Broadmoor Lives A New Orleans Neighborhoods Battle To Recover From Hurricane Katrina A Case Study Analysis


Home >> Chicago Booth >> Broadmoor Lives A New Orleans Neighborhoods Battle To Recover From Hurricane Katrina A >>

Broadmoor Lives A New Orleans Neighborhoods Battle To Recover From Hurricane Katrina A Case Study Analysis

Background and Facts

Broadmoor Lives A New Orleans Neighborhoods Battle To Recover From Hurricane Katrina A an office materials seller for tiny and also average sized businesses has lately been associated with preparing for a merger with its rival Home Deport, which has actually impacted effectiveness levels in departmentswith the senior supervisor involved in legal problems put forth by the government Trade Payment. With the Marketing Head putting forward the news of his departure from the firm in one year, Jeannie Lewis, the present head of operations has been asked to take the function in the near future. With challenges in the type of a potential social adjustment and also low employee spirits, the company wants a complete reengineering initiative at the advertising and marketing division.

Problem Declaration

The potential cultural adjustment at the marketing department of Broadmoor Lives A New Orleans Neighborhoods Battle To Recover From Hurricane Katrina A is increasing unpredictability in the working environment bring about different obstacles for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting strategic choices considering that Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Profession Commission's intervention at the same time. Offered the reality that the shop has a worldwide visibility with branches in UK, USA, Canada as well as Germany, political factors in each of these nations might have the ability to affect performance or calculated objectives. Federal Trade Payment's antitrust match versus the merging occupied beneficial time of the organization's senior management suggesting 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 situation recommend that Broadmoor Lives A New Orleans Neighborhoods Battle To Recover From Hurricane Katrina A is growing in an atmosphere where there is prospective development of services. Along with this, truth that shop consumers are mostly searching for workplace products for office suggests that the marketplace has an increasing pattern of entrepreneurs as well as home services.

Social factors: Social patterns in the economy show that consumers are searching for convenience in addition to attractive costs. Market research shows how the customer for Broadmoor Lives A New Orleans Neighborhoods Battle To Recover From Hurricane Katrina A lacks understanding regarding finding options which can supply a combination of ease as well as affordable.

Technical factors: Innovation plays a vital role in Broadmoor Lives A New Orleans Neighborhoods Battle To Recover From Hurricane Katrina A's company strategy specifically as the organization is piloting Technology centers which would certainly provide innovation sales and also support in the kind of memory upgrades, peripheral installments. (Summary of BUG in appendix 2).

OB Issues as well as Manifestations.

Several underlying Business Actions issues can be seen in Broadmoor Lives A New Orleans Neighborhoods Battle To Recover From Hurricane Katrina A's case as highlighted in this section.

Concerns regarding cultural change: There is concern about a cultural modification that would happen when Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising And Marketing with a lot of the personnel already showing discontent over this possible move. This expected modification has produced stress in the office which has actually been paired with the previous tension of preparing the company for a potential merging with Residence Deport.

Difficult Task Setting for Newcomers: There is shortage of personnel that can match the stressful atmosphere of a busy organization. Not only does this cause difficulty in finding the ideal individuals, it puts stress and anxiety on brand-new hires as can not endure the pace and pressure that the organization anticipates them to bear.

Twin Reporting Lines: Novices find this organizational society cumbersome and also challenging to handle particularly as dotted line partnerships are indicated to be weak generally and also unbiased setup and efficiency examination is still done by the solid line supervisor. This indicates that newcomers might lose clarity concerning their respective functions and goals especially as dotted line reporting does not keep them in straight communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had actually been speculated that the last would certainly take Krasnow's placement came as an impact to her morale. Lewis may have been qualified as well as proper for the work however the fact that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Task Insecurity: Concern and also instability can be recognized as two major concerns that Lewis would certainly be handling specifically as the merger has actually now be terminated and two elderly execs of the advertising and marketing division would be leaving. The entire obligation of the department would be dropping on Lewis's shoulders who would certainly not just supervise of brining about a social modification yet would certainly additionally have to prove herself in her new function.

Inappropriate Monitoring Design of Leader: Lewis's management design as well as its conflict with the advertising and marketing division's function can also be viewed as an OB obstacle particularly as she has been made use of to taking care of issues in the procedures department where employees are taught to concentrate on processes and obtain them right. The advertising department on the other hand can be seen as a team of individuals that are utilized to being nurtured by Krasnow who concentrated more on output than procedures.

Interdepartmental Arguments: Interdepartmental disagreements in between 3 departments, marketing, merchandizing as well as procedures respectively over the allowance of the advertising and marketing mix can be recognized as an additional OB concern. Although the advertising and marketing department does not share the very same vision as the other two departments relating to the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and also operations departments do not agree over the marketing mix allotment among each other either.

Fragmentation in Advertising Division: Disintegration in between the marketing and advertising divisions can be recognized as one more OB problem which could require additional interest. The fact that the marketing and advertising areas in the advertising and marketing department are separated is stopping both divisions from acquiring from each other's experience and also knowledge. Integration of advertising and marketing with merchandising and procedures would certainly end up being harder if the marketing department itself is disintegrated which can be an additional possible OB worry.

Broadmoor Lives A New Orleans Neighborhoods Battle To Recover From Hurricane Katrina A Analysis

Various concepts have actually been utilized to describe the conditions to obtain more clearness concerning the scenario handy.

McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many supervisors believe that subordinates are passive and lazy, have little ambition as well as stand up to adjustment. The hard variation of this theory emphasized coercion, tight controls, dangers and also penalties. With time it produces low performance, subtle sabotage as well as rivalry (Offer, 2003). Although the circumstance at Broadmoor Lives A New Orleans Neighborhoods Battle To Recover From Hurricane Katrina A is not completely following Theory X, it can be seen that brand-new hires are finding this environment rather stressful which may ultimately lead to a better inclination of the management towards Concept X. Based on McGregor's advocated sight, which he called Theory Y, the important job of the monitoring is to prepare organizational conditions to make sure that individuals can accomplish their very own goals best by guiding their initiatives in the direction of organizational benefits. If individuals find no contentment in their job, the management would have little option but to count on concept X and external control (Deal, 2003). Also while evaluating Lewis's monitoring style, concept X might have appropriated in the procedures department to some extent yet the Advertising department would certainly require reliance on Concept Y to get the imagination as well as originality from the groups.

Tuckman's Team effort Concept: Regarding Lewis's issue concerning bringing consistency in between the advertising and marketing division is concerned, this would originally result in conflict as talked about by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). As per Tuckman's concept displayed in appendix 3, during the first phase of team advancement, individuals may not bond, as they are active finding their area in the team. By combining the marketing and advertising division's job, there may be the same first detach which might lead to the 2nd stage of 'storming' where the groups challenge one another. However, it is only throughout the 3rd phase or 'norming' when they would integrate to share ideas prior to the group can bring about synergy in the fourth phase 'doing'.

When individuals are provided with adjustment, they get in phase one and also so there may be feelings like sadness, unpredictability, stress, temper, anxiety, denial as well as disorientation.The situation at the marketing division of Broadmoor Lives A New Orleans Neighborhoods Battle To Recover From Hurricane Katrina A is similar so Lewis can obtain comfortable with the idea that it is not extraordinary actions. It is during this stage that Lewis will have to give guidance to the department so that they can locate a sense of direction. It can be seen just how Krasnow has actually already made this shift much easier by making Lewis obtain entailed in the division a year prior to his real separation.

Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has discusses the significance of 'protection needs as being a lower level need of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel safe and secure as well as out of risk' is at the 2nd degree of needs. Before an employee can be made to develop emotionally, he requires to have his 'Physiological 'and also 'Safety' requires satisfied.

SWOT Analysis for Broadmoor Lives A New Orleans Neighborhoods Battle To Recover From Hurricane Katrina A Case Study

Ramification of Analysis.

The OB analysis has actually checked out numerous theories to recognize exactly how to handle the current scenario handy. The complying with 3 alternatives have been recommended to assist Lewis take care of the organizational challenges in the advertising and marketing division. Each of these options has actually been recommended for alleviating the shift needed to bring the advertising and marketing division according to the needs of the marketplace and for making the cultural adjustment that would certainly comply with when the current leader leaves.

Combination of advertising and marketing features. Dividing Adverting as well as Manufacturing features. Integration of Advertising And Marketing with Procedures.

Assessment of Alternatives.

Combination of Advertising & Advertising And Marketing Functions: The in-house marketing firm of Broadmoor Lives A New Orleans Neighborhoods Battle To Recover From Hurricane Katrina A is currently strength for the company in regards to conserving up on overheads associated with advertising and promo. Because no new recruitment has actually been done after Bridget Cole's departure with the reporting line being straight appointed to Krasnow for the marketing function, this is a positive possibility for integrating the advertising and marketing features. Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merger days has proficiency in business-to-business advertising and marketing together with firm and also retail marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to deal with both advertising and marketing functions.

The advantage of this strategy is that it will integrate the two functions while reducing the demand for working with an additional resource for advertising and marketing. Lewis would be heading the advertising division and also in any kind of case her substitute would be needed for the present role that she is performing. The drawback of this option is that outside hiring might cause resentment from interior workers who may be considering the placement of EVP after Lewis takes control of Krasnow's position.

Separating Adverting as well as Manufacturing: Offered the affordable stress and excellent quality work called for from the advertising agency, it is advised that Lewis ought to allow the production unit to be a separate function from the advertising unit. Given that most advertising agencies had these two features as separate units, it makes even more feeling to comply with the standard. Both functions might be able to focus on their core activates much more effectively. Nevertheless, the drawback of this strategy would certainly be that extra costs would have to be borne for setting up separate production features. A manufacturing head may have to be worked with which might raise expenses for the organization.

Assimilation of Advertising with Operations: Given that Lewis is already taking treatment of the advertising and marketing and operations divisions all at once; it makes feeling to incorporate the two functions since she has actually been efficiently taking care of both ends. The reality that Lewis has to adapt her monitoring design for the advertising department recommends that these two departments would certainly be culturally diverse.


An analysis of the three choices suggests that assimilation of advertising and marketing and also operations would not be a feasible action as a result of the large differences in between the two divisions despite the fact that currently Lewis is handling both. While separation of the manufacturing function may have been a beneficial action for the advertising division, the reality that it would imply placing a 3rd feature under Lewis's wing implies this need to be avoided. The integration of the advertising and marketing department is the most effective option in terms of getting the optimum results from the division. An action prepare for this choice is talked about listed below.

Action Strategy.

Lewis will take control of the function of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be merged.

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

Production function will continue to be component of advertising under marketing function.

Lewis will certainly divide herself from operations.

A democratic management design with worker empowerment will certainly be used in advertising and marketing department.

Open up door plan as well as focus on cross departmental communication will be targeted at eliminating disharmony.

Backup plan.

If the assimilation does not work out as intended, a backup plan would certainly adhere to which would certainly separate the production feature from the advertising feature to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing department without an SVP. Because case the manufacturing function will certainly be separated by putting it under an SVP production.