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Nivea A Case Study Solution

Background and Facts

Nivea A a workplace products merchant for small and also medium sized services has recently been associated with preparing for a merger with its rival House Deport, which has affected effectiveness levels in departmentswith the elderly supervisor associated with lawful complications presented by the federal Trade Payment. With the Advertising and marketing Head putting forward the information of his separation from the firm in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the duty in the future. With obstacles in the type of a possible cultural adjustment and reduced staff member spirits, the organization needs a full reengineering effort at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The prospective social change at the advertising and marketing division of Nivea A is increasing uncertainty in the working environment leading to different obstacles 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 significant duty in affecting critical choices considering that Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Profession Commission's treatment while doing so. Offered the reality that the store has a global existence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these countries might have the ability to influence performance or critical goals. Federal Trade Compensation's antitrust suit against the merging used up useful time of the company's senior monitoring recommending that 'political' factors can have severe implications for a worldwide company.

Economic Factors: Economic factors such as the appearance of local business in the worldwide scenario suggest that Nivea A is prospering in an atmosphere where there is possible growth of companies. Fact that store clients are mainly looking for workplace products for residence workplaces suggests that the market has an increasing pattern of business owners as well as house based services.

Social factors: Social patterns in the economy show that customers are looking for benefit along with appealing rates. Marketing research demonstrates how the consumer for Nivea A does not have recognition about locating options which can provide a mix of benefit and inexpensive.

Technical factors: Modern technology plays an essential function in Nivea A's service method especially as the organization is piloting Innovation facilities which would certainly offer modern technology sales and also assistance in the form of memory upgrades, outer installations. (Summary of BUG in appendix 2).

OB Issues as well as Effects.

Several underlying Business Actions problems can be seen in Nivea A's case as highlighted in this section.

Uneasiness concerning social change: There is apprehension about a cultural change that would take place once Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with most of the employee currently revealing unhappiness over this possible relocation. This predicted change has produced stress and anxiety in the workplace which has been coupled with the previous stress of preparing the firm for a possible merger with Home Deport.
Pest Analysis
Demanding Work Environment for Newcomers: There is lack of workers that can match the demanding setting of a hectic organization. Not only does this cause problem in finding the ideal individuals, it puts stress and anxiety on brand-new hires as can not endure the rate as well as stress that the company anticipates them to bear.

Twin Coverage Lines: Newbies discover this organizational society cumbersome as well as challenging to deal with specifically as dotted line connections are meant to be weaker in general and also objective setup and performance examination is still done by the strong line supervisor. This indicates that novices can lose clearness about their corresponding duties and also goals specifically as dotted line coverage does not maintain them in straight interaction with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles even though it had actually been guessed that the latter would certainly take Krasnow's placement came as a blow to her spirits. Lewis might have been qualified and also appropriate for the job yet the fact that Kransnow's separation would certainly make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Concern & Work Instability: Fear and also instability can be identified as 2 major concerns that Lewis would be taking care of specifically as the merger has actually currently be terminated and also two elderly executives of the advertising department would be leaving. The entire responsibility of the department would be dropping on Lewis's shoulders who would certainly not just supervise of brining regarding a cultural change yet would also have to prove herself in her new role.

Incompatible Administration Style of Leader: Lewis's management style as well as its conflict with the advertising division's function can likewise be seen as an OB obstacle particularly as she has been made use of to managing issues in the operations department where employees are instructed to focus on processes and obtain them. The advertising and marketing department on the various other hand can be viewed as a team of individuals that are made use of to being nurtured by Krasnow who concentrated more on output than procedures.

Interdepartmental Arguments: Interdepartmental differences in between 3 departments, advertising and marketing, merchandizing as well as procedures specifically over the allotment of the advertising and marketing mix can be identified as an additional OB worry. Although the advertising department does not share the same vision as the other two departments pertaining to the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing as well as procedures departments do not concur over the advertising mix appropriation amongst one another either.

Disintegration in Advertising And Marketing Division: Disintegration between the advertising and marketing divisions can be identified as one more OB concern which might require more focus. The reality that the advertising and marketing areas in the advertising and marketing division are disconnected is preventing both departments from gaining from each other's experience and competence. Integration of marketing with merchandising and procedures would end up being more difficult if the marketing division itself is disintegrated which can be another possible OB issue.

Nivea A Analysis

Different concepts have actually been made use of to clarify the scenarios to get further clearness regarding the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of supervisors think that juniors are easy as well as lazy, have little aspiration and also resist adjustment. The situation at Nivea A is not totally adhering to Theory X, it can be seen that new hires are finding this setting rather demanding which may eventually lead to a greater disposition of the monitoring in the direction of Concept X. Even while analyzing Lewis's management style, concept X might have been ideal in the operations department to some extent but the Advertising and marketing division would need reliance on Concept Y in order to get the creative thinking and also creativity from the teams.

