Coca Cola In Vietnam Case Study Help


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Coca Cola In Vietnam Case Study Help

Background and Facts

Coca Cola In Vietnam a workplace supplies seller for little and also moderate sized companies has just recently been associated with preparing for a merger with its rival House Deport, which has actually influenced performance levels in departmentswith the senior manager associated with legal difficulties put forth by the government Trade Compensation. With the Marketing Head advancing the information of his separation from the business in one year, Jeannie Lewis, the present head of operations has actually been asked to take the role in the near future. With difficulties in the kind of a potential social modification and reduced worker morale, the company wants a full reengineering initiative at the advertising and marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising and marketing department of Coca Cola In Vietnam is enhancing uncertainty in the workplace bring about different obstacles for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing strategic choices since Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Profession Payment's treatment while doing so. Offered the reality that the shop has a global existence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these countries might be able to impact performance or critical objectives. Federal Profession Commission's antitrust fit versus the merging took up useful time of the organization's elderly administration suggesting that 'political' factors can have severe effects for a global organisation.

Economic Factors: Economic factors such as the development of small companies in the worldwide scenario recommend that Coca Cola In Vietnam is flourishing in an atmosphere where there is possible growth of businesses. Fact that shop clients are mostly looking for workplace products for residence offices recommends that the market has a rising trend of entrepreneurs and also home based businesses.

Social factors: Social trends in the economic climate show that customers are seeking comfort along with appealing rates. Market research demonstrates how the client for Coca Cola In Vietnam lacks understanding concerning finding services which can use a combination of benefit as well as low costs.

Technological factors: Technology plays an important function in Coca Cola In Vietnam's business method particularly as the organization is piloting Modern technology centers which would provide modern technology sales as well as assistance in the kind of memory upgrades, outer installments. (Summary of BUG in appendix 2).

OB Issues and Effects.

Numerous underlying Organizational Habits problems can be seen in Coca Cola In Vietnam's case as highlighted in this area.

Worries regarding cultural adjustment: There is uneasiness regarding a social change that would happen as soon as Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising And Marketing with most of the personnel already showing discontent over this potential step. This predicted modification has developed stress and anxiety in the work environment which has been coupled with the previous stress and anxiety of preparing the firm for a potential merger with Residence Deport.
Pest Analysis
Demanding Task Setting for Newcomers: There is scarcity of workers that can match the stressful setting of a busy organization. Not only does this result in trouble in discovering the right people, it puts tension on new hires as can not hold up against the rate and pressure that the company expects them to bear.

Dual Coverage Lines: Newbies locate this business society difficult and hard to handle particularly as dotted line relationships are meant to be weak in general and also unbiased setup as well as efficiency analysis is still done by the strong line manager. This implies that newcomers could lose quality concerning their respective duties as well as objectives particularly as dotted line reporting does not maintain them in direct interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles even though it had actually been guessed that the last would take Krasnow's placement came as an impact to her spirits. Lewis may have been capable and also suitable for the task however the truth that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Fear & Job Insecurity: Worry as well as instability can be recognized as two major problems that Lewis would certainly be taking care of particularly as the merging has actually now be terminated and two senior executives of the marketing department would certainly be leaving. The whole duty of the department would certainly be falling on Lewis's shoulders who would certainly not simply supervise of brining about a cultural change but would also need to show herself in her brand-new duty.

Incompatible Monitoring Design of Leader: Lewis's monitoring design as well as its conflict with the advertising division's role can likewise be seen as an OB challenge particularly as she has been utilized to dealing with problems in the operations division where personnel are shown to concentrate on processes and get them. The advertising and marketing division on the various other hand can be seen as a group of people that are used to being nurtured by Krasnow who concentrated a lot more on output than processes.

Interdepartmental Arguments: Interdepartmental disagreements between three departments, marketing, merchandizing and operations specifically over the allotment of the advertising mix can be identified as an additional OB concern. Although the advertising and marketing division does not share the same vision as the various other two divisions concerning the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing and procedures departments do not agree over the marketing mix allotment among each other either.

Disintegration in Advertising Department: Disintegration between the marketing and advertising divisions can be identified as an additional OB problem which might need additional attention. The reality that the marketing and advertising areas in the marketing division are disconnected is avoiding both divisions from gaining from each other's experience as well as experience. Assimilation of marketing with retailing and also procedures would certainly come to be harder if the marketing division itself is disintegrated which can be an additional potential OB problem.

