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Process Reengineering In Emerging Markets An Automakers Experience A Case Study Analysis

Background and Facts

Process Reengineering In Emerging Markets An Automakers Experience A an office products merchant for little as well as average sized businesses has actually just recently been associated with preparing for a merging with its competitor House Deport, which has influenced efficiency degrees in departmentswith the senior manager associated with lawful issues presented by the federal Trade Commission. With the Advertising Head putting forward the news of his departure from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the role in the near future. With difficulties in the form of a possible social change and low staff member spirits, the organization is in need of a full reengineering initiative at the advertising and marketing division.

Issue Statement
Porter's 5 Forces Analysis
The prospective cultural adjustment at the advertising department of Process Reengineering In Emerging Markets An Automakers Experience A is raising unpredictability in the workplace bring about various obstacles for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting tactical choices because Stapes Inc. needed to desert its strategies of merging with Office Deport after the Federal Trade Compensation's treatment in the process. Provided the reality that the store has a worldwide visibility with branches in UK, U.S.A., Canada and Germany, political consider each of these countries may have the ability to influence efficiency or tactical goals. Federal Trade Payment's antitrust fit against the merging occupied important time of the company's senior management recommending that 'political' factors can have significant effects for an international service.

Economic Factors: Economic factors such as the appearance of small businesses in the global situation suggest that Process Reengineering In Emerging Markets An Automakers Experience A is thriving in an environment where there is possible growth of companies. Reality that store customers are mostly looking for workplace supplies for house offices suggests that the market has a rising fad of entrepreneurs and also home based organisations.

Social factors: Social patterns in the economic situation reveal that clients are searching for convenience along with eye-catching prices. Marketing research demonstrates how the consumer for Process Reengineering In Emerging Markets An Automakers Experience A lacks awareness regarding locating services which can offer a combination of convenience as well as affordable.

Technical factors: Technology plays an important duty in Process Reengineering In Emerging Markets An Automakers Experience A's service technique especially as the company is piloting Innovation facilities which would supply technology sales and also support in the kind of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues as well as Symptoms.

Several underlying Organizational Behavior concerns can be seen in Process Reengineering In Emerging Markets An Automakers Experience A's case as highlighted in this area.

Concerns about cultural modification: There is apprehension about a social adjustment that would certainly take place as soon as Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with the majority of the personnel already showing discontent over this prospective action. This expected change has created tension in the work environment which has been combined with the past tension of preparing the company for a potential merger with House Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is scarcity of workers that can match the demanding atmosphere of a fast-paced company. Not just does this bring about difficulty in locating the right people, it places anxiety on new hires as can not withstand the rate as well as pressure that the organization expects them to birth.

Double Reporting Lines: Newcomers locate this organizational culture troublesome as well as tough to cope with specifically as populated line partnerships are suggested to be weak generally and also unbiased setup and performance assessment is still done by the strong line supervisor. This means that beginners might shed quality about their particular roles and goals specifically as populated line coverage does not keep them in direct communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than 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 qualified and also suitable for the task yet the reality that Kransnow's separation would make Coles a straight report to Lewis may have been the reason for Coles' resignation from solutions.

Worry & Work Insecurity: Anxiety and instability can be determined as 2 significant problems that Lewis would be taking care of particularly as the merger has now be terminated as well as two senior executives of the advertising department would certainly be leaving. The whole obligation of the department would be falling on Lewis's shoulders who would not simply supervise of brining about a social modification but would certainly additionally need to show herself in her new function.

Inappropriate Management Design of Leader: Lewis's administration style and also its incompatibility with the advertising and marketing department's function can additionally be viewed as an OB obstacle especially as she has actually been utilized to handling problems in the procedures division where workers are taught to focus on procedures as well as obtain them right. The advertising department on the various other hand can be viewed as a group of individuals that are utilized to being nurtured by Krasnow that concentrated a lot more on output than processes.

Interdepartmental Disputes: Interdepartmental disputes between 3 departments, advertising, merchandizing and also procedures specifically over the appropriation of the advertising mix can be recognized as another OB problem. Although the marketing department does not share the exact same vision as the various other 2 divisions relating to the aloocation of the marketing mix twoards promos and advertsing, the merchandizing and procedures departments do not agree over the marketing mix allotment among one another either.

Fragmentation in Advertising Division: Fragmentation between the advertising and marketing departments can be identified as another OB problem which can require further attention. The fact that the advertising and marketing sections in the advertising department are disconnected is protecting against both divisions from acquiring from each other's experience and also competence. Integration of advertising and marketing with retailing as well as operations would end up being harder if the advertising department itself is disintegrated which can be another potential OB issue.

