Be Well Hospitals Branding A Mid Tier Service In A Two Tier Market Case Study Help


Home >> Chicago Booth >> Be Well Hospitals Branding A Mid Tier Service In A Two Tier Market >>

Be Well Hospitals Branding A Mid Tier Service In A Two Tier Market Case Study Solution

Background and Facts

Be Well Hospitals Branding A Mid Tier Service In A Two Tier Market an office materials store for tiny and medium sized businesses has actually lately been associated with planning for a merger with its rival Home Deport, which has actually impacted efficiency degrees in departmentswith the senior supervisor involved in legal issues presented by the federal Trade Compensation. With the Advertising Head advancing the news of his separation from the company in one year, Jeannie Lewis, the present head of operations has been asked to take the duty in the future. With obstacles in the kind of a potential social adjustment and also reduced worker spirits, the organization requires a full reengineering effort at the marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The prospective cultural modification at the marketing department of Be Well Hospitals Branding A Mid Tier Service In A Two Tier Market is raising uncertainty in the working environment resulting in various obstacles for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting critical decisions given that Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Profession Payment's intervention in the process. Given the truth that the shop has a worldwide presence with branches in UK, USA, Canada as well as Germany, political consider each of these nations may have the ability to influence efficiency or tactical goals. Federal Profession Payment's antitrust suit versus the merger used up useful time of the organization's senior management suggesting that 'political' factors can have major ramifications for a global company.

Economic Factors: Financial factors such as the emergence of small businesses in the global circumstance recommend that Be Well Hospitals Branding A Mid Tier Service In A Two Tier Market is flourishing in an environment where there is prospective growth of companies. Truth that store customers are primarily looking for workplace materials for home offices recommends that the market has a rising trend of entrepreneurs and house based businesses.

Social factors: Social patterns in the economy show that consumers are trying to find comfort as well as appealing costs. Market research demonstrates how the client for Be Well Hospitals Branding A Mid Tier Service In A Two Tier Market does not have understanding regarding discovering remedies which can offer a combination of ease as well as inexpensive.

Technical factors: Innovation plays an essential function in Be Well Hospitals Branding A Mid Tier Service In A Two Tier Market's business strategy specifically as the company is piloting Modern technology centers which would certainly provide technology sales and also assistance in the form of memory upgrades, peripheral setups. (Recap of BUG in appendix 2).

OB Issues as well as Effects.

Several underlying Organizational Habits concerns can be seen in Be Well Hospitals Branding A Mid Tier Service In A Two Tier Market's case as highlighted in this section.

Apprehensions regarding cultural change: There is concern concerning a cultural 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 currently showing discontent over this possible step. This predicted modification has actually created stress and anxiety in the work environment which has actually been combined with the past stress of preparing the company for a possible merging with House Deport.
Pest Analysis
Stressful Job Setting for Newcomers: There is scarcity of personnel that can match the difficult setting of a fast-paced organization. Not just does this lead to difficulty in finding the best individuals, it places tension on new hires as can not hold up against the speed and pressure that the organization expects them to birth.

Double Reporting Lines: Novices find this business culture difficult and also hard to handle specifically as populated line partnerships are suggested to be weaker in general and also unbiased setup and also efficiency analysis is still done by the strong line manager. This indicates that newbies can shed clarity concerning their corresponding functions as well as goals particularly as populated line reporting does not keep them in direct interaction 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 position came as a blow to her morale. Lewis might have been capable and appropriate for the task however the reality that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Fear & Work Instability: Anxiety as well as instability can be determined as 2 significant concerns that Lewis would be taking care of particularly as the merger has actually currently be terminated as well as 2 elderly execs of the advertising and marketing department would be leaving. The whole obligation of the division would be dropping on Lewis's shoulders that would certainly not just supervise of brining concerning a cultural change yet would also need to verify herself in her new duty.

Incompatible Management Design of Leader: Lewis's monitoring style and its conflict with the marketing department's function can likewise be seen as an OB obstacle especially as she has actually been utilized to managing issues in the operations division where workers are taught to concentrate on procedures as well as get them right. The marketing division on the other hand can be viewed as a team of people who are used to being nurtured by Krasnow who concentrated much more on result than processes.

Interdepartmental Differences: Interdepartmental arguments in between 3 divisions, marketing, merchandizing and operations specifically over the allocation of the advertising mix can be identified as one more OB issue. Although the advertising division does not share the exact same vision as the various other 2 divisions concerning the aloocation of the marketing mix twoards promos and advertsing, the merchandizing and also operations departments do not agree over the advertising mix allotment among each other either.

Fragmentation in Advertising And Marketing Department: Fragmentation between the marketing and advertising divisions can be determined as one more OB concern which might require further interest. The fact that the marketing and advertising areas in the advertising and marketing division are disconnected is protecting against both departments from gaining from each other's experience and also competence. Combination of advertising with merchandising and operations would come to be harder if the marketing department itself is broken down which can be an additional possible OB problem.