Coca Cola In Vietnam Analysis

Various concepts have been utilized to discuss the scenarios to get further clarity about the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors think that juniors are passive and careless, have little passion and resist adjustment. The difficult version of this concept stressed threat, tight controls, dangers and penalties. Gradually it generates low performance, subtle sabotage and competition (Bargain, 2003). Although the scenario at Coca Cola In Vietnam is not completely following Concept X, it can be seen that new hires are discovering this atmosphere instead difficult which might at some point cause a higher disposition of the administration in the direction of Theory X. As per McGregor's promoted sight, which he called Theory Y, the vital task of the management is to set up organizational problems to make sure that individuals can attain their own goals best by routing their initiatives towards organizational incentives. If individuals locate no satisfaction in their work, the management would have little choice however to count on theory X and also exterior control (Deal, 2003). Also while evaluating Lewis's monitoring style, concept X may have been suitable in the operations division somewhat however the Advertising and marketing department would certainly need dependence on Theory Y to get the imagination and also originality from the teams.

Tuckman's Synergy Concept: As far as Lewis's worry about bringing harmony in between the advertising and also advertising division is worried, this would originally lead to clash as talked about by Bruce Tuckman in his 'Team effort Concept'. By integrating the marketing as well as advertising division's job, there might be the same initial disconnect which could lead to the second stage of 'storming' where the groups test one an additional.

When individuals are presented with modification, they get in stage one and also so there may be emotions like despair, unpredictability, disappointment, rage, worry, rejection and disorientation.The situation at the marketing division of Coca Cola In Vietnam is similar so Lewis can get comfy with the idea that it is not extraordinary behavior. It is throughout this stage that Lewis will have to offer support to the division so that they can discover a feeling of direction. It can be seen exactly how Krasnow has actually already made this transition easier by making Lewis get involved in the division a year before his real separation.
Vrio Analysis
Maslow's Demand power structure: The OB concern related to instability at the work environment has been activated to start with by the modification in management and also second of all by the fact that the merger will certainly no longer be started. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has goes over the value of 'security requires as being a reduced level need of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel safe and secure and safe' goes to the second level of needs. Prior to a staff member can be made to establish psychologically, he requires to have his 'Physical 'and 'Safety and security' needs satisfied. This suggests that unless the workers are made to feel safe concerning their present work condition in Coca Cola In Vietnam they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Coca Cola In Vietnam Case Study

Implication of Analysis.

The OB analysis has actually looked at different concepts to comprehend exactly how to deal with the present circumstance available. The complying with 3 options have been recommended to assist Lewis take care of the organizational obstacles in the marketing department. Each of these alternatives has been recommended for reducing the transition needed to bring the marketing division in accordance with the requirements of the marketplace and for making the social change that would certainly adhere to when the existing leader leaves.

Combination of advertising and marketing features. Dividing Adverting and also Production features. Combination of Advertising And Marketing with Procedures.

Evaluation of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merger days has competence in business-to-business advertising and marketing along with firm as well as retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to manage both advertising and marketing and also advertising and marketing features.

The benefit of this method is that it will integrate both functions while reducing the demand for employing an extra source for advertising. Lewis would be heading the advertising and marketing department and in any case her replacement would be needed for the current role that she is doing. The negative aspect of this choice is that external hiring may cause animosity from internal employees who might be eying the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and also Production: Offered the affordable pressures and also premium quality job called for from the ad agency, it is advised that Lewis needs to permit the manufacturing unit to be a separate function from the advertising and marketing unit. Considering that most ad agency had these two functions as separate devices, it makes more feeling to follow the standard. In addition to this, both features may have the ability to focus on their core activates a lot more successfully. The downside of this technique would certainly be that extra costs would have to be birthed for setting up separate manufacturing functions. Along with this, a manufacturing head might have to be worked with which can increase overheads for the company.

Assimilation of Marketing with Procedures: Because Lewis is currently caring for the advertising and marketing and also procedures divisions at the same time; it makes sense to integrate the two features considering that she has been successfully taking care of both ends. The truth that both divisions already have significant distinctions over allotment of resources recommends that this integration might be able to cause consistency specifically as Lewis would certainly be heading both ends.However there are numerous downsides of this move particularly as it would put too much burden over Lewis's shoulders. The fact that Lewis has to adapt her administration design for the advertising and marketing division recommends that these two divisions would be culturally diverse. In addition to this, Lewis may not have the ability to apply one kind of management style to both divisions which could cause ineffectiveness in either among both functions.


An examination of the three alternatives indicates that assimilation of advertising and marketing and also operations would certainly not be a feasible relocation due to the huge distinctions between the 2 divisions despite the reality that presently Lewis is handling both. While splitting up of the production feature may have been a favorable relocation for the advertising division, the fact that it would certainly indicate positioning a third function under Lewis's wing implies this should be stayed clear of.

Action Strategy.
Lewis will take control of the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

Manufacturing feature will remain component of advertising and marketing under marketing function.

Lewis will certainly divide herself from operations.

A democratic leadership style with employee empowerment will certainly be utilized in advertising and marketing department.

Open up door plan as well as emphasis on cross departmental interaction will be focused on removing disharmony.

Backup strategy.

If the assimilation does not work out as intended, a backup plan would comply with which would separate the manufacturing function from the advertising and marketing feature to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising division without an SVP. In that case the production function will absolutely be separated by putting it under an SVP manufacturing.