Process Reengineering In Emerging Markets An Automakers Experience A Analysis

Numerous concepts have been used to discuss the conditions to obtain more quality about the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many supervisors think that staffs are easy as well as careless, have little ambition and also withstand modification. The difficult variation of this theory stressed browbeating, tight controls, dangers and punishments. With time it creates reduced performance, refined sabotage and also rivalry (Bargain, 2003). Although the scenario at Process Reengineering In Emerging Markets An Automakers Experience A is not entirely following Theory X, it can be seen that brand-new hires are discovering this setting rather difficult which might ultimately result in a higher inclination of the management in the direction of Theory X. As per McGregor's supported sight, which he called Theory Y, the vital job of the monitoring is to set up organizational problems to make sure that people can attain their very own goals best by guiding their efforts towards business benefits. If people find no complete satisfaction in their job, the management would certainly have little option but to count on concept X as well as outside control (Bargain, 2003). Also while analyzing Lewis's monitoring style, theory X may have appropriated in the operations department to some extent however the Advertising and marketing department would certainly call for reliance on Theory Y in order to get the creativity as well as originality from the groups.

Tuckman's Teamwork Theory: As far as Lewis's worry concerning bringing consistency in between the advertising and marketing as well as marketing division is concerned, this would originally lead to conflict as reviewed by Bruce Tuckman in his 'Synergy Concept'. By combining the advertising as well as advertising department's job, there may be the exact same first detach which could lead to the 2nd phase of 'storming' where the teams test one another.

When people are provided with change, they get in phase one as well as so there may be feelings like despair, unpredictability, disappointment, temper, anxiety, denial and disorientation.The circumstance at the advertising and marketing division of Process Reengineering In Emerging Markets An Automakers Experience A is similar so Lewis can get comfortable with the concept that it is not remarkable habits. It is throughout this phase that Lewis will certainly have to give advice to the division so that they can find a sense of instructions. It can be seen just how Krasnow has actually already made this transition easier by making Lewis obtain entailed in the division a year prior to his actual separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has talks about the value of 'protection 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 exactly how 'the demand to feel safe and out of danger' is at the second degree of needs. Before a staff member can be made to establish emotionally, he needs to have his 'Physiological 'and 'Safety and security' requires fulfilled.

SWOT Analysis for Process Reengineering In Emerging Markets An Automakers Experience A Case Study

Effects of Analysis.

The OB analysis has checked out various concepts to understand just how to manage the present situation at hand. The complying with 3 choices have been recommended to assist Lewis take care of the business difficulties in the advertising and marketing division. Each of these options has actually been proposed for easing the transition needed to bring the marketing division according to the requirements of the market and also for making the cultural modification that would certainly comply with as soon as the existing leader leaves.

Integration of marketing and advertising functions. Dividing Adverting and Production functions. Combination of Marketing with Procedures.

Assessment of Alternatives.

Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merger days has know-how in business-to-business advertising along with firm and retail advertising and marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to handle both marketing and advertising features.

The advantage of this method is that it will incorporate the two features while minimizing the requirement for hiring an extra resource for advertising. In addition to this, Lewis would be heading the advertising and marketing department and also in any case her replacement would be needed for the present duty that she is carrying out. The negative aspect of this choice is that exterior hiring might bring about resentment from inner workers who may be eying the placement of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and also Manufacturing: Offered the affordable stress and top quality job required from the advertising agency, it is advised that Lewis needs to permit the manufacturing unit to be a separate function from the advertising and marketing unit. Since most advertising agencies had these 2 features as different devices, it makes more feeling to follow the norm. Both features might be able to focus on their core activates extra effectively. The drawback of this approach would be that additional prices would have to be birthed for setting up separate production features. A production head might have to be hired which could enhance overheads for the company.

Combination of Advertising And Marketing with Operations: Given that Lewis is already taking care of the advertising as well as operations divisions concurrently; it makes sense to incorporate the two features since she has been efficiently taking care of both ends. The truth that Lewis has to adjust her administration design for the advertising and marketing division recommends that these 2 departments would certainly be culturally varied.


An evaluation of the 3 options shows that integration of advertising and operations would certainly not be a practical relocation due to the substantial distinctions in between both divisions despite the fact that currently Lewis is taking care of both. While separation of the production function might have been a positive relocation for the advertising and marketing division, the truth that it would certainly imply placing a third function under Lewis's wing means this need to be prevented. The assimilation of the marketing department is the most effective option in terms of obtaining the optimal arise from the department. An action prepare for this choice is discussed below.

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

Advertising and Marketing features would be merged.

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

Production feature will certainly continue to be part of advertising and marketing under advertising function.

Lewis will separate herself from procedures.

An autonomous management style with staff member empowerment will certainly be used in marketing division.

Open up door plan as well as emphasis on cross departmental interaction will certainly be aimed at getting rid of disharmony.

Contingency strategy.

If the assimilation does not work out as prepared, a backup plan would certainly adhere to which would certainly divide the production function from the advertising function to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising division without an SVP. In that case the production feature will certainly be divided by positioning it under an SVP production.