Menu

Mercedes Benz India Case Study Help

CASE SOLUTION

Home >> Kelloggs >> Mercedes Benz India >>

Mercedes Benz India Case Study Help

Background and Facts

Mercedes Benz India an office supplies store for tiny and also medium sized businesses has recently been involved in preparing for a merger with its rival Residence Deport, which has affected effectiveness degrees in departmentswith the elderly manager involved in legal complications presented by the federal Profession Compensation. With the Advertising Head putting forward the news of his separation from the company in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the function in the future. With obstacles in the kind of a prospective cultural change and low worker morale, the organization needs a full reengineering initiative at the advertising and marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising division of Mercedes Benz India is increasing uncertainty in the working environment resulting in numerous difficulties 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 major role in affecting calculated choices since Stapes Inc. had to abandon its plans of combining with Workplace Deport after the Federal Profession Payment's treatment at the same time. Provided the reality that the shop has a worldwide visibility with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these countries may be able to affect performance or strategic goals. Federal Profession Commission's antitrust match against the merger used up valuable time of the organization's elderly administration recommending that 'political' factors can have serious ramifications for a worldwide business.

Economic Factors: Financial factors such as the emergence of small businesses in the worldwide situation recommend that Mercedes Benz India is flourishing in an atmosphere where there is potential growth of businesses. Along with this, truth that shop clients are primarily seeking workplace supplies for office suggests that the marketplace has a rising fad of entrepreneurs and also home companies.

Social factors: Social fads in the economy show that consumers are seeking convenience as well as attractive rates. Market research demonstrates how the customer for Mercedes Benz India does not have understanding about locating remedies which can offer a combination of benefit and affordable.

Technological factors: Modern technology plays an essential function in Mercedes Benz India's organisation method especially as the organization is piloting Technology facilities which would supply technology sales and support in the form of memory upgrades, outer setups. (Recap of INSECT in appendix 2).

OB Issues and Manifestations.

Several underlying Business Behavior problems can be seen in Mercedes Benz India's case as highlighted in this section.

Concerns regarding social modification: There is uneasiness about a cultural change that would happen when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with the majority of the team member already revealing discontent over this prospective step. This expected change has actually developed stress and anxiety in the workplace which has actually been coupled with the previous anxiety of preparing the company for a possible merger with Home Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is lack of workers that can match the demanding environment of a busy organization. Not only does this bring about difficulty in discovering the ideal people, it puts tension on new hires as can not hold up against the rate and also stress that the organization anticipates them to birth.

Double Reporting Lines: Newbies find this organizational society troublesome and also hard to handle particularly as dotted line connections are implied to be weaker generally as well as objective setting as well as efficiency analysis is still done by the strong line supervisor. This means that newcomers can shed clearness about their corresponding duties and goals specifically as populated line reporting does not keep them in straight communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles although it had been guessed that the latter would take Krasnow's setting came as an impact to her morale. Lewis might have been qualified and also proper for the job yet the fact that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Job Instability: Concern and insecurity can be determined as 2 significant worries that Lewis would be taking care of specifically as the merging has actually currently be terminated and 2 senior executives of the advertising and marketing department would certainly be leaving. The whole duty of the division would certainly be falling on Lewis's shoulders that would certainly not simply be in charge of brining concerning a social adjustment yet would likewise need to confirm herself in her new duty.

Incompatible Monitoring Design of Leader: Lewis's management style and its conflict with the marketing division's role can likewise be seen as an OB difficulty specifically as she has actually been made use of to handling problems in the procedures department where personnel are instructed to focus on procedures and also obtain them right. The marketing division on the other hand can be viewed as a team of people that are utilized to being nurtured by Krasnow who concentrated a lot more on output than processes.

Interdepartmental Differences: Interdepartmental disagreements in between 3 divisions, advertising and marketing, merchandizing and procedures specifically over the allotment of the advertising mix can be determined as one more OB issue. The advertising and marketing division does not share the very same vision as the various other 2 divisions pertaining to the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing as well as operations divisions do not concur over the advertising mix appropriation among one another either.

Fragmentation in Advertising Department: Fragmentation between the marketing and advertising divisions can be recognized as one more OB issue which might require additional attention. The reality that the marketing and advertising sections in the marketing department are detached is stopping both divisions from getting from each other's experience and also expertise. Combination of marketing with retailing and also procedures would certainly become harder if the marketing department itself is degenerated which can be one more potential OB worry.

Mercedes Benz India Analysis

Various theories have actually been made use of to explain the situations to get further clearness regarding the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of managers believe that staffs are passive and lazy, have little passion and also resist change. The tough variation of this concept highlighted threat, tight controls, risks and penalties. In time it produces reduced performance, refined sabotage as well as competition (Bargain, 2003). The circumstance at Mercedes Benz India is not completely complying with Theory X, it can be seen that new hires are discovering this environment rather demanding which might eventually lead to a greater disposition of the administration towards Concept X. As per McGregor's advocated sight, which he called Concept Y, the important job of the administration is to set up business conditions to ensure that individuals can achieve their own objectives best by guiding their efforts towards business rewards. If individuals discover no satisfaction in their job, the monitoring would have little selection yet to rely upon theory X as well as outside control (Offer, 2003). Even while assessing Lewis's monitoring style, theory X might have appropriated in the operations department somewhat however the Advertising department would certainly call for reliance on Theory Y in order to get the creativity and also originality from the groups.

