Mercedes Benz India Case Study Solution


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Mercedes Benz India Case Study Analysis

Background and Facts

Mercedes Benz India an office products merchant for little and average sized businesses has recently been involved in planning for a merging with its competitor Residence Deport, which has actually impacted effectiveness degrees in departmentswith the elderly manager associated with lawful difficulties put forth by the federal Profession Payment. With the Advertising Head advancing the news of his separation from the company in one year, Jeannie Lewis, the current head of operations has actually been asked to take the function in the future. With difficulties in the form of a prospective social change and also low staff member morale, the company wants a total reengineering effort at the marketing division.

Trouble Declaration

The prospective cultural change at the advertising and marketing department of Mercedes Benz India is boosting unpredictability in the workplace bring about various obstacles for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing critical choices because Stapes Inc. needed to desert its strategies of combining with Workplace Deport after the Federal Trade Payment's treatment in the process. Given the fact that the shop has an international existence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these nations might have the ability to affect efficiency or tactical goals. Federal Profession Commission's antitrust match versus the merger took up important time of the company's elderly administration suggesting that 'political' factors can have severe effects for an international organisation.

Economic Factors: Economic factors such as the introduction of small companies in the global situation suggest that Mercedes Benz India is flourishing in an atmosphere where there is prospective growth of businesses. Truth that shop consumers are mainly looking for office supplies for house offices suggests that the market has a climbing fad of entrepreneurs as well as residence based companies.

Social factors: Social trends in the economic situation reveal that clients are searching for benefit along with attractive prices. Market research shows how the consumer for Mercedes Benz India lacks understanding about discovering solutions which can provide a combination of ease as well as affordable.

Technical factors: Technology plays a crucial duty in Mercedes Benz India's organisation method especially as the company is piloting Technology centers which would provide technology sales as well as support in the kind of memory upgrades, outer installments. (Recap of INSECT in appendix 2).

OB Issues and Symptoms.

Several underlying Business Habits issues can be seen in Mercedes Benz India's case as highlighted in this area.

Concerns about social modification: There is uneasiness about a social modification that would certainly occur once Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising with a lot of the staff members currently showing discontent over this prospective move. This predicted modification has developed anxiety in the work environment which has actually been combined with the previous stress of preparing the firm for a possible merger with Residence Deport.

Stressful Task Setting for Newcomers: There is scarcity of employees that can match the difficult setting of a fast-paced company. Not only does this bring about trouble in finding the ideal individuals, it places stress and anxiety on brand-new hires as can not stand up to the speed and also stress that the organization expects them to birth.

Dual Reporting Lines: Beginners locate this organizational society difficult as well as difficult to cope with specifically as dotted line partnerships are suggested to be weak in general and unbiased setting and also efficiency examination is still done by the strong line manager. This suggests that newcomers can lose quality regarding their particular roles as well as objectives specifically as dotted line reporting does not maintain them in straight interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles even though it had been speculated that the latter would certainly take Krasnow's placement came as a strike to her morale. Lewis may have been capable and suitable for the work however the reality that Kransnow's departure would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Anxiety & Work Instability: Fear and instability can be determined as 2 significant worries that Lewis would be handling 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 be dropping on Lewis's shoulders that would certainly not simply be in charge of brining about a cultural modification but would certainly also have to prove herself in her brand-new duty.

Inappropriate Monitoring Style of Leader: Lewis's management design and also its conflict with the marketing department's role can also be seen as an OB obstacle especially as she has been utilized to dealing with problems in the procedures division where workers are instructed to concentrate on procedures and obtain them right. The marketing department on the various other hand can be viewed as a group of individuals who are used to being supported by Krasnow that concentrated much more on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental arguments between three departments, advertising and marketing, merchandizing and operations respectively over the allowance of the marketing mix can be determined as one more OB issue. The advertising and marketing division does not share the same vision as the various other 2 departments regarding the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and procedures divisions do not concur over the advertising and marketing mix allotment amongst one another either.

Fragmentation in Advertising Department: Disintegration in between the advertising and marketing divisions can be determined as an additional OB concern which can need additional focus. The fact that the marketing and advertising areas in the marketing department are separated is protecting against both departments from obtaining from each various other's experience as well as proficiency. Combination of advertising with merchandising and also procedures would end up being more difficult if the advertising and marketing department itself is degenerated which can be one more prospective OB problem.

Mercedes Benz India Analysis

Various concepts have actually been utilized to discuss the conditions to get further quality about the scenario available.

McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors believe that subordinates are passive and careless, have little ambition and resist change. The difficult variation of this concept stressed threat, tight controls, threats as well as punishments. With time it generates low productivity, subtle sabotage and competition (Deal, 2003). The situation at Mercedes Benz India is not totally following Theory X, it can be seen that new hires are locating this setting instead stressful which might ultimately lead to a higher disposition of the administration in the direction of Concept X. According to McGregor's advocated sight, which he called Theory Y, the necessary task of the monitoring is to prepare business conditions to ensure that people can achieve their own objectives best by routing their efforts in the direction of organizational rewards. If people discover no contentment in their work, the monitoring would certainly have little option yet to depend on concept X and external control (Bargain, 2003). Even while examining Lewis's monitoring design, concept X might have appropriated in the operations department to some extent but the Marketing division would call for dependence on Theory Y so as to get the creativity as well as originality from the teams.

