Nivea A Case Study Solution


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Nivea A Case Study Help

Background and Facts

Nivea A a workplace products merchant for tiny as well as moderate sized organisations has just recently been involved in planning for a merger with its rival Home Deport, which has actually impacted effectiveness levels in departmentswith the senior manager involved in legal difficulties presented by the government Trade Commission. With the Marketing Head advancing the news of his departure from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the function in the future. With challenges in the form of a prospective social adjustment as well as low staff member morale, the organization is in need of a full reengineering initiative at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The possible social modification at the advertising and marketing division of Nivea A is enhancing unpredictability in the workplace resulting in numerous difficulties for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting critical decisions since Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Profession Payment's intervention while doing so. Given the truth that the store has a worldwide existence with branches in UK, UNITED STATES, Canada and Germany, political consider each of these countries might have the ability to impact efficiency or strategic objectives. Federal Trade Compensation's antitrust fit versus the merger occupied important time of the organization's senior administration suggesting that 'political' factors can have major effects for an international business.

Economic Factors: Financial factors such as the introduction of small businesses in the global circumstance recommend that Nivea A is thriving in an environment where there is potential growth of services. Along with this, reality that store consumers are primarily looking for office materials for office suggests that the marketplace has a climbing fad of business owners and online companies.

Social factors: Social patterns in the economy show that clients are looking for convenience along with appealing rates. Market research demonstrates how the customer for Nivea A does not have recognition regarding finding solutions which can use a mix of comfort as well as affordable.

Technological factors: Innovation plays a crucial duty in Nivea A's service method particularly as the organization is piloting Modern technology centers which would certainly provide modern technology sales as well as assistance in the form of memory upgrades, outer installations. (Recap of BUG in appendix 2).

OB Issues and also Symptoms.

A number of underlying Organizational Actions issues can be seen in Nivea A's case as highlighted in this section.

Concerns concerning social modification: There is uneasiness regarding a social modification that would certainly happen once Todd Krasnow leaves from his position as the Executive Vice President of Advertising And Marketing with the majority of the staff members already showing unhappiness over this possible relocation. This anticipated modification has developed anxiety in the office which has been combined with the previous tension of preparing the company for a prospective merging with Home Deport.
Pest Analysis
Stressful Task Setting for Newcomers: There is shortage of workers that can match the difficult setting of a hectic organization. Not only does this lead to difficulty in finding the best people, it puts anxiety on brand-new hires as can not endure the rate and pressure that the organization expects them to bear.

Twin Reporting Lines: Novices discover this organizational culture difficult as well as challenging to manage especially as dotted line connections are meant to be weak generally as well as unbiased setup as well as performance examination is still done by the strong line supervisor. This suggests that beginners could shed clarity concerning their corresponding roles as well as objectives particularly as dotted line coverage does not maintain them in direct communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles even though it had been speculated that the latter would take Krasnow's placement came as a strike to her spirits. Lewis might have been qualified and ideal for the job but the reality that Kransnow's separation would make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Worry & Task Insecurity: Fear and also instability can be determined as 2 significant concerns that Lewis would certainly be handling especially as the merging has now be terminated and 2 senior execs of the advertising and marketing division would certainly be leaving. The whole obligation of the department would certainly be falling on Lewis's shoulders that would certainly not simply supervise of brining about a cultural modification but would also need to confirm herself in her brand-new duty.

Incompatible Management Style of Leader: Lewis's management design and its incompatibility with the advertising department's function can also be seen as an OB obstacle especially as she has actually been utilized to dealing with problems in the procedures department where employees are educated to concentrate on processes and also obtain them right. The marketing department on the other hand can be seen as a group of individuals who are utilized to being supported by Krasnow that focused a lot more on result than procedures.

Interdepartmental Disagreements: Interdepartmental disagreements in between three divisions, advertising, merchandizing and procedures specifically over the allotment of the advertising and marketing mix can be recognized as one more OB concern. Although the advertising department does not share the very same vision as the various other 2 divisions concerning the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and also operations divisions do not concur over the advertising and marketing mix allocation among each other either.

Fragmentation in Advertising And Marketing Division: Fragmentation between the marketing and advertising divisions can be determined as another OB concern which might require more interest. The reality that the marketing and advertising areas in the marketing department are disconnected is avoiding both divisions from obtaining from each other's experience as well as experience. Integration of marketing with retailing as well as operations would certainly become more difficult if the advertising and marketing division itself is disintegrated which can be one more possible OB concern.

Nivea A Analysis

Numerous concepts have been utilized to clarify the situations to obtain further clarity about the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that staffs are easy as well as careless, have little aspiration as well as stand up to modification. The difficult variation of this theory stressed threat, tight controls, dangers and punishments. Gradually it creates reduced performance, refined sabotage and competition (Bargain, 2003). The scenario at Nivea A is not entirely adhering to Concept X, it can be seen that new hires are discovering this environment rather demanding which might eventually lead to a greater inclination of the monitoring in the direction of Concept X. As per McGregor's promoted view, which he called Concept Y, the important job of the monitoring is to set up business problems to make sure that individuals can attain their very own objectives best by directing their initiatives in the direction of business incentives. If individuals locate no satisfaction in their job, the monitoring would certainly have little option however to depend on concept X and also outside control (Bargain, 2003). Even while analyzing Lewis's administration style, concept X may have been suitable in the operations division to some extent however the Advertising division would need reliance on Theory Y to get the imagination as well as originality from the teams.