Be Well Hospitals Branding A Mid Tier Service In A Two Tier Market Analysis

Different concepts have been used to describe the circumstances to get further clarity about the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers believe that staffs are easy and lazy, have little aspiration and withstand adjustment. The tough variation of this concept highlighted coercion, tight controls, dangers and punishments. With time it produces low efficiency, subtle sabotage as well as rivalry (Offer, 2003). Although the scenario at Be Well Hospitals Branding A Mid Tier Service In A Two Tier Market is not entirely following Concept X, it can be seen that brand-new hires are locating this setting instead stressful which may eventually result in a greater disposition of the administration towards Concept X. Based on McGregor's promoted view, which he called Concept Y, the necessary task of the management is to prepare organizational problems to make sure that individuals can achieve their own objectives best by directing their initiatives in the direction of business benefits. If individuals find no fulfillment in their work, the management would certainly have little choice yet to rely on concept X and also outside control (Bargain, 2003). Even while assessing Lewis's administration style, concept X may have appropriated in the procedures department to some extent yet the Advertising and marketing division would require reliance on Concept Y to get the imagination and creativity from the teams.

Tuckman's Team effort Concept: As far as Lewis's problem about bringing consistency in between the advertising and also marketing department is concerned, this would initially lead to clash as discussed by Bruce Tuckman in his 'Teamwork Theory'. By incorporating the advertising and marketing and advertising department's work, there might be the same first detach which might lead to the 2nd stage of 'storming' where the teams challenge one an additional.

When people are provided with modification, they go into stage one and so there may be feelings like sadness, unpredictability, frustration, rage, concern, denial and also disorientation.The situation at the advertising and marketing division of Be Well Hospitals Branding A Mid Tier Service In A Two Tier Market is comparable so Lewis can get comfortable with the idea that it is not amazing habits. It is throughout this phase that Lewis will certainly have to provide support to the division so that they can find a feeling of instructions. It can be seen exactly how Krasnow has actually currently made this transition simpler by making Lewis obtain included in the department a year before his actual separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has discusses the significance of 'safety and security requires as being a lower level requirement of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel protected and out of risk' is at the 2nd degree of demands. Before an employee can be made to develop mentally, he requires to have his 'Physiological 'and 'Security' needs fulfilled.

SWOT Analysis for Be Well Hospitals Branding A Mid Tier Service In A Two Tier Market Case Study

Implication of Analysis.

The OB analysis has actually considered different concepts to comprehend how to cope with the present situation handy. The following 3 alternatives have actually been recommended to assist Lewis manage the business obstacles in the advertising department. Each of these alternatives has actually been proposed for relieving the shift required to bring the advertising department according to the requirements of the market as well as for making the social change that would certainly follow when the existing leader leaves.

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

Evaluation of Alternatives.

Integration of Marketing & Marketing Functions: The internal marketing company of Be Well Hospitals Branding A Mid Tier Service In A Two Tier Market is already stamina for the organization in terms of conserving up on overheads connected to advertising and marketing and promo. Given that no brand-new employment has been done after Bridget Cole's departure with the coverage line being straight designated to Krasnow for the advertising and marketing function, this is a positive possibility for incorporating the advertising and marketing features. Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merger days has proficiency in business-to-business advertising in addition to company as well as 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 benefit of this strategy is that it will certainly incorporate both features while decreasing the requirement for employing an extra source for advertising. Lewis would certainly be heading the marketing department and also in any case her substitute would certainly be required for the current role that she is performing. The downside of this choice is that exterior hiring may cause animosity from internal employees that may be eying the position of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and Production: Offered the competitive stress as well as high quality job called for from the marketing agency, it is suggested that Lewis should permit the manufacturing system to be a different function from the marketing system. Because many advertising and marketing firms had these two functions as separate systems, it makes even more sense to adhere to the standard.

Assimilation of Advertising And Marketing with Workflows: Considering that Lewis is currently taking care of the advertising and marketing and also operations departments simultaneously; it makes sense to integrate the 2 functions because she has actually been successfully taking care of both ends. The truth that Lewis has to adapt her management style for the advertising and marketing department suggests that these 2 divisions would be culturally varied.


An examination of the 3 options suggests that combination of advertising and operations would not be a viable action due to the vast differences between the 2 departments regardless of the reality that currently Lewis is taking care of both. While separation of the manufacturing function may have been a favorable step for the advertising division, the reality that it would certainly imply positioning a 3rd feature under Lewis's wing implies this need to be prevented.

Activity Plan.
Lewis will take control of the function of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

Production function will stay part of marketing under marketing feature.

Lewis will divide herself from procedures.

A democratic management style with employee empowerment will be utilized in marketing division.

Open door plan and also emphasis on cross department interaction will be focused on getting rid of disharmony.

Contingency strategy.

If the integration does not work out as prepared, a contingency strategy would certainly follow which would separate the production function from the advertising feature to reduce the lots 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 production feature will most definitely be divided by placing it under an SVP production.