Tuckman's Team effort Theory: As far as Lewis's issue regarding bringing harmony in between the advertising and marketing as well as marketing department is concerned, this would originally lead to clash as talked about by Bruce Tuckman in his 'Team effort Concept'. By incorporating the advertising as well as advertising and marketing department's work, there might be the same preliminary detach which can lead to the second stage of 'storming' where the teams challenge one another.

Bridges' Transition Design: As per William Bridge's theory (appendix 4), people are rather uncomfortable with modification, which is obvious by the scenario at Mercedes Benz India The situation can be seen as a normal program of life if is researched as per Bridge's concept where he explains that people go through three stages of transition when they experience change. 'Ending, shedding and also Letting go', The Neutral Area and 'The New Starting' (Bridges, 2004). When people are presented with adjustment, they get in phase one and so there might be emotions like sadness, unpredictability, disappointment, temper, concern, rejection as well as disorientation.The scenario at the advertising and marketing division of Mercedes Benz India is comparable so Lewis can obtain comfy with the concept that it is not extraordinary actions. In the 2nd stage, there may be a demand to bridge the gap in between the brand-new and also old culture so Lewis may need to encounter this challenge once Krasnow leaves. There might be reduced morale as well as reduced productivity at this phase which must not be taken as a problem. It is throughout this phase that Lewis will need to offer advice to the division to make sure that they can locate a sense of direction. It can be seen how Krasnow has actually already made this shift simpler by making Lewis get associated with the division a year before his real separation. According to Bridges' Design, phase 3 will bring about openness to knowing, High energy as well as dedication as individuals will certainly welcome the adjustment (Bridges, 2004).

Maslow's Requirement pecking order: The OB issue pertaining to instability at the workplace has been set off firstly by the change in administration as well as second of all by the fact that the merger will no longer be initiated. Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has talks about the relevance of 'security requires as being a lower degree need of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the demand to feel protected as well as unharmed' is at the second degree of needs. Before a staff member can be made to establish mentally, he needs to have his 'Physical 'as well as 'Safety and security' needs fulfilled. This suggests that unless the personnel are made to really feel safe about their existing work condition in Mercedes Benz India they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Mercedes Benz India Case Study

Effects of Analysis.

The OB analysis has considered various theories to comprehend just how to deal with the present situation at hand. The adhering to three options have been recommended to help Lewis take care of the organizational difficulties in the marketing department. Each of these alternatives has been recommended for alleviating the change needed to bring the advertising and marketing division in line with the needs of the market and also for making the cultural adjustment that would comply with once the current leader leaves.

Combination of marketing and advertising functions. Separating Adverting and also Production functions. Combination of Advertising And Marketing with Workflow.

Analysis of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis during the earlier merger days has experience in business-to-business marketing along with company and also retail marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing and also marketing features.

The advantage of this approach is that it will certainly integrate the two features while minimizing the demand for hiring an added resource for advertising and marketing. Lewis would certainly be heading the marketing division and also in any kind of case her replacement would be needed for the present role that she is performing. The disadvantage of this option is that exterior hiring might bring about bitterness from internal workers that may be eying the position of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Production: Offered the competitive stress as well as top quality work called for from the advertising agency, it is advised that Lewis should allow the manufacturing system to be a separate function from the marketing system. Because many advertising agencies had these two functions as different units, it makes more sense to follow the standard. Along with this, both features might have the ability to focus on their core turns on a lot more efficiently. Nevertheless, the disadvantage of this approach would be that additional expenses would have to be birthed for setting up different manufacturing functions. In addition to this, a manufacturing head may have to be employed which can raise overheads for the company.

Assimilation of Advertising And Marketing with Operations: Given that Lewis is currently looking after the advertising and procedures departments simultaneously; it makes sense to incorporate both features given that she has actually been successfully taking care of both ends. The fact that the two departments currently have significant distinctions over allocation of resources suggests that this combination might be able to cause consistency especially as Lewis would certainly be heading both ends.However there are various drawbacks of this move especially as it would certainly place excessive problem over Lewis's shoulders. The truth that Lewis has to adjust her management style for the advertising and marketing division recommends that these two divisions would certainly be culturally diverse. Lewis may not be able to apply one kind of leadership style to both divisions which might result in inefficiency in either one of the 2 features.


An analysis of the 3 choices indicates that combination of advertising as well as procedures would certainly not be a possible action due to the large distinctions between the 2 divisions regardless of the truth that currently Lewis is handling both. While separation of the manufacturing feature might have been a beneficial step for the advertising department, the truth that it would certainly mean putting a third function under Lewis's wing suggests this need to be stayed clear of.

Activity Strategy.

Lewis will certainly take over the role 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.

Manufacturing function will certainly remain part of advertising and marketing under advertising function.

Lewis will certainly separate herself from procedures.

A democratic leadership design with worker empowerment will certainly be made use of in advertising department.

Open door plan and emphasis on cross departmental communication will certainly be targeted at eliminating discord.

Backup strategy.

If the combination does not work out as prepared, a backup plan would adhere to which would certainly divide the manufacturing function from the advertising and marketing function to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the marketing division without an SVP. In that case the manufacturing function will definitely be separated by putting it under an SVP manufacturing.