The Hestia Fund Case Study Analysis


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The Hestia Fund Case Study Analysis

Background and Facts

The Hestia Fund a workplace materials retailer for little and moderate sized services has actually just recently been involved in preparing for a merger with its rival House Deport, which has impacted performance degrees in departmentswith the senior manager associated with legal complications presented by the government Trade Compensation. With the Advertising and marketing Head advancing the news of his departure from the business in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the role in the near future. With obstacles in the kind of a possible cultural adjustment as well as reduced employee spirits, the organization is in need of a full reengineering effort at the advertising department.

Issue Statement

The possible cultural adjustment at the advertising and marketing department of The Hestia Fund is boosting uncertainty in the workplace resulting in various obstacles for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in affecting strategic choices given that Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Trade Compensation's intervention while doing so. Offered the fact that the store has an international existence with branches in UK, USA, Canada and Germany, political consider each of these nations might be able to influence efficiency or strategic objectives. Federal Profession Compensation's antitrust fit versus the merging took up important time of the organization's senior management recommending that 'political' factors can have severe implications for a worldwide business.

Economic Factors: Economic factors such as the appearance of small businesses in the global scenario suggest that The Hestia Fund is prospering in a setting where there is possible growth of businesses. In addition to this, truth that store clients are primarily trying to find office materials for home offices suggests that the marketplace has an increasing pattern of entrepreneurs and home services.

Social factors: Social patterns in the economic climate show that clients are trying to find convenience along with appealing prices. Market research demonstrates how the customer for The Hestia Fund lacks understanding concerning finding solutions which can provide a combination of ease and low costs.

Technological factors: Modern technology plays a crucial role in The Hestia Fund's company method especially as the organization is piloting Modern technology facilities which would certainly supply technology sales as well as assistance in the type of memory upgrades, peripheral installments. (Summary of PARASITE in appendix 2).

OB Issues and Manifestations.

Numerous underlying Business Behavior concerns can be seen in The Hestia Fund's case as highlighted in this section.

Uneasiness regarding social change: There is worry about a cultural modification that would certainly occur once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising And Marketing with most of the team member currently showing unhappiness over this possible move. This expected adjustment has actually produced tension in the work environment which has been coupled with the previous tension of preparing the company for a potential merger with Home Deport.

Difficult Job Environment for Newcomers: There is lack of workers that can match the demanding atmosphere of a busy organization. Not only does this cause trouble in locating the right individuals, it places stress on new hires as can not endure the pace and pressure that the organization anticipates them to birth.

Dual Reporting Lines: Novices find this organizational society difficult and challenging to cope with particularly as dotted line connections are suggested to be weaker generally as well as objective setting as well as performance examination is still done by the strong line supervisor. This implies that newbies can lose clearness regarding their corresponding functions and also goals specifically as dotted line coverage does not keep them in straight communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles despite the fact that it had actually been guessed that the last would certainly take Krasnow's placement came as an impact to her morale. Lewis may have been capable and also suitable for the work yet the reality that Kransnow's departure would make Coles a straight report to Lewis may have been the reason for Coles' resignation from solutions.

Concern & Job Insecurity: Concern and instability can be identified as two significant issues that Lewis would certainly be dealing with specifically as the merger has actually now be cancelled as well as two elderly execs of the advertising and marketing department would be leaving. The whole responsibility of the department would certainly be dropping on Lewis's shoulders who would not simply supervise of brining regarding a cultural modification but would likewise have to show herself in her brand-new duty.

Incompatible Monitoring Design of Leader: Lewis's administration design and also its conflict with the advertising department's function can also be seen as an OB difficulty particularly as she has been used to managing concerns in the operations department where employees are instructed to concentrate on procedures and obtain them right. The advertising department on the other hand can be viewed as a team of individuals who are used to being nurtured by Krasnow that focused a lot more on result than procedures.

Interdepartmental Differences: Interdepartmental disagreements in between three departments, advertising, merchandizing as well as procedures specifically over the allowance of the advertising and marketing mix can be identified as another OB worry. Although the marketing department does not share the very same vision as the other 2 departments concerning the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and procedures departments do not concur over the marketing mix allotment amongst one another either.

Disintegration in Advertising And Marketing Department: Fragmentation between the marketing and advertising departments can be recognized as one more OB problem which can require additional focus. The reality that the marketing and advertising sections in the advertising and marketing division are detached is preventing both departments from acquiring from each other's experience and also know-how. Integration of marketing with merchandising as well as procedures would certainly come to be harder if the advertising division itself is degenerated which can be another potential OB issue.

The Hestia Fund Analysis

Various concepts have actually been made use of to explain the circumstances to obtain further clearness regarding the situation available.

McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers think that juniors are passive and careless, have little passion as well as stand up to change. The circumstance at The Hestia Fund is not completely complying with Theory X, it can be seen that brand-new hires are finding this atmosphere instead demanding which might ultimately lead to a better inclination of the administration towards Theory X. Even while analyzing Lewis's management design, theory X may have been appropriate in the procedures department to some extent but the Advertising and marketing department would certainly call for reliance on Concept Y in order to obtain the creative thinking as well as creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's concern regarding bringing harmony between the marketing as well as advertising and marketing division is concerned, this would initially lead to clash as gone over by Bruce Tuckman in his 'Teamwork Concept'. By integrating the advertising and marketing and advertising and marketing division's job, there might be the same preliminary separate which could lead to the second phase of 'storming' where the teams challenge one another.

Bridges' Change Design: According To William Bridge's theory (appendix 4), individuals are quite unpleasant with modification, which is noticeable by the situation at The Hestia Fund The scenario can be seen as a normal program of life if is examined according to Bridge's theory where he clarifies that individuals experience 3 phases of shift when they experience modification. 'End, losing as well as Letting go', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When people exist with adjustment, they enter phase one and so there might be feelings like sadness, uncertainty, frustration, rage, anxiety, denial as well as disorientation.The situation at the marketing division of The Hestia Fund is comparable so Lewis can obtain comfortable with the concept that it is not phenomenal behavior. In the 2nd stage, there may be a need to connect the space in between the new and also old society so Lewis might have to face this ordeal when Krasnow leaves. There might be low spirits and also reduced efficiency at this stage which must not be taken as a setback. It is throughout this stage that Lewis will have to give support to the department so that they can find a sense of direction. It can be seen exactly how Krasnow has already made this change less complicated by making Lewis get associated with the division a year prior to his real separation. According to Bridges' Version, stage 3 will certainly cause openness to understanding, High power and dedication as people will embrace the change (Bridges, 2004).

Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has discusses the value of 'safety requires as being a reduced degree need of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel safe and secure and also out of threat' is at the second level of requirements. Prior to a worker can be made to establish emotionally, he requires to have his 'Physiological 'and 'Safety and security' requires met.

SWOT Analysis for The Hestia Fund Case Study

Ramification of Analysis.

The OB analysis has actually looked at numerous concepts to comprehend exactly how to manage the present situation available. The following three choices have been suggested to help Lewis manage the business difficulties in the marketing department. Each of these alternatives has actually been suggested for relieving the shift required to bring the advertising division in line with the demands of the market as well as for making the cultural adjustment that would certainly follow once the existing leader leaves.

Assimilation of advertising and marketing functions. Dividing Adverting and Production functions. Assimilation of Advertising And Marketing with Workflow.

Evaluation of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merger days has know-how in business-to-business advertising along with agency and retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to manage both advertising and marketing and also marketing functions.

The advantage of this strategy is that it will incorporate both functions while minimizing the requirement for hiring an extra resource for advertising and marketing. Lewis would certainly be heading the marketing division and in any type of case her replacement would be required for the present duty that she is doing. The drawback of this option is that exterior hiring might bring about resentment from internal workers who might be looking at the placement of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and also Production: Offered the affordable stress and also premium quality work required from the advertising agency, it is recommended that Lewis ought to allow the production device to be a different feature from the advertising unit. Given that many ad agency had these two functions as different units, it makes more sense to adhere to the standard. Along with this, both features might have the ability to focus on their core turns on extra effectively. The drawback of this technique would certainly be that added prices would certainly have to be borne for establishing up separate manufacturing features. A manufacturing head might have to be hired which might enhance expenses for the organization.

Combination of Advertising And Marketing with Procedures: Since Lewis is currently looking after the marketing and procedures divisions simultaneously; it makes sense to integrate the two functions because she has been successfully taking care of both ends. The truth that the two divisions currently have significant distinctions over allowance of sources recommends that this integration might be able to bring about consistency specifically as Lewis would certainly be heading both ends.However there are different downsides of this relocation specifically as it would put way too much burden over Lewis's shoulders. The reality that Lewis has to adapt her administration design for the advertising and marketing department suggests that these two divisions would certainly be culturally varied. Lewis might not be able to apply one kind of leadership design to both departments which could result in inadequacy in either one of the 2 features.


An analysis of the 3 alternatives suggests that integration of marketing and also procedures would certainly not be a viable move because of the huge differences in between both divisions although that currently Lewis is taking care of both. While separation of the production feature may have been a beneficial step for the marketing division, the reality that it would certainly suggest placing a 3rd function under Lewis's wing implies this must be stayed clear of. The assimilation of the advertising department is the best alternative in terms of getting the optimum arise from the division. An activity plan for this choice is reviewed below.

Action Plan.

Lewis will take over the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would be combined.

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

Manufacturing feature will certainly remain part of marketing under advertising and marketing feature.

Lewis will certainly separate herself from procedures.

An autonomous leadership style with employee empowerment will be used in marketing department.

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

Backup strategy.

If the assimilation does not exercise as prepared, a backup strategy would certainly comply with which would certainly divide the production feature from the advertising function to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising and marketing division without an SVP. In that case the production feature will absolutely be separated by positioning it under an SVP production.