Tuckman's Team effort Concept: As far as Lewis's problem regarding bringing consistency between the advertising and also advertising and marketing department is concerned, this would at first lead to contrast as gone over by Bruce Tuckman in his 'Synergy Concept'. By combining the marketing and also advertising division's work, there might be the same preliminary detach which could lead to the second stage of 'storming' where the teams test one an additional.

Bridges' Shift Design: According To William Bridge's concept (appendix 4), individuals are fairly uneasy with modification, which is obvious by the situation at Mercedes Benz India The situation can be seen as a normal program of life if is researched based on Bridge's theory where he clarifies that people experience three stages of change when they experience change. 'Closing, losing and Releasing', The Neutral Area and 'The New Beginning' (Bridges, 2004). When people are presented with adjustment, they get in stage one and so there may be feelings like despair, uncertainty, irritation, rage, worry, rejection as well as disorientation.The circumstance at the marketing department of Mercedes Benz India is similar so Lewis can get comfortable with the suggestion that it is not extraordinary habits. In the second phase, there might be a requirement to connect the void in between the brand-new and also old culture so Lewis may have to encounter this ordeal when Krasnow leaves. There might be low morale and also reduced performance at this phase which should not be taken as a setback. It is throughout this stage that Lewis will need to provide support to the division to make sure that they can find a sense of direction. It can be seen just how Krasnow has already made this transition easier by making Lewis get involved in the division a year before his real separation. According to Bridges' Version, phase 3 will produce openness to understanding, High power and commitment as people will accept the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has goes over the value of 'protection needs as being a reduced degree need of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel secure and also out of threat' is at the 2nd degree of demands. Prior to an employee can be made to develop emotionally, he needs to have his 'Physical 'and 'Safety and security' needs fulfilled.

SWOT Analysis for Mercedes Benz India Case Study



Ramification of Analysis.

The OB analysis has actually looked at different concepts to recognize just how to handle the existing circumstance handy. The following 3 options have been recommended to aid Lewis take care of the organizational challenges in the marketing division. Each of these options has been suggested for easing the transition needed to bring the marketing division in line with the demands of the market and also for making the cultural modification that would certainly follow once the present leader leaves.

Assimilation of advertising and marketing features. Separating Adverting and Production functions. Integration of Marketing with Workflow.

Examination of Alternatives.

Judith Shapiro who has actually earlier been spoken with by Lewis throughout the earlier merging days has expertise in business-to-business advertising along with agency and retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to take care of both advertising and also marketing features.

The benefit of this approach is that it will integrate the two functions while minimizing the demand for working with an additional resource for advertising. Lewis would be heading the advertising and marketing division and in any kind of case her substitute would be required for the current function that she is performing. The negative aspect of this choice is that outside hiring may produce bitterness from internal personnel that might be looking at the placement of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and also Production: Offered the affordable stress as well as top quality work called for from the ad agency, it is recommended that Lewis must permit the manufacturing unit to be a different feature from the marketing unit. Considering that many advertising agencies had these 2 features as different devices, it makes more sense to follow the standard. Both functions may be able to focus on their core activates a lot more efficiently. The disadvantage of this strategy would certainly be that extra prices would have to be borne for establishing up different production functions. A manufacturing head might have to be hired which might boost expenses for the company.

Integration of Advertising And Marketing with Workflows: Since Lewis is already taking care of the marketing as well as operations departments simultaneously; it makes sense to integrate the two features because she has been efficiently dealing with both ends. The truth that both departments already have significant distinctions over appropriation of resources suggests that this combination may be able to cause harmony particularly as Lewis would be heading both ends.However there are numerous disadvantages of this step specifically as it would certainly put way too much concern over Lewis's shoulders. The fact that Lewis needs to adapt her administration design for the advertising and marketing department recommends that these 2 departments would certainly be culturally diverse. Lewis might not be able to use one kind of management design to both divisions which might result in ineffectiveness in either one of the two features.

Suggestion.



An examination of the 3 alternatives suggests that integration of advertising and marketing and operations would not be a feasible relocation as a result of the large distinctions between the two departments despite the fact that currently Lewis is handling both. While separation of the production feature may have been a desirable relocation for the advertising division, the truth that it would certainly suggest putting a third function under Lewis's wing implies this ought to be avoided. The integration of the marketing division is the best option in terms of getting the optimal results from the department. An activity prepare for this alternative is reviewed below.

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

Advertising and Marketing functions would be merged.

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

Production feature will remain component of advertising under advertising feature.

Lewis will separate herself from procedures.

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

Open up door plan and emphasis on cross departmental communication will be targeted at removing discord.

Contingency plan.

If the assimilation does not work out as prepared, a backup plan would certainly follow which would divide the production feature from the marketing feature to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the advertising and marketing division without an SVP. Because case the manufacturing feature will certainly be divided by putting it under an SVP production.