibility to discovering, High power as well as commitment as people will certainly embrace the modification (Bridges, 2004).

Maslow's Demand power structure: The OB concern pertaining to insecurity at the work environment has actually been set off to start with by the modification in administration as well as secondly by the truth that the merger will certainly no more be started. Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has discusses the importance of 'safety and security requires as being a lower degree demand of a human for setting off inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the demand to really feel safe as well as unharmed' is at the 2nd level of needs. Before a staff member can be made to create mentally, he needs to have his 'Physical 'as well as 'Safety' requires met. This indicates that unless the workers are made to feel secure regarding their current 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 actually checked out numerous theories to recognize just how to deal with the current scenario at hand. The complying with 3 choices have actually been proposed to aid Lewis deal with the organizational obstacles in the advertising and marketing department. Each of these choices has actually been suggested for relieving the transition required to bring the marketing division in line with the needs of the market and for making the cultural modification that would follow as soon as the current leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting as well as Production functions. Combination of Advertising with Operations.

Examination of Alternatives.

Combination of Advertising And Marketing & Advertising Functions: The in-house marketing firm of Mistral Energy A Tale Of Two Power Markets is already toughness for the company in regards to saving up on overheads related to advertising and marketing and also promo. Given that no new recruitment has actually been done after Bridget Cole's departure with the reporting line being directly designated to Krasnow for the marketing function, this is a desirable opportunity for incorporating the marketing and advertising functions. Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merger days has experience in business-to-business advertising together with agency and also retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to deal with both marketing and advertising functions.

The advantage of this strategy is that it will incorporate both features while reducing the demand for hiring an additional source for marketing. Lewis would certainly be heading the advertising and marketing department and in any case her replacement would be needed for the existing function that she is performing. The downside of this option is that outside hiring may cause resentment from internal employees that may be considering the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and also Manufacturing: Offered the affordable pressures as well as high top quality job called for from the marketing company, it is advised that Lewis should enable the production system to be a separate function from the marketing unit. Since most advertising and marketing companies had these two features as separate systems, it makes even more sense to comply with the norm.

Assimilation of Marketing with Workflows: Given that Lewis is already caring for the marketing and procedures divisions at the same time; it makes good sense to incorporate the two features since she has been efficiently caring for both ends. The fact that the two divisions currently have major differences over appropriation of sources recommends that this combination might be able to cause consistency particularly as Lewis would certainly be heading both ends.However there are different negative aspects of this step specifically as it would certainly place too much worry over Lewis's shoulders. The fact that Lewis has to adjust her monitoring style for the marketing department suggests that these 2 departments would certainly be culturally varied. In addition to this, Lewis may not be able to apply one kind of leadership style to both divisions which might lead to inadequacy in either among both features.


An examination of the 3 alternatives shows that combination of marketing as well as procedures would certainly not be a practical relocation as a result of the substantial distinctions in between both divisions despite the fact that currently Lewis is managing both. While separation of the manufacturing feature may have been a desirable relocation for the marketing department, the fact that it would certainly imply placing a third feature under Lewis's wing suggests this need to be prevented too. The assimilation of the marketing division is the most effective alternative in terms of obtaining the optimum arise from the department. An activity prepare for this option is gone over below.

Action Plan.

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

Marketing and advertising features would certainly be combined.

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

Manufacturing function will continue to be component of advertising under advertising function.

Lewis will separate herself from operations.

An autonomous management style with worker empowerment will be utilized in marketing department.

Open door plan as well as focus on cross departmental communication will be focused on getting rid of dissonance.

Backup strategy.

If the combination does not exercise as intended, a contingency plan would adhere to which would separate the manufacturing function from the advertising and marketing feature to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will be heading the marketing department without an SVP. In that case the manufacturing function will definitely be separated by putting it under an SVP production.