Tuckman's Synergy Theory: As far as Lewis's worry concerning bringing consistency in between the marketing as well as marketing department is concerned, this would originally lead to contrast as discussed by Bruce Tuckman in his 'Team effort Concept'. By integrating the marketing as well as advertising and marketing division's work, there might be the same first detach which might lead to the 2nd stage of 'storming' where the teams test one an additional.

Bridges' Transition Design: According To William Bridge's theory (appendix 4), people are rather uneasy with adjustment, which is evident by the circumstance at Nivea A The scenario can be viewed as a normal program of life if is examined as per Bridge's theory where he clarifies that people experience 3 phases of transition when they experience change. 'Ending, losing and Releasing', The Neutral Area and 'The New Beginning' (Bridges, 2004). When individuals are presented with modification, they enter stage one and so there might be feelings like sadness, unpredictability, aggravation, rage, concern, denial and disorientation.The scenario at the advertising and marketing department of Nivea A is similar so Lewis can obtain comfortable with the concept that it is not amazing behavior. In the second stage, there might be a requirement to link the gap in between the brand-new and also old society so Lewis might need to face this ordeal once Krasnow leaves. There may be reduced morale and low performance at this stage which must not be taken as a problem. It is during this phase that Lewis will certainly have to offer support to the department so that they can discover a sense of direction. It can be seen exactly how Krasnow has actually currently made this shift easier by making Lewis get involved in the department a year before his real separation. As per Bridges' Model, stage 3 will produce openness to understanding, High power and dedication as individuals will certainly accept the modification (Bridges, 2004).
Vrio Analysis
Maslow's Requirement pecking order: The OB concern related to instability at the office has actually been activated first of all by the adjustment in administration and also secondly by the fact that the merging will no longer be started. Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has discusses the importance of 'safety and security needs as being a reduced degree need of a human for causing motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the demand to feel protected and unharmed' goes to the 2nd degree of requirements. Before a staff member can be made to create mentally, he needs to have his 'Physical 'as well as 'Safety and security' needs fulfilled. This suggests that unless the workers are made to really feel safe and secure regarding their present employment condition in Nivea A they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Nivea A Case Study

Effects of Analysis.

The OB analysis has looked at numerous theories to comprehend exactly how to manage the current situation available. The following three choices have actually been proposed to assist Lewis manage the organizational obstacles in the marketing division. Each of these options has actually been suggested for alleviating the transition needed to bring the advertising and marketing department in line with the requirements of the marketplace as well as for making the social change that would certainly adhere to once the existing leader leaves.

Integration of marketing and advertising features. Separating Adverting and also Manufacturing functions. Combination of Advertising And Marketing with Workflow.

Assessment of Alternatives.

Combination of Advertising And Marketing & Marketing Functions: The internal marketing firm of Nivea A is already strength for the organization in regards to saving up on overheads related to advertising as well as promotion. Considering that no brand-new recruitment has been done after Bridget Cole's departure with the coverage line being straight assigned to Krasnow for the marketing feature, this is a positive opportunity for integrating the marketing and advertising features. Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merger days has know-how in business-to-business marketing together with company as well as retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to deal with both advertising and marketing functions.

The benefit of this approach is that it will certainly incorporate both functions while minimizing the requirement for employing an added resource for marketing. Lewis would be heading the advertising department as well as in any kind of case her replacement would be required for the existing function that she is doing. The drawback of this alternative is that outside hiring may produce animosity from inner personnel that may be eying the placement of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Production: Offered the affordable stress and high top quality work called for from the advertising and marketing company, it is advised that Lewis should enable the production unit to be a different feature from the marketing device. Because a lot of advertising and marketing agencies had these two features as separate devices, it makes more sense to follow the standard.

Combination of Advertising And Marketing with Operations: Given that Lewis is currently taking care of the marketing and also procedures departments at the same time; it makes feeling to incorporate the 2 features given that she has actually been efficiently taking treatment of both ends. The truth that Lewis has to adjust her administration design for the advertising department recommends that these two divisions would be culturally diverse.


An evaluation of the 3 options suggests that integration of marketing and also operations would not be a possible step because of the substantial distinctions in between the two divisions despite the fact that presently Lewis is handling both. While separation of the manufacturing function may have been a beneficial move for the advertising and marketing department, the fact that it would certainly mean placing a third function under Lewis's wing implies this must be prevented. The integration of the advertising and marketing department is the very best option in terms of getting the ideal arise from the division. An action plan for this choice is discussed below.

Action Strategy.
Lewis will certainly take control of the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

Production feature will stay component of advertising under advertising function.

Lewis will certainly separate herself from operations.

An autonomous leadership style with employee empowerment will be made use of in advertising and marketing division.

Open up door policy and also focus on cross department communication will be aimed at getting rid of dissonance.

Backup plan.

If the integration does not work out as prepared, a contingency strategy would certainly adhere to which would separate the production function from the advertising feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the advertising and marketing department without an SVP. In that case the production function will most definitely be divided by putting it under an SVP manufacturing.