Tuckman's Team effort Concept: As for Lewis's concern concerning bringing consistency between the marketing and advertising department is concerned, this would originally result in conflict as gone over by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). As per Tuckman's theory shown in appendix 3, during the preliminary stage of group development, individuals may not bond, as they are hectic finding their location in the team. By incorporating the advertising and marketing division's work, there might coincide first disconnect which could cause the 2nd stage of 'storming' where the teams test one another. Nevertheless, it is just throughout the 3rd stage or 'norming' when they would come together to share ideas before the group can bring about harmony in the fourth phase 'doing'.

Bridges' Transition Model: As per William Bridge's theory (appendix 4), people are quite uneasy with adjustment, which is apparent by the situation at Nivea A The situation can be viewed as a normal program of life if is examined as per Bridge's theory where he describes that people undergo 3 stages of change when they experience adjustment. 'Ending, shedding and also Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When individuals exist with adjustment, they go into phase one therefore there may be emotions like unhappiness, unpredictability, frustration, rage, fear, rejection as well as disorientation.The scenario at the advertising and marketing division of Nivea A is similar so Lewis can obtain comfortable with the concept that it is not extraordinary habits. In the second phase, there may be a requirement to connect the void in between the new and also old culture so Lewis might need to face this experience when Krasnow leaves. There might be low spirits as well as reduced performance at this phase which should not be taken as a problem. It is throughout this stage that Lewis will certainly need to provide support to the department so that they can locate a sense of direction. It can be seen exactly how Krasnow has already made this shift easier by making Lewis obtain associated with the division a year before his real separation. According to Bridges' Model, phase three will certainly bring about openness to learning, High power and dedication as people will certainly embrace the change (Bridges, 2004).
Vrio Analysis
Maslow's Need hierarchy: The OB problem related to insecurity at the office has actually been triggered firstly by the adjustment in management as well as secondly by the reality that the merger will no longer be started. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has talks about the importance of 'security needs as being a reduced level requirement of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to really feel secure and out of danger' is at the 2nd degree of needs. Before an employee can be made to develop emotionally, he requires to have his 'Physical 'and 'Safety' requires fulfilled. This indicates that unless the personnel are made to feel safe and secure concerning their existing employment status in Nivea A they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Nivea A Case Study

Effects of Analysis.

The OB analysis has actually taken a look at various concepts to comprehend just how to manage the current situation handy. The complying with three alternatives have actually been recommended to aid Lewis deal with the organizational obstacles in the advertising and marketing division. Each of these choices has actually been proposed for easing the shift needed to bring the advertising division in accordance with the requirements of the market and also for making the cultural change that would adhere to once the current leader leaves.

Combination of marketing and advertising features. Dividing Adverting and Production functions. Combination of Marketing with Workflow.

Examination of Alternatives.

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

The advantage of this technique is that it will integrate both features while reducing the need for working with an added resource for advertising and marketing. In addition to this, Lewis would be heading the marketing division as well as regardless her substitute would be needed for the current duty that she is doing. The disadvantage of this option is that outside hiring might bring about animosity from inner workers that might be considering the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting and Production: Given the competitive pressures and also high quality work called for from the advertising and marketing agency, it is advised that Lewis should enable the manufacturing system to be a separate feature from the advertising and marketing unit. Given that the majority of marketing companies had these 2 features as different systems, it makes more sense to follow the norm.

Combination of Marketing with Workflows: Because Lewis is currently taking treatment of the advertising and marketing and procedures departments all at once; it makes sense to incorporate the two functions because she has been efficiently taking care of both ends. The reality that Lewis has to adjust her management style for the advertising department recommends that these two divisions would certainly be culturally diverse.


An assessment of the 3 choices suggests that integration of advertising and marketing and operations would certainly not be a practical relocation due to the large differences between the 2 departments despite the fact that currently Lewis is dealing with both. While separation of the production function may have been a beneficial step for the advertising and marketing division, the truth that it would imply positioning a 3rd feature under Lewis's wing means this ought to be avoided.

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

Marketing and advertising features would be combined.

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

Manufacturing function will certainly continue to be component of advertising and marketing under marketing feature.

Lewis will certainly separate herself from procedures.

An autonomous leadership design with staff member empowerment will be used in advertising department.

Open up door plan and focus on cross departmental communication will certainly be focused on removing disharmony.

Backup plan.

If the integration does not exercise as prepared, a backup strategy would certainly follow which would certainly separate the production feature from the advertising function to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the marketing department without an SVP. In that case the manufacturing function will definitely be divided by placing it under an SVP production.